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21st Century Business Herald reporter Lin Yunxiao and trainee reporter Li Jiaying report from Beijing and GuangzhouOn July 22, Baiyunshan announced that the board of directors received a written resignation report from the company's chairman, Li Chuyuan, on the same day. Li Chuyuan resigned from the positions of chairman of the company's ninth board of directors, executive director and director of the board's strategic development and investment committee for personal reasons. After resigning, Li Chuyuan no longer holds any position in the company. Li Chuyuan confirmed that he has no disagreements with the company's board of directors, and there are no other matters that need to be brought to the attention of the company's shareholders.

According to the relevant provisions of the Company Law and the Articles of Association, Li Chuyuan's resignation did not cause the number of members of the company's board of directors to fall below the statutory minimum number, and will not affect the normal operation of the board of directors. His resignation report will take effect from the date of delivery to the company's board of directors. As of the date of disclosure of this announcement, Li Chuyuan does not directly or indirectly hold shares of the company. Vice Chairman Yang Jun will perform the duties of the chairman until the board of directors elects a new chairman.

Since joining Baiyunshan Pharmaceutical Factory in 1988, Li Chuyuan started as a technician and was gradually promoted to factory director, party secretary, and finally party secretary and chairman of Guangzhou Pharmaceutical Group. In the past 36 years, as the soul of Baiyunshan and Guangzhou Pharmaceutical Group, Li Chuyuan's career has been closely linked to the development of the company.

The sudden news of the change of leadership at Baiyun Mountain shocked all sectors of society. The resignation of the "soul figure" who had been in charge of Baiyun Mountain for 11 years is not only a major personnel change within the company, but also means that Baiyun Mountain will enter a period of deep adjustment in the future.

Li Chuyuan's 36 years at Baiyun Mountain

Li Chuyuan's career has been gradually growing up from the grassroots level of Baiyunshan. According to Xinhua News Agency, Li Chuyuan was born in October 1965 and received a bachelor's degree in chemistry from Sun Yat-sen University and a master's degree in Lingnan EMBA from Sun Yat-sen University. After joining Baiyunshan Pharmaceutical Factory as a technician in 1988, Li Chuyuan was gradually promoted to section chief, department director, assistant general manager, and finally deputy general manager.

In 1999, Baiyunshan Chinese Medicine Factory, which had been losing money for years, was on the verge of bankruptcy. Li Chuyuan was appointed as the factory director and party secretary of Baiyunshan Chinese Medicine Factory at the age of 33. In the following 10 years, Guangzhou Pharmaceutical Group has frequently appeared in the public eye, especially in 2012 when it successfully recovered the "Wanglaoji" herbal tea brand and promoted the overall listing of its main business through the "Baiyunshan" brand the following year, which was regarded by all walks of life as an important node in the development of Guangzhou Pharmaceutical Group.

With the rapid development of Guangzhou Pharmaceutical Group, Li Chuyuan's career also entered the fast lane. In 2010, Li Chuyuan became the general manager of Guangzhou Pharmaceutical Group, and in 2013, he took a step further and became the party secretary and chairman of Guangzhou Pharmaceutical Group. In the same year, Li Chuyuan became the chairman of Baiyunshan since August 8, 2013. So far, Li Chuyuan has been in charge of Baiyunshan for nearly 11 years.

Judging from his previous positions, Li Chuyuan has rich experience in the overall operation and management of enterprises. According to Baiyunshan's 2023 annual report, before his resignation, Li Chuyuan served as the Party Secretary and Chairman of Guangzhou Pharmaceutical Group, the Party Secretary and Chairman of Guangzhou Baiyunshan Pharmaceutical Co., Ltd., and the Vice Chairman of Baiyunshan Hutchison and the Non-Executive Director of the Pharmaceutical Company.

In 2017, Li Chuyuan became the only entrepreneur in the pharmaceutical industry selected as one of the "Top Ten Economic Figures of the Year 2017", and the only entrepreneur from Guangdong.

In 2024, Li Chuyuan, who is nearly 60 years old, still frequently participates in activities. According to the information on the official website of Guangzhou Pharmaceutical Group and the WeChat public account of Guangzhou Pharmaceutical Baiyunshan, Li Chuyuan put forward requirements for the Party style and clean government construction work of Guangzhou Pharmaceutical Group in 2024 at the work meeting on March 19, 2024. Nearly 4 months later, Li Chuyuan led a team to Shanghai in early July to investigate Kangmei Pharmaceutical's subsidiaries. Afterwards, Li Chuyuan participated in the warning education meeting for leading cadres of Guangzhou Pharmaceutical Group and the education and training class on the Party Constitution, Party Regulations and Party Discipline on July 10.

Public reports show that Li Chuyuan's most recent appearance was at the opening ceremony of the 2024 International Conference on Alzheimer's Disease and Related Diseases held on July 13. In his speech, Li Chuyuan stated that Guangzhou Pharmaceutical continues to deepen its presence in the field of Alzheimer's disease.

At the same time, Li Chuyuan served as a deputy to the 14th National People's Congress, a deputy to the Guangdong Provincial People's Congress, a member of the Guangzhou Municipal Committee, and many other social positions. According to the WeChat public account of the Guangdong Provincial People's Congress, Li Chuyuan has participated in two National People's Congresses and received letters of thanks from three departments, including the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Finance. The National Medical Products Administration and the National Health Commission also responded to his suggestions by phone, text message, or face-to-face reply.

