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History of Harbin Pharmaceutical Group

Harbin Pharmaceutical Group has a glorious chapter, from its establishment in the late 1980s to the clarion call for reform and opening up in China; from more than 10 years ago, it broke out of the walls of government agencies and became an enterprise. to achieve eight consecutive years of rapid growth; from implementing the three major strategies of "adjustment, rectification, and development" to corporate restructuring and introducing international strategic capital, Harbin Pharmaceutical people will not only take on the responsibility yesterday, today, but also tomorrow. Revitalize the backbone of the motherland's medicine; from the formation of the seven major bases to the blueprint and dream of the "11th Five-Year Plan" development plan; in order to protect human health, Harbin Pharmaceutical people and industry leaders share the wisdom and power of the rise of China's pharmaceutical industry!

2009 For Harbin Pharmaceutical Group, it was the year in the history of corporate development when it faced the most severe situation, the most arduous development tasks, and the most intensive internal structural adjustments. A comprehensive evaluation of the Group's work in 2009 can be summarized in three main points: First, the three major economic indicators hit record highs. In 2009, the group's operating income increased by 17.91% year-on-year; profits increased by 15.05% year-on-year, and profits and taxes increased by 15% year-on-year, achieving rapid development for the fifth consecutive year. Harbin Pharmaceutical Group has achieved brilliant results in the economic crisis that have shocked colleagues in the industry. Second, there are many highlights in production, operation and management. First, the support capabilities of large enterprises have been significantly improved. The four pillar enterprises of Yaozong, Sanjing, Yaoliu and Pharmaceutical Company have further enhanced their ability to support the overall development of the group. Second, the strong joint effect of the traditional Chinese medicine sector has been reflected. The scale, influence and product credibility of traditional Chinese medicine companies have increased significantly. Third, the biopharmaceutical and biovaccine industries have rapidly formed new profit growth points. Made new contributions to the improvement of the group's performance. Fourth, institutional innovation has brought management to a new level. Strengthening "cash pool" management effectively coordinated the use of funds; deepening centralized bidding and procurement further reduced operational management costs. Third, the effects of management adjustments in key enterprises have emerged. In 2009, we redeployed the leadership teams of Sanjing, Yaoliu, Traditional Chinese Medicine Company, Pharmaceutical Company and other enterprises. Such a major adjustment in one year is unique in the development history of Harbin Pharmaceutical Group. After such a large-scale in-depth adjustment, some outstanding people have been promoted to outstanding positions, which not only makes the organizational structure of the group company more reasonable and compact, but also significantly improves the company's execution ability. It also marks the development of the group company. Strategies have become more mature and perfect, management methods have become more advanced and scientific, and the core competitiveness of enterprises has been consolidated and improved.

2008 2008 was a special year. In this year, Harbin Pharmaceutical Group and the Chinese people experienced the raging snowstorm, the Wenchuan earthquake, the stock market crash, the Olympic ceremony, the Shenzhou VII Feitian, melamine-tainted milk powder, Wandashan Acanthopanax contamination, the global financial tsunami and other major events that have had a major impact on the economy, society and corporate development. In the face of many major events of mixed joys and sorrows and the "double test" forced by fierce competition, the group has adapted to changes, allowing the company to show strong vitality and vitality, and creating new achievements in the group's economic development despite difficulties:

