10 Years' Effort Pays Off

        In 1994, Daphne Pharmaceutical Co., Ltd. Wenshan - the predecessor of Daphne Pharmaceutical (Group) Co., Ltd. was formed in Wenshan, Yunnan, hometown of panax pseudo- ginseng in China. At the very beginning, they were a small private workshop with simple and rough production technology. Their business then was about production and sales of primary panax pseudo-ginseng product and sub-packaging of headache powder. But 10 years later, they have grown into a leading TCM drug manufacturer offering more than 200 varieties of panax pseudo-ginseng-based products covering drugs, common foodstuff, functional health food and daily use articles. The Company itself has been regarded as a post in the TCM drug industry as it has grown into a national and provincial leading enterprise, certified high-tech enterprise and a provincial preemptive support recipient.
        In April 2000, the Daphne Co. became the first Yunnan enterprise obtaining the Good Manufacturing Practice (GMP) certificate issued by China FDA. In January 2004, the Panax Pseudo-ginseng R&D Center went into operation officially, with the mission of carrying out intensive R&D of panax pseudo-ginseng. In May 2004, the new drug, functional health food and common food production base, costing investment of totally RMB 250 million yuan, started production. In November 2003, the 10k mu (666.67 hectares) of panax pseudo-ginseng GAP base owned by the Company obtained Good Agricultural Practice: TCM Material Production (GAP) certificate issued by China FDA, making the company one of the first 8 enterprises in China obtaining GAP-compliant certificate and the only enterprise owning GAP-compliant panax pseudo-ginseng base. With investment of RMB 100 million yuan, they constructed a panax pseudo-ginseng industrial park comprising 5 bases: the panax pseudo-ginseng product manufacturing base, panax pseudo-ginseng material processing base, panax pseudo-ginseng CAP planting base, warehousing R&D base and panax pseudo-ginseng health industrial base, and 3 centers: Panax Pseudo-ginseng Int'l Trading Center, Comprehensive Service Center, and panax pseudo-ginseng planting & supplies trading center.
        10 year's effort pays off eventually. Now, Daphne boasts a production force of more than 500 and marketing force of over 1000. Through innovation of the systems and mechanisms over the years, the company has grown to a size with registered capital of RMB 99 million yuan and total assets of more than RMB 600 million yuan. Their 2005 sales revenue topped RMB 300 million yuan. A modern enterprise group based in Wenshan and reaching the global market has taken shape. Backed by an extensive marketing network including subsidiaries like Kunming-based Daphne Drug Co., Ltd. Yunnan, Daphne Industrial Co., Ltd. Shenzhen, Daphne Industrial Co., Ltd. Shanghai and Daphne Panax Pseudo-ginseng Industry Co., Ltd. Yunnan and liaison offices across China, like offices in Beijing, Shandong, Zhejiang, Liaoning, Harbin, Chongqing and Shaanxi, Daphne panax pseudo-ginseng products are finding more ways to the households. Meanwhile, the company is stepping up development of the overseas market. Daphne affiliates establishment in Japan and Los Angeles, USA in 2004 are facilitating more Chinese panax pseudo-ginseng products to access to the global market.

(Source: Yunnan Daily, June 6, 2006, Page 11)