Soon after the new president took office, CHINARES PHARMA quietly initiated a compensation system optimization project.

On August 26, China Resources Pharmaceutical Group Co., Ltd. (referred to as "China Resources Pharmaceutical Group") announced that Tao Ran resigned as executive director, and Cheng Jie was appointed as the company's executive director and president effective immediately.

Just half a month later, China Resources Pharmaceutical Holdings Co., Ltd. (referred to as "China Resources Pharmaceutical Holdings"), a subsidiary of China Resources Pharmaceutical Group, announced that the China Resources Pharmaceutical compensation system optimization project had completed its evaluation process. The announcement shows that the project purchaser was China Resources Pharmaceutical Holdings, and the supplier was China Zhiwei Management Consulting Co., Ltd. According to Tianyancha data, China Resources Pharmaceutical Group is the controlling shareholder of China Resources Pharmaceutical Holdings, holding a 100% stake.

However, the announcement did not disclose detailed bidding content for the project, nor were the reasons and objectives for the compensation system optimization revealed. This compensation adjustment is considered an important operational move by CHINARES PHARMA following Cheng Jie's appointment as company president.

Cheng Jie, now 46 years old, has served as Chairman of Dong-E-E-Jiao since September 2024. From 2003 to January 2022, he held positions including product manager and product director for Huarun Sanjiu Pharmaceutical's 999 Cold Relief products. In July 2003, Cheng Jie obtained a Bachelor of Science degree from Shenyang Pharmaceutical University and holds the title of senior engineer.

According to the announcement issued by China Resources Pharmaceutical Group, Cheng Jie does not receive any director's remuneration at the company, with a pre-tax basic salary of 84,000 yuan per month. However, Cheng Jie's compensation also includes discretionary bonuses and tenure incentives based on company and individual performance.

According to Tianyancha, China Resources Pharmaceutical Group was established in 2007 and is primarily engaged in pharmaceuticals, pharmaceutical patents, and pharmacist tools. On October 28, 2016, China Resources Pharmaceutical Group was listed on the Hong Kong Stock Exchange under the code 03320.

In the first half of 2025, China Resources Pharmaceutical Group achieved revenue of 131.867 billion yuan, a year-on-year increase of 2.5%. Among its three main business segments, pharmaceutical manufacturing, pharmaceutical distribution, and pharmaceutical retail and others accounted for 16.6%, 79.2%, and 4.2% of revenue respectively. Despite revenue growth, China Resources Pharmaceutical Group experienced a decline in profits. In the first half of the year, the group's net profit was 5.054 billion yuan, down 8.8% year-on-year.

For the full year 2024, China Resources Pharmaceutical Group's revenue and net profit were 257.673 billion yuan and 8.403 billion yuan respectively, representing year-on-year increases of 5.3% and 8.1%. This indicates that since entering 2025, CHINARES PHARMA's performance growth has been slowing down.

The 2024 annual report also shows that the total compensation for China Resources Pharmaceutical Group's directors and chief executive in 2024 was 8.744 million yuan, an increase of 8.11% from 8.088 million yuan in 2023. Among them, Bai Xiaosong, Tao Ran, and Deng Rong served as executive directors with compensations of 3.13 million yuan, 2.794 million yuan, and 1.724 million yuan respectively. The compensation includes fees, salaries and other allowances, retirement benefit plan contributions, and others.

It is worth noting that the actual controller of China Resources Pharmaceutical Holdings is Bai Xiaosong, who also serves as chairman and general manager. Additionally, both Tao Ran and Deng Rong are directors of China Resources Pharmaceutical Holdings.