General Manager of Zhejiang International Trade Group: Kangenbei model is an organic combination of state-owned enterprise strength and private enterprise vitality
2024-08-17
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"On the premise of compliance with laws and regulations and respect for the market, we emancipate our minds, draw a 'concentric circle' of interests between enterprise development and key teams and employees, stimulate the growth potential of the enterprise entity, and stimulate the vitality of employees to do things and start businesses. Take Kangenbei as an example. Since Zhejiang Guomao Group became the controlling shareholder, its parent net assets have increased from 5 billion yuan to 6.6 billion yuan, and the state-owned assets preservation and appreciation rate is 32%. The company's net asset return rate in 2023 will reach 10.5%, which is a very impressive set of data." On August 15, Yang Zhenghong, deputy secretary of the Party Committee, director and general manager of Zhejiang Guomao Group, introduced the above situation in an interview with a reporter from The Paper.
Zhejiang International Trade Group Co., Ltd. was established in 2008. Its main business sectors are financial services, life sciences and health, and trade and distribution. In the first half of 2024, it achieved revenue of 48.7 billion yuan and total profit of 2.106 billion yuan. It owns four listed companies including Zhejiang Oriental, Inter Group, Kangenbei, and Yilida.
Kangenbei is a well-known enterprise in the domestic traditional Chinese medicine industry. Zhejiang International Trade Group acquired 20% of the shares in 2020 and became the controlling shareholder of Kangenbei. Through targeted share issuance and stock repurchase, it has increased its holdings to 23.12%.
"The Kangenbei model is an organic combination of the strength of state-owned enterprises and the vitality of private enterprises." Yang Zhenghong said that judging from the performance in the past few years, listed companies, shareholders, local economy, social employment, etc. have achieved a win-win situation.
Kangenbei focuses on the field of traditional Chinese medicine and health, and has created 17 products with sales of over 100 million yuan, among which Kangenbei Enteritis Ning has annual sales of nearly 1.3 billion yuan. In addition to classic varieties, Kangenbei is also focusing on the research and development of innovative drugs. The 2023 financial report shows that Kangenbei's overall R&D investment is 312 million yuan, an increase of 18.8% year-on-year. Yang Zhenghong told the reporter of The Paper that Kangenbei, as an important subsidiary of Zhejiang International Trade Group, will continue to support its innovative development.
Zhejiang International Trade Group has proposed a business strategy of "expanding the pharmaceutical industry". Through its own cultivation and mergers and acquisitions, it has formed a development pattern of "one platform and two leaders" with a revenue of more than 40 billion yuan and a profit of more than 1.6 billion yuan. The first platform is "Zhejiang Pharmaceutical Group", an industrial development platform wholly owned by Zhejiang International Trade Group, which aims to create a strategic platform for mergers and acquisitions, investment incubation, and collaborative empowerment. The two leaders are Inter Group (000411), a leading enterprise in Zhejiang's pharmaceutical distribution, and Kangenbei (600572), a leading enterprise in Zhejiang's traditional Chinese medicine industry. Inter Group has built a drug and equipment distribution system covering the entire Zhejiang region, and undertakes more than 70% of Zhejiang's provincial-level pharmaceutical reserve tasks; Kangenbei focuses on the field of traditional Chinese medicine and health, and is the largest traditional Chinese medicine enterprise in Zhejiang Province.
Regarding how to continue to expand the pharmaceutical industry, Yang Zhenghong mentioned three paths. The first is to expand the industry. Focusing on the construction of Zhejiang Province's "Life and Health Science and Technology Innovation Highland", focusing on high-end medical devices, biological drugs and other fields, and laying out the cultivation of new pharmaceutical industries. The second is to expand the market, continue to improve the pharmaceutical sales and distribution system, and build a pharmaceutical business map based in Zhejiang, radiating across the country and going international. The third is to expand the brand, continue to cultivate and build a brand matrix, and further tap the brand value through innovative research and development, secondary development and other methods.
Li Xiaoxiao, reporter from The Paper
(This article is from The Paper. For more original information, please download the "The Paper" APP)
