Guangzhou Pharmaceutical Holdings Limited

General Situation

Guangzhou Pharmaceutical Holdings Limited, which originated from Guangzhou Pharmaceutical Company and was restructured in October 1996, is a large conglomerate gaining great support from the Guangdong Provincial Government and the Guangzhou Municipal Government. It is principally engaged in a combination of scientific research, industry and trade. Guangzhou Pharmaceutical Holdings Limited is rated as one of the Top 50 Leading Enterprises in Guangdong Province and is regarded as one of the five key sectors of Guangzhou industrial economy.

Corporate Structure and Principal Business
　
Guangzhou Pharmaceutical Holdings Limited holds interests in two listed companies namely Guangzhou Pharmaceutical Company Limited and Guangzhou Baiyunshan Pharmaceutical Company Limited and over 30 enterprises. It is principally engaged in the manufacturing and sales of Chinese patent medicine and western pharmaceutical products including the research, development, manufacturing, sales, export and import of Chinese medicine, western pharmaceutical products, medical apparatus and hygienic materials.

Stock Exchange

Guangzhou Pharmaceutical Company Limited, the controlling shareholder of which is Guangzhou Pharmaceutical Holdings Limited, is a public company engaged in the manufacturing and sales of Chinese medicine, which is listed both at the Stock Exchange of Hong Kong Limited (H Shares) and the Shanghai Stock Exchange (A Shares). Guangzhou Baiyunshan Pharmaceutical Company Limited issued its A Shares at the Shenzhen Stock Exchange in November 1993 and was one of the first batch of listed companies in Guangzhou, the core business of which is manufacturing and sales of Chinese and western medicine and raw medicine. In 2001, Guangzhou Pharmaceutical Holdings Limited became the substantial shareholder of Guangzhou Baiyunshan Pharmaceutical Company Limited.

Assets and Results

The gross assets of Guangzhou Pharmaceutical Holdings Limited totals RMB7.5 billion, with its net assets amounting to RMB3.64 billion. In 2002, it realized a gross output value of RMB7 billion and its sales revenue reached RMB8.02 billion. The total profit of Guangzhou Pharmaceutical Holdings Limited in 2002 was RMB370 million, with an industrial production and market ratio of 98.7% and a debt-to-asset ratio of 53.3%. Its export volume amounted to RMB135 million in 2002.

A Solid Marketing

The pharmaceutical enterprises held by Guangzhou Pharmaceutical Holdings Limited have a long history, the longest of which has a history of over 400 years. They manufacture more than 1,500 types of Chinese and western pharmaceutical products, 47 types of which are national protected Chinese medicine including 20 exclusively made products. The products manufactured by Guangzhou Pharmaceutical Holdings Limited such as Xiao Ke Wan, Hua Tuo Zai Zao Wan, Xia Sang Ju Granules, Amoxicillin Capsules and Wu Ji Bai Feng Wan have long enjoyed a good reputation.

Standard Quality Control

Guangzhou Pharmaceutical Holdings Limited possesses strict production and quality control systems, and produces more than 30 categories of pharmaceutical products ranging from tablets, injecta to capsules. Advanced equipments and testing techniques have been applied in the manufacturing process, and quality inspection and security examination have also been implemented, to ensure that the requirements of GMP have been met. Some workshops of the enterprises under Guangzhou Pharmaceutical Holdings Limited were granted a quality control certificate for pharmaceutical production by developed countries such as FDA and TGA. Guangzhou Pharmaceutical Holdings Limited has developed to be the largest pharmaceutical production base in the Southern China.

Application of ERP

Guangzhou Pharmaceutical Holdings Limited is currently speeding up the promotion and application of an enterprise resources planning (ERP) and management system (SAP-R 3 System) of an international advanced standard, the implementation of which is crucial to the regulation of business process, the establishment of an effective management platform, the enhancement of the effectiveness and quality of its operation.

An Innovative Research and Development System

Guangzhou Pharmaceutical Holdings Limited has a sound technological innovation system. It has launched post-doctoral research programmes, established a research and development centre for pharmaceutical key projects in Guangdong Province, and undertaken the state contemporary Chinese medicine industrialization project and specific scientific research items of Guangzhou and Guangdong Province. The GLP Laboratory established by Guangzhou Pharmaceutical Holdings Limited is one of the first five key laboratories of the country. It leads in such aspects as 控释制剂技术, critical purification of CO2 technology, GLP and the standard feeding of Beagle throughout the country.

Targets and Planning

Guangzhou Pharmaceutical Holdings Limited takes Chinese medicine modernization as one of its strategies in technological innovations, and concentrates on the development of new technologies, improvement and restructuring of the traditional Chinese medicinal products. It will endeavor, as steered by the market and motivated by scientific and technological innovations, to set up a new development model by taking Chinese medicine modernization as the breaking point. As at the end of the Tenth Five-Year Plan, the industrial output value of Guangzhou Pharmaceutical Holdings Limited is expected to amount to RMB10 billion, with its sales revenue and income tax paid reaching RMB13 billion and RMB1 billion, respectively. It will endeavor to become a large conglomerate with strong technology innovation capability, famous brands of products, a complete sales network and strong competitiveness.

Source:

Editor: Jessie Hwang