The relationship between Yiling Pharmaceutical and Erkang Pharmaceutical

The relationship between Yiling Pharmaceutical and Erkang Pharmaceutical

On April 29, Yiling Pharmaceutical announced its financial report. In 2021, Yiling Pharmaceutical's revenue was 10.117 billion yuan, a year-on-year increase of 15.19%; net profit was 1.344 billion yuan, a year-on-year increase of 10.27%. However, the 2022 first quarter report released by Yiling Pharmaceutical at the same time showed that during the reporting period, it achieved revenue of 2.722 billion yuan, a year-on-year decrease of 25.80%, and a net profit of 484 million yuan, a year-on-year decrease of 28.22%.

At the same time, the company's annual report shows that Wu Yiling, the founder of Yiling Pharmaceuticals, holds 31.53 shares of the company, his son Wu Xiangjun holds 20.81 shares, his daughter Wu Rui holds 2.34 shares, and his sister Wu Xizhen holds 0.36 shares. As persons acting in concert, the Wu family firmly holds the say in Yiling Pharmaceutical, a tens-billion listed company.

According to public information, Wu Yiling was born in Gucheng County, Hengshui City, Hebei Province in October 1949. The Wu family is a family of traditional Chinese medicine, and Wu's father is well-known in the local area. After the college entrance examination was resumed in 1977, Wu Yiling was admitted to the Department of Traditional Chinese Medicine at Hebei Medical University. Only one year later, Wu Yiling, who was only a freshman, "jumped" directly to graduate school at Nanjing College of Traditional Chinese Medicine (now Nanjing University of Traditional Chinese Medicine). In 1982, he graduated from the first master's program of Nanjing College of Traditional Chinese Medicine and was assigned to work in the Department of Cardiovascular Medicine, Hebei Provincial Hospital of Traditional Chinese Medicine.

The Beijing Youth Daily reporter learned that in 1992, Wu Yiling left the hospital and founded a medical research institute in the Shijiazhuang High-tech Industrial Development Zone. In 1993, Wu Yiling decided to acquire 26 acres of land in the development zone to build his own pharmaceutical factory and hospital. In early 1995, the pharmaceutical factory was officially put into operation, which later became Yiling Pharmaceutical.

Yiling Pharmaceutical’s business scope is not limited to pharmaceuticals

Yiling Pharmaceutical’s performance is mainly driven by its drugs. Data shows that Yiling Pharmaceutical currently has 13 patented traditional Chinese medicine varieties, 8 of which are included in the National Medical Insurance List and 5 are included in the National Essential Drug List

According to Yiling Pharmaceutical’s financial report, in 2021 In 2018, Yiling Pharmaceutical's products in the cardiovascular and cerebrovascular fields performed strongly. The three products of Tongxinluo, Shensongyangxin and Qiliqiangxin achieved a total sales revenue of 4.534 billion yuan, accounting for 44.82% of the revenue, a year-on-year increase of 31.56%. Once again, it became the area with the largest proportion of revenue. As one of the company's main products, Lianhua Qingwen products achieved sales revenue of 4.108 billion yuan in 2021, becoming the company's largest single product.

But in fact, the Wu family’s business goes far beyond the pharmaceutical industry. The company also has two categories: "other patented products" and "other categories" in its financial report. Among them, the total revenue of these two categories in 2021 is 1.475 billion yuan, accounting for 14.58% of the overall revenue. It also clearly established a health industry system that integrates "medicine, medicine, health and nutrition" and combines online and offline in its financial report. The company has currently developed and launched a series of health products, such as mask pop-up beads, throat clearing spray, air herbal sterilizing gel and other products, which have a broad consumer base.

In addition, according to the company's annual report and Tianyancha information, Yiling Pharmaceutical is also involved in agricultural product processing and sales, chain pharmacies and hotels, and once owned travel agencies and supermarket chains.

The second generation of the Wu family are the "capital" behind Jia Nailiang and Luo Yonghao

Yiling Pharmaceutical is a typical family-owned enterprise. Wu Yiling's son Wu Xiangjun is the general manager of Yiling Pharmaceutical, his daughter Wu Rui is the secretary of the company's board of directors, and Wu Yiling's nephew Li Chenguang serves as the financial director of a listed company.

Although it owns a listed company with a scale of tens of billions, the second generation of the Wu family is not focused on pharmaceuticals. A Beijing Youth Daily reporter learned that the second generation of the Wu family’s investments span multiple industries such as retail, entertainment, education, medical beauty, artificial intelligence, and investment.

Among the second generation of the Wu family, Wu Xiangjun, the son of Wu Yiling, is relatively dedicated to the family business. It only has shares in Zhejiang Haining Jiahui Investment Partnership (Limited Partnership), a non-family business. This is a company engaged in equity investment, asset management, and investment management. The company has invested 1.1 billion yuan. Wu Xiangjun holds 9.09 shares in the company, and is tied with two other people as the company's second largest shareholder.

According to the equity penetration chart of Tianyancha, among the companies invested by Haining Jiahui Investment Partnership, there are three A-share listed companies. The company also has an indirect investment in Sinopec Sales Co., Ltd. It is worth mentioning that Haining Jiahui also favors Luo Yonghao and is a shareholder of Smartisan Technology (Chengdu) Co., Ltd.

Wu Rui, Wu Yiling’s daughter, owns shares in companies in more fields, including the entertainment industry. Tianyancha shows that there are currently two film and television companies in which Wu Rui is a shareholder, namely Tianjin Tongle Film and Television Culture Co., Ltd. and Liyi Interactive Entertainment (Tianjin) Film and Television Technology Co., Ltd.

Among them, Tianjin Tongle Film and Television, which was established in March 2016, was originally co-founded by star Jia Nailiang and his agent Guo Hongbo***. In 2017, Li Xiaolu and Jia Nailiang's sister Jia Shan's company was added as a shareholder of the company; from May to July 2018, Tianjin Tongle Film and Television introduced three external investment shareholders, and Wu Rui was one of them. Currently, Wu Rui is still a shareholder of the company, holding 1.16 shares. The company's current core artist is Jia Nailiang.

Li Chenguang holds shares in at least 10 private equity funds or investment institutions. Among them, Ningbo Meishan Bonded Port Zone Tyrus Equity Investment Partnership (Limited Partnership) invested in Harbin Institute of Technology Robot Group Co., Ltd., and other industries involved include automotive travel, artificial intelligence, education and training, etc.