Li Chuyuan resigns as Chairman of Guangzhou Baiyunshan, taken away for investigation.

On Monday evening (July 22), Guangzhou Baiyunshan Pharmaceutical Group suddenly announced the resignation of Chairman Li Chuyuan. Chinese media confirmed from multiple independent sources that Li Chuyuan has been taken away for investigation.

On July 23, Baiyunshan’s A-share price dropped by 3.20%, closing at 29.99 RMB per share; while the H-share price dropped by 3.56%, closing at 20.30 Hong Kong dollars per share.

On the evening of July 22, Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd., a listed company under Guangzhou Pharmaceutical Group Co., Ltd. (Guangzhou Pharmaceutical Group), the largest state-owned pharmaceutical enterprise in South China, issued a sudden announcement. They received the resignation report from Chairman Li Chuyuan, who cited “personal reasons” for stepping down from the positions of Chairman and any other roles within the company.

Chinese media outlet “Yicai” confirmed through various independent sources that Li Chuyuan has been taken away for investigation by relevant authorities.

A source close to the state-owned enterprise system in Guangdong Province told the media, “I heard two days ago that Li Chuyuan went in (for investigation), and family members were also investigated.” Core personnel close to Guangzhou Pharmaceutical Group also confirmed the news of Li Chuyuan being investigated.

Caixin website reported that, according to their sources, Li Chuyuan was recently taken away for investigation by the relevant authorities in Guangdong Province. Other family members are also reportedly under investigation.

According to “Yicai,” insiders revealed that, “After similar executives of state-owned enterprises are taken in for investigation, the listed companies draft a resignation report. Once approved by the authorities, it is brought in for the investigated individuals to sign. After signing, the process continues, with the listed companies making the necessary disclosures.”

Industry insiders in the Guangdong pharmaceutical sector acknowledged that Li Chuyuan had been in charge of Baiyunshan for 11 years. His resignation as a key figure not only represents a significant personnel change within the company but also indicates that Baiyunshan may face a profound restructuring in the future.

Public records indicate that Li Chuyuan was born in 1965 in Shantou, Guangdong Province. He started working in 1988 and has been with Guangzhou Pharmaceutical Group for 36 years.

Li Chuyuan has held various positions within the company, including Deputy Minister of Operations at Baiyunshan Pharmaceutical Factory, Vice General Manager and Chairman of Baiyunshan Pharmaceuticals, Factory Director of Guangzhou Baiyunshan Traditional Chinese Medicine, General Manager and Vice Chairman of Baiyunshan and W.H. Group, General Manager and Vice Chairman of Guangzhou Pharmaceutical Group, Vice Chairman of Baiyunshan, and Vice Chairman of Pharmaceutical Companies, among others.

As of 2023, Guangzhou Pharmaceutical Group, a state-owned enterprise in Guangzhou, has been ranked first on China’s Top 100 Traditional Chinese Medicine Enterprises list for 13 consecutive years. Since 2021, it has also been listed on the Fortune Global 500 for three consecutive years.

Under Guangzhou Pharmaceutical Group, there are two listed companies, Guangzhou Baiyunshan and Kangmei Pharmaceutical, as well as more than 30 member companies, including Chenliji, Wong Lo Kat, Jingxiutang, Pangao Shou, Caizhilin, Ciningji, Banlangen, and Baiyun Toothpaste, among others.

According to the official website of Guangzhou Baiyunshan, the company is mainly engaged in the research, development, manufacturing, and sales of both Chinese and Western medicines, chemical raw materials, natural medicines, biopharmaceuticals, and chemical raw material intermediates; wholesale, retail, and import-export businesses of pharmaceuticals, traditional Chinese medicine, and medical devices; research and development, production, and sales of health products; as well as investments in health industries such as medical services, health management, and elderly care.