Xinjiang Huashidan Pharmaceutical Co, Ltd is a key enterprise in Xinjiang's pharmaceutical industry. It was established in December 1998, with 18.64 million yuan in registered capital. It has 91.42 million yuan total assets and 34.04 million yuan fixed assets, with a 49 percent debt ratio.

In 2003, the company was appraised as an excellent high-tech enterprise in the region. In 2004, it was listed among the 30 growing enterprises receiving key support from the regional government and a “little giant” enterprise of the Urumqi city. In 2005, it was rated as an excellent tax-payer by the Urumqi municipal government. The company's workshops for the production of oral liquids, fluid infusion, solid agents, and extraction passed GMP certification of State Drug Administration in 2003.

The company produces and sells oral liquids, tablets, capsules, injection and bulk infusion, totaling 50 varieties in six categories. Other products include donkey-hide gelatin calcium oral liquid, donkey-hide gelatin strong bone oral liquid, compound rose Rhodiola rosea oral liquid, donkey-hide gelatin oyster oral liquid, Tianshan Lu'erhong and Kunlun Shengbao. The company also produces compound Danshen tablets, isatis root granule, Paracetamol Pseudoephedrine Hydrochloride and Cholrphenamine Maleate granule. In 2003, the company had 128 million yuan sales revenues, with 90 percent from the aforesaid leading products.

Since 2001, the company has adhered to the principle of seeking existence on the basis of quality, exploring the market with brands and accelerating development with benefits with the help of governments at all levels. It has focused on readjusting the rural structures to increase farmer incomes. It has actively implemented a strategy to boost company expansion and profits for farmers. Following the GAP plantation norms, the company has granted management fees and technological services to farmers to plant traditional Chinese herbs and construct donkey bases. It ensures the quality of crude drugs and serves the interest of the farmers. So far, the company has planted 5,000 mu medlar, red-rooted salvia, ephedra, Astragalus mongholicus, radix isatidis, safflower and liquorice. The company has led the way to spur farmers in Bozhou, Kashi and Tianshan areas to plant 200,000 mu Chinese medicinal crops and has raided nearly 30,000 donkeys.

I. Explore market with quality and brand

The company occupies the market with quality products. Since Chinese medicinal crops and donkey skins are consumed and apply to human health, the company is strict with product quality. It has given priority to preventing pesticide residues in raw materials. It has worked closely with scientific research institutes, explored ways to plant Chinese medicinal crops and raise donkeys in standardized approaches. It established standardized operation specifications. Meanwhile, it has strictly followed the standards to ensure quality in production. It has taken advantage of the traditional, technological and geographical superiorities in various places. For example, it chooses medlar from Jinghe county, donkeys from Kashi and offers technical service to ensure the quality of raw materials. It constructs Chinese medicinal crop cultivation bases to ensure the supply of genuine medicinal materials and the stability of crude drug elements.

II. Seek cooperation with credibility

Integrity and efficiency are essentials for business boom. A company has no way to develop without a credible reputation. It will not win the support of farmers if it fails to furnish them with considerable benefits. The company has signed contracts with farmers of Jinghe county to plant 5,000 mu medlar, which creates 10 million yuan annually for the farmers. It has stimulated farmers of the Bozhou prefecture to plant 120,000 mu medlar, which values at 240 million yuan. The company follows the industrialization operation mode to “join up with production bases, through the bases, and put farmers in motion.” It has set up pilot parks, offered quality sprouts and signed purchase contracts to spur development of the agricultural economy, facilitate agricultural restructuring, and increase farmer incomes. It has opened up a new way for laid-off workers and farmers to earn money again, by realizing the economic benefits and laying a foundation for the boom of the company. In southern part of Xinjiang, Uygur farmers have had the tradition of raising and using donkeys, but they never eat donkey meat. Along with social progress, transportation tools have been diversified and the donkey-raising business has gradually declined. This leads to inadequate supply of donkey skins, a necessity raw material to produce donkey-hide gelatin. It has also brought about fake donkey-hide gelatin flooding the market. The company has set up donkey raising bases in southern Xinjiang, promoting industrialized cultivation of donkeys in the area and helping local farmers become rich. Local governments have worked with food processing plants in other areas to produce braised donkey meat seasoned in soy sauce, a preferred food in inland areas, to expand local economic development channels.

In face of new situations for agricultural development, the company has confidence to grasp the opportunity to expand Chinese medicinal crop and donkey raising businesses. It will stress base construction and product production. With support of the local Party committees and governments, and concerted cooperation with farmers, the company will achieve the objective of developing into a first-class pharmaceutical plant in the country while making a greater contribution to boosting the regional economy.