The Establishment of Tongrentang

Time has made countless brands famous, but there are few brands like Tongrentang that have enjoyed such a high reputation or one as long as 300 years.

It was in Emperor Yongle's reign during the Ming Dynasty that Yue Liangcai, “ bell” practitioner, came to Beijing, where he got married and started his business that has been carried out for generations.

Yue Xianyang, a descendant of Yue Liangcai, loved to read, was an expert in distinguishing medicinal herbs, and devoted all his life to traditional Chinese medicine. Thinking highly of the quality of medicinal herbs selected, the medicine he prepared was extremely effective. This was one of the reasons he served as a senior physician of the royal court of the Qing Dynasty (1644-1911).

It was 1669, the 8th year of Emperor Kangxi's reign, when Yue Xianyang made the decision to establish his first pharmacy to better serve his patients, Tongrentang was come into being since than.

The expression of Tongren derives from the Book of Changes , one of Confucian classics, meaning “harmonious and selfless” and “treating others equally” in Chinese; Yue Xianyang liked these two words very much for their common and elegance and taken them as the company's name.

As soon as his pharmacy was established, Yue Xianyang made rules for his service - Pharmaceutical production must be constantly improved without the least bit of carelessness, and set a good example for the afterworld.

Serving the Royal Court

In 1702, the 41st year of Emperor Kangxi's reign, Yue Fengming inherited the business of his father, Yue Xianyang, and established a pharmacy known as Tongrentang at Dashila, Qianmen, the busiest commercial center in Beijing. He made strict standards for writing prescriptions and pharmaceutical production and wrote the book, “pill, powder, ointment and small pill ancestral feeding know-how of the yue's family ”, according to his knowledge from books and collections of royal esoteric recipes and folk remedies.

In the preface of his book, he warned his disciples and descendants by saying that no manpower was to be spared, no matter how complicated the procedures of pharmaceutical production were, and that no material was to be reduced, no matter how much the cost. His warning has remained fresh even today.

It was not long after its establishment that Tongrentang pharmacy became famous throughout the capital, thanks to the magical effects of its pharmaceuticals and the good management of its pharmacy. In 1723, the 1st year of Emperor Yongzheng's reign, the emperor himself authorized in writing that all the Chinese patent medicine of the royal court was to be provided by Tongrentang. It was undoubtedly a great honor solely held by Tongrentang until the decline of the Qing Dynasty.

With the 188 year serving the royal courts, Tongrentang confirmed the brand's leading position with special qualifications and solid capital.

Repositioning

No pain, no gain. No success can be achieved without hardships and difficulties. There were times that Tongrentang could hardly make it, when Yue Pingquan stood out to save the business.

Yue Pingquan, keen-witted and capable, with a strong sense of management, not only brought life to the dying Tongrentang but also promoted the business by mailing ready-made medicine and raising funds through every possible means. What's worth mentioning is his knowledge and experiences in the development of approximately 100 kinds of pharmaceuticals, including Ankunzanyu Pill, Dingchuan Pill( asthma-relief pills) and Ruyi Changsheng Medicinal Wine(happiness and longevity medicinal wine), which have no records in former medicinal formulas and all became originalities in Tongrentang's traditional contents of Chinese patent medicine.

Xu Yefen, Pingquan's wife, carried the burden of Tongrentang out of the extreme grief of losing her husband. Tongrentang saw a steady development even during the chaos during the late Qing Dynasty thanks to Xu's management, and Xu thus became an outstanding female figure in the history of Tongrentang.

Concerns From the Government

China faced a severe crisis in the early 20th Century. Tongrentang, however, faced a historical opportunity after experiencing rises and falls.

It was the founding of New China in 1949 that brought hope for the invigoration of Tongrentang's business within a few years, thanks to the restructuring of its laboring and capital system.

In 1954, Tongrentang, a nationwide famous private enterprise, answered the call of the central government and applied for joint state-private ownership—the principal form of state capitalism adopted during the socialist transformation of capitalist enterprises in China. Yue Songsheng, the 13th descendant of the Yue family, served as the manager of Tongrentang. A broadminded and business-oriented man, he played a key role in the repositioning of the brand, and was elected as vice-mayor of Beijing and deputy director of the All-China Federation of Industry and Commerce. The full play of his talent on a larger stage won him the honor of an outstanding, patriotic entrepreneur during the early days of the People's Republic of China.

