GPHL’s Baiyunshan released its financial report for the first half of 2018 on August 22nd, indicating the company Is maintaining rapid growth. A total of 14.84 billion yuan (up 33.51 percent YoY) was achieved in operating revenue and 3 billion yuan (up 115.02 percent YoY) in profit. Net profits attributable to shareholders increased 126.14 percent YoY to 2.619 billion yuan.

GPHL has been ranked the first on the list of China’s Top 100 Pharmaceutical Companies for seven consecutive years now. It is also among Guangdong’s top 500 companies and ranked the 8th among Guangdong’s top 100 manufacturing companies.

Major development strategies

Baiyunshan adopted a branding strategy called “super variety” in the first half of 2018, aiming to enhance the performance of its marketing and sales channels. The company’s main products including Jinge (Chinese Viagra) and Banlangen Keli (for treating internal heat ) saw rapid growth in their sales volumes during the report period.

New Jinge came onto the market in 2017.

Baiyunshan attached great importance to product R&D with 81.14 percent YoY growth in its R&D input in the first six months.

GPHL received permission from the China Food and Drug Administration to conduct clinical trials on Ceftriamidine Sodium and Ceftriamidine Sodium for Injection, a new drug for the treatment of pneumonia. The drug is the only new class 1.1 cephalosporin drug to have gained this permit over the past two decades. It was also granted a US patent and two Chinese patents.

Developing its own R&D ecology is an important step in GPHL strengthening its innovative ability. During the report period, Baiyunshan and its joint ventures set up 3 provincial technology centers and 2 municipal technology centers. Moreover, Baiyunshan was granted 19 Chinese invention patents and 6 Chinese utility model patents.

Baiyunshan wins the State Science and Technology Award

Attributed to the “super variety” and R&D strategies, the income of Baiyunshan’s TCM business achieved a 30.21 percent of year-on-year growth in the first half of 2018.

Updated marketing strategies---the success of Wanglaoji

Wanglaoji, GPHL’s flagship product, recorded major achievements in sales, marketing and industrial output in the first half of this year. Wanglaoji Health Industry Company Limited (Wanglaoji Health) earned 560 million yuan in net profit during the report period.

Wanglaoji started a new round of marketing strategies targeting younger customers. It hired popular Chinese movie stars, such as Zhou Dongyu and Liu Haoran, to endorse Wanglaoji, and promoted itself through a large-scale reality show, “Sing out”.

Zhou Dongyu and Liu Haoran endorse Wanglaoji

A variety of strategies were also implemented to update the company’s products and seek development. During this period, Wanglaoji Health changed the packaging of its new product, Baiyunshan Spring Water; launched Yerou Coconut Milk; and opened Wanglaoji offline shops.

A Wanglaoji offline shop

According to Chnbrand, Wanglaoji has the most influence on consumers in the Chinese herbal tea market.

Capital operation

Apart from the performance of its main businesses, the growth in Baiyunshan’s operating result was attributed to a series of capital operations.

During the report period, the company purchased a 30 percent stake of Guangzhou Pharmaceuticals Corporation and now holds an 80 percent stake in the company. The income of its commercial business grew year-on-year by 109.14 percent.

Moreover, Baiyunshan actively started new businesses. It had new projects offering maternity care and pension services, and also entered the medical equipment industry, establishing a joint medical equipment company and an incubator to ensure future development.

Corporate social responsibility

Baiyunshan joined hands with AliHealth and established China’s first national coalition to reclaim expired medicine.

Its three subsidiaries, Guanghua, Xingqun and Caizhilin, donated more than 5 million yuan to three villages in Meizhou including Jingkou, Yuanling and Wanxi, and helped 281 residents out of poverty.

National Coalition to Reclaim Expired Medicine founded

In addition, GPHL signed agreements with four less developed counties in Gansu, aiming to plant and farm Chinese medicinal herbs in these regions and push forward the development of their traditional Chinese medicine industry.

GPHL signs cooperative agreement with four less developed counties in Gansu.

GPHL continues to establish itself as a world-class company with unique products and corporate culture, and strives to be in the Fortune Global 500 List by 2020.

Reported by Jasmine Yin, Rebecca Tao

Edited by Olivia Ouyang, Simon Haywood