What is the confidence of the veteran Chinese patent medicine enterprises to use their own technology, location and policies to bring the pharmaceutical sector to the cross-border health care and cultural tourism fields?
Panlong Pharmaceutical recently announced that its grandson company, Shaanxi Panlong Valley Cultural Tourism and Health Care, plans to build "Qinling Panlong Valley Health and Tourism - Qinling ** Hospital Affiliated to Xi'an Medical College" in Panlong Ecological Industrial Park, Zhashui County, Shangluo City, Shaanxi Province, with an estimated total investment of 1800 million yuan, the investment cycle is expected to be 1 year.
Panlong Pharmaceutical said that it will continue to promote the high-quality development of the aging industry, pay close attention to policies, focus on the "medical, health and nursing" service business, and continuously enhance the core competitiveness of the enterprise.
It gathers medical treatment, health care, and cultural tourism
According to the announcement, the company uses the unused idle houses of the existing production base to build a secondary hospital, which covers an area of 20 acres and a total construction area of 18,346 square meters. Supporting the construction of greening, water, road and site hardening, activity areas, lighting, pipe networks and other outdoor projects and the purchase of medical and health care facilities and equipment.
The project is based on the layout of the company's "one body and two wings" strategy, focusing on the company's strategic positioning of "building a leading brand of rheumatism and orthopedic drugs in China and an expert in the management of pain and chronic diseases", and further strengthening the company's right-wing strategy.
"Health care" and "business" have always been the "two wings" of Panlong Pharmaceutical. Among them, health care is more like a "key" for Panlong Pharmaceutical to open the market. For example, at a symposium in August, Xie Xiaolin, chairman of Panlong Pharmaceutical, publicly stated that the mid-to-high-end health care park "Panlong Valley" would be upgraded to a national-level ecological park for the whole industrial chain of traditional Chinese medicine. In September, when the representatives of Xi'an Medical College and Panlong Pharmaceutical Co., Ltd. conducted investigations, the two sides mainly exchanged and discussed the construction of Panlong health and cultural tourism projects.
For the purpose of investment, Panlong Pharmaceutical said that with the new idea of industrial development of "medical + health care", relying on Panlong Pharmaceutical's "traditional Chinese medicine, diet, and technical resources", combined with "famous doctors, famous medicines, famous prescriptions" and the ecological and cultural resources of Qinling, it will create a medical, health care and first-class complex with regional characteristics and brand advantages, integrating "climate care, traditional Chinese medicine and traditional Chinese medicine".
Xie Xiaolin said that with the "14th Five-Year Plan" to "actively respond to the aging of the population" as a national strategy, the development of the cause of the elderly and the pension service system has been highly valued, as the field of traditional Chinese medicine, the field of health care has deep experience in the field of Panlong Pharmaceutical, business coverage will also be expanded to health care services and lifestyle services, which is a new opportunity and a new challenge, Panlong Pharmaceutical will continue to promote the high-quality development of the cause of aging.
When referring to the impact on the company, Panlong Pharmaceutical said that the investment has a positive impact on the company's long-term development, will not have a significant adverse impact on the company's financial condition and operating results, and does not harm the interests of the company and all shareholders.
The health and cultural tourism project is located in the "base camp".
According to the announcement, the above project is located in Panlong Ecological Industrial Park, Zhashui County, Shangluo City, Shaanxi Province. The predecessor of Panlong Pharmaceutical was founded in 1985 in Xi'an Pharmaceutical Factory and Zhashui Factory. In 1997, Xie Xiaolin, then deputy director of the factory, took the lead in implementing internal contracting and leasing. According to the official website of Panlong Pharmaceutical, after only 6 months of leasing and operation, the output value of the year reached 6.1 million yuan, the sales revenue was 4.8 million yuan, and the tax paid was 150,000 yuan, which is equivalent to the total amount of taxes paid in the 13 years since the establishment of the factory.
The map shows that the headquarters of Panlong Pharmaceutical is about 97 kilometers away from Zhashui County, passing through China's Qinling Zhongnanshan Global Geopark, Niujiliang National Forest Park, and adjacent to Taiping National Forest Park. Encyclopedia shows that in 2019, Zhashui County was awarded the title of "China's Natural Oxygen Bar" by the China Meteorological Administration.
