Chapter 79 Milestones

On August 7, 1985, Zhao Xinxian led 14 people to Bijia Mountain in Shenzhen to establish Nanfang Pharmaceutical Factory. In 1988, Zhao Xinxian pioneered taxi light box advertisements and celebrity endorsement advertisements.Nanfang Pharmaceutical Factory achieved an output value of 1.8 billion yuan and a profit and tax of 400 million yuan, ranking 82nd among the 500 largest industrial enterprises in the country. In April 1989, the General Logistics Department of the People's Liberation Army issued the "Decision on Learning from Comrade Zhao Xinxian" to the entire army. In September, Zhao Xinxian was awarded the title of "National Model Worker" by the State Council.

In September 1992, Zhu Rongji inspected Sanjiu Group.Zhao Xinxian's "one-person mechanism" caused a sensation all over the country. On May 1, 1995, in Times Square, Manhattan, New York, the first billboard of a Chinese company - the neon sign advertisement of "999 Sanjiu Pharmaceutical Industry" was erected. From 1996 to 2001, Sanjiu acquired more than 140 local enterprises, an average of 2 acquisitions per month, and rapidly expanded into the largest Chinese medicine enterprise in the country, with total assets soaring to 18.6 billion yuan. In 2000, "Sanjiu Medicine", the flagship company of Sanjiu Group, went public and acquired two listed companies in Jiangxi and Shanghai at the same time. Zhao Xinxian became the first person in the capital operation of state-owned enterprises.

In April 2000, 999 Health.com, known as the country's largest medical and health website, was established.By 2003, Sanjiu had 13 public service websites and 29 corporate websites. On August 27, 2001, Sanjiu was warned by the China Securities Regulatory Commission when he was caught off guard.The China Securities Regulatory Commission publicly criticized Sanjiu's major shareholders and related parties for occupying more than 2.5 billion yuan of listed company funds, accounting for 96% of the company's net assets.The report also publicly named and condemned Zhao Xinxian. In 2002, Zhao Xinxian proposed to attack on two fronts at the same time, the international and the domestic, and implemented the "McDonald's Plan" and the "Wal-Mart Strategy" respectively, but both failed midway.

In May 2003, the billboards in Manhattan's Times Square were quietly removed. On September 28, the media published an article "9.8 Billion Loans: Banks Press Sanjiu Group", and Sanjiu's funding crisis broke out in an all-round way. In March 2004, Beijing held the National Two Sessions. Zhao Xinxian, a member of the National Committee of the Chinese People's Political Consultative Conference, boldly pressured the SASAC, claiming that state-owned investors existed, but they did not actually contribute.He asked the State-owned Assets Supervision and Administration Commission to inject 5 billion yuan into Sanjiu, or to clarify the property rights of Sanjiu.

On May 16, 2004, Li Yizhong, Secretary of the Party Committee of the State-owned Assets Supervision and Administration Commission, went to Shenzhen in person and suddenly announced the removal of Zhao Xinxian from all positions. In 2005, the Sanjiu Group, which had more than 500 companies, was out of control, and the "Sanjiu Department" was declared disintegrated. On November 19, Zhao Xinxian was arrested in Beijing on suspicion of economic crimes. After Zhao Xinxian was eliminated, the Sanjiu reorganization became the target of many heavyweight enterprises.Shanghai Industrial Group, Fosun Group, Deutsche Bank, China Resources Group and New World Group participated in the competition. In March 2007, the State-owned Assets Supervision and Administration Commission decided to reorganize Sanjiu by the central enterprise China Resources Group.