Li Yuqiang, Chairman of Qingdao Mingyaotang: Focused on Marine Biomaterials, Ambitious in Action Yet Humble in Life
After entering the interview room, Li Yuqiang instructed the accompanying cameraman to place the camera on the table and fix the angle for optimal shooting. Following a brief exchange of pleasantries with the journalist, he sat down on the sofa directly in front of the camera. Throughout the interview, Li glanced at the camera several times and, apart from occasional subtle hand gestures to complement his speech, largely remained within the camera’s frame.
The questions we posed were not communicated in advance. Li’s responses were often so concise as to consist of a single sentence, with virtually no grandstanding. In contrast to others’ meandering strategic plans and lengthy background introductions, Li can only be described as “sparingly with words.” Focusing on the present and prioritizing immediate matters likely characterizes his working style.
Mingyaotang, fully known as Qingdao Mingyaotang Medical Co., Ltd., was formerly Qingdao Shangde Tongkang Pharmaceutical Technology, established in 2004. Shangde Tongkang was renamed Mingyaotang Pharmaceutical Technology in 2009. In December 2014, the company underwent shareholding reform, and it was listed on the National Equities Exchange and Quotations (NEEQ) last July.
The prospectus shows that Mingyaotang's main business is the research and development of medical device products such as medical disinfection products, fever-reducing products, and surgical dressings.
development, production, and sales. Through independent research and development as well as extensive collaboration with domestic and international research institutions, hospitals, and pharmaceutical enterprises, the Company has accumulated substantial experience in the research and development of marine biological products. It is a high-tech enterprise with certain competitiveness in the industry, oriented towards marine biological products. The Company’s audited main business revenues for the years 2013 and 2014 were RMB 10,815,525.57 and RMB 11,934,931.39, respectively. During the reporting period, the main business revenue accounted for 100% of the total operating revenue, indicating a clear focus on its core business. Since its establishment, the Company’s main business has not undergone any significant changes.
Li Yuqiang stated, “Mingyaotang primarily focuses on marine biomaterials and is a national key production base for major marine biomaterials under the Ministry of Science and Technology. As a high-tech enterprise with many years of experience, we place great emphasis on research and development. We offer 35 product categories, hold more than 20 invention patents, and possess our own core technologies. R&D investment accounts for over 20% of sales revenue—a significant proportion—which is expected to reach 30% this year, laying a solid foundation for the company’s future development.”
Chitin, one of the key raw materials for Mingyaotang’s core business, is protected by technical patents. Data indicates that chitin is currently the only naturally occurring biomaterial with a positive charge discovered to date. Extracted from the shells of crustaceans such as shrimp and crabs, it exhibits hemostatic, analgesic, bacteriostatic, and anti-scarring properties, while also promoting wound healing. Mingyaotang has applied this technology to its flagship products, including adhesive bandages and fever-reducing patches, thereby leveraging its technological advantages to support a product differentiation strategy.
In addition, Mingyaotang obtained multiple technical patents around 2012, including hydrophilic chitosan-derived bio-hydrogel fever-reducing patches, silver-loaded nano-titanium dioxide/chitosan composite antibacterial band-aids, and sodium alginate antibacterial dressings.
Li Yuqiang stated, “As a national base for marine biological development, Qingdao is at the forefront of this sector. However, from a national perspective, the introduction of marine biomaterials is still in its nascent stage. Consequently, market awareness of our products remains low. It will take time for the market to fully recognize these innovations, and we need to further expand our efforts in market development and education.”
It is reported that Mingyaotang’s marine biomaterials are currently in the investment phase of a special science and technology project, with additional support from policy-related funding, and output is expected in the near future. Li Yuqiang expressed confidence in this endeavor: “Marine biomaterials align with China’s national marine biology strategy. Being purely natural, non-toxic, and pollution-free, they represent both an emerging trend and the future direction of the health industry. As a relatively novel field, it requires resource integration to drive expansion.”
On October 21 last year, Mingyaotang was listed on the National Equities Exchange and Quotations (NEEQ) system. By the time of this interview, more than a year had passed. What has this year-long “public listing” experience brought to Mingyaotang?
“We are among the few companies that were listed and began market-making trading on the same day. The expectation was that, following financing, the company would undergo transformation and upgrading, including equipment and capacity upgrades,” said Li Yuqiang. “After going public, Mingyaotang transitioned from a private enterprise to a public company. We are optimistic about the development of the NEEQ (National Equities Exchange and Quotations), which is now one of China’s three major stock exchanges. It offers robust supporting policies that play a significant role in guiding and supporting the future development of listed companies.”
The supporting policy referred to by Li is the tiered system of the National Equities Exchange and Quotations (NEEQ), which was officially launched in June this year. The policy aims to divide the numerous NEEQ-listed companies into an Innovation Tier and a Base Tier. Its purpose is to improve the tiered management mechanism for NEEQ-listed companies, facilitate effective capital allocation to high-quality listed resources, and implement differentiated management for companies at different tiers.
