(Yicai) June 5 -- Shares of Chinese drugmaker Aim Pharm surged for a second straight day after Yao Jinbo, founder of China’s Craigslist-like platform 58.Com, proposed a CNY662 million (USD92 million) investment to become the pharmaceutical firm's largest shareholder.

Aim Pharm [SHE: 002826] jumped 10 percent to CNY14.74 (USD2.10) in Shenzhen today, following another 10 percent gain yesterday. Since the start of the year, the stock has surged by more than 40 percent, bringing the company’s total market capitalization to around CNY2.8 billion (USD389.8 million).

Fuhao Enterprise Management, a firm controlled by Yao, signed an equity transfer agreement with Gao Fan, Aim Pharm’s largest shareholder, to acquire 43.9 million shares at CNY15.1 apiece, representing 23 percent of its total share capital, the Lhasa-based firm announced on June 3.

Founder Gao, who resigned as Aim Pharm’s chairman and general manager in 2021, will retain about 2.6 percent of the firm’s shares after the deal.

Founded in 2007, Aim Pharm manufactures medications for diabetes and cardiovascular diseases. In recent years, it has come under pressure from China’s centralized drug procurement program, which has driven down prices significantly.

In response, Aim Pharm revised its business strategy last year, reducing its reliance on third-party product partnerships. Despite a 2 percent year-over-year drop in revenue to CNY652 million (USD90.8 million), the company reported a tripling of net profit to CNY45.9 million (USD6.4 million) in 2024. By contrast, in 2023, both net profit and revenue had plunged 65 percent and 22 percent, respectively.

Yao, 48, founded 58.Com in 2005. Under his leadership, the classifieds platform expanded into a comprehensive marketplace covering recruitment, real estate, used cars, and local lifestyle services. The company was listed on the New York Stock Exchange in 2013, and Yao currently serves as its chairman and chief executive.

As part of the acquisition deal, a performance commitment stipulates that Aim Pharm must maintain annual net profits of no less than CNY30 million (excluding non-recurring gains and losses) and revenue of no less than CNY600 million through 2027. If these conditions are not met, Yao will be entitled to performance compensation.

Editors: Dou Shicong, Emmi Laine