Li Chuyuan appeared in a public event a week ago.
Author | Yu Liu Qinwen
Editor | Wu Lijuan
Source | Ye Ye Finance
On July 13, Li Chuyuan returned the favor to Guangzhou Pharmaceutical Group As chairman, he delivered a speech at the opening ceremony of the event, and a week later, news came that he was stepping down.
html On the evening of July 22, Baiyunshan (600332.sh), a listed company under Guangzhou Pharmaceutical Group, announced that the company’s board of directors received a written resignation report from Chairman Li Chuyuan on July 22. Li Chuyuan resigned from his position as chairman, executive director and director of the strategic development and investment committee of the board of directors of Baiyunshan due to personal reasons. After his resignation, Li Chuyuan no longer holds any position in the company.
Li Chuyuan, born in 1965, is only 59 years old this year and has been working at GPHL for 36 years. Baiyunshan stated in the announcement that Li Chuyuan confirmed that he had no differences of opinion with the company's board of directors, and there were no other matters that needed to be brought to the attention of the company's shareholders.
suddenly resigned. According to media reports such as "Yicai Finance" and "Caixin.com", Li Chuyuan has been taken away by relevant departments for investigation, and family members are also under investigation. Baiyunshan staff told the Beijing Business Daily that they did not know whether this information was true, and the company’s announcement shall prevail.
Li Chuyuan does not hold shares in Baiyunshan. After his resignation, Vice Chairman Yang Jun will perform the duties of chairman on his behalf until a new chairman is elected.
Affected by this news, Baiyunshan’s stock price fell 3.2% on July 23, closing at 29.99 yuan per share, with a total market value of 48.757 billion yuan.
has been in charge of Baiyun Mountain for 11 years.
was involved in the "Jin Ge Report Letter" incident during his tenure.
Li Chuyuan was born in Shantou, Guangdong. He was admitted to the Chemistry Department of Sun Yat-sen University in 1984. After graduating from the undergraduate program in 1988, he joined Baiyunshan Pharmaceutical Factory. He started as an ordinary technician and served successively as section chief, director, assistant to the general manager, vice president and general manager until he took over as the "head" of GPHL in 2013.
Li Chuyuan has a business acumen. In 1999, he was appointed as the director of Baiyunshan Traditional Chinese Medicine Factory. At that time, Baiyunshan Traditional Chinese Medicine Factory had been losing money for five consecutive years. Li Chuyuan proposed to focus on the economic benefits of the enterprise, while focusing on internal management and external market expansion, and also focusing on the construction of three key projects: marketing, technology, and talent. It took 10 years to develop Baiyunshan Traditional Chinese Medicine Factory from the verge of bankruptcy to a well-known pioneer pharmaceutical company.
During this period, Li Chuyuan led Baiyun Mountain to build the country’s largest isatis root gap (Good Manufacturing Practice for Traditional Chinese Medicinal Materials) base in 2002. During the SARS period, Baiyun Mountain’s isatis root sales surged, and the company also achieved success in 2003 Profit of over 50 million yuan. After this battle, not only did the company's performance take off, but the Baiyun Mountain brand was also created.
Source: Can Gallery
In 2010, Li Chuyuan served as the vice chairman of Baiyunshan. In 2012, with his participation, the company successfully recovered the "Wanglaoji" herbal tea brand has once again attracted widespread attention in the industry. In the year when Wong Lo Kat was recovered, Baiyunshan achieved sales revenue of 42.8 billion yuan, a year-on-year increase of 29.6%.Nowadays, Wonglaoji has become an important segment of Baiyunshan's performance growth. In 2023, Wonglaoji Health Company achieved revenue of 10.013 billion yuan and net profit of 1.459 billion yuan.
Due to his outstanding work performance, In 2013, Li Chuyuan officially took over as the chairman of GPHL and Baiyunshan. In the same year, GPHL completed a major asset reorganization across the capital markets of Shanghai, Shenzhen and Hong Kong, and realized the overall goal through "Baiyunshan" Listed. After the completion of the reorganization, New GP Pharmaceutical became one of the largest pharmaceutical listed companies in the A-share market.
In August 2021, GPHL was listed on the Fortune Global 500 for the first time, ranking 468th. As the largest Chinese patent medicine production base in China, GPHL has also become the first company to enter the Fortune Global 500 with Chinese medicine as its main business.
