Yan Yiyi: The future industry king belongs to Ecotype enterprises

Yan Yiyi, Chairman of Zhejiang Cheng Yi Pharmaceutical

I am worried about this enterprise every year and every moment. No day or year is easy, and we must strictly demand and continue to strive... "Yan Yiyi, dressed in a white shirt and blue jeans, speaks quickly, gestures quickly, and has a cheerful personality, making it difficult to estimate his actual age.

I have been attending your meetings since the 1990s, when you were giving a presentation and were still a little girl... but now you are also beautiful... "Yan Dong's fast-paced" self introduction "helped us eliminate the strangeness and distance, and the conversation barrier opened instantly. He took out the work notebook with a simple atmosphere of the 1970s and began our exclusive interview like a book.

I am submissive to my own heart

We must move forward! Business operations are like sailing against the current. If we don't move forward, we will retreat

Yan Yiyi, who has been in the factory for 47 years and has served as the factory director of Tongshan Pharmaceutical Factory in Dongtou County, Wenzhou City, the director of Wenzhou Third Pharmaceutical Factory, and the chairman of Zhejiang Cheng Yi Pharmaceutical, has always believed in the concept of "no effort is no fault". In work, he is a quite strict and even ruthless leader, and the more he values his subordinates, the more strict his requirements often become. In fact, he is more driven by the pursuit of perfection, focusing on things rather than people.

Zhejiang Cheng Yi Pharmaceutical Co., Ltd. is located in Dongtou District, Wenzhou. Before the Wenzhou (Dongtou) Peninsula Project was completed and opened to traffic in April 2006, it was an island 33 nautical miles away from Wenzhou. That was in October 1981. The predecessor of Cheng Yi Pharmaceutical, Tongshan Pharmaceutical Factory, underwent joint acceptance and evaluation by provincial and municipal government departments for the first time. If that evaluation was not passed, the enterprise would not be able to obtain licenses and continue. "Yan Yiyi recalled that at that time, Tongshan Pharmaceutical Factory had laid a solid foundation for development with the strong support of the local government, where Wang Yuexia was the county party secretary.

Yan Yiyi told the Medical Economic Daily that the Tongshan Pharmaceutical Factory, which opened in 1966, was initially established to meet the needs of local people for medication. At that time, in a small barracks of the military health team, four family members of the unit started their own businesses with two large tanks.

By the late 1970s, due to various reasons such as a single product, enterprises were insolvent and on the brink of bankruptcy. At this moment, Yan Yiyi, who was once again entrusted with important responsibilities, made every effort to turn the tide. The following year, in 1980, the pharmaceutical factory made a profit of 1000 yuan, reversing the three consecutive years of losses. Subsequently, with the strong support of the Dongtou County Government led by Wang Yuexia, Tongshan Pharmaceutical Factory successfully overcame the evaluation difficulties.

Whenever asked about the situation back then, Yan Yiyi always bluntly revealed his "secret to breaking the game": to focus on quality. Drugs are related to the health and safety of the people, and the quality of product production is the top priority. Profits should focus on quality, while losses should focus more on quality. Quality is the benefit, "he repeatedly emphasized.

I want to create an island legend

Xu is naturally sensitive to technology, and since Yan Yiyi took the helm again in 1980, there has been no pause in improving quality and updating technology. Even today, Yan Yiyi still maintains a hands-on and cautious management style. In the face of daily affairs of the enterprise, from risk control in production processes to the modification of the lyrics of the enterprise's factory songs, all require careful consideration before finalizing the manuscript.

What impressed Yan Yiyi was that just when the enterprise just entered the normal operation track, the Ministry of Health issued a document to eliminate 127 drugs in 1982, and the first and second main products of the pharmaceutical factory, berberine injection and Andrographis paniculata injection, were listed in the list of elimination and recommended elimination respectively. At that time, both Cheng Yi Pharmaceutical products generated profits of over 75%, and the pharmaceutical factory once again faced a life and death test.

What saved the enterprise this time was Yan Yiyi's rich learning ability. He learned from his peers that the new Lincomycin Hydrochloride injection at that time was only produced by North China Pharmaceutical Group and Shanghai No. 10 Pharmaceutical Factory. "There was no concept of technical confidentiality at that time. Through the introduction, we were able to visit the pilot plant of North China Pharmaceutical Group and share its formula technology. After visiting North China Pharmaceutical Group and Shanghai No. 10 Pharmaceutical Factory, Yan Yiyi led technicians to tackle key problems, designed steam sterilization equipment by himself, and finally successfully undertook the production of lincomycin hydrochloride injection.

