He has been in charge for nearly 20 years and suddenly resigned! Yunnan Baiyao bid farewell to the "Wang Minghui Era"

　　China News Service, March 9th (China News Finance reporter Xie Yiguan) entered Yunnan Baiyao in 1999, served as the chairman in 2004, and announced his departure in 2023. "Veteran" Wang Minghui has been in charge of Yunnan Baiyao for nearly 20 years.

　　To Wang Minghui, Yunnan Baiyao is an enterprise that has "struggled" for more than half of his career; to Yunnan Baiyao, Wang Minghui is the "man at the helm" who has "built" a local pharmaceutical company into a pharmaceutical leader with a market value of 100 billion.

　　Now that Wang Minghui "waves his sleeves", what will happen to Yunnan Baiyao?

"Designed in danger

　　The "one piece of rhetoric" on March 6 has attracted much attention to Yunnan Baiyao, a century-old company.

　　Yunnan Baiyao stated in the announcement that the company's tenth board of directors recently received the "resignation report" delivered by chairman Wang Minghui. All positions of Yunnan Baiyao and its holding subsidiaries.

Screenshot of Yunnan Baiyao announcement.

　　In November last year, Wang Minghui was elected chairman of the tenth board of directors for a term of three years.

The resignation of Wang Minghui this time also means that only one-ninth of the new term has passed.

　　Regarding the reason for Wang Minghui's resignation as chairman, the reporter called the official phone number of Yunnan Baiyao to inquire, but was unable to get through.

But what is clear is that after the announcement, the "Wang Minghui Era" of Yunnan Baiyao came to an end.

　　According to public information, Wang Minghui was born in April 1962 and graduated from Yunnan University majoring in foreign economics.

　　Before he "airborne" Yunnan Baiyao as the president because of a paper transfer order, he served as the deputy manager of Binchuan County Pharmaceutical Company; the deputy chief of the operation department of Kunming Pharmaceutical Factory; the manager of the labor service company of Kunming Pharmaceutical Factory; Chairman and General Manager of Bada Industrial Corporation; Director and Vice President of Kunming Pharmaceutical Co., Ltd.

　　In 1999, the 37-year-old Wang Minghui went from being the vice president of the company ranked first in Yunnan's pharmaceutical industry to the president of Yunnan Baiyao, which ranked third.

　　Wang Minghui mentioned in an interview before, "At that time, the company's production and operation entered a bottleneck period, and sales were weak. In its heyday, Yunnan Baiyao's Baiyao Powder once sold tens of millions of bottles, but in 1999, the sales volume was only a few hundred. million bottles, the market has shrunk sharply.”

　　After entering Yunnan Baiyao, Wang Minghui started drastic reforms, advocated the introduction of entrepreneurial models and elimination mechanisms, created a reasonable competition platform, allowed sales staff to bid for posts, and then used sales demand to force R&D, production and internal transformation, and finally formed a new Product lines and product groups.

　　According to media reports, Yunnan Baiyao Band-Aid was launched in 2001 and achieved sales of 30 million yuan that year. Yunnan Baiyao toothpaste also achieved sales of 80 million yuan when it was launched in 2004.

　　In 2004, Wang Minghui became the chairman of Yunnan Baiyao.

In 2005, Yunnan Baiyao put forward the famous strategy of "stabilizing the central government and protecting the two wings". Medicated personal care products.

Implementing this product strategy, Yunnan Baiyao's operating income will quickly exceed 10 billion yuan in the next five years.

　　Today, toothpaste is still one of the main products of Yunnan Baiyao.

In 2021, Yunnan Baiyao toothpaste will gain more than 23% of the market share, maintaining the No. 1 market share in the industry.

　　After 2010, Yunnan Baiyao put forward the strategy of "New Baiyao, Great Health", preparing to build a new Baiyao platform and create a whole pharmaceutical industry chain.

In 2016, Wang Minghui also led Yunnan Baiyao to implement the mixed ownership reform. Because of this, Wang Minghui was removed from the post of president of Yunnan Baiyao Holdings the following year, and no longer retained the status and related treatment of provincial state-owned enterprise leaders.

　　Under many reforms, Yunnan Baiyao has grown from a local pharmaceutical company with a revenue of only 241 million yuan and a net profit of 34 million yuan in 1999 to a leader in the pharmaceutical industry with a revenue of 36.37 billion yuan and a net profit of 2.804 billion yuan in 2021. Wang Minghui is also famous rise up.

Screenshot of products on Yunnan Baiyao official website.

Get acquainted with Chen Fashu and embark on the investment road

　　Wang Minghui brought Yunnan Baiyao to the "peak", but his acquaintance with a man also made the future development of Yunnan Baiyao questionable.

