Tang Xiuwen, Chairman of the Daphne Pharmaceutical Co., Ltd. Yunnan  

The provincial Party Committee and Provincial Government have worked out targets and policies for development of Yunnan Drugs, and shortlisted 10 key pharmaceutical enterprises to be supported. According to the requirements of the Outlined Blueprint for Modern Development of TCM Drugs and China FDA, as well as deployment of the provincial Party Committee and Provincial Government, Daphne has taken a solid step towards modernization of the panax pseudoginseng industry, and formed a complete industrial chain.
Our Company owns panax pseudoginseng enterprises, and has formed a strategic alliance with the Wenshan panax pseudoginseng research institute. Together with the panax pseudoginseng leading growers, we have built up GAP –certified panax pseudoginseng growing base according to requirements of the Good Agricultural Practice: TCM Material Production (GAP), and won affirmation and good comments from China FDA.
We took the lead to construct modern production premises and equipment according to the requirements of the Good Manufacturing Practice (GMP), and implement modern management, becoming the first enterprise in the province obtaining GMP certificate from China FDA.
We work with the China Medical University, China Military Medical Institute, Shanghai University of Traditional Chinese Medicine and Yunnan University Pharmaceutical Institute to push continuous development of our new products and technologies. On May 17, 2000, we won the certificate of a high-tech enterprise issued by the Yunnan Provincial Committee Of Science & Technology. In July 2002, the State Ministry of Science & Technology, Ministry of Foreign Trade and Economic Cooperation, State General Bureau of Quality Supervision and State Administration of Taxation co-certificated our drug system represented by Qishengli, Qishengjing, and Thrombosis drugs; health food system represented by the panax pseudoginseng Tang-d Kang Capsules & panax pseudoginseng Likang Tablets; and panax pseudoginseng food series represented by panax pseudoginseng chicken stewing additive package and panax pseudoginseng buccal pieces.
Now, our company has established a sales network covering 29 provinces or municipalities. As the market share is getting bigger, our sales performance is climbing steadily. In 2003, we reported sales of RMB 114 million yuan, and profit and tax of RMB 17 million yuan. In June 2002, we won the contract from the Wenshan prefectural people's government for sole development of the China Wenshan Panax Pseudoginseng Industrial Park, and established an ad hoc project company called the Wenshan Panax Pseudoginseng Industrial Park Investment & Development Co., Ltd.. Construction of the Panax Pseudoginseng Industrial Park will fuel modernization of the panax pseudoginseng industry and second take-off of Daphne.
Targets and measures for second take-off: In August 2002, the Provincial Government defined the strategic deployment for development of Yunnan Drugs, and decided to give special support to 10 pharmaceutical enterprises including Daphne. In this setting, Daphne started its second take off.
Targets of second take-off: The 2002 provincial pharmaceutical industry was expected to post sales of RMB 5 billion yuan, and Daphne should contribute RMB 100 million yuan, namely 2% of the provincial sales. The Provincial Government requires the provincial pharmaceutical industry to book sales of RMB 10 billion yuan by 2007, and Daphne should strive to contribute RMB 1 billion yuan, namely 10% of the provincial sales.
Measures for second take-off: To launch drugs laden high technical level, including 4 new drugs for Hepatitis B and senile dementia etc.; to step up development of panax pseudoginseng-based health food and common foodstuff; to take the lead to obtain state GAP certificate and state panax pseudoginseng materials sales approval document to push construction of the panax pseudoginseng industrial park, and maximize the benefit of the panax pseudoginseng trading center and processing center; and to absorb talents, rely on universities and research instititues to step up scientific research, carry out domestic & global market research and development, and strengthen modern management within the organization.

The Panax Pseudoginseng Industrial Park under Construction
Geographical Location
Panax Pseudoginseng Industrial Park is locatetd in south suburb of the capital of Wenshan county, covering an area of 112 hectares, with planned area of 1680 mu (112 hectares). The ground on the site of the park is even, with good geological condition. The boundary of the site is adjacent to a 50-m wide artery of the town, only 2.5 km away from the downtown. The site is readily accessible to the roads leading to the Wenshan urban area, enjoying convenient condition.

Features of the Plan
The park is designed with reference to much experience of similar projects, home and abroad, and with the local condition taken into consideration. According to the principle of "overall planning, rational layout, diversified fund raising channels and implementation in steps", the design combines the guideline with flexibility, long-term development and the need of reality, makes overall arrangement of the land, rationally allocate the infrastructure within the park, and fully displays integrity, openness, lead, uniqueness, culture and global integration. In brief, it is aimed to construct the park into a green industrial development area complete with perfect functions, facilities and unique local culture.

