Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd.

Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd. Overview

Brand: Yixintang

Established: 1981

Overview: Yixintang一心堂 is the flagship brand of Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd.云南鸿翔药业有限公司.  Over the past 32 years, the company has grown into a large, publicly-traded pharmaceutical enterprise group. It integrates the cultivation and processing of Chinese medicinal herbs, the research, development, production, and wholesale and retail distribution of traditional Chinese and Western medicines, and the medical industry.

Subsidiaries and Operations: The company oversees more than 10 subsidiaries and operates over 2,400 Yixintang direct chain pharmacies across various provinces and cities, including Yunnan, Guizhou, Guangxi, Sichuan, Shanxi, and Chongqing. The company employs over 15,000 people and serves more than 5 million Yixintang health members nationwide.

Recent Developments:

  • May 24, 2024: The Fund Supervision Department of the National Healthcare Security Administration (NHSA) held a meeting with key executives of Yixintang Pharmaceutical Group Co., Ltd. to address issues related to some designated chain stores, including unauthorized drug substitutions and excessive prescriptions.
  • August 16, 2024: Following the meeting, Yixintang Pharmaceutical Group took a series of corrective actions under the guidance of the Yunnan Provincial Healthcare Security Administration. The company conducted a thorough self-examination and rectification of issues related to the use of healthcare funds, achieving significant progress.

Development History

Yunnan Hongxiang Yixintang Pharmaceutical (Group) Co., Ltd. is currently the largest pharmaceutical retail chain enterprise in Yunnan Province. The company has been restructured into a joint-stock company and is the 29th listed company in the Yunnan sector. For ten consecutive years, it has ranked among the top 10 Chinese pharmaceutical retail chains and has been recognized as an outstanding high-tech enterprise by the China Pharmaceutical Commercial Association. Hongxiang is also the largest distributor of traditional Chinese and Western medicines in Southwest China, and its production, processing, and sales of Chinese medicinal herbs have ranked first in Yunnan Province for ten consecutive years.

Milestones

  • October 1, 2009: To celebrate the 60th anniversary of the founding of the People’s Republic of China, Yixintang held a “Red Songs for the Motherland, Yixintang Celebrates Together” singing competition. The event featured enthusiastic performances by various Yixintang teams, expressing their love for the great motherland.
  • September 2009: Yixintang launched a nationwide promotion titled “60th Anniversary Meets Mid-Autumn Festival, Yixintang Gives Away 3 Million Gifts in 5 Days,” offering various discounts, free gifts, and exchange deals. On September 28, sales surpassed 10 million RMB in a single day.
  • September 2009: The 7th Yixintang Health Walk, a large-scale community care event titled “Health into the Community, Joy in Action,” was launched nationwide. The event included community health consultations, chess tournaments, a thousand-store initiative to care for a thousand members, and member appreciation parties, further enhancing Yixintang’s brand recognition and influence.

National Distribution:

  • August 2009: Vice Governor Li Jiang, along with other provincial leaders, visited the Hongxiang Yixintang Provincial University Internship and Employment Base to inspect and guide the work.
  • August 2009: A large public welfare event titled “Walking Together with Love and Life,” co-organized by the Provincial Guangcai Promotion Association, Shenzhen Lifeforce Technology, and Yunnan Hongxiang Yixintang, with support from the China National Weightlifting Team, held a press conference and donation ceremony at Yixintang Pharmacy City. The event donated protein powder worth 5 million RMB to impoverished people in the province. On the same day, Olympic weightlifting champion Zhang Xiangxiang and other organizers visited Luofeng County Jinshan Town Hekou Primary School to meet and support the student representatives who benefited from the donation.
  • August 2009: At the 2009 China Pharmacy Exhibition and the China Pharmaceutical Brand Awards Ceremony, Hongxiang Yixintang ranked first in the “Top 100 Chinese Pharmaceutical Retail Enterprise Competitiveness Rankings” evaluated by the China Drug Retail Development Research Center of the National Drug Administration. Chairman Ruan Hongxiang was also awarded the title of one of the “Top 10 Leading Figures in China’s Chain Pharmacy Industry.”
  • August 2009: Yixintang’s Kunming team won the championship at the West District Finals of the third national “I Love My Home” Employee Style Competition.
  • July 2009: At the Kunming Municipal Party Committee Work Conference, Chairman Ruan Hongxiang and his enterprise won the honors of “Outstanding Enterprise and Outstanding Entrepreneur.”
  • August 2010: Hongxiang Yixintang was awarded second place in the 2010 China Pharmaceutical Retail Enterprise Comprehensive Competitiveness Top 100, champion of profitability, and champion of management capacity.
  • August 2011: The company was awarded the “National Model Enterprise for Harmonious Labor Relations” certificate and plaque by the Ministry of Human Resources and Social Security, the All-China Federation of Trade Unions, the China Enterprise Confederation, the China Entrepreneurs Association, and the All-China Federation of Industry and Commerce.
  • August 2011: Hongxiang Yixintang was also recognized by the China Drug Retail Development Research Center (MDC) as the champion of management capacity and third place in the overall competitiveness in the 2011 China Pharmaceutical Retail Enterprise Competitiveness Top 100.