According to the proposal of the members of the second meeting of the 10th CPPCC of Zhashui County announced by the people of Zhashui County on November 13, 2023, the hollowed countryside, a large number of idle rural vacant houses and idle homesteads are extremely conducive to the development of health care and pension projects, and the metropolis of Xi'an, which accounts for about one-third of the population, has a very strong demand for living in rural areas for retirement, vacations and enjoying idyllic scenery in rural areas. The construction of a "health and wellness city" proposed by Shangluo City and the development concept of "health and wellness" proposed by the county party committee and county have laid a good foundation for revitalizing idle and vacant houses in rural areas, increasing the rural residential population, and introducing talents, funds and projects for rural revitalization.
Zhashui County said that it has formulated and issued the "Shangluo City to Build China's Health and Wellness Capital Zhashui County Work Plan", "China's Health and Wellness Capital Work Class Member Unit Responsibilities Division", "Zhashui County Health and Livable Demonstration Village Evaluation Standards", "Zhashui County Star Farmhouse Evaluation Management Measures" and other institutional documents, closely around the "health care, health care, health cultural tourism, health sports, health medicine, health food" six major plates, to further promote the development of the county's health care industry. This year, the county has launched the creation of 10 "health care demonstration villages";At present, the county has built 35 high-end homestays and 163 hospitals, and 18 are under construction.
The financing model of government-enterprise cooperation is moving towards innovation
The recent economic work conference mentioned that we should give full play to the amplification effect of investment, focus on supporting key core technology research, new infrastructure, energy conservation, emission reduction and carbon reduction, and cultivate new momentum for development.
Wu Chaoming, vice president of the Institute of Finance and Credit Technology, expects that in the future, the financing model of government-enterprise cooperation will usher in innovative development, and the motivation and channels for private investment to participate in the construction of major national strategic investment will increase.
What will Panlong Pharmaceutical bring to Zhashui County?
According to public information, Panlong Pharmaceutical was listed on the Shenzhen Stock Exchange in November 2017, and the company is a modern high-tech enterprise with standardized cultivation of medicinal materials, drug production, research and development, sales and pharmaceutical logistics as its core industries. In 2022, Panlong Pharmaceutical's annual revenue will be 97.4 billion yuan, a year-on-year increase of 978%；Net profit 10.1 billion yuan, a year-on-year increase of 858%。
The third quarterly report shows that in the first nine months of 2023, Panlong Pharmaceutical achieved an operating income of 71.6 billion yuan, a year-on-year increase of 329%；Net profit 8410360,000 yuan, a year-on-year increase of 787%。
Panlong Pharmaceutical said that at the beginning of 2023, the company proposed a development plan for the construction of a county-level business division, which is currently being implemented and promoted, and the grassroots market will be the blue ocean market for the company's sales in the future.
Debang** said that Panlong Pharmaceutical, as a veteran Chinese patent medicine company, focuses on the field of rheumatism and bone injury Chinese patent medicine. In 2020, there were more than 1 osteoarthritis patients in China300 million people, the market size of patent medicine in the musculoskeletal system has reached nearly 23 billion yuan, the domestic aging process is accelerating, and the huge demand is expected to be gradually released, and with the unfavorable factors in the Chinese patent medicine industry clearing, the market for patent medicine in the musculoskeletal system is expected to continue to grow, and the company is expected to benefit from the growth of the industry and realize the volume of its own products.
Adapting to changes brought about by the reform of the medical and health system, facing a lot of competition from public hospitals, and human resource shortages due to geographical location and business environment are possible risks for the company. Panlong Pharmaceutical said that the company will firmly grasp the favorable policies of the state to vigorously support social medical and social pension, focus on the "medical, health and pension" service business, actively do a good job in the management and control of the "medical + pension" industry, strengthen the construction of talent team, improve the company's overall medical service and health management level through the cultivation and introduction of high-level medical and technical talents, and establish a professional medical and pension management teamAccelerate the construction of the project and continuously enhance the core competitiveness of the enterprise.