-- An Interview with Ding Yongling, General Manager of Beijing Tong Ren Tang International Co., Ltd. and Deputy General Manager of Beijing Tong Ren Tang Group Co., Ltd.

By staff reporter SUN LI

The London Tong Ren Tang.

Responsible for Tong Reng Tang's overseas development,young Ding Yongling has in recent months played the dual role of China Beijing Tong Ren Tang Group Co., Ltd. deputy general manager, and general manager of the newly established Beijing Tong Ren Tang International Co., Ltd. The information gathered on her frequent investigative trips to the ROK, Macao and Hong Kong was instrumental in establishing Tong Ren Tang International in 2003. China Today (CT) recently interviewed Ding Yongling on Tong Ren Tang's overseas development.

CT: According to recent reports, global exports of traditional Chinese medicine (TCM) in 2002 amounted to US $20 billion, and China's share of this was just five percent, of which patent medicine accounted for less than one-third. How has Tong Ren Tang so far fared in this adverse international market environment?

Ding Yongling, general manager of Beijing Tong Ren Tang International, and deputy general manager of China Beijing Tong Ren Tang Group Co., Ltd.

Ding: We certainly had our work cut out, making our mark in this challenging international environment, but succeeded nonetheless. The China Chamber of Commerce of Medicine and Health Products Importers and Exporters statistics show that in 2002 Tong Ren Tang was China's largest exporter of patent medicine, earning US $14.15 million. In the first half of 2003, our export value was US $9 million -- a record high.

We are, however, impeded by various international restrictions and quality control regulations in different countries as regards TCM ingredients. These prevent many of our products from being exported. Business is also affected by wars and fluctuations in the exchange rate. There is extensive groundwork to be done if our overseas joint ventures are to flourish, mostly that of becoming conversant with international laws relating to TCM.

Tong Ren Tang Malaysia.

But we have taken things one step at a time, working steadily to meet the standards of each importing country, with the help of our overseas agents and joint venture partners, we have now formed an overseas sales network. A few years ago, Tong Ren Tang's shareholdings were based solely on use of its brand name in overseas joint ventures, but thanks to the impressive performance of our listed companies, we have the funds necessary to secure our equity interest and rights of management overseas.

CT: Tong Ren Tang is said to be overhauling its overseas sales system. Can you elaborate?

Ding: From the middle of last year to the first half of this year, we focused on overseas operations and reforms to our modes of trading. A new system has now taken shape. Tong Ren Tang International finished registration procedures in Hong Kong last June. Its office there will administrate Tong Ren Tang's overseas operations. Tong Ren Tang International will focus on developing international market planning and development, and planning and expanding our overseas sales network. It will also seek out new customers, and do research on their requirements. This will be used to develop new products.

Tong Ren Tang in Canada.

On establishment of Tong Ren Tang International, the Tong Ren Tang Import and Export Company was incorporated into Tong Ren Tang Technologies Co., Ltd. (listed in Hong Kong). A new import and export department has been set up within Beijing Tong Ren Tang Co., Ltd. (listed on the Chinese mainland). Tong Ren Tang International takes orders and collects sales information, and the two inland-based companies fill these orders and develop new products according to the information supplied.

CT: The international TCM market is changing, and certain countries have new legislation in this respect. Will this affect your business?

Ding: I don't regard Europe's TCM regulations as an obstacle. Treating TCM as Chinese products and stipulating requirements and standards for their entry into Europe is a good development as it lets us know exactly where we stand.

CT: What comes next?

Ding: We have opened 12 chain stores in Britain, Canada, Thailand, Malaysia, the ROK, Hong Kong and Macao. This year our joint venture companies will go into operation in Indonesia, Cambodia, Singapore, the Philippines, the ROK and Macao. By 2005 we intend increasing our overseas joint ventures to 30. Our goal is to become established in drugstores and supermarkets mainstream overseas markets, as well as in all Chinese-populated regions. Our plan is to make Tong Ren Tang an internationally known medicine trademark by 2010.

Tong Ren Tang Group Subsidiaries

Beijing Tong Ren Tang Co., Ltd.

Beijing Tong Ren Tang Technologies Co., Ltd.

Beijing Tong Ren Tang International Co., Ltd.

Beijing Tong Ren Tang Commercial Investment Management Co., Ltd.

Beijing Tong Ren Tang Medicinal Materials Company

Beijing Tong Ren Tang Health and Pharmaceutical Co., Ltd.

Beijing Tong Ren Century Advertising Co., Ltd.

Beijing Tong Ren Tang Cosmetics Co., Ltd.

Beijing Tong Ren Tang Pharmaceutical Company

Beijing Tong Ren Tang Bio-products Co., Ltd.