Tonghe Pharmaceutical started its business as a raw material drug, mainly selling high-end markets such as Japan, the European Union and North America. I have a dream to make the chemical factory's scene as beautiful and clean as a jewelry store. Pang Zhengwei "Everything in the moment, he will affect your future." What do you think? Pang Zhengwei practiced this sentence. (Peng Zhengwei, Chairman of Tonghe Pharmaceutical Co., Ltd. sounded the listing of Baozhong) Tonghe Pharmaceutical, which has just been listed on the GEM, is mainly engaged in chemical raw materials and pharmaceutical intermediates. Founder Pang Zhengwei, a native of Taizhou, Zhejiang Province, has more than 20 years of experience in the pharmaceutical industry before establishing Tonghe Pharmaceutical. He has worked as an engineer for large state-owned pharmaceutical companies and as a trade manager for import and export pharmaceutical companies. In 2004, he set up a five-person entrepreneurial team, a Zhejiangese, and entrepreneurial choice in Jiangxi. Many domestic raw material pharmaceutical factories started from the production of pharmaceutical intermediates, so that they can make money quickly. Tonghe and the pharmaceutical industry are taking another road. Since the company was founded in 2004, it has been positioned as a raw material medicine, which means that the company has long investment period and earns money late. How did Pang Zhengwei survive the hardships of starting a business? This kind of enterprise gene pair will help the company's products to be positioned in high-end markets such as Japan, the European Union, and North America. How can it help? After the listing, Tonghe Pharmaceutical, how to further enhance the role of “good manufacturing†of Chinese APIs in the international market? Panorama Finance This issue of "Meeting? Capital Man" Tonghe Pharmaceutical (300636) Chairman and General Manager Pang Zhengwei Reporter: You are starting a business in Jiangxi. The main management team is actually from Zhejiang. The second largest shareholder, Liang Zong, is still a Hong Kong resident. How did such a team build up? Pang Zhengwei: These people used to know people when they used to work. When I decided to run a pharmaceutical factory, everyone thought the same, just like what you said, everyone came back (Jiangxi) without hesitation. Our team is very complementary. Liang Zhongcheng lived in Shanghai because of tube sales. The other four of us came to Jiangxi for 12 years. Now a few have taken over the wife. Reporter: The eating habits between Zhejiang and Jiangxi are very different. Is there any difficulty in adapting to water and soil? Pang Zhengwei: We came from the beach, there is no spicy food, there is spicy here, there is one, there is no seafood here. I don’t really care too much about some small problems in my life. I run a business, start a business, and have a lot of work. Reporter: We are a pharmaceutical company, which may be different from other companies in the industry. They can sell the products and they can be approved for drug approval, inspection and so on. What was your feeling at the beginning of the business? Pang Zhengwei: Other products can be sold in the market, and drugs are not like this. After the production line has been built, and then do a trial production, there will be a six-month stability data after the trial production. After coming out, then do a main document for the approval of the drug, then report it and apply for the drug. No. The drug substance also requires the drug number. It doesn't take long for the newspaper to go up. It's not so fast. It's been a few years, slow for many years. This is the money investment, the production line has been built, but your products can't be sold, and the capital pressure is relatively large. Reporter: What kind of state of mind was you at the time? What do you want to bear this feeling? Pang Zhengwei: We try to use a penny for two cents. Everything is saved. Anything is saved at the beginning. It can be as simple as possible. In 2005, Tonghe Pharmaceutical started construction. In early 2006, the first production line entered trial production. In early 2007, it had a second production line and entered some international low-end markets. Enterprises are still in the survival stage. In 2007, the pharmaceutical raw material of Tonghe Pharmaceutical was re-registered in South Korea and entered the Korean market. In 2009, the raw material drug Rebate was successfully registered in Japan and became the company's iconic development year. Pang Zhengwei: It is difficult for any product to be sold to Japan. Drugs are even more difficult. At that time, we had a lot of problems in China, what was the problem of melamine, and the incident of poisonous dumplings. The Japanese were particularly untrustworthy to us at that time. Do not believe in you. Mainly ask customers to come to us to see, look at your management level, look at your production equipment, and of course the quality of the products, samples, and what to give to him. Registered in Japan in 2009, our APIs can enter Japan. Reporter: At that time, when you got the access to the Japanese market, what was your own state of mind? Pang Zhengwei: At that time, I thought that I was very satisfied with the amount of 8 tons a year. I am very happy, there are 8 tons. Later, the customer over-added the code for a while, over time to overweight, that is a bit beyond my expectations. I don’t remember very well now. In 2010 or 2011, when I visited Japan, I went to work for more than ten tons a year. I thought so. Later, during the visit, I continued to increase the amount. Later, the order was added to 38 tons. Japan itself is very difficult to get in. After entering, it