Seizing Opportunities and Stepping Up to the Plate: Striving Forward with Determination in a “Speed-Up” Race—Part One of a Series Highlighting the Achievements of Shijiazhuang Sihua Pharmaceutical Group’s High-Quality Development
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发布时间:2022-08-12
【概要描述】
Shijiazhuang Sihua Pharmaceutical Group has enthusiastically responded to the call of the Municipal Party Committee and the Municipal Government, seized development opportunities, strengthened its sense of responsibility and commitment, and, guided by the goal of ensuring smooth dual circulation in both domestic and international markets, leveraged its comparative advantages to build competitive strengths, thereby achieving significant economic and social benefits and consistently delivering impressive performance results.
In August, Shijiazhuang is lush and verdant, brimming with a vibrant, dynamic energy.
Yang Liyan, a veteran employee of Shijiazhuang No. 4 Pharmaceutical Group with 32 years of service, has personally witnessed one after another of her company’s new projects successfully take root and flourish, as well as the approval of one new product after another. Moved by these achievements, she remarked: “Our Shijiazhuang biopharmaceutical industry is now presented with an unprecedented and golden opportunity for development, and I am confident that the future holds even brighter prospects for our enterprise!”
Where does such “confidence” come from? It comes from here—
Since the 11th Municipal Party Congress, the Municipal Party Committee and the Municipal Government have steadfastly upheld the new development philosophy in a comprehensive, accurate, and thorough manner, vigorously promoted breakthroughs in the biopharmaceutical industry as a priority, and worked to build a biopharmaceutical industrial cluster worth hundreds of billions of yuan. The Municipal Party Committee and the Municipal Government have issued the “Several Measures (Trial) on Supporting the Pioneering Breakthroughs of the New-Generation Electronic Information Industry and the Biopharmaceutical Industry,” which provide a range of support measures for the leading development of the biopharmaceutical industry, including the establishment of a leading-industry development fund and special funding, incentives for R&D innovation and the commercialization of research outcomes, promotion of project construction, encouragement of expansion into domestic and international markets, support for the construction of major projects, cultivation of leading enterprises, reduction of burdens on businesses, and enhanced rewards for high-end talent. Meanwhile, all levels and departments have continuously optimized the business environment, provided attentive services to enterprises, and offered robust support to help them gain momentum.
As a leading enterprise in the city’s biopharmaceutical industry, Shijiazhuang Sihua Pharmaceutical Group has wholeheartedly responded to the call of the Municipal Party Committee and the Municipal Government, seized development opportunities, strengthened its sense of responsibility and commitment, and oriented its efforts toward ensuring smooth dual circulation in both domestic and international markets. By leveraging its comparative advantages and building competitive strengths, the company has achieved significant economic and social benefits, consistently delivering impressive performance results.
In the first half of this year, Shijiazhuang Sihua Pharmaceutical Group achieved a total industrial output value of RMB 3.78 billion, up 52.6% year on year, with substantial growth in profits and taxes. The group paid RMB 280 million in taxes, a year-on-year increase of 16.7%, marking new breakthroughs in its development and placing it among the leading pharmaceutical enterprises in the city and the province.
At present, Shijiazhuang Sihua Pharmaceutical is striving to achieve sales revenue of RMB 20 billion by the end of the 14th Five-Year Plan period, accelerating its pursuit of high-quality development and aiming to take the lead in driving breakthroughs in the city’s biopharmaceutical industry.
“Gold Rush” Specialty Advantage Products Accelerating the Move Toward the Mid- to High-End of the Value Chain
Products are the “cornerstone” of an enterprise, and high-quality, high-value-added products are the source of its profitability.
As the leading player in China’s large-volume parenteral solutions industry, Shijiazhuang Sihua Pharmaceutical has earned a renowned reputation both at home and abroad. However, in the face of new market dynamics, the company’s leadership is acutely aware of the limitations inherent in over-reliance on a single business segment and has resolutely embarked on a strategic effort to break out of its traditional boundaries and achieve breakthrough growth. In light of the company’s specific circumstances, Shijiazhuang Sihua has actively implemented the municipal Party committee and government’s call to further strengthen, extend, supplement, and optimize industrial chains. By leveraging the group’s comprehensive strengths in raw materials, talent, technology, and capital, the company is steadfastly aligning its industrial-chain development with the innovation chain and vice versa, thereby accelerating its move up the value chain toward the mid- to high-end segments.
At the formulation manufacturing facility of Shijiazhuang No. 4 Pharmaceutical in the High-tech Industrial Development Zone, reporters not only observed a variety of conventional “large-volume parenteral solutions” in multiple specifications, but also numerous new “small-volume injectables.”
In the 104 Water-For-Injection Preparation Workshop, 2-milliliter betahistine hydrochloride injections are currently in production. “This is one of our company’s flagship, value-creating products, manufactured using a sterile preparation process that delivers high added value and has earned widespread acclaim in the market,” said Wang Chao, the workshop supervisor, with pride.