Corporate Milestones:

  • June 21, 2023: Yixintang announced several store acquisition plans, intending to acquire 66 stores for a total of 59.42 million RMB to strengthen its market presence in Sichuan.

IPO and Market Expansion:

  • July 2, 2014: Yunnan Hongxiang Yixintang Pharmaceutical (Group) Co., Ltd. (Yixintang, stock code: 002727) was listed on the SME Board of the Shenzhen Stock Exchange. It became the first listed stock of a chain pharmacy in China. Yixintang opened at 12.2 RMB per share and quickly hit the daily price limit, closing at 17.57 RMB per share, making it the star of the A-share market that day.

As of March 31, 2024, the company and its wholly-owned subsidiaries operated 10,746 direct chain stores, covering 10 provinces and municipalities, with 5,455 stores in Yunnan Province, accounting for 50.76% of the total. In 2023, Yixintang achieved a revenue of 17.38 billion RMB and a net profit of 549 million RMB.

Capital Market Strategy:

  • The net proceeds from Yixintang’s IPO reached 749 million RMB. These funds are mainly used to build the direct chain pharmacy network, enhance the company’s IT and e-commerce capabilities, supplement working capital, and repay bank loans. With the support of the capital market, Yixintang aims to further enhance its pharmaceutical sales advantage in Yunnan Province and accelerate its nationwide expansion, bringing high-quality Yunnan pharmaceutical products to the national market.

Company Honors and Awards

2003:

  • Hongxiang Yixintang Pharmaceutical Wholesale and Retail Chain became the first pharmaceutical enterprise in the province to fully pass the national standard certification. It was subsequently recognized with several honors, including:
    • National “Three Highs, Three Excellents” Advanced Enterprise
    • Advanced Unit in the National Rural Two Networks Project and “Thousands of Rivers and Mountains” Trustworthy Project
    • China’s Excellent High-Tech Enterprise
    • National Model Collective for Ethnic Unity and Progress
    • Advanced Unit in Pharmaceutical Industry Corporate Culture Construction
    • Provincial and Municipal Trustworthy Contract Abiding Units
    • Top Ten Integrity Enterprises in Yunnan Province
    • Famous Trademark of Yunnan Province
    • Quality and Efficiency Enterprise in Yunnan Province
    • Identified as a large enterprise in the pharmaceutical distribution industry under special protection by the provincial party committee and government.

2008:

  • Awarded the Yunnan Province Price Integrity Unit title.

2010:

  • Ranked second in the “2010 Top 100 Comprehensive Competitiveness of China’s Pharmaceutical Retail Enterprises” released by the China Drug Retail Development Research Center (MDC).
  • Received titles of “2010 Top 100 Comprehensive Competitiveness of China’s Pharmaceutical Retail Enterprises Management Capacity Champion” and “2010 Top 100 Comprehensive Competitiveness of China’s Pharmaceutical Retail Enterprises Profitability Champion.”

2011:

  • In March, Hongxiang Yixintang’s logistics management transitioned into a new era of intelligent management with the relocation of the old logistics base to Chenggong, enhancing logistics and distribution capabilities in its provincial regions.

2013:

  • Hongxiang Yixintang entered the top three in national chain pharmacy comprehensive strength rankings, with around 2,400 direct stores and an expected annual sales exceeding 4 billion RMB.

Chairman’s Awards:

  • Ruan Hongxiang, Chairman of Yunnan Hongxiang Yixintang Pharmaceutical (Group) Co., Ltd., holds various significant positions including:
    • Member of the Standing Committee of the Yunnan Provincial People’s Congress
    • Committee Member of the Yunnan Provincial Committee of the China Democratic National Construction Association
    • Vice Chairman of the Yunnan Provincial Federation of Industry and Commerce
    • Member of the Kunming Municipal Political Consultative Conference and Vice Chairman of the Kunming Municipal Federation of Industry and Commerce
    • Awards include:
      • Excellent Builder of Socialism with Chinese Characteristics
      • National “May 1st” Labor Medal
      • National Outstanding Science and Technology Enterprise Leader
      • Model for Ethnic Unity and Progress in Yunnan Province
      • Labor Model in Yunnan Province and Kunming City
      • Most Innovative and Influential Enterprise Leader in Yunnan
      • Outstanding Enterprise Leader Award from Hong Kong University
    • Ruan Hongxiang was also a torchbearer in the 2008 Beijing Olympics, completing the eighth leg of the torch relay in Kunming.
    • Recognized as a Star Entrepreneur in Non-Public Sector Enterprises in Yunnan Province, an Excellent Entrepreneurial Mentor in Yunnan Province for 2009, and an Outstanding Entrepreneur in Kunming’s Tenth Session.

Additional Honors:

  • November 2004: Awarded the “Key Protected Non-Public Enterprise” title for 2004-2006 by the provincial government and the Provincial Supervisory Department.
  • March 5, 2007: At the annual conference of the China Pharmaceutical Commercial Association in Beijing, Hongxiang Yixintang was ranked among the top 10 pharmaceutical retail chain enterprises in China for 2006, with a retail total of 860 million RMB.
  • 2006: Due to outstanding performance in economic development and exceeding 10 million RMB in taxes, Hongxiang Group was honored with the “Economic Development Advanced Enterprise” title by Xishan District, which included a Peugeot car valued at over 100,000 RMB and 40,000 RMB in cash.