BEIJING, June 22 (Xinhua) -- Chinese drugmaker Harbin Pharmaceutical Group Co.,Ltd. (600664.SH) announced late Sunday that its investment in GNC Holdings, Inc. (GNC) of the United States had caused a loss of 1.165 billion yuan.
According to the drugmaker, as of February 13, 2019, it had made three payments to subscribe for GNC's 299,950 convertible preference shares, involving a total investment of 299.5 million U.S. dollars. However, the drugmaker recently received a notice from GNC about its poor fiscal performance and debt extension, which resulted in huge losses for Harbin Pharmaceutical.
Due to the impact of the COVID-19, GNC saw bleak fiscal performance in the first quarter of 2020. As of May 6, about 40 percent of its stores in the United States and Canada had been temporarily closed, some of which may be permanently closed in the future.
GNC generated about 473 million dollars of operating revenues in the first quarter of this year, down 16.3 percent year on year, with the gross profits down 32.7 percent on year to about 137 million dollars.
GNC announced on June 15 that it had reached an agreement with the lender to extend the deadline for its loans to June 30. (Edited by Zhang Yuan with Xinhua Silk Road, email@example.com)