is really better, because the price is also sold higher, its quality requirements are high, and the gross profit margin is still relatively high. In 2009, Rebakpat, the raw material medicine of Tonghe Pharmaceutical, was successfully registered in Japan. In 2012, the raw material drug Gabapentin was successfully registered in the EU. In 2012, the company's revenue exceeded 100 million yuan for the first time. In 2015, the drug drug celecoxib was successfully registered in the United States. The main customers of Tonghe Pharmaceutical Development are world-renowned pharmaceutical companies and pharmaceutical traders. Reporter: Can you do this kind of market in developed countries, they continue to make orders with you, what are the core elements? Pang Zhengwei: The core element is product quality. The quality requirements put forward by some customers are sometimes very demanding, because our company has little influence at first, he may first find other companies to ask the more famous raw material drug companies in China, I want such product quality. Such a purity, the main indicator of chemical drugs is purity, "Can you do it?" He may be several times higher than the Pharmacopoeia, which is actually not easy. A lot of domestic pharmaceutical companies think that they can't stand it. "How could it be so high?" He opened his foot and was unwilling to pick it up, thinking that the customer was joking. No one did it in a circle. When we were looking for us, we picked it up. In the competition of the industry, if others say that they have done it, you can do it too. If you fight to the end, you will fight the price. If others can't do it, if you can do it, then the price may be better and the profit will be more generous. We always think so, so we have to pick up the list of these customers, and finally made it to him. Reporter: The company is doing chemical raw materials and pharmaceutical intermediates, but is your business focused on raw materials? Pang Zhengwei: Yes, the intermediates are only a little bit, and the amount is small. It is also an intermediate for the big foreign pharmaceutical companies. Let us give them. General intermediates, we do not supply them externally. At the time of the establishment of the company, in fact, we also have a choice, because the domestic raw material pharmaceutical companies, first do intermediates, intermediates for several years, after the company has accumulated, and then transferred to do the bulk drugs, most of China The original pharmaceutical factory is like this. It has the advantage of doing so, that is, the pressure on the previous period is small. Our company started as a raw material medicine. Reporter: In this process, the opportunity to make money is lengthened. Will the waiting time make you feel anxious? Pang Zhengwei: Of course, some of our team have questioned. He said who and who the company, he is a year or two later than ours, how much benefit they have last year, who and who benefited, is higher than us. But after 2011, this kind of words will be gone. Reporter: In other words, your late-comer advantage in 2011 is very obvious. Pang Zhengwei: Yes. We are with some local companies, such as intermediates, in fact, the gap between them and us is getting bigger and bigger. To be honest, our company started with APIs, so the quality of employees is relatively high. This is a clear difference from other APIs. Now our employees, our operators, if the contract expires, or the employees we have eliminated at the end of the contract, are all rushing, and other companies will rush to them. At present, the export rate of Tonghe Pharmaceutical is over 95%, and sales in the high-end markets of Japan, the European Union and North America account for more than 60% of the company's revenue. In 2016, the company's revenue was 250 million yuan, and the average gross profit margin of its main products was 38.68%. Reporter: You said that after the listing, the investment will increase the production capacity. What is your future outlook? What is the difference between the first 12 years of running and the subsequent running? Pang Zhengwei: The more I think, the better I will do. One advantage is that we mainly sell high-end markets. Japan, the European Union, and North America are our main markets, and the market layout is relatively balanced. This is relatively rare in the domestic industry. In the second aspect, in terms of product development, there are more products behind the product than in the previous ones. For example, we have five or six kinds of production, and more than a dozen are mature and more than twenty. After the investment fund is raised, we will continue to expand production capacity, and the subsequent sustained efforts are not a problem. After increasing production capacity, we will slightly increase the volume and gross profit margin. We also want to drop slightly, so that this enterprise is more stable. Reporter: Talk to you on this road and think that you are a very serious person. Pang Zhengwei: Our science and technology man, the thinking mode is more serious, more logical, the pharmaceutical companies themselves must be serious, the customers we contact are European and American, Europeans and Americans are very serious, just like there was an allusion before. Like the road, I saw no one, he will definitely not pass the red light. Do one step at a time, this is the character of our character and a feature of the company. Reporter: What is the meaning of a sentence in the profession of medicine for decades? Pang Zhengwei: There is a saying that everything you have encountered before will play a role in your future experience. Tongxiang Luchang Textile CO.,LTD , https://www.luchangtextile.com
