Former Executives of China's Pharma E-commerce Sector File IPO Prospectus Amid Industry Transformation
In just one year, more than ten senior executives have resigned from the pharmaceutical e-commerce sector. Although the specific reasons for each departure vary, these exits reflect broader shifts in the industry’s ecosystem.
VCBeat’s analysis of the post-departure trajectories of these executives reveals that some have continued in their original fields after switching platforms; others, seemingly disillusioned with the pharmaceutical e-commerce sector, have chosen to launch their own ventures, primarily focused on internet healthcare; while the specific whereabouts of the remaining individuals remain unclear.
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Xia Yu
Xia Yu, the current CEO of Souyao Song, has moved across four different platforms in just over a year.
In August 2014, Xia Yu resigned from his position as CEO of Cardinal Health’s online pharmacy (hereinafter referred to as “Cardinal Health”). Subsequently, Xia Yu co-founded an information technology company with several friends, focusing on medical review services. He joined the company as an investor, and it remains operational to this day. Xia Yu told VCBeat that his decision to leave Cardinal Health was driven by his desire to pursue initiatives in internet healthcare; however, as he found it difficult to advance these efforts within the company, he ultimately chose to depart.
In January 2015, Xia Yu joined Haoyaoshi Online Pharmacy as Chief Operating Officer (COO). Xia Yu had originally expected to fulfill his ambitions on the Haoyaoshi platform, but unexpectedly, just four months later, he changed career paths again and assumed the role of CEO at Souyaosong.
Xia Yu is one of the first entrepreneurs in China’s pharmaceutical e-commerce industry and participated in the early preparation and establishment of Jinxiang.com. Jinxiang.com was the second company in China to obtain an online pharmacy operation license and officially launched in 2007. In 2011, Xia Yu joined Beijing New Special Drug Network (the predecessor of Cardinal Health’s online pharmacy) as CEO, doubling its sales volume within three years. As a pioneer and advocate of pharmaceutical O2O (Online-to-Offline), Xia Yu currently focuses primarily on operating SouYaoSong’s flagship 30-minute medication delivery service.
Liao Guanghui
Liao Guanghui currently serves as the CEO of Baiyang Health Network. In May 2015, Guangzhou Kuaihuo, founded by Liao Guanghui, was invested in and became a controlled subsidiary of a company under the Qingdao Baiyang Group, prompting Liao to join Baiyang Health Network.
Liao Guanghui is one of the founders of 800 Fang, China’s first third-party online pharmaceutical retail platform. In 2012, he joined XYWY.com, serving as Assistant to the President of Wenkang Group and General Manager of the E-commerce Division at XYWY.com, where he established a pharmaceutical shopping guide marketplace. After leaving XYWY.com, Liao founded Guangzhou Kuaihuo E-Commerce Co., Ltd., which provides services to online pharmacies and operates online channels for the pharmaceutical industry.
Shao Qing
Shao Qing currently serves as the General Manager of JD Health’s Home Healthcare division, bringing approximately ten years of experience in the pharmaceutical e-commerce industry.
In 2005, Shao Qing transitioned from the construction internet industry to the pharmaceutical sector, joining Jointown Pharmaceutical Group to explore pharmaceutical B2B e-commerce. He later joined Yaofang.cn as Marketing Manager. In 2009, he joined Haoyaoshi Online Pharmacy, a subsidiary of Jointown Pharmaceutical Group, and facilitated the partnership between JD.com and Haoyaoshi, serving as Marketing Director for JD Haoyaoshi.
After the split between JD.com and Haoyaoshi in 2011, Shao Qing remained at JD.com, serving as Executive Director of JD Medicine City. He left in late 2013 to become General Manager of the E-commerce Division at Yiling Health City. This May, he joined JD Health Home Delivery, which focuses on an O2O model for pharmaceutical products, promising one-hour delivery of purchased items to customers’ doors.
