- Interview with Tang Xiuwen, Chairman, Daphne Pharmaceutical (Group) Co., Ltd. Yunnan 

Li Xun, Staff reporter

Dec. 8, 2005

             Yesterday, the writer made another interview with Mr. Tang Xiuwen, Chairman of the Daphne Pharmaceutical (Group) Co., Ltd. He was still as simple and straightforward as he was as I met him a couple of years ago. What's different, Mr. Tang Xiuwen appeared to be modest and confident, behaving more like an entrepreneur. He introduced to me the development and change of his company over the years, and the blueprint for the incoming 46.67 hectares of Wenshan Panax Pseudoginseng Health Industrial Park, which would need investment of RMB 1 billion yuan and comprise the panax pseudoginseng GAP planting base, Daphne production base, Daphne panax pseudoginseng material processing base, Daphne R&D and warehousing base, panax pseudoginseng health industrial base, Wenshan panax pseudoginseng int'l trading center, Daphne commercial center and panax pseudoginseng planting & trading center. “We have made much effort for this. I believe that the industrial park due to be completed soon will be furnished with world leading R&D equipment, technical support, processing technology and perfect supplies service. We will, with the widest mind, work with the partners to push development of the panax pseudoginseng industry! This is my dream for many years, also a dream of our Daphne staff,” exclaimed Mr. Tang, who appeared to be slightly excited.

             Mr. Tang, a homegrown entrepreneur in Wenshan, started his private business in 1981, and started up a pharmaceutical factory in 1994. By taking advantage of the Wenshan panax pseudoginseng, he made a big fortune for himself and the society. Shortly, he leapt to a leader spot in the Chinese panax pseudoginseng industry. He has gained the feeling of victory and a good understanding of potential challenges ahead from the business experience throughout the years. Any enterprise has to grow from scratch to small then to big capacity. You will have promise to succeed if there is a good platform, and you have firm determination and work hard, says he. Driven by this thought, he is determined to China and even the world's biggest panax pseudoginseng health industrial park, with the aim of building a platform with panax pseudoginseng linking to the world for numerous enterprises having taste for the panax pseudoginseng business, and making active contribution to promotion of panax pseudoginseng to the world market to benefit more human beings concretely.

         Planting of Wenshan panax pseudoginseng may be dated back to more than 400 years ago. Currently, Wenshan contributes over 90% of national panax pseudoginseng production. What's more, the local panax pseudoginseng is reputed for its best quality. Wenshan has been officially honored by the state with the title of “Hometown of Panax Pseudoginseng”, and included in the national list of species origins to be protected in 2003. The Daphne Pharmaceutical (Group) Co., Ltd. has recently submitted an application to the state regulators for a license permitting sales of the panax pseudoginseng products. Once it is approved, the Daphne Wenshan Panax Pseudoginseng Health Industrial Park will benefit more enterprises and consumers directly, home and abroad.

Daphne Pharmaceutical (Group) Co., Ltd. Yunnan

Dec. 8, 2005

         The Daphne Pharmaceutical (Group) Co., Ltd. Yunnan is a modern pharmaceutical enterprise in Wenshan, Yunnan - the Town of Panax Pseudoginseng. It integrates panax pseudoginseng GAP planting, scientific research, production, sales and development of the panax pseudoginseng industrial park, being the first enterprise in Yunnan obtaining GMP certificate by the State Food & Drug Administration, and passed GMP certification by Australian Federal Drug Administration in 2002. In 2004, the panax pseudoginseng planting base passed GAP certification by the State Food & Drug Administration, becoming one of first eight enterprises in China passing the GAP certification.