January 15, 1955 marked a milestone in Tongrentang's history. It was the special day that people from all walks of life celebrated the triumph of the socialist reform. During that time Yue Songsheng, representing the circles of industry and commerce, was interviewed by Mao Zedong, Liu Shaoqi, Zhou Enlai and other senior government and Party officials on the Tian'anmen Rostrum.

Since then, Tongrentang has been on an expressway full of vigor and vitality. Thanks to the support from the Party and the government, especially the guidance of Peng Zhen, secretary of Beijing CPC Committee, Tongrentang sped up its pace by expanding premises, increasing equipment and renovating production techniques of TCM. Tongrentang was the first developer and manufacturer of the new dose form of traditional Chinese medicine, such as Niuhuang Jiedu Tablet to remove frver and toxic substance. The first tablet making stimulated the renovation of old TCM dose form, such as, pills, powder, ointment and small pill with several thousand year history. The replacement of man-made cow-bezoar has lowered the cost while assuring the same effect of the product, which was once saved only for royal court but has since been affordable for ordinary citizens.

Chairman Mao Zedong appraised Tongrentang's contributions when he talked to the heads of Industry and Commerce Union of China, saying the brand should be preserved for as long as 10,000 years.

In 1966, Tongrentang was transferred as state-owned enterprise, meaning this time-honored brand became national property.

A New Starting Point

The ten-year catastrophe of the Great Cultural Revolution (1966-1976) left behind a host of neglected tasks crying out for attention. However, the breeze of the implementation of the policy of reformation and opening provided Tongrentang with great business opportunities. Permitted by the municipal government of Beijing, the horizontal tablet of Tongrentang was again hung high to catch up with economic reform.

In the 1980s of last century, the advantages of the integration of production, marketing as well as the combination of industry, commerce and trade favored the diversification of Tongrentang's business through the establishment of a number of subsidiaries. These included Tongrentang Pharmaceutical Plant, Tongrentang No. 2 Pharmaceutical Plant, Tongrentang Medicinal Wine Brewing Plant, Pharmaceutical Research Institute of Tongrentang Pharmaceutical Plant and Tongrentang Decoction pieces Plant. The expansion of the business scale marked a new leap, by a large margin, in Tongrentang's history.

On February 9, 1985, the municipal government of Beijing held a grand ceremony to celebrate the 315th anniversary of Tongrentang in the Great Hall of the People under the instruction of Vice-Premier Wan Li. The leaders of the central government, the Party and the State Council showed great concern for Tongrentang, and many of them, including former Chairman Li Xiannian, Peng Zhen, former chairman of the Standing Committee of the National People's Congress (NPC), former Vice-Chairman Ulanhu and former vice-premiers Wang Zhen and Bo Yibo, wrote inscriptions for Tongrentang.

The important speech of Deng Xiaoping, chief architect of China's policy of reformation and opening, during his inspection tour in southern China, showed the direction of deepening the reform of the state-owned enterprises, which in turn pushed forward Tongrentang's development. In 1992, China Beijing Tongrentang Group was founded. The group is a team of several organizations and plants concerning industry, commerce and scientific research, including Tongrentang Pharmaceutical Plant, Tongrentang No. 2 Pharmaceutical Plant and Tongrentang Pharmacy. The newly established group is now a Grade-A, large state-owned enterprise specializing in production, marketing, supply, scientific research, industry and trade of TCM.

Tongrentang's history turned a new page from then on.

Company Listing and System Renovation

In 1997, Tongrentang deepened its reform in international property systems in accordance with the gist of readjusting the shareholding system of state-owned enterprises proposed by the 15th National People's Congress. Thanks to support from the municipal government and Beijing CPC Committee, Tongrentang, led by General Manager Yin Shunhai, had the enterprise listed after optimization and restructuring. Tongrentang stock appeared on the Shanghai Stock Exchange in June 1997, when Beijing Tongrentang Co., Ltd., was established, indicating a critical step toward a modern enterprise.