In 2007, when my country’s pharmaceutical economy bid farewell to the severe winter, steadily recovered, and stepped out of the trough of industry development, Harbin Pharmaceutical Group fully implemented the scientific development concept, firmly grasped market opportunities, and continuously expanded its brand competitive advantages. All tasks have achieved gratifying results: according to incomplete statistics, the group company's operating income in 2007 reached 11.106 billion yuan, a year-on-year increase of 18.88%; profit was 1.036 billion yuan, a year-on-year increase of 64.45%. All major indicators have exceeded the budget targets. The group's economic aggregate, operational quality and competitiveness have been significantly improved, and its development vitality has been continuously enhanced, creating another colorful chapter in the development history of Harbin Pharmaceutical Group. In 2007, Harbin Pharmaceutical Group's economic work achieved the most significant achievements: the brand value exceeded 13 billion yuan for the first time, the operating income exceeded 11 billion yuan for the first time, the industrial added value exceeded 2.4 billion yuan for the first time, and the profit exceeded 1 billion for the first time. yuan mark, foreign trade exports exceeded the US$100 million mark for the first time; the return on net assets and the turnover rate of current assets achieved significant growth, and the growth rate continued to be higher than the national average; the scale and quality of development were significantly improved, and the group's business development momentum further trended. Well, all indicators have reached the best level in history for three consecutive years. The group's operating income and profit indicators continue to maintain its leading position in the domestic industry; its business scale has achieved a historic leap, and it has ranked among the top 50 pharmaceutical companies in the world for the first time.

These achievements mark the further enhancement of the comprehensive competitiveness of Harbin Pharmaceutical Group, and we have taken another solid step towards the goal of building an "innovative world-class new Harbin Pharmaceutical". In view of the problem that the industrial resource layout within the group is scattered and the degree of intensification is relatively low, we have focused on the research on the development layout of the group company, actively implemented the group's internal resource integration and capital operation, and insisted on focusing the group's economic development on adjusting the economic structure, Transform the growth model and promote coordinated development. Through the merger and reorganization of the marketing business processes of the Second and Third Traditional Chinese Medicine Factory, the market competitiveness of the group's traditional Chinese medicine products was quickly enhanced; resource allocation was optimized, and the asset transfer of the Fourth Harbin Pharmaceutical Factory from Harbin Pharmaceutical Co., Ltd. to Sanjing Pharmaceutical was successfully completed, promoting To help listed companies become stronger and bigger. Sanjing Pharmaceutical was successfully selected as the "Model Stock in the Corporate Governance Sector of the Shanghai Stock Exchange" and became the only listed company in Heilongjiang Province to be selected. The implementation of a series of internal resource integration projects has rapidly improved the industrial level and initially formed an industrial cluster effect with high concentration, strong correlation and high level of intensification. Taking advantage of the opportunity of Harbin Pharmaceutical's brand becoming a "well-known trademark in China", we have effectively gathered and integrated the product brands of various companies in the group, and adopted three models: cultivating independent brand drugs, creating corporate brands for prescription drugs, and establishing national industry brands to further enhance the level of the brand. Form a dominant position in the product brand competition landscape. According to the assessment by authoritative departments, the brand value of "Harbin Pharmaceutical" has ranked first in the national pharmaceutical industry for three consecutive years, with an estimated value of 13.681 billion yuan, and an appreciation of 3 billion yuan in two years. The total assessed value of four brands including Harbin Pharmaceutical, Sanjing, Harbin Pharmaceutical Sixth Factory and Shiyitang has exceeded 25.6 billion yuan. "Sanjing Calcium Gluconate" and "Xin Gai Zhong Gai" rank among the top ten calcium supplement brands in China. Harbin Pharmaceutical Group has won the honorary titles of "China's AAA Credit Enterprise" and "2007 National Foreign Trade Credit AAA Enterprise" for its outstanding performance in the field of pharmaceutical business and honest management. This marks that Harbin Pharmaceutical Group has obtained the honorary title of further expanding into the international market. The pass of the market has built a solid international credit foundation for large enterprises to operate with integrity.