Coincidentally, the Third Pharmaceutical Factory of Wenzhou City later found Ribavirin API to replace amalgam, which was also Yan Yiyi's idea. I have always had a habit of visiting a pharmacy whenever I come to it. That was the first pharmaceutical store in Shanghai. "Speaking of the past, Yan Yiyi mentioned a lucky discovery at a pharmacy. At that time, two boxes of Ribavirin injection were placed in an inconspicuous position on the pharmacy counter. These two boxes of drugs inspired Yan Yiyi's imagination, and he judged that in the future, viral diseases may become one of the important sources of illness. Under the auspices of Yan Yiyi, Workshop 201 of Wenzhou No.3 Pharmaceutical Factory was completed. In 1992, the enterprise became the largest enterprise of Ribavirin API in China. It is still one of the legends of the enterprise that it was put into production and achieved profitability that year.

I also pay attention to the details

Cheng Yi Pharmaceutical, located on an island, has no intention of venturing into the production of bulk raw materials, preferring to develop high-end small varieties of "marine green drugs" and "drugs for major diseases". At present, the main products include glucosamine hydrochloride APIs and preparations, tolasemide injection and capsules, Gastrodin APIs, Ribavirin and Azathioprine APIs, etc.

At one point, the outside world was not very optimistic about the development of this enterprise, as it was burdened with the burden of no land transportation. It took 4 hours by boat from Wenzhou and transportation was inconvenient. However, this enterprise was the first to pass many international certifications in Zhejiang Province.

This new product of Ribavirin has brought Cheng Yi Pharmaceutical an opportunity to form ties with overseas countries. "Cheng Yi Pharmaceutical is now the exclusive supplier of Schering-Plough Ribavirin raw materials." Yan Yiyi said about Schering-Plough's inspection in the past, could not help standing up, pushing the window of the office to point to the white workshop 10 meters away, "that is our workshop for Ribavirin raw materials, where we met many overseas certified experts."

It is recalled that in 1996, Schering-Plough went to China to look for API suppliers. After many places, informed by peers in the industry, it found Wenzhou No. 3 Pharmaceutical Factory, which has implemented "public private" and was contracted by Yan Yiyi.

After detailed examination, Schering-Plough put forward 16 areas for improvement; After a follow-up visit of 3 months, it was found that not only were all 16 areas resolved by the pharmaceutical factory, but all the extended issues were also addressed. A serious and responsible attitude has given foreign companies considerable trust in this island pharmaceutical company, and formal cooperation began the following year.

This incident sparked Yan Yiyi's idea of going overseas, and Cheng Yi Pharmaceutical embarked on an international certification journey. Now, the export volume of Cheng Yi Pharmaceutical Azathioprine API ranks first in China, and the export volume of Ribavirin API ranks second in China. Due to the majority of exported raw materials cooperating with high-end customers, the product quality is higher than national pharmacopoeia standards, with a higher premium compared to similar products, and has a high recognition among foreign customers. At present, the sales regions cover more than 20 countries and regions such as the United States, Canada, Europe, South Africa, and Southeast Asia, with exports accounting for over 50% of total sales.

I understand that the future belongs to Ecotype enterprises

The clear blue sky, boundless sea, and fresh air are known as the standard accessories for the happy life of Dongtou people in Wenzhou. Cheng Yi Pharmaceutical, the only pharmaceutical company on the island, was the first to introduce the fresh scent of freshly trimmed grass to the nose. It's hard to tell at a glance that this is a company specializing in chemical raw materials and preparations. In the interview, Yan Yiyi repeatedly emphasized his "three no harm" principle - not harming oneself, not harming the surrounding areas, and not harming future generations.

To this end, the enterprise has invested 30 million yuan since 2005 to build the "Three Waste Treatment Center" for environmental protection public projects, and has fully promoted the construction of waterless workshops, comprehensively carrying out the renovation and recycling of old and waste, and turning waste into treasure, so that environmental awareness and sustainable production are deeply rooted in the hearts of the enterprise; There has also been a significant innovation in the production of raw materials, starting to change the small to many reaction modes into a large to few intensive production mode. During the 12th Five Year Plan period, Cheng Yi Pharmaceutical increased the production and sales of pharmaceutical products, reducing the proportion of raw material drug production value from 85% to 50%.

BCG has a prediction that within the next 5 years, 32% of listed companies may disappear due to improper strategic choices; The gap between leading and lagging enterprises has reached its highest level in history. Finding effective strategic management methods for enterprises is more important than ever before. Yan Yiyi has a clear strategic plan for Cheng Yi Pharmaceutical. To run a high-tech pharmaceutical enterprise well, the key is to focus, look forward, and be down-to-earth. Environmental protection has always been regarded by Yan Yiyi as a key project of Cheng Yi Pharmaceutical. It should be noted that in order to protect the local island landscape, the government has vetoed investment projects totaling billions of yuan, and as a pharmaceutical enterprise on the island, it cannot be relaxed. Running a business without making a profit is an entrepreneur's dereliction of duty and a lack of morality. "Yan Yiyi's wish, like Dongtou Island, is simple and down-to-earth:" To contribute to society and seek benefits for employees. The larger the enterprise, the greater its social responsibility

In the next five years, the company will continue to move towards the development of marine medicine and biopharmaceuticals, striving to develop traditional Chinese medicine products and marine leisure food, and building a big health industry. The layout of marine medicine, biopharmaceuticals, and traditional Chinese medicine is based on Yan Yiyi's prediction for the future.