The listing of the company has brought a significant impact and brand-new ideas to the way of thinking of the people of Tongrentang and poured vigor and vitality into the time-honored brand. The company was no longer bothered by fundraising, and its system of operation was standardized, gaining wider recognition from the public. Excellent management has maintained the good image of Tongrentang as a good record-holder of its shares, even during the seven years of ups and downs of China's share market.

Today, the company has been among China's Top 50 Listed Companies with the Greatest Potential for Development for five year running, ranking first in 2001 and 2002. It is the leader of listed companies concerning traditional Chinese medicine in China, and its shares have maintained growth of 20 percent or more. The mother group company has shared out a bonus of 289 million yuan in total with Tongrentang Co., Ltd., an increase of 126 percent over the original investment, 230 million yuan.

The people of Tongrentang are confident enough to compete on the international market through the share listing on the Hong Kong Growth Enterprise Market of the Tongrentang Technologies Development Co., Ltd. on October 31, 2000, just after Tongrentang Co., Ltd. first listed it's A shares in mainland China. Using Hang Kong's capital and technology, Tongrentang started to enter into international medicine market on a large scale.

Over the last few years, Tongrentang Technologies Development Co., Ltd. has become one of the growth points of the big Tongrentang family. By absorbing domestic and international advanced technology and the latest achievements in science and technology on the basis of retaining the characteristics of the natural drug of traditional Chinese medicine. The company thanks to a focus on developing new products with better effect, TRT-owned property rights and international standards and has been involved in new fields concerning health, such as bio-engineering.

Since its listing, the shares of Tongrentang Technologies Development Co., Ltd., (HK$14 or more per share) have remained top among the 180 listed pioneering companies on the Hong Kong Growth Enterprise Market. The price is 4.3 times more than it was in 2000 when the stock was first issued. In 2003, Tongrentang Technologies Development Co., Ltd. became one of the five share giants of the pioneering index, and Tongrentang Co., Ltd., drew a total of 90 million yuan in dividends from Tongrentang Technologies Development Co., Ltd., only 10 million yuan less than the original investment of 100 million yuan.

In 2001, the China Beijing Tongrentang Group underwent another system reform, giving birth to the China Beijing Tongrentang (Group) Co., Ltd., which specializes in the management of both assets and production, toward for forging a multinational traditional Chinese medicine industrial group under the leadership of the board of directors headed by Chairman Yin Shunhai and General Manger Mei Qun along a healthy, rapid and continuous developing way.

Further Development

What has been accomplished belongs to yesterday, and the people of Tongrentang don't want to miss the chance to create new brilliance in the 21st Century. Today, the company is working hard on turning itself into a mainstay of traditional Chinese medicine industry by diversifying its business with the aid of shareholding system.

A higher standard, a ten-year plan for the development between 2002 and 2011, has been made by the company and the Research Center to Advise on Economic, Technological and Social Development of the State Council.

The Ten-Year Plan includes the following projects, known as “1032”, which are referred to as ten companies, two production bases, one institute + one hospital and two centers.

The ten companies

1.Beijing Tongrentang Co., Ltd.

2.Beijing Tongrentang Technologies Development Co., Ltd.

.Beijing Tongrentang Commercial Investment Management Co., Ltd.

.Beijing Tongrentang Health Pharmaceutical Co., Ltd.

.Beijing Tongrentang Medicinal Materials Co., Ltd.

.Beijing Tongrentang Pharmaceutical CO., Ltd

.Beijing Tongrentang International Co., Ltd.

.Beijing Tongrentang Pharmaceutical Development Co., Ltd.

.Beijing Zhongyan Tongrentang Medicine R&D Co., Ltd

.Beijing Tongren Shiji Advertising Co.,Ltd

“32” in the project of “1032” means: Two production bases, one institute + one hospital and two centers

I. Two production bases

1. The production bases of Beijing Tongrentang Co., Ltd.

2. The production bases of Beijing Tongrentang Technologies Development Co., Ltd.

II. one institute + one hospital

•  Beijing Tongrentang Institute of TCM

•  Beijing Tongrentang Traditional Chinese Medicine Hospital

III. Two centers

•  Tongrentang Information Center

•  Tongrentang Training Center.