The official website of GPHL also gave a high evaluation to Li Chuyuan, saying that he has “solid professional knowledge, clear work ideas, strong ability to control the overall situation, familiar with the status of the pharmaceutical industry and the overall situation of GPHL, strategic thinking, and market acumen. High, with strong marketing ability. ”
Source: Canned Gallery
However, while his work performance is outstanding, Li Chuyuan also acts in a high profile. He often participates in celebrity selection activities of various social organizations, and also "gets out of the circle" with bold remarks, such as "You don't need to wear a mask when drinking Banlangen", "Jinge has changed from a medicine to a sex toy that ordinary people need", "Afraid of getting angry, drinking Wong Lao Kat; If you are afraid of being useless, you will have to fight for gold" and so on.
Li Chuyuan’s “astonishing” remarks also caused a storm of public opinion to the company, which forced the company to come forward to “refute the rumors.” For example, he mentioned at the Fortune Global Forum in 2017: According to the research results of the National 863 Project, drinking Wong Lo Kat can extend life by about 10%. Not long after, Wanglaoji’s official Weibo announced that the conclusion of extending life span was obtained from 576 rat samples.
years ago, Baiyun Mountain under the leadership of Li Chuyuan was involved in the Jin Ge "report letter" incident.
In terms of Western medicine, Baiyunshan has the famous male drug "Jin Ge", namely sildenafil citrate, which is mainly used to treat erectile dysfunction. This drug alone sold 101 million tablets in 2023, bringing revenue of 1.29 billion yuan to Baiyun Mountain, with a gross profit margin as high as 91.76%. It was once regarded as Baiyun Mountain’s “cash cow”.
However, on July 18, 2019, Beijing Kangyeyuan Investment Consulting Co., Ltd. published an article titled "A real-name open letter against Li Chuyuan, chairman of GPHL, for violating laws and disciplines" , which pointed out that one of the raw materials purchased by Jinge was per kilogram. 1,800 yuan, which turned into 10,000 yuan per kilogram when it arrived at the main factory. Therefore, GPHL was accused of inflating costs, concealing profits, and suspected of tax evasion. It also accused Bai Yunshan and its chairman Li Chuyuan of violating the Securities Law, the Company Law and other relevant regulations and infringing on the rights and interests of partners.
However, Baiyunshan had previously responded, stating that the content of the report letter was seriously inconsistent with the facts, and resorting to law. In the end, the first instance judged that Kang Yeyuan apologized and compensated Baiyun Mountain for economic losses totaling 150,000 yuan. The second instance upheld the first instance judgment.
In August 2022, three companies including Tianxin Pharmaceutical Factory under Baiyunshan were exposed by the National Medical Insurance Administration for inflating the prices of raw materials and inflating drug prices to obtain funds. Later, Baiyunshan Tianxin Pharmaceutical Factory and others issued an apology statement.
Now it is said that Li Chuyuan was taken away for investigation. Is it related to the report five years ago? It's still unknown. The reasons for the investigation are yet to be further disclosed by relevant departments.
Baiyunshan’s performance growth has slowed down
Baiyunshan, which Li Chuyuan has been in charge for 11 years, was founded in 1987. The main business involves Chinese patent medicines, Western medicines, medical devices, etc. It was listed on the H-share market in 1997 and on the A-share market in 2001.
Baiyunshan is the master of southern traditional Chinese medicine in terms of traditional Chinese medicine. It owns 12 century-old enterprises, including Chenliji Pharmaceutical Factory, Zhongyi Pharmaceutical, Pan Gaoshou Pharmaceutical, Jingxiutang Pharmaceutical, Caizhilin Pharmaceutical, and Wanglaoji Pharmaceutical, all of which have obtained Chinese time-honored brand certification.
Baiyunshan divides its business into Great Southern Medicine, Great Health, Great Commerce and Others. Each of the four sectors has its own strengths and weaknesses. Large Commerce is the first source of revenue. It mainly operates pharmaceutical circulation business, including pharmaceutical distribution and retail models. Its main profits come from the price difference between the purchase and sale of drugs, medical equipment, etc. and distribution fees.
In 2023, Baiyun Mountain achieved operating income of 75.515 billion yuan, a year-on-year increase of 6.68%; net profit attributable to the parent company was 4.056 billion yuan, a year-on-year increase of 2.25%. However, it is worth noting that the growth rate of Baiyunshan Guimu’s net profit continues to slow down, reaching 27.6% and 6.63% in 2021 and 2022 respectively.
Baiyunshan mentioned in the financial report that in 2023, facing the still complex external environment and being affected by industry policies and other factors, the pharmaceutical industry is in an important window period for transformation and upgrading. Among them, the pharmaceutical industry faces challenges such as consistency evaluation, centralized bulk purchase of drugs, rising raw material prices, and medical insurance payment.