Focusing on the market’s most in-demand and urgent product categories, Shijiazhuang Sihua Pharmaceutical is strategically expanding its portfolio in areas such as antiviral, antibacterial, anticancer, central nervous system, cardiovascular, gastrointestinal, and anesthetic therapies. The company is also actively developing innovative dosage forms, including aqueous injections, emulsions, lyophilized products, microspheres, liposomes, dual-chamber bags, multi-chamber bags, and powder-in-liquid multi-chamber bags, with the aim of establishing a leading edge in advanced formulation delivery systems and novel packaging solutions. Currently, Shijiazhuang Sihua has 195 products in development and has submitted 119 applications for regulatory approval.
The upstream segment of finished dosage-form products is active pharmaceutical ingredients (APIs), which are also critical to formulation production; only by maintaining firm control over APIs can we avoid being “choked” at the supply chain bottleneck. To extend its industrial chain, Shijiazhuang No. 4 Pharmaceutical has focused on specialty APIs that are in high demand and command premium pricing, currently offering 31 such products—and the pipeline continues to expand.
Currently, Shijiazhuang Sihua Pharmaceutical Group operates 10 subsidiaries with total assets of RMB 9 billion, having established a full-industry-chain business model that spans from specialty active pharmaceutical ingredients and novel dosage forms to innovative drugs, as well as the R&D, manufacturing, and application of pharmaceutical packaging materials.
Continuous optimization of the product portfolio and ongoing enhancement of the industrial chain have injected vigorous momentum into Shijiazhuang Sihua Pharmaceutical’s high-quality development; today, more than 80% of its profitability is generated by new products or upgraded versions.
Eleven High-Quality Projects Launch a Coordinated Push Accumulating New Momentum for High-Quality Development
Today’s “major projects” are tomorrow’s “major developments.”
For the city’s biopharmaceutical industry to achieve pioneering breakthroughs, it must be underpinned by a large number of major, high-quality projects that continuously inject new momentum.
Shijiazhuang Fourth Pharmaceutical is focusing on “specialization, refinement, uniqueness, and innovation” in the biopharmaceutical sector, aligning its product and market positioning—“only by entering the high-end market can we secure a future”—with the development philosophy of “projects are paramount,” and translating this alignment into concrete action.
Tower cranes, excavators, and front-end loaders are working at full throttle... At the construction site of the Shijiazhuang Sihua Pharmaceutical New-Formulation and Biopharmaceutical Industrial Park—a key provincial and municipal project—construction is in full swing. “Our project adopts EU design principles and is meticulously crafted as a high-standard, high-quality model project with an international outlook. Currently, more than half of the work has been completed, and we expect to finish construction and reach full production by June 2023, with an output value of RMB 2.7 billion and tax and profit contributions of RMB 800 million. This project will serve as a crucial strategic pillar for the company to surpass RMB 20 billion in sales revenue by the end of the 14th Five-Year Plan period,” said Zhao Yongzheng, Executive President of Shijiazhuang Sihua Pharmaceutical Group and Chairman of Hebei Guolong Pharmaceutical, who spends nearly every day on-site overseeing the project.
Since last year, 11 new and ongoing projects—including production lines for lyophilized powder for injection, emulsions, dry-mix suspensions, novel pharmaceutical formulations, and peritoneal dialysis solutions—have commenced construction in the Shijiazhuang High-tech Industrial Development Zone and the Shijiazhuang Economic and Technological Development Zone, with a total investment of RMB 2.15 billion. Notably, the emulsion production workshop, built to world-class standards, has largely completed equipment installation and commissioning and is expected to begin trial production in October. Once fully operational, its products will fill the gap in emulsion manufacturing within the province’s pharmaceutical industry, with annual sales revenue projected to exceed RMB 500 million.
Leveraging the leading role of projects in driving industrial development underscores the high standards and innovative spirit that underpin project construction. At Shijiazhuang No. 4 Pharmaceutical, each project goes beyond the mere replication and adaptation of existing plants, equipment, and processes. As Qu Jiguang, Chairman of the Board of Shijiazhuang No. 4 Pharmaceutical Group, puts it: “Every project must embody the latest achievements in industrial development and strive to set a benchmark and model for industrial upgrading.”
One high-quality project after another is serving as the solid “beams and columns” that underpin Shijiazhuang Sihua Pharmaceutical’s future high-quality development.
Focusing on the “Dual Circulation” Strategy and Deepening Market Penetration China’s domestic and international “circle of friends” continues to expand.
Even the finest wine can languish if it’s hidden in a secluded alley. Only by connecting with the right buyers can a great product realize its full value and drive greater profitability for the company.
2022 is a pivotal year for Shijiazhuang Sihua Pharmaceutical in achieving the goals set forth in the 14th Five-Year Plan, and the market is the linchpin of this critical year. To that end, Shijiazhuang Sihua has launched a dedicated “Marketing Breakthrough Campaign.”
At the Shijiazhuang No. 4 Pharmaceutical Logistics Center, reporters observed forklifts shuttling back and forth and fully loaded container trucks poised to depart, creating a bustling scene.
