TWG Announces Entry into a Memorandum of Understanding with Chinese Pharmaceutical Group for Injection of Pet Pharmaceutical Products Business
Top Wealth Group (NASDAQ: TWG) has entered into a binding memorandum of understanding (MOU) with Jilin Xiuzheng, a subsidiary of Xiuzheng Group, for the injection of its animal pharmaceutical products business into TWG. The transaction will give Jilin Xiuzheng majority control of TWG in exchange for its pet and livestock pharmaceutical business, related trademarks, manufacturing facilities, and access to distribution channels in China.
Xiuzheng Group, ranked as China's second-largest privately-owned pharmaceutical group with 2024 sales revenue of RMB67.7 billion, will contribute its established presence in the animal health sector. The MOU is effective for 120 days, during which TWG will conduct due diligence and aim to reach a definitive agreement.
The Chinese pet market has shown remarkable growth, expanding at a 25.4% annual rate from RMB97.8 billion in 2015 to RMB592.8 billion in 2023, with projections reaching RMB811.4 billion by 2025.
Top Wealth Group (NASDAQ: TWG) ha firmato un memorandum d'intesa vincolante (MOU) con Jilin Xiuzheng, una controllata di Xiuzheng Group, per l'integrazione del suo ramo di prodotti farmaceutici per animali all'interno di TWG. L'operazione conferir脿 a Jilin Xiuzheng il controllo di maggioranza di TWG in cambio del suo business farmaceutico per animali domestici e da allevamento, dei marchi correlati, degli impianti produttivi e dell'accesso ai canali di distribuzione in Cina.
Xiuzheng Group, classificato come secondo pi霉 grande gruppo farmaceutico privato in Cina con ricavi di vendita nel 2024 pari a 67,7 miliardi di RMB, apporter脿 la sua consolidata presenza nel settore della salute animale. Il MOU ha validit脿 di 120 giorni, durante i quali TWG condurr脿 la due diligence e cercher脿 di raggiungere un accordo definitivo.
Il mercato cinese degli animali domestici ha mostrato una crescita straordinaria, espandendosi a un tasso annuo del 25,4% da 97,8 miliardi di RMB nel 2015 a 592,8 miliardi di RMB nel 2023, con previsioni che raggiungono i 811,4 miliardi di RMB entro il 2025.
Top Wealth Group (NASDAQ: TWG) ha firmado un memorando de entendimiento vinculante (MOU) con Jilin Xiuzheng, una filial de Xiuzheng Group, para la incorporaci贸n de su negocio de productos farmac茅uticos para animales en TWG. La transacci贸n otorgar谩 a Jilin Xiuzheng el control mayoritario de TWG a cambio de su negocio farmac茅utico para mascotas y ganado, las marcas relacionadas, las instalaciones de fabricaci贸n y el acceso a los canales de distribuci贸n en China.
Xiuzheng Group, reconocido como el segundo grupo farmac茅utico privado m谩s grande de China con ingresos por ventas en 2024 de 67.7 mil millones de RMB, aportar谩 su presencia consolidada en el sector de la salud animal. El MOU tiene una vigencia de 120 d铆as, durante los cuales TWG realizar谩 la debida diligencia y buscar谩 alcanzar un acuerdo definitivo.
El mercado chino de mascotas ha mostrado un crecimiento notable, expandi茅ndose a una tasa anual del 25.4% desde 97.8 mil millones de RMB en 2015 hasta 592.8 mil millones de RMB en 2023, con proyecciones que alcanzan los 811.4 mil millones de RMB para 2025.
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Top Wealth Group (NASDAQ : TWG) a conclu un protocole d'accord contraignant (MOU) avec Jilin Xiuzheng, une filiale du groupe Xiuzheng, pour l'int茅gration de son activit茅 de produits pharmaceutiques pour animaux au sein de TWG. Cette op茅ration donnera 脿 Jilin Xiuzheng le contr么le majoritaire de TWG en 茅change de son activit茅 pharmaceutique pour animaux de compagnie et d'茅levage, des marques associ茅es, des installations de fabrication et de l'acc猫s aux r茅seaux de distribution en Chine.