At a time when traditional Chinese medicine is booming, Li Chuyuan once said in an interview with People's Daily that in order to promote the high-quality development of traditional Chinese medicine, on the one hand, we must inherit the essence, adhere to the right path and make innovations; on the other hand, we must also realize the modernization, industrialization and internationalization of traditional Chinese medicine, help traditional Chinese medicine "set sail" and provide a Chinese solution for human health.

Due to the promotion of innovation and technological development of traditional Chinese medicine, the project co-completed by Li Chuyuan won the second prize of the National Science and Technology Progress Award in 2023. The technical achievements of the above-mentioned award-winning project "Integrated Innovation of Traditional Chinese Medicine Quality Inspection Technology and Creation and Application of Support System" have been applied to representative traditional Chinese medicine varieties such as Baiyunshan Compound Danshen Tablets and Baiyunshan Compound Isatis Granules.

A leading company in southern medicine with steady growth

According to reports, Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. is a listed company controlled by Guangzhou Pharmaceutical Group Co., Ltd. It was established in 1997, completed the share exchange and absorption merger of Baiyunshan A in June 2013, and was officially renamed "Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd." in July. Currently, Baiyunshan has four major business sectors: large southern medicine, large health, large commerce, and large medical care.

Baiyunshan is mainly engaged in four business areas. First, it is the research, development, manufacturing and sales of Chinese and Western medicines, chemical raw materials, natural medicines, biopharmaceuticals, and chemical raw material intermediates; second, it is the wholesale, retail and import and export of Western medicines, traditional Chinese medicines and medical devices; third, it is the research and development, production and sales of big health products; fourth, it is investment in health industries such as medical services, health management, and health care and elderly care.

In terms of financial performance, in 2023, Baiyunshan achieved operating income of 75.515 billion yuan, a year-on-year increase of 6.68%; total profit was 5.11 billion yuan, a year-on-year increase of 1.33%; net profit attributable to shareholders of the company was 4.056 billion yuan, a year-on-year increase of 2.25%; net profit attributable to shareholders of the company after deducting non-recurring gains and losses was 3.636 billion yuan, a year-on-year increase of 9.53%.

In the first quarter of 2024, Baiyunshan achieved operating income of 22.946 billion yuan, a year-on-year increase of 6.09%; the total profit was 2.452 billion yuan, a year-on-year increase of 4.13%; the net profit attributable to shareholders of the company was 1.958 billion yuan, a year-on-year increase of 2.59%; the net profit attributable to shareholders of the company after deducting non-recurring gains and losses was 1.834 billion yuan, a year-on-year increase of 0.33%.

Judging from the scale of Baiyunshan's product revenue in 2023, in the southern medicine sector, products with a scale of more than 1 billion yuan include Jin Ge, products with a scale of about 500 million yuan include Xiaoke Pills and Xiao Chaihu Granules, products with a scale of 200-500 million yuan include Zishen Yutai Pills, Huatuo Zaizao Pills, Qingkailing series, as well as antimicrobial drugs, antipyretic and analgesic fields in the field of cefuroxime sodium for injection, amoxicillin series, acetaminophen powder series, etc. In addition, the company has other products with a scale of over 100 million yuan. The combined scale of the above varieties is expected to account for more than half of the southern medicine sector.

In the recent market operation, Baiyunshan's commercial sector plans to be listed on the New Third Board to expand financing channels. According to reports, Guangzhou Pharmaceutical, a subsidiary of Baiyunshan, took the lead in implementing the professional manager system, which has achieved certain results in profit improvement and business optimization, and continues to promote reforms and plans to be listed on the New Third Board to expand financing channels.

Regarding the progress of Guangzhou Pharmaceutical's listing on the New Third Board, Baiyunshan introduced in response to investors' questions in June that according to business development needs, Guangzhou Pharmaceutical plans to be listed on the National Equities Exchange and Quotations and will be listed on the Beijing Stock Exchange when the time is right. Guangzhou Pharmaceutical submitted an application for this listing to the National Equities Exchange and Quotations Co., Ltd. on May 11, 2024, and received the "Acceptance Notice" issued by the National Equities Exchange and Quotations Co., Ltd. on June 17, 2024. In the future, Guangzhou Pharmaceutical will strive to be listed on the Beijing Stock Exchange based on the capital market environment and strategic development needs, to help improve the quality of the group's development.

When asked whether the increasing anti-corruption efforts in the pharmaceutical industry have an impact on the company's pharmaceutical-related business, Baiyunshan said in response that in May 2023, the National Health Commission and 14 other ministries and commissions jointly issued the "Key Points for Correcting Unhealthy Trends in Pharmaceutical Procurement and Sales and Medical Services in 2023", announcing the focus of pharmaceutical procurement and sales and medical rectification in 2023. In the medium and long term, strict industry supervision is conducive to the development of high-quality leading enterprises. The company will resolutely implement the national policy requirements on the pharmaceutical and health system, adhere to compliance as the bottom line of operation, and promote the company's sustainable and healthy development.