According to the Bank’s website, the project will fund Zhejiang Xinghan Bona Pharmaceutical Technology Co., Ltd. (Yaodou) working capital to enable it to distribute more pharmaceutical and medical products to pharmacies and community health centers, thus supporting the availability of pharmaceuticals outside hospital dispensaries. The project will provide up to $50 million equivalent in yuan senior secured loans, comprising (i) an A loan of up to $20 million equivalent in yuan from ADB's ordinary capital resources; and (ii) a parallel loan of up to $30 million equivalent in yuan.

Yaodou is a pharmaceutical distributor operating in the PRC and distributes 86% of its products in inland cities such as those in central and southern regions of the PRC. It focuses on pharmacy distribution to the outside hospital segment, which comprises pharmacies and community health centers. Yaodou connects approximately 3,000 suppliers to 31,000 buyers, and delivers over 10,597 types of products, of which 74.7% are prescription drugs.

Environment: C
Involuntary Resettlement: C
Indigenous Peoples: C

In compliance with ADB Safeguard Policy Statement (2009), external consultants conducted environmental and social due diligence (ESDD). The ESDD did not find potential significant adverse, irreversible, unprecedented, and diverse environmental impacts from the use of the ADB loan proceeds.

Yaodou operates warehouses and office spaces on leased or purchased developed properties within established industrial parks. For new properties, the management reviews the property's history and verifies legal property titles before acquisition and leasing, Two of Yaodou subsidiaries' warehouses visited during due diligence confirmed this: the acquisition and leasing are market-based transactions and did not involve land acquisition nor resulted in involuntary resettlement.

Yaodou does not conduct risk assessments for potential impacts on ethnic minorities but selects sites in urban industrial parks where such impacts are unlikely. Based on the due diligence findings, no ethnic minorities were identified in or near areas where Yaodou subsidiaries' warehouses are located.

The financing amount is CNY 142.16 million, which will be financed on a loan basis by ADB’s ordinary capital resources.

Established in 2014, Yaodou is a pharmaceutical distributor focused on the out-of-hospital segment. The company delivers medical and pharmaceutical products, including a strong portfolio that addresses chronic diseases, aging related conditions, and common communicable illnesses. Yaodou distributes the majority of its products in inland provinces, including central and southern regions of the PRC

No contacts available at the time of disclosure.

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The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.