Beijing Jingdong Century Trading Company Limited (Jingdong), Shanghai Pharmaceutical Company Limited, Beijing Harmony Growth Investment Centre (IDG Capital) and other investors entered into the transaction documents for the tranche A financing for Shanghai Pharmaceuticals Grand Health Cloud Company Limited (Grand Health Cloud), a subsidiary of Shanghai Pharmaceuticals Holding Company Limited. (Shanghai Pharmaceuticals) in August 2015, raising a total amount of RMB1.1 billion. The closing of this project has recently been completed.
In this project, Shanghai Pharmaceuticals, Jingdong and IDG Capital jointly increased their investment in Grand Health Cloud, of which Shanghai Pharmaceuticals invested by using 100% of the equity interest it holds in its subsidiary Shanghai Pharma Zhongxie Company Limited. Jingdong invested in cash and relevant resources, and IDG Capital invested in cash.
Grand Health Cloud is a platform of Shanghai Pharmaceuticals for developing e-business in pharmaceuticals, which plays an important role in integrating online and offline network resources, trade services and e-business in Rx drugs, and in building the big three online platforms and three-tier offline network based upon the core concept “Internet +”. Through capital increase, strategic partners and financial investors are introduced to establish a universal strategic partnership on e-commerce in respect of, among others, Rx drugs and OTC drugs. By injecting into the relevant resources jointly, such partners and investors helped Grand Health Cloud expedite the building of the e-commerce platform and establish the leading role in the pharmaceutical industry. This project facilitated the design of a roadmap for the separation of medicine and pharmaceuticals and raised the leading position of Shanghai Pharmaceuticals in the pharmaceutical industry. Additionally, the increased investment is also a fund support for the future business development of Grand Health Cloud.
JunHe acted as the legal counsel for Jingdong in the transaction, and has provided legal services in all respects. In addition to the legal services which are involved in a general acquisition project, including without limitation due diligence, drafting of and negotiation on transaction documents, and coordination of the closing of the project, JunHe also provided the client with legal analysis on special issues involved in this project, such as permits and capital contribution required for the e-commerce in pharmaceuticals. This project was initiated in June 2015 and continued for more than five years until the closing of the transaction at the end of November 2015. The JunHe team has devoted every effort throughout the whole project and played a key role in pushing forward the overall process and analyzing critical legal issues, which are highly praised by the client.