In three months, twice planning company control changes, the Mienhua family is eager to "sell off" Baihua Pharmaceutical.

Ask AI · Why is the Mi’enhua family in a rush to transfer shares of Baihua Pharmaceutical despite steady performance?

More than three months have passed, and the Mi’enhua family of a Xinjiang tycoon has once again been planning to transfer its equity in Baihua Pharmaceutical. This deal may result in a change in the controlling rights of the listed company. Baihua Pharmaceutical has been suspended from trading starting March 31.

In a notice issued late on March 30, Baihua Pharmaceutical stated that on that day it received a notice from Mi Zaiqi, Mi’enhua, and Yang Xiaoling, the company’s controlling shareholder and actual controllers. The three are in the process of planning a share agreement transfer. This matter may lead to a change in the company’s controlling rights. Given that this equity agreement transfer is still under negotiation and there is uncertainty, to ensure fair disclosure and safeguard investors’ interests, and to avoid abnormal fluctuations in the company’s share price, the company will suspend trading from the start of trading on March 31, and the expected suspension period will not exceed 2 trading days.

Mi’enhua, 68, is the founder of the Xinjiang “Hualing” enterprise group. Mi Zaiqi is the son of the couple Mi Zaiqi and Yang Xiaoling. According to information from the official website of Hualing Niuye Group, Xinjiang Hualing Industry and Trade (Group) Co., Ltd. (hereinafter referred to as Hualing Industry and Trade) was established in July 1988. It has adhered to the approach of “based in Xinjiang, serving the entire country, and radiating across Asia and Europe.” It has formed a private enterprise group with a commodity market as the main component, cattle breeding as the core, and integrates commercial services, real estate development, foreign trade, large-scale logistics, overseas investment, animal husbandry industries, forage planting, forestry and fruit seed industry, landscaping and greening, finance, education, and more. In 2018, Mi’enhua was awarded the title of “Top 100 Outstanding Private Entrepreneurs in the 40 Years of Reform and Opening Up.”

As a listed company platform under the actual control of the Mi’enhua family, Baihua Pharmaceutical was once the “First Listed Company of the XPCC.” Its principal business and equity structure have also undergone multiple changes. According to public information, after 2000, over the next decade or so, the company completed three rounds of asset restructuring. Its principal business shifted from the commercial services industry to information high-tech, and then to the energy sector. Ultimately, in 2016, it acquired Nanjing Huawei Pharmaceutical and transformed into a pharmaceutical R&D services industry. In 2019, during the reform process of state-owned assets and enterprises within the XPCC, through open solicitation, the original controlling rights were transferred to Hualing Industry and Trade. At present, Baihua Pharmaceutical’s principal business includes early discovery and screening of new drugs, drug CMC development, clinical trials, registration and submission, and other related activities.

According to Baihua Pharmaceutical’s 2025 annual report, for the full year, the company achieved operating revenue of 388 million yuan, up 0.66% year on year. Net profit attributable to shareholders of listed companies was 40.6879 million yuan, down 1.91% year on year. As of the end of 2025, the company’s total assets were 8B yuan and net assets were 802 million yuan, with its financial fundamentals remaining stable. For future development, the company proposed to focus on “pharmaceuticals and health on a broad scale” as the core, and follow the main line of “adjusting structure, expanding scale, and extending the industrial chain,” continuously strengthening core capabilities such as pharmaceutical R&D, clinical research, registration and submissions, and R&D of distinctive APIs.

However, for this seemingly solid fundamental pharmaceutical company, the Mi’enhua family appears to be eager to “get out,” having already issued two announcements within more than three months to plan for a change in control.

On December 26, 2025, Baihua Pharmaceutical disclosed that it received a notice from Mi Zaiqi, Mi’enhua, and Yang Xiaoling—controlling shareholder and actual controllers of the company—stating that Mi Zaiqi, Mi’enhua, and Yang Xiaoling were planning to transfer the company’s shares by share agreement. The matter could lead to a change in the company’s control rights, and the company’s stock would be suspended from trading starting from the opening of trading on December 29, 2025. Shortly thereafter, on January 6, Baihua Pharmaceutical announced that because the controlling shareholder and the actual controllers, as well as the transaction counterparty, had not reached consistent views on major matters related to the change in control, they decided to terminate the plan to change control. The company’s stock resumed trading after January 7, but after resumption it encountered consecutive limit-down moves on two trading days.

It is worth noting that after the Mi’enhua family “took over” Baihua Pharmaceutical, the company’s performance fluctuated significantly, and the returns they obtained were relatively limited.

Since the Mi’enhua family took over Baihua Pharmaceutical in 2019, from 2019 to 2024, the net profit attributable to the parent company was 34.3847 million yuan, -320 million yuan, 59.8271 million yuan, -34.7647 million yuan, 12.9723 million yuan, and 41.4790 million yuan, respectively. Although performance was poor, in the company’s 2025 third-quarter report performance explanation meeting, it stated that it would always keep pharmaceutical R&D services as its core business. In the field of small-molecule generic drugs, it has already established differentiated advantages, building a full-chain service capability. In the past two years, the company’s project application acceptance volume and approval volume have both been among the leaders in the industry.

At the same time, the equity structure of Hualing Industry and Trade, owned by the Mi family in 2025, has also changed. According to Tianyancha data, on April 29, 2025, Xinjiang Shangwu Asset Operation Co., Ltd. became the controlling shareholder of Hualing Industry and Trade with a 51% shareholding. The company is wholly held by Xinjiang Shangmao Logistics (Group) Co., Ltd., which is supervised by the Xinjiang Uygur Autonomous Region’s State-owned Assets Supervision and Administration Commission. As a result, Hualing Industry and Trade has become a locally state-owned enterprise with controlling ownership. The controlling enterprise of Hualing Industry and Trade also includes multiple companies such as Hualing Niuye Group Co., Ltd., Xinjiang Hualing Real Estate Development Co., Ltd., and Xinjiang Tianlu International Trade Co., Ltd.

(Author: Du Yuan)