Qizheng Tibetan Medicine Joins Forces with Sage to Build an ERP System, Further Expanding Management Innovation in the Public Offering.

　　On September 22, Sage Software announced that it had officially signed an agreement with Tibet Qizheng Tibetan Medicine Co., Ltd. Sage Software’s Sage ERP X3 system will be fully implemented at Qizheng Tibetan Medicine, covering the group’s seven subsidiary companies. This will establish an enterprise-wide information management platform within the company, encompassing the entire process—from supply and inventory to production, sales, logistics, and finance—thereby driving management innovation at Qizheng Tibetan Medicine and enhancing the company’s core competitiveness.

　　On September 22, 2009, Sage Software, a globally renowned provider of management solutions, announced that it had officially signed an agreement with Tibet Qizheng Tibetan Medicine Co., Ltd. (referred to as Qizheng Tibetan Medicine). Sage Software’s Sage ERP X3 system will be fully implemented at Qizheng Tibetan Medicine and will cover the group’s seven subsidiary companies, establishing an enterprise-wide information management platform that encompasses the entire process—from supply and inventory to production, sales, logistics, and finance. This move will further drive management innovation following Qizheng Tibetan Medicine’s successful IPO on August 28, thereby enhancing the company’s core competitiveness.

　　This project has also received high attention from Ms. Lei Jufang, Chairwoman of Qizheng Tibetan Medicine. She emphasized, “Continuously innovating to build our company’s core competitiveness is the driving force behind Qizheng Tibetan Medicine’s development. Our collaboration with Sage Software this time is precisely aimed at leveraging an information system imbued with internationally advanced management principles to foster innovation in Qizheng Tibetan Medicine’s management philosophy and model, thereby ensuring the company’s sustainable growth. We have full confidence in Sage Software’s brand and capabilities, and we believe that through this project, both sides will join forces and achieve even greater success together.”

　　Qizheng Tibetan Medicine primarily engages in the research and development, production, and sales of innovative Tibetan medicines. It has seven subsidiaries, including a GMP-certified pharmaceutical factory and a GSP-compliant marketing company. For six consecutive years, Qizheng Tibetan Medicine has ranked first in China’s market for topical analgesics and holds the top position among over-the-counter traditional Chinese medicine brands in the surgical category. It has also been recognized as a key brand in the over-the-counter drug sector and has become a well-known Chinese trademark. Qizheng Tibetan Medicine boasts 69 varieties of Tibetan medicines, five of which have been designated as “National Protected Varieties of Traditional Chinese Medicine.” The company has received numerous international and domestic awards, including the Gold Medal at the 26th Geneva International Exhibition of Inventions and New Technologies, the Gold Medal at the First Hong Kong World Chinese Invention Expo, and the Second Prize of the National Science and Technology Progress Award. In 2006, Qizheng Tibetan Medicine was designated as a National-level Enterprise Technology Center and became the only Tibetan medicine enterprise selected as one of the first batch of national pilot enterprises for innovation. In January 2008, Qizheng took the lead in implementing a key project under the Eleventh Five-Year National Science and Technology Support Program. As early as 1999, Qizheng began its journey toward informationization; in 2007, the company’s ERP project for information system development officially entered the planning and construction phase.

　　Based on the company’s overall plan for IT infrastructure development, Qizheng Tibetan Medicine began its ERP selection process in 2008. Given the company’s large size, with multiple subsidiary companies under its umbrella and operations spanning production, sales, procurement, inventory, and other areas, coupled with its matrix-style management structure, and—most importantly—the impending public listing of Qizheng Tibetan Medicine in August 2009, the challenges posed by such a massive and complex management system to an ERP system were self-evident. In response, Qizheng Tibetan Medicine conducted a thorough and meticulous evaluation, taking into account factors such as comprehensive functionality, product flexibility, and cost-effectiveness. Ultimately, it selected Sage ERP X3 from Sage Software.

　　It is reported that the Qizheng Tibetan Medicine ERP project will be launched effective immediately. The project will be implemented in two phases. Phase one will primarily include modules such as sales, procurement, inventory, and finance, involving multiple enterprises centered around Qizheng Tibetan Medicine’s two major sales companies. Phase two will focus on building the production module, primarily involving several manufacturing enterprises under the company’s umbrella. For Qizheng, the implementation of the ERP system will be a crucial step following its IPO and an important move in its overall corporate management strategy. It will undoubtedly strengthen the company’s overall system control capabilities, facilitate the restructuring and optimization of business processes, enhance collaboration among production, supply, and sales, and improve the company’s market responsiveness and product distribution capabilities. The completion of this system will lay the most solid foundation for the company’s rapid development over the next 5 to 10 years.

　　In response, Mr. Zhou Qiang, President of Sage Software China, stated: “Sage Software places great importance on this collaboration with Qizheng Tibetan Medicine. From the perspective of implementation content as well as competitive landscape, this agreement clearly demonstrates Sage Software’s strength and embodies our mission: ‘To empower domestic enterprises with world-class solutions and exceptional customer service, thereby driving advanced management practices.’ We believe that through this initiative, Qizheng Tibetan Medicine will further enhance its management capabilities and achieve innovative management practices, thus paving the way for faster development in China’s Tibetan medicine sector. At the same time, Qizheng ERP will become another exemplary user of Sage Software in China. We also hope to collaborate with more pharmaceutical companies in the future, helping them embrace world-class management principles and, in turn, find broader opportunities for growth in an increasingly competitive market.”