Can a real estate tycoon without a real controller for many years bring artemisinin into the owner to save this Chinese medicine company?

It is also a traditional Chinese medicine company with a single product.
A product accounts for more than 60% of its revenue, and its gross profit margin is close to 85%.
For many years, it has no actual control person.
.
.
How can such a company continue to survive?

On August 2, Jiaying Pharmaceutical issued an announcement stating that the board of directors had voted to appoint Zhulai as the company’s chairman and general manager.
At the same time, the announcement also mentioned that although Zhulai did not directly hold the company’s stock, Jiaying Pharmaceutical’s No.
The major shareholder, Laohuhui, entrusts the voting rights to New South Medical Investment.
New South’s actual controller is Zhulai.
Jiaying Pharmaceutical also intends to issue shares to New South.
Eventually, after the transaction is completed, Zhulai will become The actual controller of Jiaying Pharmaceutical
.

In fact, despite relying on real estate to make a fortune, Chulay has always been committed to the development of Chinese medicine, and New Southern Medical Investment has also carried out a diversified health industry layout
.

The capital market also welcomed Jurayi's "acceptance"
.

On June 17, Jiaying Pharmaceutical announced that it would privately issue shares to New Southern, and Zhulai proposed to become the actual controller.

Can Zhulai become the actual controller, can he really save such a single-product Chinese medicine company?

01 Domination of Yipin, accounting for 60% of revenue

01 Domination of Yipin, accounting for 60% of revenue

In April 2021, Jiaying Pharmaceutical released its 2020 annual report, with annual revenue of 545 million yuan and net profit of 20 million yuan, a year-on-year increase of 116.
24%
.

In terms of products, the exclusive product Jiegu Qili Tablets of the subsidiary Jinsha Pharmaceutical has annual sales of 360 million yuan, accounting for 66.

It is reported that Jiegu Qili Tablets were obtained from the acquisition of Jinsha Pharmaceutical for 450 million yuan in 2013, and have since become the backbone of Jiaying Pharmaceutical's performance, accounting for more than 60% of revenue for many years
.

The disadvantages of Yipin's dominance have gradually emerged, which is reflected in the sharp decline in net profit in revenue
.

At the beginning of 2018, Jiaying Pharmaceutical revised its 2017 performance data three times, from 34 million yuan to 38 million yuan in the performance bulletin, and the audited net profit disclosed in the final annual report was 215 million yuan

Regarding the reasons for the decline, Jiaying Pharmaceutical announced that due to the decline in product sales prices, the rise in production costs, and the significant increase in sales expenses, Jinsha Pharmaceutical's net profit in 2017 fell sharply for the first time, with a rate of close to 40%, and realized a net profit of 35,767,600 yuan
.

Rising raw material prices are also one of the hidden dangers
.

Jiaying Pharmaceutical’s annual report shows that the proportion of its raw materials to costs is increasing year by year.

In 2018, Jiaying Pharmaceutical issued an announcement stating that the relevant content of the Jiegu Qili Tablets and Jiegu Qili Capsules, which were published on the official website of the National Pharmacopoeia Commission, was proposed to solicit comments
.

If this prescription is changed, it will result in changes to the prescriptions of Jieguqili tablets and Jieguqili capsules of the company's wholly-owned subsidiary Jinsha Pharmaceutical, which will increase the production cost of the above-mentioned products and affect the performance of Jinsha Pharmaceutical

In 2020, the prescription of Jiegu Qili Tablets was finally revised.
The Food and Drug Administration restored the "Draconis" under the standard prescription to "Draconis" and deleted the TLC identification of Dragon's Blood.
The standard transition period is self-standard.
12 months from the date of promulgation
.

According to the announcement issued by Jinsha Pharmaceutical, the raw material "Draconis" is relatively scarce and expensive

In fact, Jiaying Pharmaceuticals is also looking for more development.
In 2013, Jiaying Pharmaceuticals acquired 45% of Huaqingyuan’s equity for 6.
75 million yuan and became a major shareholder of Huaqingyuan
.

The announcement at that time stated that the purpose of the transfer of the equity was to realize the company's independent supply of natural dextroborne borneol, which is in short supply, and to consolidate and strengthen the leading position of the double-throat air powder market

In addition, in terms of equity, Jiaying Pharmaceutical’s equity is relatively dispersed.
Before the completion of the New Southern transaction, the largest shareholder, Tiger Hui, only accounted for 11.
27% of the shares, which is suspected of being the actual controller
.

In other words, since 2016, after the transfer of the former actual controller Huang Xiaobiao, the position of the controlling shareholder and actual controller of Jiaying Pharmaceutical has been vacant

02 Real Estate Tycoon's Chinese Medicine Dream

02 Real Estate Tycoon's Chinese Medicine Dream

With Zhulai taking over Jiaying Pharmaceutical, its five-year absence of controlling shareholders and actual controllers is finally over
.

Sky Eye Check shows that New South Medical Investment was established on June 16, 2021, with a registered capital of 100 million yuan.
The legal representative is Zhulai, who is also the executive director and manager of New Southern Medical Investment
.
At the same time, New South Medical is a 70% subsidiary of Guangdong New South Group
.
Jurayi controlled the investment in New Southern Medical through holding the New South Group
.

