Source: Medicine Wisdom Network/Fennel
"To protect your throat, please use a golden throat piece, Guangxi golden throat."
This advertising slogan, presumably many post-80s and post-90s are not strangers. In 2003, this sentence spread all over China, bringing a lot of revenue to Golden Throat.
Today, the company is about to be delisted.
On October 29, Golden Throat issued an announcement that it would privatize the company through an agreement arrangement and would cancel its shares at HK$2.8 per share of the planned shares.
From beginning to end, Jiang Peizhen, the founder of Golden Throat, did not stand up and say a word.
From a 13-year-old sugar worker to an 18-year-old deputy director, turning the candy factory into a 6 billion listed pharmaceutical company, and then privatizing and delisting, Jiang Peizhen and Jin Throat's 62 years of "dust past".
18-year-old deputy director
In the winter of 1946, in a county under the jurisdiction of Guigang City, Guangxi Province, a baby girl fell to the ground, her name was Jiang Peizhen.
In the spring of 1956, Liuzhou Candy No. 2 Factory (the predecessor of Golden Throat) was established.
The seemingly unrelated two have a subtle connection three years later, and since then a special "fate" of 62 years has begun.
In 1959, 13-year-old Jiang Peizhen, because of the early death of her mother and no money to go to school, appeared at the door of the second candy factory in Liuzhou City. According to the state regulations, child labor was not allowed, but the little girl's difficult situation aroused the sympathy of the factory, so he made an exception and let her enter the factory as a sugar worker.
The spirit of hard-working and outstanding achievements enabled Jiang Peizhen to quickly win the common recognition of factory leaders and employees, and was promoted step by step from team leader, youth class leader and workshop director.
In 1965, at the age of 18, Jiang Peizhen was elected deputy director in charge of the overall work.
At the age of 20, Jiang Peizhen married a middle-level backbone member in the factory and the team secretary at the workshop level.
After getting married, Jiang Peizhen not only took care of housework, but also managed the factory with an output value of only 20,000 yuan.
She used her spare time to complete all the courses of high school, middle school, staff night school, and Han University, and strived to improve her scientific and cultural knowledge.
In 1979, at the age of 33, Jiang Peizhen was appointed director of the factory.
How to make the candy factory better? Jiang Peizhen thought of "going out" to study.
In 1985, Jiang Peizhen introduced the country's first candy production line, using the Guangxi characteristics of fruits everywhere, beating the fruit with jam and putting it in the candy, creating the first piece of jam chocolate and the country's first wine heart chocolate.
In 1988, the output of the second candy factory was nearly 20,000 tons, the output value was 97 million yuan, the tax profit exceeded 10 million yuan, and the economic indicators ranked first in the same industry in the country, and the second candy factory became the "first in China".
A "golden voice"
In the 1990s, with the spring breeze of reform and opening up, people's ideological consciousness began to change, paying attention to health products, and candy became a "not very nutritious" commodity.
Jiang Peizhen began to explore the transformation of the confectionery factory. She believes that there is always nothing wrong with making products oriented to market demand.
She began to study how to make a functional, technology-based product.
She came to East China Normal University in Shanghai and found Wang Yaofa and 10 other old professors to discuss their scientific research results. At that time, Professor Wang took out his favorite formula for the treatment of chronic pharyngitis using bioengineering methods and used it to transform the throat lozenges of the confectionery factory.
Jiang Peizhen immediately saw the light of day, and quickly returned to Guangxi with scientific and technological achievements to do the listing research of this related project called "Golden Throat And Throat Treasure".
In 1994, Jiang Peizhen established Guangxi Golden Throat Pharmaceutical Factory, and successfully pushed Golden Throat to the market, in just a few years, Golden Throat market share in the same kind of products jumped to the first place, and exported to the outside world.
"Single" operating structure
After the listing, the golden voice was unlimited, and the market value was as high as HK$6 billion.
According to the performance since the listing, the revenue of Golden Throat reached 708 million, 768 million, 624 million, 695 million, 797 million and 648 million, and the net profit was 155 million, 103 million, 61.38 million, 102 million, 168 million and 154 million, respectively.
