China Resources Sanjiu Medical and Pharmaceutical Co., Ltd.
华润三九
000999
Shenzhen Stock Exchange
Company Profile
(1) R&D: Innovation for Long-Term Development, Synergistic Advancement The company adheres to an innovation-driven strategy. In Consumer healthcare field, it focuses on consumer needs and its advantageous categories to build a diversified product matrix. In the prescription drug field, it is clinical value-oriented, delving into R&D within its "3+N" key therapeutic areas, and constructing a pipeline portfolio aligned with its strategic direction. The company has established a "Six Institutes & Three Labs" R&D system to capture strategic development opportunities and explore innovation potential. It has built national and provincial innovation platforms, including the National Engineering Technology Research Center for Chinese Patent Medicines, the National Enterprise Technology Center, the National Key Laboratory for Classical Formula Modern Chinese Medicine Creation, the National Key Laboratory for Modernization of Traditional Chinese Medicine, and the National-Local Joint Engineering Laboratory for Advanced Manufacturing Technology of Traditional Chinese Medicine. These platforms strengthen on key common technologies and enable technology and achievement incubation. The company has currently won 9 National Science and Technology Progress Awards (Second Class). Tasly upholds the philosophy of a "Research Institute Without Walls," fully integrating advanced technological resources. Centered on the innovative strategies of the "Disease Tree" and "Product Tree," it focuses on disease areas such as cardiovascular and metabolic, neurological/psychiatric, and digestive to optimize its R&D strategy. KPC Group continuously deepens R&D innovation around the "Three Grasses" (Panax notoginseng, Artemisia, Gastrodia), consolidates its full industrial chain advantage in Panax notoginseng, and builds a "Three Grasses" product matrix covering pharmaceuticals and health products, deeply exploring the elderly health sector. (2) Brand: Meticulous Craftsmanship, Building a Multi-Brand Matrix with Care The company implements a "1+N" brand strategy, leveraging strong brand operation and resource integration capabilities to build a multi-brand matrix. In the CHC field, starting from the treatment of common family diseases and health management, it actively extends into health management and chronic disease rehabilitation management. Based on the master brand "999" for family essentials, it continuously strengthens consumer-recognized pharmaceutical brands like "Tianhe," "Shunfeng," "Aonuo," and "Kangfute." In the silver health (elderly care) field, KPC Group continues to focus on the full industrial chain of Panax notoginseng, enriching the "777" brand connotation and product layout, building the brand recognition that "Sanqi is 777," and expanding and strengthening the category of Panax notoginseng oral preparations. It fully promotes the strategic upgrade and new product launches of the "KunZhongYao 1381" brand, anchoring the brand positioning of "640 Years of Intangible Cultural Heritage, Crafting Superior Traditional Chinese Medicine," writing a new chapter for Precision-Crafted Chinese Medicine. In the prescription drug field, it owns pharmaceutical brands like "Tasly" centered on innovation, continuously strengthening academic brand building through R&D innovation and academic promotion both inside and outside hospitals. (3) Channels: Omni-Channel Deep Cultivation, Fully Releasing Channel Efficiency The company possesses a well-covered, mature channel commercial system and management team. Based on sales channels characterized by reasonable coverage, rapid distribution, and effective sales, the "Sanjiu Business Network" system has completed its iteration and upgrade to version 2.0, extending from distributors to more retail terminals. The CHC business, relying on the solid customer system of the Sanjiu Business Network, conducts extensive and in-depth cooperation with the highest quality distributors and retail chains nationwide, covering over 500,000 drug stores. In the online sector, the company has established close strategic partnerships with industry giants such as JD Pharmacy, Alibaba Health Pharmacy, and Ping An Good Doctor, deeply exploring online growth potential and expanding business boundaries. The prescription drug business covers thousands of classified hospitals and tens of thousands of primary medical institutions across China, actively embracing the wave of internet healthcare. (4) Intelligent Manufacturing: Data-Driven, Revitalizing TCM with Technology Intelligent manufacturing is one of the core advantages the company focuses on building. Through new intelligent manufacturing technologies, it achieves visible, perceptible quality and end-to-end controllability and optimizability of the product production process. The company has been successfully selected as an "Intelligent Manufacturing Benchmarking Enterprise" by the MIIT (Ministry of Industry and Information Technology) and obtained the "Integration Management System Certification Certificate." The company's Deep Blue (Intelligent Manufacturing) Lab utilizes technologies like 5G, blockchain, digital twin, cloud computing, and intelligent production equipment to upgrade traditional drug manufacturing systems, accelerating digital transformation and the modernization of TCM. Tasly's independently developed fifth-generation high-speed dripping pill machine innovatively integrates high-speed jet flow, high-frequency vibration dispersion, and dual condensation technology for gas-liquid media, achieving optimization in both production efficiency and output value energy consumption, providing a model for the intelligent upgrade of TCM pharmaceutical equipment. The fully