2006 is a milestone year in the development history of Harbin Pharmaceutical Group, and it is also the year when Harbin Pharmaceutical Group, a newly formed joint venture, withstands the test of market competition. During these unforgettable 365 days, Harbin Pharmaceutical Group encountered various severe challenges from macroeconomic policy adjustments and changing market environments. The difficulties were unprecedented: macroscopically, faced with imbalances, disequilibrium, disorder, unemployment, The "Five Loss Phenomenon" has continued; the industry is faced with problems such as drug price reductions, the control of commercial bribery, the rectification and standardization of the drug market order, and new changes in the drug bidding model. In addition, the already difficult pharmaceutical market is in turmoil and overwhelmed. The entire pharmaceutical industry has increased revenue without increasing profits, and profitability has declined overall. The industry's losses have reached 25.5%, and the losses have increased by 28.5% year-on-year. The profits of key domestic pharmaceutical companies have all declined. More than 13% of unfavorable situations. However, the strong wind knows the strong grass, and the fierce fire refines the true gold. In this difficult and dangerous situation, where the wind and frost threaten each other, and the iron horses and glaciers come to sleep, 20,000 Harbin Yao people work hard and work together to face the difficulties, fly against the wind, turn competitive pressure into a driving force for development, and rely on international advanced The "Blue Ocean Strategy" theory comprehensively adjusts the product and marketing structure, strengthens capital operation and cost management, gets rid of the "three highs and one low" phenomenon of enterprise development in the "Red Ocean Strategy", and embarks on a virtuous cycle of products and markets. , a virtuous cycle of resources and environment, a virtuous cycle of economic benefits, and a virtuous cycle of enterprise's own development, which is a healthy, rapid and sustainable development path. In 2006, the group company's sales revenue reached 10.003 billion yuan, a year-on-year increase of 10.78%; profits and taxes were 1.41 billion yuan, a year-on-year increase of 7.64%; profits were 600 million yuan, a year-on-year increase of 11.3%. The achievement of the above results not only enabled the group to successfully complete the first step in achieving the goals of the "Eleventh Five-Year Plan", but also achieved a new leap forward with its operating scale exceeding the 10 billion yuan mark for the first time and its profit indicators exceeding the 600 million yuan mark. The Group and even Harbin City’s pharmaceutical economic development history has left a shining track. At the same time, Harbin Pharmaceutical Group's role as a new force in the development of the domestic pharmaceutical industry has become increasingly prominent: from January to October 2006, the group's profit and sales revenue indicators ranked first and third respectively among national pharmaceutical industry enterprises; Ranked 88th.

Harbin Pharmaceutical Group Co., Ltd. was named the champion of the top 100 Chinese pharmaceutical companies in the world; Sanjing Pharmaceutical ranked first among the top 50 pharmaceutical companies with the best growth potential in 2006... This marks that Harbin Pharmaceutical Group has become a "bumping trend" in the economic performance of the Chinese pharmaceutical industry. , a successful example of rapid growth. ·2005 In June 2005, Harbin Pharmaceutical Group’s capital increase and share expansion project was approved by the State-owned Assets Supervision and Administration Commission of the State Council. In July, the Ministry of Commerce approved Harbin Pharmaceutical Group's capital increase and share expansion, and the company's nature was changed from a solely state-owned company to a Sino-foreign joint venture.

In December 2004, Harbin Pharmaceutical Group officially signed the "Reorganization and Capital Increase Agreement" with three companies, CITIC Capital Iceland Investment Co., Ltd., Warburg Pincus Iceland Investment Group, and Heilongjiang Chenneng Harbin Institute of Technology High-Tech Venture Capital Co., Ltd. . The three companies added RMB 2.035 billion in cash to Harbin Pharmaceutical Group, acquiring 22.5%, 22.5% and 10% of the shares of Harbin Pharmaceutical Group respectively, becoming new shareholders of Harbin Pharmaceutical Group. The original shareholder, Harbin State-owned Assets Management Commission, holds 45% of the shares and continues to maintain its status as the largest shareholder of state-owned shares.

At the end of 2003, Harbin Pharmaceutical Co., Ltd. and Harbin Building Materials Industry (Group) Company formally signed the "Equity Transfer Agreement" and successively acquired Harbin Swan Industrial Co., Ltd. (Harbin Swan Industrial Co., Ltd.) held by it twice. listed company (hereinafter referred to as "Swan Shares")), successfully obtained a relative controlling interest in Swan Shares, and placed 96% of the equity of Sanjing Pharmaceutical Co., Ltd., a subsidiary of Harbin Pharmaceutical Co., Ltd., into Swan Shares through asset replacement. On September 30, 2004, with the approval of the Shanghai Stock Exchange, Swan Co., Ltd. officially changed its name to Sanjing Pharmaceutical.