Chen Hua
Chen Hua currently serves as the CEO of 360 Health. Previously, Chen joined Yihaodian.com (111.com) as CEO in 2010. Within four years, the platform’s sales surpassed RMB 300 million, and it secured a Series C financing round of RMB 450 million in 2015. Earlier in his career, Chen served as Deputy Editor-in-Chief of PConline, Director of Market Expansion at IT World, and Editor-in-Chief of 39 Health Network. 360 Health is the pharmaceutical e-commerce platform under Qihoo 360, with its website officially launched in October 2015.
Zhang Yibing
Zhang Yibing currently serves as the Chief Operating Officer (COO) of Haoyaoshi Online Pharmacy. Prior to joining Haoyaoshi, Mr. Zhang was the General Manager of Simcere Zaikang Online Pharmacy, a position he left in July of this year. Indeed, Mr. Zhang is considered a veteran in the pharmaceutical e-commerce industry. He previously worked at Jointown Pharmaceutical Group for five years, where he was responsible for online B2B operations and served as Website Operations Manager. In 2011, he joined Kangaiduo, departing in 2014 after serving as Assistant to the General Manager and Marketing Director. He subsequently joined Simcere Zaikang, where he worked for over a year.
Chen Qing
Chen Qing currently serves as the Executive Deputy General Manager of Guoda Drugstore’s e-commerce division. Previously, Chen was the head of Shanghai Yaofang Wang (Shanghai Pharmacy Network), where he served for eight years. For a long period, however, Shanghai Yaofang Wang operated on a relatively small scale. It only began to place significant emphasis on its e-commerce platform after the relaunch of Tmall’s Medical Channel in 2012, initially focusing on contact lenses and thereby capturing a certain market share. In March of this year, Chen departed from Shanghai Yaofang Wang.
Kang Kai
Kang Kai currently serves as the General Manager of the Pharmaceutical and Healthcare Division of Tmall. As one of the early founders of Jinxiang.com, he joined Haoyaoshi Online Pharmacy as CEO in March 2014 but resigned after just four months to join Alibaba, where he assumed the roles of Tmall Director and Head of the Tmall Pharmaceutical and Healthcare Division.
Previously, Mr. Kang Kai served as a member of the management team at Leyou (China) Supermarket, where he was responsible for formulating and implementing the company’s e-commerce business objectives and strategies. From October 2009 to December 2010, he served as Vice President of Health Products Business at Yihaodian. From April 2007 to September 2009, he served as Deputy General Manager of Jinxiang.com.
Sun Jian
Sun Jian currently serves as the General Manager of Baiyang Chuangying, focusing on building brands through the internet, particularly mobile internet.
In 2010, Sun Jian, then head of the pharmaceutical division at Redbaby, led a group of senior executives to join Baiyang Health Pharmacy Network. Sun Jian assumed the role of CEO, and Baiyang Health Pharmacy Network was subsequently renamed Baiyang Health Network. Expanding its offerings from pharmaceuticals to broader health and wellness products, it became China’s first e-commerce platform focused on the female and maternal-infant segments.
In June 2014, Sun Jian officially stepped down as CEO of Baiyang Health Network. Leveraging resources from his former employer, Baiyang Pharmaceutical, he founded Baiyang Chuangying Technology Co., Ltd., which focuses on operating a Chengshantang donkey-hide gelatin cake product through an internet-based business model.
Shi Wenlu
Shi Wenlu currently serves as the CEO of Laobaixing Online Pharmacy.
In 2010, Shi Wenlu joined Kaixinren Online Pharmacy as Managing Director, driving its annual sales to exceed RMB 100 million within just two years. At the time of his tenure at Kaixinren Online Pharmacy, Shi was only 27 years old, making him the youngest executive operator in the pharmaceutical e-commerce sector. Prior to this, he was responsible for operations and marketing at Jinxing Wang (Jinxing.com).
In March 2012, after leaving Kaixinren Online Pharmacy, Shi Wenlu founded Yuexin Zhishan Online Co., Ltd. to provide software services for e-commerce enterprises. In 2014, Shi Wenlu joined Laobaixing Online Pharmacy as Managing Director.
