LBX Loan

active

 The Laobaixing Pharmacy Chain Joint Stock Company (“LBX” or the “company” -  http://www.lbxdrugs.com/) is listed on the Shanghai Stock Exchange and is a leading pharmaceutical retailer with stores across 22 provinces in China. The company has three business store units: direct stores (100% owned); Spark Business group stores (51-67% equity ownership) and franchised stores. The company also owns an in-house logistics operator (Fengwoda) and Yaoshengtang Pharmaceutical Company which integrates traditional Chinese medical production manufacture and scientific research.   As of March 31, 2020, LBX operates around 4,100 direct-sale stores including Spark Business group stores and 1,400 franchise stores. The company also operates a state-of-the-art national logistics center in Changsha, Hunan along with 4 regional logistics centers and 22 provincial distribution centers, and effectively manage inventory through advanced warehousing management systems such as automatic assortment lines, automatic labeling and shelfing.The Company plans to add over 2,500 stores as well as 5 new logistics centers within the next 3 years (The Project). The proposed IFC investment is a senior loan of RMB 1,000 million (approximately $142 million equivalent) to support the expansion of stores and the new logistics centers.