Le groupe Xiuzheng, class茅 comme le deuxi猫me plus grand groupe pharmaceutique priv茅 en Chine avec un chiffre d'affaires 2024 de 67,7 milliards de RMB, apportera sa pr茅sence bien 茅tablie dans le secteur de la sant茅 animale. Le MOU est valable pour une dur茅e de 120 jours, durant laquelle TWG effectuera une diligence raisonnable et visera 脿 conclure un accord d茅finitif.
Le march茅 chinois des animaux de compagnie a connu une croissance remarquable, s'茅tendant 脿 un taux annuel de 25,4% passant de 97,8 milliards de RMB en 2015 脿 592,8 milliards de RMB en 2023, avec des projections atteignant 811,4 milliards de RMB d'ici 2025.
Top Wealth Group (NASDAQ: TWG) hat eine verbindliche Absichtserkl盲rung (MOU) mit Jilin Xiuzheng, einer Tochtergesellschaft der Xiuzheng Group, unterzeichnet, um dessen Tierarzneimittelgesch盲ft in TWG einzubringen. Durch die Transaktion erh盲lt Jilin Xiuzheng die Mehrheitskontrolle 眉ber TWG im Austausch f眉r sein pharmazeutisches Gesch盲ft f眉r Haustiere und Nutztiere, zugeh枚rige Marken, Produktionsanlagen und den Zugang zu Vertriebskan盲len in China.
Die Xiuzheng Group, als Zweitgr枚脽ter privat gef眉hrter Pharmakonzern Chinas mit einem Umsatz von 67,7 Milliarden RMB im Jahr 2024, bringt ihre etablierte Pr盲senz im Bereich Tiergesundheit ein. Das MOU ist f眉r 120 Tage g眉ltig, in denen TWG eine Due Diligence durchf眉hrt und eine endg眉ltige Vereinbarung anstrebt.
Der chinesische Heimtiermarkt verzeichnete ein bemerkenswertes Wachstum mit einer j盲hrlichen Wachstumsrate von 25,4%, von 97,8 Milliarden RMB im Jahr 2015 auf 592,8 Milliarden RMB im Jahr 2023, mit Prognosen von 811,4 Milliarden RMB bis 2025.
- Strategic entry into China's rapidly growing pet pharmaceutical market with 25.4% annual growth rate
- Partnership with China's second-largest private pharmaceutical group (RMB67.7B revenue)
- Access to established manufacturing facilities and Xiuzheng's distribution channels in China
- Existing caviar business will continue under current management while gaining new revenue stream
- Significant dilution for existing shareholders as Jilin Xiuzheng will gain majority control
- Change in corporate control and board composition
- Integration risks between existing caviar business and new pet pharmaceutical operations
- 120-day MOU period creates uncertainty until definitive agreement is reached
Insights
TWG's MOU with Xiuzheng Group represents transformative deal giving majority control to Chinese pharma in exchange for pet pharmaceutical business.
This binding MOU between TWG and Jilin Xiuzheng represents a transformative transaction that will fundamentally alter TWG's business focus and corporate structure. The deal structure is particularly notable - rather than a traditional acquisition, this is essentially a reverse takeover where Jilin Xiuzheng will inject its animal pharmaceutical business into TWG in exchange for majority control and voting power of the company.
The strategic rationale centers on entering China's rapidly growing pet market, which has expanded at an impressive
The corporate governance implications are significant. Post-transaction, Jilin Xiuzheng will appoint directors and senior management while TWG's existing management will continue operating their caviar business as a secondary operation. The 120-day effective period provides time for due diligence but also creates execution risk before a definitive agreement is reached.
For TWG shareholders, this represents a fundamental shift in investment thesis from a caviar business to a pet pharmaceutical company controlled by a Chinese conglomerate. While the growth potential is substantial, the dilution of ownership and change in strategic direction represents a pivotal moment that will significantly impact TWG's future trajectory and investor base.
