“It’s not that you can’t afford to go to the Louvre in Paris, but the one in Harbin is more cost-effective.” “If you want to appreciate the charm of the Louvre, it is hidden in the Sixth Factory of Harbin Pharmaceutical”, January 22, Harbin Pharmaceutical Sixth The factory is on the hot search again. While Harbin is experiencing a tourism boom, Harbin Pharmaceutical Factory No. 6 has become a “new internet celebrity”.
The full name of Harbin Pharmaceutical Group Sixth Factory is Harbin Pharmaceutical Group Sixth Pharmaceutical Factory, which is affiliated to the listed pharmaceutical company Harbin Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Harbin Pharmaceutical Group Co., Ltd."). As mentioned in the hot topic search "Harbin Harbin Pharmaceutical Factory No. 6, ancestors were rich", the decoration of Harbin Pharmaceutical Factory No. 6 is magnificent. A person who has worked for Harbin Pharmaceutical Co., Ltd. revealed to a Beijing Business Daily reporter, "There used to be crocodiles in the lobby of Harbin Pharmaceutical No. 6 Factory, which gave people the impression that they were very rich and rich."
Although the above person has never been to the Louvre, like every proud local of Harbin, Harbin Pharmaceutical No. 6 Factory is the Oriental "Louvre" in his mind. To a certain extent, the grandeur of Harbin Pharmaceutical Factory No. 6 reflects the past prosperity of Harbin Pharmaceutical Co., Ltd. Harbin Pharmaceutical Group has invited dozens of celebrities from the entertainment industry such as Gong Li, Song Dandan, Na Ying and Carina Lau to endorse its products. In 2000, 1.2 billion yuan of publicity investment allowed Harbin Pharmaceutical Factory No. 6 to appear on the cover in the CCTV Spring Festival Gala midnight time announcement. In 2009, Harbin Pharmaceutical Factory No. 6 spent huge sums of money to successfully win the bid for multiple units of "News Network Post-Market" advertising, and also subscribed to CCTV's "Chao Wen Tian Xia", "News Thirty Minutes", "Avenue of Stars" and "News Investigation", etc. The total investment in advertising resources for brand columns is nearly 80 million yuan.
Under the "Harbin Pharmaceutical Model" marketing, Harbin Pharmaceutical Co., Ltd. has achieved outstanding performance, and its employee benefits are also the envy of the industry. Harbin Pharmaceutical Co., Ltd.'s 2010 financial report shows that the company's revenue reached 12.535 billion yuan and its net profit was 1.13 billion yuan. There are rumors in the industry that Harbin Pharmaceutical gives out 10,000-yuan bills and gold bars to employees during the Chinese New Year and holidays. The above-mentioned former staff member of Harbin Pharmaceutical Co., Ltd. revealed that "employees are treated very well. They basically don't have to buy anything for home life. Except for the daughter-in-law, everything is paid."
However, as the medical reform enters deep water, the "Harbin Pharmaceutical model" of spending huge amounts of advertising money in exchange for sales has failed. In 2021, Jiang Linkui, the former general manager of Harbin Pharmaceutical Co., Ltd., who created brainwashing advertisements such as "New Cover, Middle Cover", was sentenced for taking tens of millions of dollars in bribes. In the same year, the Shanghai Stock Exchange issued a regulatory inquiry letter on regular report information disclosure to Harbin Pharmaceutical Co., Ltd., and the Shanghai Stock Exchange required Harbin Pharmaceutical Co., Ltd. to further disclose additional information such as the reasons for the decline in revenue in various segments and the substantial increase in sales expenses. The inquiry letter shows that in 2020, Harbin Pharmaceutical Co., Ltd.’s sales expenses were 1.075 billion yuan, a year-on-year increase of 24.83%. Advertising expenses, office travel expenses and business entertainment expenses increased by 85%, 20% and 50% respectively year-on-year. During the same period, Harbin Pharmaceutical Co., Ltd.’s research and development expenses were 92.53 million yuan, a year-on-year decrease of 26.06%.
Judging from the financial data, Harbin Pharmaceutical Co., Ltd.’s performance has begun to decline. From 2013 to 2018, Harbin Pharmaceutical Group's revenue was 18.092 billion yuan, 16.509 billion yuan, 15.856 billion yuan, 14.127 billion yuan, 12.018 billion yuan, and 10.813 billion yuan respectively. After revenue recovered in 2019, reaching 11.824 billion yuan, it declined again in 2020. In terms of net profit of
, Harbin Pharmaceutical Co., Ltd. has declined for three consecutive years from 2017 to 2019, with the decline rates reaching 48.36%, 14.95%, and 83.88% respectively. As of 2020, Harbin Pharmaceutical Co., Ltd. has lost 1 billion yuan a year. Although Harbin Pharmaceutical Co., Ltd.'s performance will gradually recover in 2021 and 2022, it will be difficult to replicate the glory of the year. Its revenue in 2022 will be 13.809 billion yuan, with a net profit of approximately 464 million yuan. Net profit in 2022 will be "halved" compared to the peak period in 2010. Deng Yong, head of
Beijing Big Health Legal Business Team, said that the popularity of Harbin tourism has indeed brought more exposure to local companies such as Harbin Pharmaceutical No. 6 Factory, which is helpful to expand their popularity. However, for established traditional Chinese medicine companies like Harbin Pharmaceutical, they face many challenges. With the development of science and technology and the changing needs of consumers, traditional Chinese medicine companies need to continuously carry out product research and development and innovation to meet the needs of consumers. For established traditional Chinese medicine companies like Harbin Pharmaceutical, if they want to break through development bottlenecks, they need to work hard in product research and development, quality management and other aspects to continuously improve their core competitiveness.
Beijing Business Daily reporter Yao Qian
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