On June 28, the 2023 annual general meeting of shareholders of Shanxi A-share listed company Guangyuyuan was held in Taiyuan. The conference attracted more than 300 people, including securities companies, fund companies and private equity investment institutions, as well as many individual investors, as well as media such as Shanxi Capital Circle. Before the start of the shareholders' meeting, many shareholders had already arrived early and took a group photo in front of the signature board.
Return to state-owned assets to "remove the false and retain the true" to welcome the new development bureau
"2023 is a year of development, consolidation and promotion after the company's return to state-owned assets, and has achieved certain results, it is a year of great significance in the company's development history, the company has consolidated the foundation of development, reshaped the development concept, achieved a turnaround, and the overall development has reached a new level", Li Xiaojun, chairman of Guangyuyuan, described the past year at the shareholders' meeting.
"Shanxi Capital Circle" noticed that as a well-known listed Chinese medicine company in China, Guangyuyuan, which has a number of well-known traditional Chinese medicine brands such as Guilingji and Dingkun Dan, has been quite "tortuous" along the way:
Guangyuyuan, formerly known as Shanxi Traditional Chinese Medicine Factory, as early as 2003, Shaanxi tycoon Guo Jiaxue through its Dongsheng Group, Shanxi Guangyuyuan, which was not large at that time, wholly owned, and in 2007, 95% of the equity of Shanxi Guangyuyuan was repaid to Dongsheng Technology, a listed company under Dongsheng Group, and Guangyuyuan was also injected into the listed company.
Although later due to the debt pressure and capital operation of Dongsheng Group, Guo Jiaxue has made many transfers to the equity of Shanxi Guangyuyuan, which has gradually become the core subsidiary of the listed company, and the listed company was renamed Guangyuyuan by Dongsheng Technology in July 2013, which initially formed the development pattern of Guangyuyuan and its subsidiary Shanxi Guangyuyuan.
In this context, Guangyuyuan "returned" to Shanxi in early 2021 after "marrying" other provinces for many years, and Jinchuang Investment, a subsidiary of Shanxi State-owned Assets Operating Company, won the actual control in July 2021, and then in September 2021, Shennong Technology Group, the provincial agricultural science and technology flagship powerhouse, achieved formal "ownership" by transferring the corresponding voting rights held by Jinchuang Investment.
In addition to the chairman of the group taking charge of the board of directors of Guangyuyuan, Shennong Technology Group also frequently "deployed" to help listed companies open a new strategic transformation of "the whole industry chain to create high-quality Chinese medicine", which can be said to be accelerating the ushering in a new development pattern.
Unexpectedly, Guangyuyuan suddenly announced in December 2023 that the China Securities Regulatory Commission decided to file a case against it due to suspected violations of information disclosure laws and regulations. However, immediately afterwards, Guangyuyuan made it clear that it would actively cooperate with the investigation, and voluntarily disclosed that the company's financial fraud occurred from 2016 to 2021 to clarify the relevant responsible persons, that is, before Shanxi state-owned assets "entered" the listed company.
With the conclusion of the investigation by the China Securities Regulatory Commission, after a vigorous "removal of the false and the true", Guangyuyuan "lost the burden" and went into battle lightly: the 2023 annual report shows that the company achieved revenue of 1.284 billion yuan during the reporting period, a year-on-year increase of 13.56%; The net profit attributable to shareholders of the listed company was 90 million yuan, an increase of 340 million yuan over the same period of last year, and successfully turned losses into profits.
Of course, as the oldest existing traditional Chinese medicine enterprise and pharmaceutical brand in the mainland, Guangyu Yuan now has a Chinese time-honored brand, two national secret varieties, three national intangible cultural heritage projects, four classic products, and 500 years of history and culture, and how to transform these advantageous resources into advantageous markets and polish the 500-year-old traditional Chinese medicine brand is still an unavoidable development challenge for Guangyuyuan.