　　In 2007, Wang Minghui came to Cheung Kong Graduate School of Business for further study. Here, he met Chen Fashu, who is known as "China's Buffett". Zijin Mining, Tsingtao Brewery, Yunnan Baiyao, Longji, China CDFG and many other big bull stocks There are shadows behind it.

　　Since then, Chen Fashu has become very interested in Yunnan Baiyao.

In 2009, Chen Fashu signed the "Share Transfer Agreement" with Hongta Group, the second largest shareholder of Yunnan Baiyao, and purchased 12.32% of Yunnan Baiyao's shares held by Hongta Group with 2.2 billion yuan in cash.

　　But later, China National Tobacco Corporation, the supervisory unit of Hongta Group, refused to agree to the above-mentioned equity transfer on the grounds of “in order to ensure the appreciation and preservation of state-owned assets and prevent the loss of state-owned assets.”

After Chen Fashu sued, he only got back his principal and interest of 2.2 billion yuan in the end, but did not get the equity of Yunnan Baiyao.

　　But this did not dispel Chen Fashu's idea. He later successfully entered the ranks of shareholders of Yunnan Baiyao through buying in the secondary market. In 2015, he entered the list of top ten shareholders.

　　With the start of the mixed reform of Yunnan Baiyao in 2016, Xinhuadu Industry, which is controlled by Chen Fashu, increased its capital by about 25.4 billion yuan, realizing a 50% controlling stake in Yunnan Baiyao. In June 2018, Chen Fashu became the legal representative of Yunnan Baiyao.

　　In 2019, at the suggestion of Chen Fashu, Yunnan Baiyao reversely absorbed and merged the shareholder Baiyao Holdings.

After that, Wang Minghui was still the chairman of Yunnan Baiyao, and Chen Fashu was the co-chairman.

Due to the merger, the book capital of Yunnan Baiyao soared by tens of billions. Coupled with the blessing of Chen Fashu, Yunnan Baiyao has made more efforts in the investment field.

　　But the "stock god" also has its downfalls.

In 2021, Yunnan Baiyao rushed to Weibo hot searches due to losses in stock speculation. The financial report shows that Yunnan Baiyao lost 1.614 billion yuan in securities investment that year.

Therefore, Yunnan Baiyao also stated that it will strictly control the scale of investment in the secondary market, gradually reduce its positions, and will not continue to increase its holdings.

　　In addition to the weak investment business, in recent years, Yunnan Baiyao's main business has also been weak. In the first three quarters of 2022, Yunnan Baiyao's revenue and net profit have both declined.

In the capital market, the share price of Yunnan Baiyao fell from a high of 163.28 yuan in 2021 to 54.42 yuan on March 8.

After the news of Wang Minghui's resignation was announced, the stock price has fallen for two consecutive days.

Screenshot of Yunnan Baiyao stock price.

Yunnan Baiyao may be integrated into Huawei's "gene"

　　In 2016, Wang Minghui once said frankly, "Baiyao has been 114 years old, and I will run when the baton is handed over to me. As for whether the running is good or not, how others evaluate it is another matter, but I will try my best to run. I don't think I can run anymore."

　　Now that Wang Minghui has chosen to leave, who will be at the helm of this pharmaceutical company leader?

　　According to the announcement issued by Yunnan Baiyao on March 6, before the board of directors elects a new chairman, Mr. Dong Ming, the legal representative, director, and CEO (president) of the company will perform the duties of the chairman on his behalf and preside over the daily work of the board of directors until the election. until a new chairman is elected.

　　According to public information, Dong Ming once worked for Huawei. He has successively served as a technical engineer of Huawei Technologies Co., Ltd., director of the fixed network marketing department of Xi'an representative office, director of fixed network product marketing of the Eastern Europe region department, vice president of the CIS region department, director of the VIP system department, Beijing branch General Manager of the company, Director of the Mobile System Department, Vice President of China Region of Huawei Technologies Co., Ltd.

In March 2021, Dong Ming will serve as the CEO (President) of Yunnan Baiyao Group Co., Ltd.

　　It is worth mentioning that, in addition to Dong Ming, Ma Jia, who will be the chief financial officer of Yunnan Baiyao in June 2022, also came from Huawei.

　　In addition to the joining of executives, in July 2022, Yunnan Baiyao also announced the signing of the "Comprehensive Cooperation Agreement on Artificial Intelligence Drug Research and Development" with Huawei Technologies Co., Ltd.

　　At present, Yunnan Baiyao is doing a good job in enterprise transformation and development around the "1+4+1" strategy.

The last "1" in the "1+4+1" strategy is digital technology.

Yunnan Baiyao said that the company has introduced cutting-edge digital technologies, including artificial intelligence, into all aspects of R&D and operation.

　　In the hands of Wang Minghui, Yunnan Baiyao has developed from a traditional pharmaceutical company to a modern pharmaceutical company. Now Yunnan Baiyao is marching towards digitalization. What will happen in the future needs to be tested by time.

(over)