Construction Content and Function
(1) Infrastructure: public utilities (water, electricity and gas supply), roads, communication, drainage, areas along roads, park plaza beautification & site leveling.
(2) Architectural group of standard production premises surrounding intensive processing of panax pseudoginseng.
(3) Panax pseudoginseng research center surrounding product R&D.
(4) Modern panax pseudoginseng trading center surrounding trading of panax pseudoginseng and panax pseudoginseng-based product line.
(5) Public cultural service facilities mainly comprising panax pseudoginseng ecological park, museum and contained plaza.
(6) Administrative service facilities surrounding management, service and reception.
The developer will try to construct the park into one with top class infrastructure, top class panax pseudoginseng processing enterprise, top class living facilities and top class management service level, creating an ideal environment and modern green ecological panax pseudoginseng industrial park appealing to investors, home and global.
In June 2002, we won the contract from the Wenshan prefectural people's government for sole development of the China Wenshan Panax Pseudoginseng Industrial Park, and established an ad hoc project company called the Wenshan Panax Pseudoginseng Industrial Park Investment & Development Co., Ltd.. Construction of the Panax Pseudoginseng Industrial Park will fuel modernization of the panax pseudoginseng industry and second take-off of Daphne.

Construction Target
The park construction will be implemented in steps and in a way of rolling development to attract investors to settle in the park. The targeted annual output value in the end is RMB 2 billion yuan, and targeted annual profit and tax RMB 500 million yuan. According to the plan, a provincial leading and globally recognized modern TCM drug industrial park will be completed within 10 years.

Implementation Steps
The park construction to be completed in two steps: Phase I will involve land of 700 mu (46.67 hectares). Construction of the infrastructure is expected to be completed by 2003. Now, the investment wooing work has been waged on full scale, and some projects have settled in the park. Infrastructural construction for Phase II is expected to be completed by 2004-2006, when the park will start to move on a normal track, and a considerable business size will be formed by the enterprises settling here.

Construction Progress
In January 2002, the Daphne Co. formed a project company called the Wenshan Panax Pseudoginseng Industrial Park Investment & Development Co., Ltd., who will be responsible for construction and operation of the park. In June the same year, the project company approached to the park for Phase I infrastructural construction, including public utilities (water, electricity and gas supply), roads, communication, and drainage etc. Currently, the infrastructural construction is underway.
(I) Over RMB 60 million yuan has been invested in Phase I infrastructural construction. 90% of the job quantities of 6 roads have been completed; 400,000 m3 of earth work has been completed; and construction of the water supply & drainage pipe grids has been preliminarily completed.
(II) Construction of projects to settle in the park
1.  Ongoing projects:
The first project is about construction of production premises of the production enterprise - the Wenshan Wankang Panax Pseudoginseng Foodstuff Co., Ltd. owned by the Daphne Pharmaceutical Co., Ltd. Yunnan. This project covers an area of 34 mu (2.27 hectares), with floor area of more than 10,000 square meters. The building is constructed with light-steel structure, with anticipated investment topping RMB 56 million yuan. Currently, over RMB 20 million yuan has been invested. The main building of the production premises has been preliminarily completed, and the production is expected to start by the end of this year.
2. Incoming projects:
(1) China Wenshan Panax Pseudoginseng Trading Market: The project will cover an area of 50 mu (3.33 hectares) according to the plan. The building, covering an area of 15 mu (1 hectare), will be constructed with new-type light-steel structure, with floor area of 60,000 m3. That will cost investment of RMB 40 million yuan. Its construction will start within this year.
(2) Wenshan Panax Pseudoginseng Primary Processing Center project: The project will cover an area of 60 mu (4 hectares) according to the plan. The production premises will cover an area of 30 mu (2 hectares), with total investment of RMB 70 million yuan. Its construction will start within this year. 
(3) 2 green plazas will be built inside the park. Their design, completed by the Shanghai Tongji University, has been approved preliminarily. The green plaza at the entrance will cover an area of 33 mu (approx. 2 hectares), with investment of over 6 million yuan. Start of its construction is slated for the second half of this year, and the construction is expected to be completed within this year. The central plaza will cover an area of 79 mu (5.27 hectares), with investment of RMB 10 million yuan.
(4) Building group on the comprehensive administrative area: The project will cover an area of 50 mu (3.33 hectares) according to the plan. The building, covering an area of 15 mu (1 hectare), will be constructed with floor area of 60,000 m3, and total investment of RMB 60 million yuan. Start of its construction is slated for this year.

To accelerate development of the Wenshan panax pseudoginseng resource and construction of the Panax Pseudoginseng Industrial Park, the Wenshan prefectural Party Committee and government have released favorable policies for enterprises moving to the Wenshan Panax Pseudoginseng Industrial Park.

(Source: Page A4 of the April 9, 2003 issue of Yunnan Daily, special page of the April 15, 2003 issue of Kunming Evening, special page of the April 11, 2003 issue of Dianchi Morning)