For future development, Li Xiaojun once again emphasized at the general meeting of shareholders that the company will always adhere to the development strategy of "creating high-quality traditional Chinese medicine in the whole industry chain", and on the basis of insisting on doing a good job in "products, channels, science and technology, and brand", focus on the three major tracks of gynecology, anti-aging and cardiovascular and cerebrovascular diseases, implement the "large single product +" product strategy with Guilingji, Dingkun Dan and Angong Niuhuang Pill as the core, accelerate the secondary development of exclusive potential varieties and classic prescriptions, lay out the core health products suitable for the population, and gradually build "traditional Chinese medicine + health food". "Product matrix. At the same time, we adhere to academic leadership, innovation-driven, and digital intelligence empowerment, optimize and improve the company's management system, organizational system, and brand system, and comprehensively enhance the company's value creation ability and core competitiveness.
"Asking for rice with a golden rice bowl?" On-site investors asked sharp questions
Despite the resolution of historical issues, the recent share price performance of Guangyuyuan is still sluggish, and even hit a new low, which makes investors extremely concerned about the company's future development prospects. At today's shareholders' meeting, shareholders from all over the country actively asked questions, focusing on the company's litigation progress, marketing strategy and talent development.
In response to the above-mentioned dispute with the original controlling shareholder Xi'an Dongsheng Group over the large amount of performance commitment compensation caused by its inflated profits of listed companies, Li Xiaojun revealed that the case has been registered and filed in the Intermediate People's Court of Xi'an City, Shaanxi Province, but has not yet entered the trial stage. If it is unable to reach an agreement with Xi'an Dongsheng Group or cannot receive the compensation before the deadline, legal recovery procedures will be initiated, and the corresponding information will be disclosed in the announcement.
In addition, as for the compensation method, Li Xiaojun said that if Dongsheng Group uses the shares of the company it has held to compensate, the company will cancel the shares it has compensated; If Dongsheng compensates in cash, the company will include investment income. Even if the recovery is not recovered, it will not have any impact on the rights and interests of the company's investors.
"Shanxi Capital Circle" noticed at the meeting that brand building has become a hot topic. An investor from Chengdu, Sichuan Province bluntly said that the famous brand of 100 years is now "asking for rice with a golden rice bowl". Li Xiaojun admitted that the company's product strength is good, but there is still a lot of room for brand building. In the next three years, the company will carry out high-quality marketing reform actions, firstly, brand reform, comprehensively and profoundly tell the story of Guangyuyuan, strengthen the association with the IP of "Healthy China", cooperate with the Palace Museum, Shanxi University and other institutions to explore the cultural value of brands and products, and enhance the brand potential energy; The second is sales reform, create new voices, find new scenarios, create new value, adhere to classified operation, optimize resource allocation, increase terminal investment, establish a market and consumer demand-oriented marketing system, and carry out a comprehensive marginal analysis in the marketing cost structure.
Li Xiaojun specifically mentioned the reshaping plan of Guiling Jijiu, and said that the company will establish a higher quality brewing standard system, carry out a refined market layout, and strive to complete the coverage of key markets across the country within 2-3 years, and build a leading brand of high-end health wine.
In order to achieve long-term development in the future, Guangyuyuan intends to supplement the senior management personnel who understand the industry, profession and business through market-oriented selection and recruitment. Specific positions include President of a Listed Company, Vice President of Marketing of a Listed Company, and Vice President of Scientific Research of a Listed Company. The assessment issue is also one of the key points of attention of investors.
"The company attaches great importance to the construction of talent team, in recent years, due to factors such as headquarters relocation and talent retirement, the company's management talent loss is serious, and key positions are vacant, so we have issued a market-oriented selection announcement, whether it is internal or external to the company, you can sign up for the job, our talent concept is full of flowers, eclectic." Li Xiaojun said that the senior managers selected this time will have a 6-month probation period, and the salary standard will refer to the industry level, and the assessment will be carried out according to the performance objectives and job performance.
In the face of the problem of cross-selling and arbitrary prices of the company's products raised by shareholders, Wang Junbo, vice president and chief financial officer of the company, said that there are many speculators who dump the company's products at low prices through online channels, which proves that the company's products have a certain market demand. At present, the company has set up a special department to monitor online and offline cross-selling and price disorder around the clock, severely crack down on violators, and maintain brand image and the interests of investors. Author: Shanxi Capital Circle
Source: World Jin Business Circle