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College Company Plans to Go Public
Shanghai Jiaoda Onlly Co Ltd, the country's top producer of health-care products, is considering going public on the domestic health-care enterprise market.
Yan Guoping, deputy board chairman of the company, which was initially a college start-up business, announced the idea at a seminar yesterday in Beijing. The seminar was held to discuss the further development of Shanghai Jiaoda Onlly Co Ltd. The company celebrates its 10th anniversary this year.
Initially set up by the Shanghai Jiaotong University with only 360,000 yuan (US$43,373), it has become a high-tech joint-stock company with total fixed assets of 300 million yuan (US$36.1 million).
The company's sales volume reached 860 million yuan (US$103.6 million) last year. It aims to reach 1 billion yuan (US$120.5 million) in sales volume this year, Lan Xiande, president of the company, said at the seminar.
However, there is still a long way to go for the company to catch up with its foreign counterparts, Yang said, adding that annual sales volume of the top 20 health-care products producers in the United States are all beyond US$2 billion.
Going public is one way for the company to expand its scale, Yang said, though details for the listing are not available. Onlly must prepare to brave foreign competition after China joins the World Trade Organization.
"Innovation has led Onlly onto a healthy cycle development track," said Wei Jie, an economist and a professor with Qinghua University.
Unlike other short-lived performers in the industry, Onlly should pursue a long-term and sustainable development strategy.
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