In addition to the decline in net profit in 2017, the rest has remained at about 100 million yuan, although the golden throat has not lost money, but in the nearly 6 years of listing, the profit has not increased significantly.
What is more criticized by the outside world is that the revenue of Golden Throat mainly comes from two products, Golden Throat Throat Treasure and Throat Tablets, accounting for 89% of total sales.
How is the golden voice of one-legged walk balanced?
In order to break the single product structure, Jiang Peizhen once tried the strategy of industrial structure diversification.
In March 2016, a new herbal beverage from Golden Throat was unveiled for the first time at the Chengdu Sugar and Wine Conference: this drink uses natural herbs such as honeysuckle, monk fruit, chrysanthemum, etc., which can quench thirst and clear throat, and is a combination of traditional herbal concepts and modern technology.
In just two months, the sales of the new product have reached 8.4 million yuan, and Golden Throat is quite optimistic about it internally, and optimistically expects annual sales to reach 350 million.
However, this product does not bring benefits to the enterprise.
According to Golden Throat's 2019 financial report, herbal beverages and ginkgo biloba leaves were classified as other products by Golden Throat, and their combined sales accounted for only 1.1% of revenue.
The sales of golden throat throat treasure and throat tablets still account for more than 90%.
Jiang Peizhen's vigorous industrial structure transformation failed.
While improving the industrial structure, Golden Throat also used the development strategy of the former East Ejiao: price increases.
In 2014, the price of the single box of golden throat tablets was 4.3 yuan; in 2018, it was 6 yuan; in 2019, it was 6.33 yuan, an increase of 32%.
During the listing period, with the problem of single product development, Golden Throat had to go to the point of privatization and delisting.
The road to transformation of pharmaceutical companies
From relying on the single product business model such as golden throat treasure to the current delisting, the company's operation and management development strategy is very important.
In this regard, Mr. Du Chen, a well-known corporate strategy expert and author of "Strategic Operation of Pharmaceutical Enterprises and Restructuring of pharmaceutical industry", said:
The development of pharmaceutical companies should be "precautionary", not only focusing on immediate interests, but also taking a long-term view.
"Pharmaceutical companies such as Golden Throat should lay out some products around throat disease, but unfortunately they 'eat dry and divide up' in the developed period and have not invested in the future, so it is fate to encounter this result."
For the development of single-structure pharmaceutical enterprises, Duchen made suggestions for three aspects:
1. Deeply understand the internal and external environment in which the enterprise is located
In the continuous understanding of themselves and the external environment, pharmaceutical companies should mainly pay attention to products, especially competitive products, market patterns, policy changes, internal human resources and employee needs, and the impact of new technologies. "See what you know, take measures as soon as possible."
2. Self-knowledge of managers
Managers should have excellent foresight and the ability to discern future opportunities. "In addition, not only to be aware of ourselves, but also to learn to listen and take the initiative to solicit opinions, shorten the distance between power, let the truth and truth return to reality, and let the virtuous circle begin."
3, the choice of strategy
If managers really re-understand themselves and the external environment, then they must form new business models, new systems, new processes, new organizational structures and even new market cognitions according to the latest understanding and judgment, "For example, pharmaceutical companies should cultivate multiple star products, rather than a single structure with strong dependence, and eventually end in a hurry." ”
Du Chen believes that a real pharmaceutical company should be a real entrepreneur, not a businessman.
"Entrepreneurs have vision, innovation and a spirit of risk-taking, and it is only businessmen who take advantage of opportunities to 'make quick money.'"
Entrepreneurs have a farther, higher and richer pursuit than money, constantly pursue and promote innovation, and are willing to take the risks brought about by it.
Businessmen, on the other hand, have a keen business eye and can seize opportunities and do whatever they want to make money.
References:
1. Sohu Finance: Golden Throat Group delisted! Dialogue chairman Jiang Peizhen: There is no routine Ronaldo, he has eaten the golden throat; to be loyal and honest in doing business
2, 360 encyclopedia - Jiang Peizhen
3, FMCG network: [frustrated] Golden Throat announced delisting, the market value was once as high as 6 billion Hong Kong dollars
4, International Finance News: The golden voice is going to "end the curtain"!
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