聽Hong Kong, July 17, 2025 (GLOBE NEWSWIRE) -- Top Wealth Group Holding Limited (NASDAQ: TWG) (鈥淭op Wealth鈥� or the 鈥淐ompany鈥�), today announced that it has entered into a legally-binding memorandum of understanding (the 鈥淢OU鈥�) with Jilin Xiuzheng Agriculture and Animal Husbandry Technology Co., Ltd. (鈥淛ilin Xiuzheng鈥�), a member of leading Chinese Pharmaceutical Group Xiuzheng Group, for a proposed injection of animal-related (including pets and livestocks) pharmaceutical products, foods and supplements business.
Jilin Xiuzheng is a member of Xiuzheng Group, specializing in the development and operation of animal-related (including pets and livestocks) pharmaceutical products, foods and supplements, and other related products (鈥淪ubject Business鈥�). Xiuzheng Group is a leading private Chinese pharmaceutical group specializing on the production of traditional Chinese medicines, chemical pharmaceuticals, biopharmaceuticals and standardized cultivation of medicinal herbs. According to All-China Federation of Industry and Commerce, in 2024, Xiuzheng Group achieved sales revenue of RMB67.7 billion, and is ranked among the Top 500 Chinese Private Enterprises and Top 500 Chinese Private Manufacturing Enterprises. According to the lists, Xiuzheng Group is the second largest privately-owned pharmaceutical group by revenue in China. The 鈥淴iuzheng鈥� brand is highly recognized within China鈥檚 pharmaceutical sector.
Pursuant to the MOU, Jilin Xiuzheng proposed to inject the Subject Business, and the related trademarks and copyrights, manufacturing facilities, and the usage right of Xiuzheng Group鈥檚 distribution channels in China, into the Company in return for new shares constituting majority control and voting power of the Company. Following the transaction, Jilin Xiuzheng will have power to nominate directors to represent its interests in the board of the Company and appoint senior management members. The injected business will be managed by Jilin Xiuzheng鈥檚 management team while the existing caviar business of the Company will continue to be managed by the existing management team of the Company. The MOU is effective for a period of 120 days from the date of the MOU subject to extension as agreed between the parties. During the effective period of the MOU, the Company will conduct due diligence and valuation on the Subject Business and targets to enter into a definitive agreement with Jilin Xiuzheng in relation to the asset injection.
Mr Kim Kwan Kings, Wong, Chief Executive Officer of Top Wealth, commented, 鈥淭his is a very important step for the Company to enter into another luxury products and services market: the pets market in China, which is growing rapidly and offers tremendous business opportunities. As families become wealthier, they tend to keep more pets and spend more on them. According to a market report published by KPMG China in June this year, the pets market size in China grew at an average annual rate of approximately
About Top Wealth Group Holding Limited
Top Wealth Group Holding Limited聽is a holding company incorporated in the聽Cayman Islands, and all of its operations are carried out by its operating subsidiary in聽Hong Kong,聽Top Wealth Group (International) Limited. The Company specializes in supplying premium-class sturgeon caviar, and its caviar and caviar products are endorsed with the聽Convention on International Trade聽in Endangered Species of Wild Fauna and Flora (鈥淐ITES鈥�) permits. The Company supplies caviar to its customers under its customer鈥檚 brand labels (i.e. private labeling), and the Company also sells the caviar product under the Company鈥檚 caviar brand, 鈥淚mperial Cristal Caviar鈥�, which has continuously achieved tremendous sales growth since its launch in the market.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the 鈥渟afe harbor鈥� provisions of the聽U.S.聽Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 鈥渨ill,鈥� 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥渇uture,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渂elieves,鈥� 鈥渆stimates,鈥� 鈥渃onfident鈥� and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the聽U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company鈥檚 beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the Company鈥檚 filings with the聽Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.
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Top Wealth Group Holding Limited
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FAQ
What is the TWG and Jilin Xiuzheng deal structure announced on July 17, 2025?
How large is the Chinese pet market that TWG is entering?
Who is Xiuzheng Group and what is their market position?
What happens to TWG's existing caviar business after the merger?
When will the TWG-Jilin Xiuzheng deal be finalized?