                The Company manufactures 66 drug products approved by the State Food & Drug Administration and 2 functional food products approved by Ministry of Public Health. What's notable, the Thrombosis Tablets & Thrombosis Granules are listed as a national Class II TCM drug to be protected, and a name product of Yunnan. The proprietary enteric coated Qishengli and Qishengjing tablets made from active monomer ginsenoside Rg1 & Rb1 extracted from panax pseudoginseng with means of high technology deliver accurate result with small dosage, winning the certificate of a national key new product co-issued by 5 state regulators like the Ministry of Science & Technology and General Bureau of Quality Supervision. The new Tang-d Kang Capsules and Panax Pseudoginseng Likang Tablets have filled blanks in the field of panax pseudoginseng functional food, making the Company gain unique spot in panax pseudoginseng product. The Company has established its own sales network covering 29 provinces and municipalities. As its market share is increasing, the Company is reporting stable growth of the sales performance. The Thrombosis Tablets alone reported sales of close to RMB 100 million yuan.

               The Daphne Pharmaceutical Co., Ltd. Yunnan founded in 1994 sponsored establishment of the Daphne Pharmaceutical (Group) Co., Ltd. Yunnan in 2003, which boasts staff of over 500 at its premises, and over 1000 sales reps, with registered capital of RMB 127.84 million yuan and total assets of over RMB 400 yuan. Currently, the Group solely owns the subsidiaries Yunnan Daphne Pharmaceutical Co., Ltd., Shenzhen Daphne Industrial Co., Ltd., Shanghai Daphne Industrial Co., Ltd., Yunnan Daphne Panax Pseudoginseng Industrial Co., Ltd. The Company together with its liaison offices in major cities and marketing network covering the whole country is sending the products to the users. In 2003, the sales recorded RMB 150 million yuan. In 2004, the sales hit RMB 200 million yuan, making the company a provincial top 100 enterprise, a provincial high-tech enterprise, and a top 10 pharmaceutical enterprise winning special support from the Yunnan Provincial People's Government. The 2005 sales are expected to hit RMB 250 million yuan. In the meantime, the Daphne Pharmaceutical Group has launched active effort to develop the global market. Establishment of the Yokohama, Japan-based Daphne Co., Ltd. in 2004 marked access of Daphne to the global market.

              Daphne treats quality as lifeline of the enterprise, and has invested totally RMB 105 million yuan in GMP renovation of the workshops. In April 2000, the Company passed certification of the State Food & Drug Administration Good Manufacturing Practice: Drug Production (GMP). The No. 2 workshop passed the GMP certification in July 2004. The product quality is assured in all areas including the production process and incoming inspection. The Company has invested over RMB 9 million yuan in GAP renovation and management of the panax pseudoginseng base, which passed certification of the State Food & Drug Administration Good Manufacturing Practice: TCM Drug Production (GMP) in March 2004, becoming one of first eight enterprises in China passing the GAP certification and the only enterprise in China owning panax pseudoginseng GAP base. Through dual quality certification, the product quality is more assured, making the product more competitive in the market.

                  In pursuit of the corporate culture of "sourcing from panax pseudoginseng and outperforming panax pseudoginseng", Daphne takes advantage of the local panax pseudoginseng resource to engage itself in intensive development of panax pseudoginseng products. Now, the product lines of drugs, health food and common foodstuff have been formed. The Thrombosis Tablets for cardio- cerebrovascular diseases and Danshen Heart Capsules made with tPNS, an active ingredient extracted from panax pseudoginseng sell well in China. The Menses Protection Tablets, a compound panax pseudoginseng formula based on secret prescription of the Yi Clan have won favorable feedback from the women users. The Qiye Sleep Tablets, made from the total saponins extracted from panax pseudoginseng leaves, relieve insomnia, amnesia and involutional syndrome. The Qishengli Tablets and Qishengjing Tablets made from monomer panax pseudoginseng Rg1 & Rb1, as the panax pseudoginseng products loaded with highest level of technology, have won the certificate of a national key new product co-issued by 5 state regulators like the Ministry of Science & Technology. The panax pseudoginseng-based functional food - Tang-d Kang Capsules and Likang Tablets, music to those with diabetes and fatigable people, filled the blanks of panax pseudoginseng-based health product.

       We understand that our achievements so far should be attributed to the concern and support of all walks of people. We Daphne people will work hard and carve more. We believe that Daphne have a good future ahead!

(Source: the Dec. 8 and 26, 2005 issue of Int'l Business Daily)