“Since last year, more than 40 newly approved drug varieties from Sihua Pharmaceutical have already entered production, many of which boast strong selling points in terms of indications, cost-effectiveness, and accessibility. For instance, new products such as terbutaline inhalation solution, ambroxol injection, doxofylline injection, and bromhexine injection have become highly sought-after upon launch, demonstrating robust market vitality and experiencing exponential sales growth. Upcoming launches of products like mecobalamin injection and pentoxifylline injection will also serve as new drivers for the company’s sales performance.” Zhen Zhanjun, Executive President of Shijiazhuang Sihua Pharmaceutical Group and General Manager of its Pharmaceutical Business Unit, told reporters with great satisfaction that, to date, a total of 26 drug varieties comprising 35 dosage forms have passed the National Evaluation of Quality and Therapeutic Equivalence for Generic Drugs, while 8 varieties encompassing 11 dosage forms have been selected in national centralized drug procurement programs.
Since the beginning of this year, Shijiazhuang Sihua Pharmaceutical has focused on the “dual circulation” strategy, proactively expanding both domestic and international markets, resulting in sales growth against the trend. Even more encouragingly, having successively passed audit certifications from more than 30 countries and international organizations, the company’s global marketing footprint continues to expand. After rigorous and discerning evaluations, numerous business partners in Europe, Southeast Asia, Africa, and other regions have extended olive branches, drawn by the internationally recognized quality of Shijiazhuang Sihua’s products. Today, the company’s network of customers is steadily growing, with its products now reaching across China and being sold in over 90 countries and regions worldwide.
A journey of a thousand miles begins with a single step.
“Let yesterday’s performance be a thing of the past, and let today be our new starting point!” Su Xuejun, Chairman of Shijiazhuang Sihua Pharmaceutical Group, stated with full confidence: “We will firmly seize the rare development environment and opportunities created by our city for pioneering breakthroughs in the biopharmaceutical industry, set even higher standards for ourselves, and strive to go further still. By the end of the 14th Five-Year Plan period, we aim to exceed RMB 20 billion in core business revenue, vigorously advance into the top 30 Chinese pharmaceutical companies and the top 30 in innovation capability, and contribute the strength of Shijiazhuang Sihua Pharmaceutical Group to helping our city’s economic aggregate surpass RMB 1 trillion and achieve leapfrog development!”
“The development momentum of Shijiazhuang Sihua Pharmaceutical is truly encouraging, and even more commendable is the enterprise’s spirited ‘reach for the stars’ attitude, which serves as a valuable model for other companies in our city to learn from and emulate,” said Huang Jinzhi, Deputy Director of the Municipal Bureau of Industry and Information Technology. He noted that our city enjoys a strong industrial foundation in the biopharmaceutical sector, and that proactively achieving breakthroughs in this industry and striving to build a cluster worth hundreds of billions of yuan represent a strategic decision made by the Municipal Party Committee and the Municipal Government after comprehensive consideration of the city’s industrial base, resource endowments, and growth prospects. As such, biopharmaceutical enterprises across the city bear a significant responsibility; in particular, leading firms in various sub-sectors must fully leverage their role as pioneers and drivers to accelerate expansion and consolidation, enhance their overall scale and competitive strength, and help the city’s biopharmaceutical industry reach the hundred-billion-yuan milestone at an early date.
Wu Shuke, a second-level researcher at the Municipal Development and Reform Commission, stated that, under the strong leadership of the Municipal Party Committee and the Municipal People’s Government, the Commission has closely focused on the goal of achieving breakthroughs in the biopharmaceutical industry ahead of others. To this end, it has promptly disbursed incentive and subsidy funds to Shijiazhuang Sihua Pharmaceutical for the commercialization of scientific research achievements, the development of R&D products, and major projects, thereby encouraging enterprises to intensify scientific and technological innovation and accelerate project construction. These efforts have set a benchmark and led by example for businesses across the city, contributing to the city’s economic output surpassing RMB 1 trillion.
Hao Hong’en, Director of the High-tech Zone Economic Development Bureau, stated that, under the strong leadership of the Municipal Party Committee and the Municipal Government, the High-tech Zone has established a dedicated task force for the implementation of the Shijiazhuang Sihua Pharmaceutical project, making every effort to secure land for the company’s construction; providing one-on-one, end-to-end, and targeted support; effectively coordinating and ensuring the availability of essential resources; and actively recommending Shijiazhuang Sihua Pharmaceutical for application to special-funding programs. These measures are designed to accelerate the commissioning and early realization of benefits from the project, thereby strongly supporting Shijiazhuang Sihua Pharmaceutical in growing stronger and larger.
Leaders of other municipal departments and park authorities also pledged to firmly uphold the “projects-first” principle, continue to vigorously optimize the business environment, implement multiple measures to provide robust support for enterprises, and, with a steadfast, meticulous approach, drive breakthroughs in the biopharmaceutical industry as a priority—thereby providing strong backing for the city’s economy to surpass RMB 1 trillion in total output and achieve leapfrog development.
Reprinted from: Shijiazhuang Daily
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