Qin Guoliang
Qin Guoliang currently serves as the General Manager of Sinopharm 1 Health Network. Qin previously worked at Yaofang.com (Pharmacy Network). After leaving Yaofang.com in 2012, reports suggested that he might pursue independent entrepreneurship, but no further information was subsequently disclosed. In 2014, Qin joined Sinopharm 1 Health Network.
Pivoting to Internet Healthcare
He Tao
He Tao currently serves as the CEO of Beijing Yuanxin Technology Co., Ltd. The company’s products have not yet been launched to the market, but it has already secured investment from Sequoia Capital.
Since 2011, He Tao has led the transformation of Huayuan Pharmacy (the predecessor of Jianyi.com), which had only a dozen stores at the time, into an e-commerce business, achieving sales of 380 million yuan in just three years. In the first quarter of 2014, Jianyi.com completed its Series A financing round, raising 300 million yuan, becoming the first online pharmacy in China to successfully secure funding. At the end of 2014, after leaving Jianyi.com, He Tao founded Yuanxin Technology Co., Ltd.
Zhong Rihua
Zhong Rihua has now shifted his focus to the internet healthcare sector, with his specific startup venture still in the preparatory phase. As a founding pioneer of Neptunus Drugstore’s e-commerce division, Zhong joined Neptunus Drugstore in 2010 to establish and lead its e-commerce operations. In 2014, Neptunus Drugstore’s e-commerce sales reached RMB 240 million, making it the only large pharmacy chain to rank among the top 10.
Yao Feng
Yao Feng currently serves as the CEO of Guangzhou Waming Intelligent Technology Co., Ltd. Waming Technology aims to become the “Qunar” of online management platforms for chronic diseases and health, deeply integrating users, devices, and services. By leveraging the WeChat platform, it enables real-time monitoring of patients’ conditions, facilitates more convenient access to diagnostic services, and ensures smoother communication between doctors and patients across different regions.
Yao Feng previously served as CEO of Haoyaoshi and COO of CITIC 21st Century Co., Ltd. (now renamed Ali Health). During his tenure at China Mobile, he oversaw mobile services, launching once-popular offerings such as Color Ring Back Tones, the 12580 hotline, and Mobile News. In January 2015, after departing from the Haoyaoshi online pharmacy, Yao Feng embarked on an entrepreneurial venture by founding Guangzhou Waming Intelligent Technology Co., Ltd.
Zhang Shouchuan
In March 2015, Zhang Shouchuan left Alibaba Health to launch his own venture, founding Taogu Technology Co., Ltd., which engages in internet healthcare-related businesses.
Zhang Shouchuan previously held positions at Metro China and JD.com, bringing over a decade of retail management experience; he was appointed Vice President of JD.com in 2009.
In August 2013, Zhang Shouchuan accepted an invitation from Wang Yaqing, CTO of CITIC 21st Century, to serve as the company’s COO. After Alibaba acquired CITIC 21st Century, Wang Yaqing was promoted to CEO of Ali Health. During his tenure at Ali Health, Zhang Shouchuan invested heavily in promoting the O2O model for prescription drug purchases via the Ali Health app across China, but the initiative ultimately ended in failure.
Persons of Unknown Whereabouts
Lai Yurui
Lai Yurui joined the 7LeKang online pharmacy in March 2012. After resigning this July, he began preparing to start his own business, though the specific direction of his venture remains unclear. The resignation of Lai Yurui, COO of 7LeKang, came as quite a surprise, especially given that 7LeKang had just completed a RMB 300 million financing round earlier this year.
Niu Zhengzhao
In January this year, following Guahao.com’s acquisition of Jinxiang.com, Niu Zhengzhao resigned as CEO of Jinxiang.com, departing from the company he had helped build over eight years. In 2006, Niu co-founded Jinxiang Pharmacy’s online platform, making him one of the earliest pioneers in China’s pharmaceutical e-commerce sector. Since then, he has experimented with various business models. For instance, in 2012, he partnered with KuaiShuBao to launch a one-hour medication delivery service, but this initiative ultimately stalled due to various challenges. In 2013, Jinxiang.com also released a mobile app called “Buy Medicines on Jinxiang.com,” though no further updates on its operations have emerged since. It is reported that Niu plans to embark on an independent entrepreneurial venture, although the specific direction remains unclear.
