Chinanews client, Beijing, July 13 (Reporter Zhang Xu) On the 11th, it was reported that Xu Jingren, chairman of Yangtze River Pharmaceutical Group, died of a heart attack during a meeting in Yili, Xinjiang, arousing industry attention.
However, Chen Juan of the Yangtze River Pharmaceutical Group told a reporter from Chinanews.com on the evening of the 11th that there was an accident, but the rescue was still in progress.
Xu Jingren, Chairman of Yangtze River Pharmaceutical Group.
Photo by Xiao Yong
On the evening of the 12th, Yangzijiang Pharmaceutical Group officially issued a notice: The founder of the company Xu Jingren died at 20:39 on July 12, 2021 at the age of 77. The company established Xu Jingren’s funeral committee after research. The son of Xu Jingren, Yangzijiang Pharmaceutical Vice Chairman Xu Haoyu served as the chairman.
Obituaries announced by Yangtze River Pharmaceutical Group
"The Banlangen King" from scratch
According to the 2020 Forbes China 400 Rich List, the Xu Jingren family ranks 137, with a wealth of 26.16 billion yuan. The source of wealth is mainly Yangzijiang Pharmaceutical.
Public information shows that after retiring from the army in the 1960s, Xu Jingren founded a small workshop-style pharmaceutical factory in his hometown of Taixing, Taizhou. This is the predecessor of Yangzijiang Pharmaceutical.
At that time, all the assets of the factory consisted of only six bungalows, a few simple equipment and a few workers.
In 1972, the factory was officially put into production.
Just starting out, everything is lacking. Xu Jingren is a factory manager, as well as a mason, a builder, and a porter.
In 1981, the State Council stipulated that "it is strictly forbidden to establish pharmaceutical factories at the township level", and only one pharmaceutical factory can be kept in a county.
But unexpectedly, a pack of Banlangen granules won the word of mouth and saved the pharmaceutical factory.
Later, the pharmaceutical factory was transferred to the county office, and the courtyard was changed to "Taixing Pharmaceutical Factory Port Workshop."
In 1988, hepatitis A broke out in Shanghai. The main cause was eating unclean cockles.
Following this, the demand for Banlangen increased sharply.
Yangzijiang Pharmaceutical Factory received a notice: Shanghai has applied for nearly 4 million bales of Banlangen to support the hardest-hit areas.
At that time, Yangzijiang Pharmaceutical had a monthly output of only 50,000 packs. Faced with a large number of orders, Xu Jingren called on employees to expedite the pharmacy and work overtime during the Spring Festival.
In the end, 3.85 million packages of Banlangen were successfully completed.
As a result, Xu Jingren won the title of "The King of Banlangen", and Yangtze River Pharmaceutical Factory also gained a firm foothold.
Some products of Yangtze River Pharmaceutical.
Screenshot from its official website
Annual revenue has exceeded 100 billion, "Invisible Medicine King" insists not to be listed
Banlangen was the starting point for Xu Jingren's fortune, but his steps did not stop there.
In 1993, Xu Jingren sought cooperation with Dong Jianhua, a professor at Beijing University of Traditional Chinese Medicine. Dong Jianhua is an expert on spleen and stomach diseases in China. He has a prescription for treating stomach diseases that he has researched for more than 40 years-Wei Su Yin.
Touched by the sincerity of Xu Jingren's multiple visits, Tung Jianhua gave him the recipe for Wei Suyin.
In 1993, Weisu Granules came out, becoming Xu Jingren's first new Chinese medicine product with independent intellectual property rights.
Weisu granules have brought huge profits to Yangtze River Pharmaceutical.
After discovering the beauty of this cooperation method, Xu Jingren adopted the same model and launched a series of new traditional Chinese medicine products such as Xiangshao Granules, Lancen Oral Liquid, Suhuang Cough Capsules, and Shuanghua Lily Tablets.
In 2004, Jiangsu Yangzijiang Pharmaceutical Group officially changed its name to "Yangzijiang Pharmaceutical Group", and the group's parent company "Jiangsu Yangzijiang Pharmaceutical Group Co., Ltd." was changed to "Yangzijiang Pharmaceutical Group Co., Ltd.".
In 2006, Yangtze River Pharmaceutical had more than 5,000 employees, half of whom were sales personnel.
Such a ratio is rare in national pharmaceutical companies.
Almost all salespersons of Yangzijiang Pharmaceutical are locals in Taizhou, and all sales of products are done by their own salespersons.