Source: Can Gallery
It is worth noting that during this period, Baiyunshan’s sales expenses in 2023 have reached 6.1 billion yuan, and from 2021 to 2023 , the company’s R&D expenses were only 875 million yuan, 819 million yuan, and 819 million yuan respectively. 782 million yuan.
Under this development trend, although Baiyunshan’s revenue is much higher than Yunnan Baiyao (000538.sz) (revenue of 39.111 billion yuan in 2023) and Pien Tze Huang (600436.sh) (revenue of 10.035 billion yuan in 2023), but The performance of in the capital market is not as good as that of the latter two .
As of the close of trading on July 23, the total market value of Baiyunshan was 48.757 billion yuan, the total market value of Yunnan Baiyao was 92.425 billion yuan, and the total market value of Pien Tze Huang was 135.716 billion yuan.
How to manage a century-old brand?
In recent years, Wanglaoji, a century-old brand in Baiyun Mountain, has repeatedly suffered a decline in reputation in the market.
According to the "Daily Economic News" report, since 2021, a large number of agents claiming to be related to the Wong Lo Kat brand said that many "investment companies" have claimed that many "GPharma Group Health Beverage National Operation Center", "GPharma Health" Under the banners of "Wanglaoji New Product Operations Headquarters" and "Wanglaoji Headquarters", they used promises such as celebrity endorsements, high rebates, and professional operation teams to help distribute goods for free as gimmicks to induce them to sign agency contracts. Thousands of people have been victims, with amounts ranging from more than ten It ranges from ten thousand yuan to millions of yuan.
GPHL issued a statement to disassociate itself from this. After investigation, it was found that since 2021, many companies have appeared in the market in the name of "Wang Lao Kat Operation Center" to mislead merchants into thinking that such companies are companies related to GPHL. This type of company has no affiliation with GPHL. It has reported the case to law enforcement authorities and established a special anti-counterfeiting working group to cooperate with relevant departments in investigating and punishing.
“GPharma should not be aware of these (fraudulent) behaviors, which is harmful to GPHL’s corporate image.If you knew someone was doing these things in your name, would you ignore it? "An industry insider familiar with GPHL told the "Daily Economic News", "GPHL wants to expand the 'Wong Lo Kat' brand to medicinal wine, cosmeceuticals, health products, etc. through independent operation, brand authorization, brand leasing, etc. Expansion of large health industry clusters such as food and sports equipment to maximize the brand value of 'Wong Lo Kat'. But the current events show that there are omissions in brand authorization management. "
Whether the company knows it or not, this matter has caused damage to the brand.
Source: Canned Picture Gallery
In fact, in recent years, The country is paying more and more attention to the status of the traditional Chinese medicine industry. From 2022 to the present, the "14th Five-Year Plan" "Development Plan for Traditional Chinese Medicine", "Implementation Plan for Major Projects for the Revitalization and Development of Traditional Chinese Medicine", and "National Procurement Alliance of Chinese Proprietary Medicines Centralized Procurement Documents (Draft for Comments)" have been released, and the traditional Chinese medicine industry is continuing to receive favorable policies.
"Proprietary Chinese Medicine Industry" There have always been problems such as artificially high prices and speculation on medicinal materials. In the long run, the normalization of centralized procurement of Chinese patent medicines and market reshuffling are inevitable trends. National unified centralized procurement has accelerated the process of reshuffling the Chinese patent medicine market. Under the trend of normalized centralized procurement of Chinese patent medicines, significant price reductions, and market reshuffles, Chinese patent medicine companies must increase investment in scientific and technological research and development, strengthen intellectual property protection, strive to improve the company's scientific and technological innovation capabilities, combine "inheritance" and "innovation", and strengthen "Century-old brand" brand building, strengthening corporate management, and taking the road of professional management and sustainable development. "Deng Zhidong of Hainan Boao Medical Technology Co., Ltd. said.
Over the past thousands of years, traditional Chinese medicine has been continuously promoted, and more and more traditional Chinese medicine companies have emerged. Baiyun Mountain, as an old pharmaceutical company, has a wealth of experience passed down from its ancestors. "Secret weapon", but unfortunately, The company has a good hand, but it failed to play "Kingbo". Now that the chairman has suddenly resigned, Baiyunshan may need to re-examine itself and break first before establishing.
What do you think? Is the former chairman of Baiyunshan under investigation? Please leave a message in the comment area to discuss.