Cui Wei
Cui Wei left JD.com in late June this year. In July 2011, JD.com and Haoyaoshi formed a joint venture, JD Haoyaoshi, and Cui Wei joined JD.com as the CEO of JD Haoyaoshi. In July 2013, JD Haoyaoshi announced its dissolution. Cui Wei remained at JD.com, tasked with building JD Medicine City. However, JD Medicine City has yet to go live. Before joining JD.com, Cui Wei had many years of marketing experience at multinational pharmaceutical companies and later ventured into entrepreneurship in the retail of medical health products and e-commerce-related fields. At the time he joined JD.com, he was regarded as the ideal hybrid candidate for pharmaceutical e-commerce, possessing expertise in both the internet and pharmaceuticals.
Whampoa Military Academy and Talent Transit Hub
As the second company to obtain an online pharmaceutical license, Jinxiang.com is regarded as the “Whampoa Military Academy” of the first generation of e-pharmacies. Xia Yu, current CEO of Souyao Song; Kang Kai, General Manager of Tmall’s Pharmaceutical Pavilion division; and Shi Wenlu, CEO of Laobaixing Online Pharmacy, all gained experience at Jinxiang.com. Over more than a decade of development, Jinxiang.com has remained lukewarm in performance. Its inability to operate independently from offline brick-and-mortar stores, coupled with constraints stemming from its state-owned enterprise background, are the two primary reasons for its consistently conventional pace of growth.
Haoyaoshi Online Pharmacy has become a talent hub in the pharmaceutical e-commerce sector. Over the past year, it has seen three consecutive Chief Operating Officers (COOs): Kang Kai, Xia Yu, and Zhang Yibing. Following the departure of Yao Feng, CEO of Haoyaoshi Online Pharmacy, Jiang Zhitao, head of Haoyaoshi Pharmacy’s offline brick-and-mortar stores, succeeded him in the role.
The frequent personnel changes at Haoyaoshi Online Pharmacy are closely linked to its ambiguous positioning of the e-commerce platform. There has been persistent internal disagreement within Jointown Pharmaceutical Group over whether it should operate as an independent platform or merely as the company’s e-commerce division, leading to operational inefficiencies.
In summary, the reasons for executive departures in pharmaceutical e-commerce companies can be attributed to the following two factors:
1. Excessive cash burn, exceeding the boss’s expectations
In the pharmaceutical e-commerce sector, a significant portion of operations is built upon traditional brick-and-mortar retail pharmacy businesses, inevitably facing challenges arising from the clash between conventional and internet-based mindsets.
It is common knowledge in the industry that e-commerce involves substantial cash burn, whereas traditional brick-and-mortar stores place a high premium on profit returns. Although business owners recognize that e-commerce is inevitably a capital-intensive endeavor, there is no clear consensus on the exact amount of investment required. Once the cash burn reaches the threshold that triggers owners’ internal risk alerts, the professional manager overseeing the pharmaceutical e-commerce operation should step down.
2. Increasing Industry Temptations and Flaws in the Existing Platform’s Equity Structure
With the rise of internet healthcare, the anticipated deregulation of online prescription drug sales, and a significant influx of capital, many professionals in the pharmaceutical e-commerce sector are becoming increasingly active, seeking to pursue their ambitions on larger platforms or to launch their own ventures.
The underlying reason behind this is the company of the original platform.Deficiencies in the equity governance structure, with centralized power held by the owner.Reluctance to grant professional managers greater scope for market performance ultimately forced them to leave.
In the early stages of pharmaceutical e-commerce, there was an extreme shortage of talent. Particularly scarce were interdisciplinary professionals proficient in both internet technologies and pharmaceuticals. Even today, the pharmaceutical e-commerce sector continues to face a significant talent gap.
Once the long-rumored online prescription drug policies are liberalized, more companies are bound to enter the pharmaceutical e-commerce sector, potentially triggering a new round of talent wars.