(Yicai Global) March 21 -- Shares in Changchun High-Tech Industries bounced back sharply today, after slumping to a recent low yesterday, after the Chinese biopharmaceutical firm said it is selling its real estate unit to its largest shareholder to concentrate on its main business.

Changchun High-Tech’s share price [SHE:000661] closed up 7.7 percent at CNY169.87 (USD25) today. In the past two trading days the stock has lost more than 15 percent of its value, although no concerning news was released. The firm told Yicai Global on March 17 that the company was operating as normal.

Changchun High-Tech is selling 100 percent equity of Changchun High-Tech Real Estate Development to Changchun Gaoxin Chaoda Investment to optimize the firm’s asset structure and cash flow and to focus on the development of its core biopharmaceutical business, the Changchun, northeastern Jilin province-based company said yesterday.

Although the transaction amount was not given, Changchun High-Tech said that High Tech Real Estate had total assets of CNY6.6 billion (USD959.1 million) as of June 30 last year, of which net assets amounted to CNY1.6 billion.

Changchun Chaoda, which is controlled by the Changchun municipal government, hiked its stake in Changchun High-Tech to 18.84 percent, or 0.04 percent of total equity, today, the biopharma firm said.

Changchun High-Tech earns 98 percent of its revenue from pharmaceutical products, such as growth hormones, vaccines and traditional Chinese medicines, and less than 2 percent from real estate, according to the firm’s interim financial report last year.

Changchun High-Tech logged a 10 percent jump in net profit in the first three quarters of 2022 from a year earlier to CNY3.5 billion (USD509 million), while revenue jumped 17 percent to CNY9.6 billion, according to its latest earnings report.

Editor: Kim Taylor