Sinopharm Xinhua and Tongrentang International Forge Strategic Partnership to Build a Premium Cross-border E-commerce Health Supply Chain

On July 12, Shandong Xinhua Pharmaceutical Co., Ltd. and Tongrentang International signed a strategic cooperation agreement on cross-border e-commerce.

Under the agreement, both parties will establish a strategic partnership based on equality and mutual benefit, complementary strengths, resource sharing, and win-win cooperation. Together, they will build a professional, high-quality cross-border e-commerce supply chain and take the lead in launching a one-stop, closed-loop comprehensive solution for “Internet Healthcare + O2O Cross-Border” services across China.

Qu Yuanyuan, Vice President of Tongrentang International; Wang Yinqing, Vice President of the Natural Tao Business Unit at Tongrentang International; Du Deping, General Manager of Xinhua Pharmaceutical; and He Tongqing, Deputy General Manager of Xinhua Pharmaceutical, jointly attended the strategic cooperation signing ceremony.

As the global population ages at an accelerating pace and public demand for health services grows, the health industry has rapidly emerged as a robust new pillar of the world economy. Alongside the development of the global health industry, the market size of global cross-border B2C e-commerce has been surging year by year, with the Asia-Pacific region becoming the most important regional market worldwide due to its leading market scale and strong growth momentum. China’s health industry is also poised for significant expansion, as Chinese consumers place higher demands on health-related products and services. Against this backdrop, two major Chinese pharmaceutical companies have forged a strategic partnership in the cross-border sector.

It is understood that the collaboration between Tongrentang International and Xinhua Pharmaceutical, based on the principles of quality first and innovation-driven development, further integrates resources from both parties, synergizes refined supply chain management, and rapidly achieves scale in cross-border e-commerce.

Qu Yuanyuan, Vice President of Tongrentang International, stated that Beijing Tongrentang is a time-honored brand in China’s traditional Chinese medicine (TCM) industry. The company is currently committed to promoting TCM, a national treasure, to the world, with the goal of achieving “Tongrentang wherever there is a need for health.”

In the new era of the internet, Tongrentang has actively explored the transition from traditional marketing channels to an internet-based model. In 2015, Tongrentang Group invested in establishing Tongrentang International. In October of the same year, Tongrentang International launched Tianrantao, China’s first cross-border e-commerce platform focused on the health vertical sector, enabling direct global sourcing without intermediaries and initially achieving the “introduction” of high-quality, specialized health products into the Chinese market.

In 2016, Tongrentang International will further implement the national strategies of the “Belt and Road Initiative” and the “21st Century Maritime Silk Road.” Targeting overseas markets, it will expand a world-class supply chain system to promote the global outreach of high-quality domestic resources in traditional Chinese medicine (TCM) and botanical drugs, thereby becoming a key platform for the overseas export of TCM, TCM services, and TCM culture. Meanwhile, leveraging an online-offline dual model and adopting the approach of “promoting medicines through medical services,” it will utilize the “Mobile Personal Health Platform” to integrate and export TCM-based health preservation and chronic disease prevention and management services, thereby accumulating global big data on TCM health.

He Tongqing, Deputy General Manager of Xinhua Pharmaceutical and Chairman of Xinhua Grand Pharmacy, stated: "Founded in 1943, Xinhua Pharmaceutical is the world's largest production and export base for antipyretic-analgesic drugs. It is a key domestic manufacturer of cardiovascular and cerebrovascular, digestive system, central nervous system, and biological pharmaceutical products, as well as a national enterprise for emergency drug reserves. The company has established a National Technology Development Center, an Academician Workstation, a Postdoctoral Workstation, and Taishan Scholar positions, with a pipeline of over 100 new drug candidates spanning eight major categories, including anti-tumor, antimetabolite, and pain management agents."

Xinhua Pharmaceutical adheres to an innovation-led internationalization strategy. “Innovating marketing models and exploring new areas for business development” is one of the key focuses for expanding operational scale. With annual export earnings nearing USD 200 million, the company has established strategic partnerships with more than 200 renowned international enterprises, including Coca-Cola and Bayer. Notably, over two-thirds of the top 20 global pharmaceutical companies are its long-term strategic partners. Xinhua Pharmaceutical maintains subsidiaries in the United States and Europe, leveraging its distinctive advantages in globalization.

Currently, Xinhua Pharmaceutical is actively deploying business model innovations under the "Internet Plus" framework. Key initiatives—including the Healthy City project in collaboration with JD.com and the Zibo Municipal Government, the physical examination and chronic disease management center project partnered with Pfizer, as well as pharmaceutical e-commerce and cross-border e-commerce projects—are all progressing in an orderly manner. The first domestic pharmaceutical health e-commerce innovation industrial park currently under construction will be developed into five major centers: the "Zibo Healthy City" Big Data Center, Pharmaceutical E-commerce Center, Cross-Border E-commerce Center, Internet Telemedicine Center, and Greater Health Incubation Center. The strategic cooperation with Tongrentang International represents a crucial component of the company’s cross-border e-commerce strategy. Through this partnership, Xinhua Pharmaceutical and Tongrentang International are poised to make even greater contributions to safeguarding the health of the Chinese population.