Jo Bao Kuo, the trailblazing entrepreneur behind the iconic "Madame Liquid" tonic, has announced his retirement from the helm of two publicly traded pharmaceutical companies, marking the close of a 25-year chapter on China's capital markets.

On the evening of September 11th, both Joincare Pharmaceutical Group Industrial Co., Ltd. (600380.SH) and Livzon Pharmaceutical Group Inc. (000513.SZ, 01513.HK) disclosed that Jo Bao Kuo had resigned as their chairman due to retirement. Joincare stated that he stepped down from all positions, including chairman, director, chairman of the board's Strategy and Risk Management Committee, chairman of the Sustainable Development Committee, legal representative, and all roles within its subsidiaries. Post-retirement, he retains no official duties but remains the company's actual controller. Livzon separately announced his resignation from his roles as chairman, non-executive director, chairman of the Strategy Committee, chairman of the Environment, Social and Governance Committee, and all subsidiary posts, also citing retirement. Joincare serves as the controlling shareholder of Livzon, with Jo Bao Kuo as the ultimate controller of both entities.

The 64-year-old founder's journey began in the 1990s when the former chemical technician pivoted to the health products industry. In 1993, he launched "Madame Liquid," a pioneering women's wellness brand that achieved phenomenal success, elevating him to the status of "Health Supplement King," alongside Shi Yuzhu of "Brain Gold" fame. Leveraging the capital amassed from this venture, Jo Bao Kuo expanded into the pharmaceutical sector. In 2001, his firm, Shenzhen Taiji Pharmaceutical Co., Ltd., listed on the Shanghai Stock Exchange. A year later, Taiji acquired a controlling stake in Livzon, cementing his control over two listed entities. In 2003, the company was renamed Joincare.

Joincare's business spans chemical preparations, biologics, active pharmaceutical ingredients and intermediates, traditional Chinese medicine formulations, diagnostic reagents and equipment, and health foods. In fiscal 2025, Joincare reported revenue of RMB 15.217 billion and net profit attributable to shareholders of RMB 1.336 billion, with a significant contribution stemming from Livzon. Livzon, consistently ranked among China's top chemical pharmaceutical enterprises, achieved revenue of RMB 12.02 billion and net profit of RMB 2.023 billion in 2025. On the A-share market, Livzon's valuation exceeds that of its parent, with a market cap of RMB 23.636 billion compared to Joincare's RMB 16.904 billion as of September 11, 2026.

Over the past decade, China's pharmaceutical industry has undergone a profound transformation: generic drugs have faced shrinking margins under centralised procurement policies, while innovative drugs have moved from the periphery to the core, driven by supportive policies, capital, and talent. Both Joincare and Livzon have been navigating this transition, yet Jo Bao Kuo's departure comes during a period of financial strain. In the first half of 2026, Joincare recorded revenue of RMB 6.583 billion, down 16.66% year-on-year, with net profit attributable to shareholders falling 17.49% to RMB 648 million. The dual decline is largely attributed to the weaker performance of subsidiary Livzon, which saw revenue drop 20.28% to approximately RMB 5.0 billion and net profit fall 27.23% to RMB 932 million in the same period. Contributing factors include price reductions for core products like the ilaprazole sodium series and urinary gonadotropin injection due to medical insurance adjustments, a significant decline in leuprolide injection sales in Guangdong, and the impact of national procurement on the psychiatry product fluvoxamine maleate. Additionally, API and intermediate sales softened due to industry cycle pressures, and traditional Chinese medicine and diagnostics revenue dipped with lower respiratory-related outpatient visits.

At its August earnings call, Livzon's management noted that the concentrated impacts of medical insurance price cuts and procurement in 2026 should lead to a relatively stable pricing environment for affected products moving forward. With no major new procurement pressures slated for 2027, the company expects its fundamentals to stabilise. Growth over the next two years will be driven by a diversified pipeline: over a dozen new products or expanded indications are planned for commercialisation between 2026 and 2028, alongside a strategic push into international markets as a key growth driver. In the interim, Joincare's board has elected Lin Nanqi, currently a director and president, as the new chairman of its ninth board. The 44-year-old, who rose through the ranks at Livzon and Joincare, brings extensive operational experience and holds 1.291 million shares in Joincare. Meanwhile, Joincare's board has appointed Liu Daping, a 39-year-old executive director, as chairman of its twelfth board. Liu Daping, who has served in various production and management roles within the group, took on the role of president in February 2026. Both successors are internally developed veterans, inheriting a solid foundation in R&D, product pipelines, and international strategy built during Jo Bao Kuo's tenure. The challenge ahead lies in steering these companies successfully toward their innovative pharmaceutical ambitions.