Relying on the commonly used drugs that people cannot do without and the rare tactics in the industry, Xu Jingren has continuously increased the sales of Yangtze River Pharmaceutical by "100 million yuan" as a unit.
According to the official website of Yangzijiang Pharmaceutical, Yangzijiang Pharmaceutical currently has more than 20 subsidiaries and 16,000 employees.
According to the revenue list of domestic pharmaceutical companies released in 2020, Yangtze River Pharmaceutical's revenue exceeds 100 billion yuan.
In addition, from 2014 to 2019, Yangtze River Pharmaceutical was ranked No. 1 among the top 100 Chinese pharmaceutical industry companies for 6 consecutive years. Therefore, it was called the "Invisible Medicine King" by industry insiders.
Yangtze River Pharmaceutical has not yet been listed, and Xu Jingren once said that he "does not engage in mergers and joint ventures, does not blindly go public, and does not engage in industries that he is not familiar with."
But the rise of Yangtze River Pharmaceutical is inseparable from Xu Jingren's high requirements for product quality.
On July 7, 2021, the Economic Information Daily published the article "Xu Jingren, Chairman of Yangtze River Pharmaceutical Group: Quality is the Soul of a Corporate Brand". He still emphasized that quality is the soul of a corporate brand. Without quality, a company cannot survive.
Data map
Was fined over 700 million due to monopoly,
involving more than 300 kinds of drugs
However, in some people’s opinion, compared with young people,
As an older generation of entrepreneurs, Xu Jingren's style of play seems a bit conservative. In addition to the above-mentioned "three nos" strategy, Xu Jingren once expressed his dislike of debt and proposed to operate without debt.
He believes: "The capital chain may be broken after the company is listed, which will affect the original intention of Yangtze River Pharmaceutical Co., Ltd. to make medicines. Once the company has debts, 7% of the interest may drag the company down."
Xu Haoyu, the son of Xu Jingren, joined Yangzijiang Pharmaceutical Co., Ltd. years ago and is now the vice chairman of the group.
Unlike his father, in Xu Haoyu's view, it is necessary for the company to go public.
In 2012, Xu Haoyu said in an interview with the media, “Now what is compared is strength, thinking and capital. For the capital market, small businesses must enter as soon as possible.” In 2015, Xu Haoyu took the Aiyuan shares he founded to land on the NEEQ.
Although it did not rely on capital for development, Yangtze River Pharmaceutical has been closely related to the word "monopoly" in recent years.
Initially, Yangtze River Pharmaceutical sued the court for the suspected monopoly of APIs by four companies including Guangzhou Hairui Pharmaceutical, Hefei Medical Engineering Pharmaceutical, Hefei Enruit Pharmaceutical, and Nanjing Haichen Pharmaceutical.
In April 2020, the first instance of the case ended, and Yangzijiang Pharmaceutical was awarded nearly 70 million yuan in compensation.
At the same time, Yangtze River Pharmaceutical has also been subject to monopoly reports.
In November 2019, the State Administration of Market Supervision filed an investigation into Yangtze River Pharmaceutical Group Co., Ltd. suspected of reaching and implementing a monopoly agreement based on the report.
On April 15, 2021, the State Administration of Market Supervision made an administrative penalty decision in accordance with Articles 46 and 49 of the Anti-Monopoly Law, ordering Yangzijiang Pharmaceutical Group to stop illegal activities and imposing its 2018 sales of 25.467 billion. A fine of RMB 3% is 764 million yuan.
The penalty decision letter shows that from 2015 to 2019, Yangtze River Pharmaceutical and its counterparties reached a fixed and limited price monopoly agreement by signing a cooperation agreement, issuing a price adjustment letter, or verbal notification, etc.
There are more than 300 types of drugs involved. According to the differences in sales channels, profit margins, and market demand of each drug, the types and scope of key controlled drugs are adjusted accordingly, and the resale prices of key drugs are centrally controlled.
Which focuses on fixed prices and limited types of medicines: Lanqin oral, Bailemian capsule, Astragalus, epalrestat tablets, capsules, etc. Su Huang cough
.
Calculated in this way, the money that Yangtze River Pharmaceutical Co. sue others for monopoly is only one-tenth of the fined money for its own monopoly.
After the announcement of the above-mentioned administrative penalties, Yangtze River Pharmaceutical responded on the official website that it respected the decision, obeyed the supervision, accepted the lessons, and has taken practical measures to carry out comprehensive and in-depth rectification in strict accordance with the requirements.
Now that Xu Jingren, the head of the company, died unexpectedly, can the medical aircraft carrier of Yangtze River Pharmaceutical continue its steady and long-term journey? (Finish)