Globalization is another destination of Tongrentang, and final service spectrum will be formed by three main plates –modern pharmaceuticals, retail pharmaceuticals and medical services.

Progresses

Tongrentang started business by producing and selling traditional Chinese medicine, and it is a retail professional at pharmaceuticals. Since its opening three centuries ago, Tongrentang has taken a lead in traditional Chinese medicine industry. In 1996, the pharmacy at Dashila was refurbished, and its business area expanded from 900 square meters to 4,800 square meters. Tongrentang has also promoted business by providing medical advices in their clinic, at pharmacies in Beijing.

In 2000, a Tongrentang pharmacy at Chongwenmenwai Street was opened, which enjoys convenient transportation. Occupying 4,000 square meters of commercial area, it is one of China's largest pharmacies, another key bussiness of Tongrentang.

The traditional mode of marketing could no longer meet increasing demand, and the decision-makers of Tongrentang soon realized that the only way to reinforce its leading position is to establish chain stores.

In March 2001, the company established Tongrentang franchise stores. According to the Ten-Year Plan, as mentioned above, Beijing Tongrentang Commercial Investment Management Co., Ltd., targets its chain market. So far, a domestic marketing network has been established with 327 retailers, including 61 retail stores in Beijing, 25 stores outside Beijing and 241 chain stores.

This marketing chain is connected by the guidance of “Cultivating Benevolence to Benefit the World.”

With the motto of Satisfying Customers, Tongrentang's chain stores have provided quality products and superb services in selling authentic and excellent medicine and directing customers to use the medicine.

Over the years, Tongrentang has established ties with counterparts in Hong Kong, Macao and Taiwan.

In 1993, Tongrentang established the Hong Kong-Tongrentang TCM Meal Co., Ltd., the first of its kind from mainland China, which soon led to the establishment of chain stores in busy commercial areas, such as Pau Ma Tie (Happy Valley), Tsim Sha Tsui and Chung Wan (Central).

In 1994, Tongrentang targeted the market in Taiwan, and registered its trademark in Taiwan, also the first of its kind from mainland China. On January 6, 2004 Tongrentang Pharmacy in Taiwan was opened, which drew numerous customers, highlighting the compatriots' trust in the brand and their recognition of the brilliant culture created by the Chinese ancestors.

“Only the national belongs to the world.” Increasing economic globalization has meant that all cultures around the world touch, and it's the time for traditional Chinese medical science to show up and be acknowledged by other nations.

To make it happy, Tongrentang has focused on markets overseas, and by now has founded 20 joint ventures and stores in countries such as Britain, the United States, Australia, Canada and Thailand. Targeting the market abroad has not only benefited the customers but also spread the culture of traditional Chinese medicine.

Today, Tongrentang has registered its logo in international organizations, such as Madrid Entente countries and Paris Convention countries, in addition to countries such as Singapore, Thailand, Britain, the United States and Italy. Tongrentang, a time-honored store with more than 300 years old, is now serving people around the world.

The"Bronze Figure,"made in the Ming Dynasty,is a bronze model with acupuncture point marks that has been passed from generation to generation inYue's

The former Tongrentang Drug Store before the liberation of Beijing.

A revised edition of the Tongrentang Medicine Catalogue from the period of Emperor Guangxu of the Qing Dynasty.

On January 15,1956,as a representative of the industrial and commercial circle in Beijing,Yue Songsheng reported to Chairman Mao Zedong and other Party and state leaders the success in the socialist reorganization of industrial and commercial sectors on the Tian'anmen rostrum.

On August 19,1992,the China Beijing Tongrentang(Group) Company held a grand conference to celebrate its establishment and Tongrentang's 323rd anniversary at the People's Great Hall.

In June 1997,Yin Shunhai,chairman of the board,rang the gong to celebrate Tongrentang's listing on the Shanghai Stock Exchange.

On October 31,2000,the Tongrentang Technologies Development Co.,Ltd.,was listed on the Hong Kong Growth Enterprise Market.

In November 2003,Beijing Tongrentang Pharmaceutical Co.,Ltd.,signed a contract to enter the Beijing Bioengineering and Pharmaceutical Industrial Park.

In may 2003,Beijing Ttongrentang International Co., Ltd.,was established in Hong kong.