But now, a prominent issue with the New Third Board is still its lack of liquidity. In this regard, Li Yuqiang also bluntly stated: “The New Third Board is currently less active, so it is not a primary focus for the company at present. After our IPO, our key priorities will be capital operations, corporate transformation and upgrading, scale expansion, brand building, and channel resource integration through this platform.”
Regarding the purpose of Mingyaotang’s listing, Li offered a more far-reaching perspective, speaking eloquently about market-making transactions and transfer to other boards. “Any company on the National Equities Exchange and Quotations (NEEQ, also known as the ‘New Third Board’) has the need to transfer to a higher board. Currently, the NEEQ has implemented an Innovation Tier and a Base Tier, with a top tier where competitive bidding trading operates in the same manner as on the main boards. Stock exchanges themselves are corporate entities, and resources cannot be transferred arbitrarily. It is also impossible for all resources to shift exclusively to the Shanghai Stock Exchange or the Shenzhen Stock Exchange. The NEEQ holds a status equivalent to that of Shanghai and Shenzhen; its total market capitalization of resources has already surpassed those of the Shenzhen and Shanghai exchanges, indicating sufficient resource depth. The next steps are standardization and the implementation of competitive bidding trading. At present, the concept of board transfer remains largely theoretical, with no specific measures or concrete implementation in place.”
Moreover, the SME share transfer system itself is a commercial company with its own value considerations; it cannot simply stand by and allow resources to flow out. “If it were your own company and you had valuable assets, would you hand them over, especially for free?” explained Li Yuqiang.
The reporter noted that many medical device and equipment companies have begun to expand into channels such as e-commerce and mobile health. What are Mingyaotang’s plans in this regard, and what are Li’s views on the characteristics of pharmaceutical and medical device distribution?
Chairman Li Yuqiang stated that Mingyaotang’s products are primarily distributed through hospital channels, with a marketing model comprising both direct sales and distributors, the former being the dominant approach. Currently, Mingyaotang’s product portfolio remains closely aligned with its core technology in marine biotechnology. As such, there are still notable differences in both scale and target audience compared to traditional pharmaceutical and medical device manufacturers, making their marketing models not directly comparable. Furthermore, Mingyaotang is actively exploring innovative marketing strategies, ensuring that all expansion efforts remain within the boundaries of national policy regulations.
As the production of pharmaceuticals and medical devices is subject to policy restrictions and stringent regulatory oversight, strategic initiatives remain guided by policy directions.
“We are currently focused primarily on channel integration to build up our technological capabilities for future growth,” said Li Yuqiang.
Regarding this year’s operating performance, Li Yuqiang stated, “Three reports per year: two semi-annual reports and one annual report.” The implication is that there is no need to elaborate on operational matters beyond the disclosed data. A review of Mingyaotang’s announcements reveals that the company is currently planning a major project. It has signed the “Mingyaotang ‘National Marine Biomedical Materials and Genetic Engineering Platform’ Project Entrusted Construction Contract” with Qingdao High-Tech New City Property Management Co., Ltd., entrusting the latter with the construction of the National Marine Biomedical Materials and Genetic Engineering Platform. This platform will comprise two incubator buildings, an R&D center, apartment buildings, factory facilities, and other structures.
“Act with high profile, live with low profile”—a concept Li Yuqiang has mentioned on multiple occasions.This perspective is closely tied to his family background, education, and professional experience. Li comes from a family of traditional Chinese medicine (TCM) practitioners; Ming Yaotang has been passed down through five generations, starting from the father of Li’s great-grandfather up to Li Yuqiang. Li’s great-grandfather once served as an imperial physician in the Qing Dynasty court. Li Yuqiang himself graduated from Shandong University of Traditional Chinese Medicine and worked as a physician for six years at the Second Affiliated Hospital of Qingdao Medical College. He later held positions at Guizhou Tongren TCM Factory, Zhejiang Jianfeng Pharmaceutical, and Fuzhou Neptunus Group, among others. By the time he founded Ming Yaotang, Li had already accumulated substantial experience in the pharmaceutical industry.
“These backgrounds have also been significantly beneficial to our operation of the pharmaceutical enterprise. ‘This industry places strong emphasis on clinical requirements, which at a minimum entail clear understanding of product selection, market research, and future demand in the pharmaceutical market, as well as the supply–demand dynamics. Although our company has not been engaged in industrial operations for a very long time, we have developed unique insights into product selection, market investment and development, as well as overall business philosophy and management. As a result, the company has achieved rapid growth and was quickly listed on the National Equities Exchange and Quotations (NEEQ),’ Li once stated to the media.”
"The greatest sound is silent; the greatest form is shapeless." It is precisely this clear-sighted judgment of the industry that lends Li an air of quiet confidence. Under the leadership of this chairman, who embodies the principle that "great skill appears unrefined," Ming Yaotang is poised for significant growth.