When it comes to Zhulai, what I have to say is the "Zhu family" he belongs to
.

The Zhu family, which belongs to the four major Chaoshan families with Li Ka-shing, currently has a business map that spans multiple fields such as real estate, infrastructure, medicine, energy, finance, and investment
.
From the perspective of business development, the three brothers all started in real estate, and then extended their tentacles to other industries.
At present, the total assets of their industries exceed 400 billion yuan
.

Zhu Zhu Rai is the eldest of three brothers, director of Guangdong New South Group Co.
, Ltd
.
New South Group focuses on the traditional Chinese medicine industry, involving energy, engineering construction, hotels, finance, etc.
, and its business has expanded to Southeast Asia, Africa and Australia
.

The second younger brother Zhu Mengyi established Hopson Development and Zhujiang Investment
.
Hopson Development's main business is real estate development; Zhujiang Investment has become a diversified investment-oriented enterprise, and has formed ten major business sectors in urban renewal, energy and infrastructure, commerce, industry, housing, education, medical care, culture, technology, and finance
.
The third younger brother Zhu Qingyi is in charge of Zhuguang Group and Zhuguang Holdings, whose main business is real estate
.

In recent years, the development focus of the New South Group, which is at the helm of Jurayi, has gradually shifted from real estate to the field of traditional Chinese medicine
.
Since 2000, Zhulai has invested heavily in a series of Chinese medicine industry projects, such as Guangzhou University of Traditional Chinese Medicine Science and Technology Industrial Park, Deng Lao Herbal Tea, Artemisia annua, and Chinese Medicine
.

Artemisinin is one of the areas where Jurayi has devoted his efforts
.

In 2003, the artemisinin compound scientific research project of Professor Li Guoqiao of Guangzhou University of Traditional Chinese Medicine was interrupted due to funding problems
.
As a student of Li Guoqiao, Zhulai, who is already the president of New South Group, invested 60 million yuan in the first fund of Li Guoqiao's project
.

In 2004, the New South Group directly invested 310 million yuan and a dynamic investment of 1.
5 billion yuan in Fengshun, Meizhou, Guangdong’s hometown of Zhulai, to establish Guangdong New South Artemisia Pharmaceutical Co.
, Ltd.
, which included research on Artemisia annua resources, cultivation of southern medicine, and Chinese herbal medicine.
, A complete industrial chain of A.
annua for the production of chemical raw materials and preparations
.
In the same year, the fourth generation of artemisinin compound artemisinin piperaquine tablets came out
.

In 2007, Qinghao Pharmaceuticals funded the artemisinin antimalarial research team of Guangzhou University of Traditional Chinese Medicine to carry out the "Compound Artemisinin Rapid Elimination of Malaria" project in Comoros, Africa
.
After the implementation of the project, the three islands of Comoros achieved zero deaths from malaria, and the number of cases was reduced by 95%.
Therefore, the compound artemisinin rapid elimination of malaria project has been recognized by the WHO and the international community
.
"This is the first time in human history to help a country quickly control the malaria epidemic through group drug intervention and the use of Chinese original drugs
.
" Zhulai recalled
.

In 2015, the World Health Organization included the compound artemisinin rapid elimination method of malaria in the global island country promotion plan
.

As of 2020, New South China has invested about 4 billion yuan in research on Artemisia annua.
It not only develops artemisia annua drugs for malaria treatment, but also derives artemisia annua toothpaste, shower gel, incense and other products
.
Zhulai once revealed that the source of these funds mainly relies on the income from other industries of the New South Group.
"The money earned in real estate is invested in the health business of Chinese medicine.
" In Zhulai's words, this is a "curve to save medical "
.

Zhulai's dedication to Chinese medicine can be described as obsession
.

In an earlier interview with the media, Zhulai revealed that after graduating from high school in 1974, he had worked as a barefoot doctor for 4 years; the second year after resuming the college entrance examination, Zhulai was admitted to the current Guangzhou University of Chinese Medicine; after graduating in 1983 He returned to his hometown and worked as a traditional Chinese medicine physician for 8 years
.

The New Southern Group, which is now in power by Jurayi, is becoming a diversified industrial group focusing on the development of the Chinese medicine industry, and is trying to build a traditional Chinese medicine "aircraft carrier" industrial chain
.
Judging from the current business layout, New South Group's involvement in the Chinese medicine industry includes Guangzhou University of Traditional Chinese Medicine Science and Technology Industrial Park, Guangdong New South Artemisia Pharmaceutical Co.
, Ltd.
, Guangdong Zihetang Pharmacy Co.
, Ltd.
, Guangdong New South Artemisia Technology Limited company
.

Zhulai, who loves Chinese medicine and traditional Chinese medicine, takes the lead in Jiaying Pharmaceutical.
From the perspective of the industry, there is a clear trend to increase the layout of the health industry
.
Jiaying Pharmaceutical's announcement also shows that the addition of New Southern Medical Investment is conducive to the rapid development of the company's business and forms an integration and agglomeration effect of the Chinese medicine industry
.

Can Zhulai, who has been deeply involved in Chinese medicine investment, really save Jiaying Pharmaceutical?