connected intelligent production line for Compound Danshen Dripping Pills has been fully implemented, and the smart production system for the high-speed dripping line has been officially launched, continuously promoting digital lean improvement of the dripping pill production line, aiming to build a high-speed dripping pill intelligent manufacturing demonstration factory. (5) M&A Integration: Strategic Synergy, Forging a Powerful Growth Flywheel The company consistently promotes mergers and acquisitions closely aligned with its strategic direction. Since 2012, it has successfully completed over 10 M&A transactions, including Aonuo Pharmaceutical, KPC Group, and Tasly, building competitive advantages and consolidating its industry position in areas such as children's vitamins and minerals, chronic disease management, and innovative TCM. It has explored and formed a "3-4-3" integration management model: maintaining "Three Stabilities" in the short term; promoting "Four Restructurings/Integrations" in the medium term; and achieving "Three Satisfactions" in the long term. Through professional and systematic post-investment integration work, the company promotes high efficiency and synergy between itself and the acquired entities. China Resources Sanjiu, Tasly, and KPC Group have now formed clear differentiated positioning: China Resources Sanjiu focuses on CHC as its core business, striving to be a leading enterprise in the segment; Tasly focuses on prescription drugs as its core business, driven by innovation to become a leader in the Chinese pharmaceutical market; KPC Group focuses on Panax notoginseng products and refined traditional Chinese medicine as its core businesses, striving to be a leader in the silver health industry.
Full description
Primary Business Operations of the Company 1. Products and Business Overview China Resources Sanjiu Medical & Pharmaceutical Company Limited’s vision is to "become a leader in the public healthcare industry." By innovatively applying both traditional Chinese and Western medical science and technology, the company focuses on the innovative R&D and intelligent manufacturing of high-quality pharmaceutical and health products. It serves every member of Chinese families and is committed to becoming the premier brand in China's pharmaceutical health sector. The company's CHC (Consumer Health Care ) products primarily cover categories such as cold, gastrointestinal, dermatological, liver and gallbladder, pediatric, orthopedic, and gynecological medicines, with a continuous effort to enrich its portfolio. Built around the core "999" master brand, the company has established a "1+N" brand matrix that spans the entire life cycle and encompasses all health management scenarios. Leveraging industry development opportunities, it aims to meet the comprehensive and multi-level health needs of every family member through products with a good user experience and high-quality services. The company's prescription drug portfolio covers therapeutic areas including cardiovascular and metabolic diseases, oncology, respiratory, neurological/psychiatric, digestive, orthopedic, and anti-infective treatments. It possesses a range of well-known products such as Compound Danshen Dripping Pills, Xuesaitong Panax Notoginseng Series Products, Yangxue Qingnao Granules, Shenfu Injection, Cinobufacini Tablets and Injections, Recombinant Human Urokinase Original for Injection, Tracer Mitoxantrone Hydrochloride Injection, and Cefpirome Sulfate for Injection, which enjoy a high reputation within the hospital sector. The company's Chinese herbal formula granules and decoction pieces are dedicated to creating authentic "999" TCM formula granules and premium " Sanjiu Bencaowu" refined decoction pieces. 2. Business Model Procurement Model: Centralized Management, Leveraging Advantages. Raw materials required for production are procured by the centralized procurement department from domestic and international manufacturers or distributors. Purchase orders are placed based on the requirements of various production bases, combined with procurement strategies and cycles; strategic reserves are initiated for key materials at opportune times and prices. The company utilizes its integrated advantages to reduce procurement costs. Production Model: Lean Intelligent Manufacturing, Guarded by Quality. The company focuses on the innovative R&D and production manufacturing of high-quality pharmaceutical and health products, concentrating on two critical links: upstream planting and midstream manufacturing. It promotes the development of new quality productive forces within the TCM industry and accelerates the transformation and upgrading of traditional sectors through the application of new technologies. All products from the company and its production subsidiaries are manufactured in strict compliance with GMP standards. A comprehensive quality management system has been established, with continuous advancement in EHSQ (Environment, Health, Safety, Quality) and lean management systems. The application of new technologies enhances quality control capabilities during production, ensuring product safety and quality. Sales Model: Efficient Connectivity, Extensive Coverage. For its CHC business, the company engages in extensive and in-depth cooperation with high-quality distributors and retail chains across China. In online channels, it has established close strategic partnerships with industry giants such as JD Pharmacy, Alibaba Health Pharmacy, and Ping An Good Doctor to expand business boundaries. The prescription drug business promotes its products to target customer groups through reliable clinical evidence and professional academic activities, achieving synergistic development with the CHC business across dual channels (retails and hospitals).