"As the saying goes, island pharmaceutical enterprises have natural resource advantages in developing marine pharmaceuticals." Yan Yiyi smiles. The enterprise is located in Dongtou District, Wenzhou City, which is rich in marine resources, and has outstanding advantages in raw materials. The development of marine pharmaceuticals is also in line with the suggestions put forward in the "Bioindustry Development Plan" previously released by the State Council to strengthen the development and utilization of marine biological resources.

It is reported that its main product, Glucosamine hydrochloride, is prepared by hydrolysis of chitin. Because chitin is commonly extracted from crab shells and shrimp shells, it is difficult to transport because of its light weight and large volume, Cheng Yi Pharmaceutical has become the largest producer of raw materials of Glucosamine hydrochloride in China by taking advantage of its geographical advantages, and its preparation market share in China has risen from 9.97% in 2011 to 26.11% in 2015, Among them, the production of Glucosamine hydrochloride capsules takes the lead in China. Yan Yiyi revealed that in the future, the rich local seaweed resources such as Hijiki will also be used to develop anti-tumor, antihypertensive, blood lipid regulating and other drugs, and continue to enrich marine products.

In terms of biopharmaceuticals, Cheng Yi Pharmaceutical is more inclined towards a strategy of mergers and acquisitions. It is reported that Cheng Yi Pharmaceutical's biochemical factory products are currently well deployed. In 2014, the company obtained the document numbers of 7 products including Wenzhou Biochemical Factory's Danyining Tablets through auction, among which Danyining Tablets is still an exclusive product nationwide. The addition of new members revealed the company's intention to enter the biopharmaceutical industry. "Next, in the context of the country's promotion of general health, we will reform Marketing channel and focus on the retail market."

Epilogue

Approaching Yan Yiyi, you can easily be infected by his sincere personality. He openly shares his inner monologue on the key issues of sustainable development for enterprises, such as quality, survival, efficiency, and environmental protection. Time flies, and Cheng Yi Pharmaceutical has gone through 50 years since its predecessor, Tongshan Pharmaceutical Factory. Yan Yiyi, who has been in the factory for 47 years, has been accompanying the growth of this enterprise. From island pharmaceutical companies lacking in technology, funds, talent, and information, to later renowned specialty raw material drug suppliers, we are now on the road to enter the capital market. Among them, this hardworking and diligent Wenzhou man is full of sincerity and dedication.

Today's Dongtouyang is the hometown of hundreds of islands that was first bathed in the glow of the sea in the movie "Haixia", and it is also a vast and unique place suitable for innovation. In Yan Yiyi's corporate strategic blueprint, we seem to see that Cheng Yi Pharmaceutical has braved the wind and waves and is determined to forge ahead in the future, facing the bright sunshine and new dreams.

Historical Records

In the late 1970s, due to various reasons such as a single product, Tongshan Pharmaceutical Factory became insolvent, suffered losses for three consecutive years, and was on the brink of bankruptcy. In 1980, Yan Yiyi was appointed as the factory director again, reshaping the process, emphasizing quality, and striving to turn the tide. At that time, pharmaceutical companies turned losses into profits and began to enter a virtuous cycle. The picture shows Yan Yiyi's work in the 1980s.

In 1994, Yan Yiyi, as the representative of the management team of Wenzhou Third Pharmaceutical Factory, signed the "Public Private Contract" with the local government and began a 7-year contract operation. The separation of ownership and management greatly unleashes the enthusiasm, initiative, and creativity of enterprises and employees. In 1998, Wenzhou Third Pharmaceutical Factory achieved its first profit of over ten million yuan in its history, creating a profit of 10.184 million yuan. The picture shows Yan Yiyi attending the Wenzhou Singapore Economic and Trade Fair in May 1995.

In 2001, in order to promote the long-term development of the enterprise and establish a modern enterprise system with clear property rights and responsibilities, Wenzhou Third Pharmaceutical Factory began to transform and implement the "worker buyout of seniority" policy, changing to Zhejiang Cheng Yi Pharmaceutical Co., Ltd. In the same year, Cheng Yi Pharmaceutical passed the GMP certification of the National Medical Products Administration and obtained the GMP certificate.