Kaisa Health (00876) saw its shares surge more than 40% against the broader market trend. At the time of writing, the stock was up 30%, trading at HK$0.117 with a turnover of HK$4.9696 million. The move follows the company's recent announcement of its plan to acquire a controlling stake in Qinghai Pharmaceutical for a total consideration of RMB 21.6037 million, with the full transaction expected to be completed in late May. This acquisition signifies the group's official entry into the highly restricted manufacturing sector for narcotic and psychotropic drugs, further extending its industry chain layout. It is anticipated to be a significant factor in reshaping the company's valuation framework. Public information indicates that Qinghai Pharmaceutical, as a state-designated production base for narcotic and psychotropic drugs, possesses a leading portfolio of narcotic and Class I psychotropic drug varieties in China. The associated licenses are extremely scarce and come with very high barriers to entry. The company's product range covers three main segments: active pharmaceutical ingredients, narcotic and psychotropic preparations, and chemical preparations. It currently offers 124 products across 156 specifications, 21 of which are exclusive varieties, widely used in key clinical scenarios such as inpatient surgical analgesia and critical emergency care.