(Yicai) Jan. 12 -- Shares in Changchun High-Tech Industry Group tanked today after the Chinese state-owned pharmaceutical company said that the general manager and founder of one of its subisidaries has given away a 7.4 percent stake in the firm worth CNY4 billion (USD560.1 million) to his ex-wife as part of the divorce proceedings.

Changchun High-Tech’s share price [SHE:000661] closed down 6.3 percent at CNY125 (USD17).

Jin Lei, who is in charge of one of the firm’s most lucrative units Changchun GeneScience Pharmaceutical, recently divorced amicably from his wife Wang Simian and agreed to hand over 30 million shares in Changchun High-Tech to her, the Changchun-based company said yesterday. Based on yesterday’s closing price of CNY133.41 (USD18.67) a share, the equity is worth around CNY4 billion.

Jin’s stake has been diluted to 1.1 percent from 8.5 percent and he now holds around 4.6 million shares. Both Jin and Wang have pledged not to reduce their holdings in the next 12 months.

The equity transfers do not affect the ownership and control of Changchun High-Tech, it said.

Changchun GeneScience, which contributed more than 90 percent of the parent firm’s profit in the first three quarters last year, is under great pressure as competition crowds in on its growth hormone business, which is its main source of revenue. Yesterday, for instance, Xiamen Amoytop Biotech applied for its self-developed human growth hormone injection to go to market, an area that Changchun GeneScience has long dominated.

In the nine months ended Sept. 30, 2023, Changchun GeneScience only logged a 1.6 percent gain in net profit year on year to CNY3.5 billion (USD490 million).

Editors: Shi Yi, Kim Taylor