Due to rising raw material prices, this traditional Chinese medicine company raised the price of its products twice in 3 months

Recently, Guangyuyuan replied to investors on the investor interaction platform that due to factors such as rising raw material prices, from April 1, 2022, the retail price of the company's Angong Niuhuang Pills (boutique series, iron box) will be adjusted to : 980 yuan / pill, the retail price of Angong Niuhuang Pills (boutique series, wooden box) is adjusted to: 1680 yuan / pill
.
It is worth mentioning that this is the second time that Guangyuyuan has raised prices this year
.
On January 15, 2022, Guangyuyuan announced an increase in the price of Angong Niuhuang Pills.
The notice issued by the company at that time showed that, according to the price of raw materials and product process characteristics, after a comprehensive evaluation, it was decided to increase the price of Angong Niuhuang Pills (Double Natural).
(3g/pill) The retail price is set at 880 yuan/pill
.
The price of the product has been raised twice within 3 months, and this dynamic has also attracted attention and heated discussions in the industry
.
According to a person familiar with Guangyuyuan: "Because the prices of raw materials for traditional Chinese medicines such as bezoar and musk have been rising in the past year, the prices have been raised
.
The situation is true
.
" The price parity effect between products may be the reason for the rise of products
.
However, some analysts also pointed out that the sales of Guangyuyuan's Angong Niuhuang Pill products declined significantly in 2019, and no announcement will be made in 2020
.
Sales of other core products such as Guilingji, Dingkundan Shui Honey Pills, Niuhuang Qingxin Pills, etc.
, all experienced a significant decline in 2020
.
The company's annual forecast shows that in 2021, the company's expected net profit attributable to shareholders of listed companies will be -330 million yuan, a decrease of 362 million yuan compared with the same period of the previous year; the expected net profit after deducting non-returning to the parent is -361 million yuan, a year-on-year decrease.
353 million yuan
.
In this regard, the industry speculates that the company's product price increase may also be related to poor performance
.
According to public information, Angong Niuhuang Pill is a series of traditional Chinese medicines and high-quality Chinese medicines of Guangyuyuan
.
It can be used for febrile diseases, evil entering the pericardium, febrile convulsions, delirium; stroke, coma, encephalitis, meningitis, toxic encephalopathy, cerebral hemorrhage, and sepsis.

.
According to data from Minet.
com, in 2017, the sales of Angong Niuhuang Pills in urban retail pharmacies in China exceeded 1 billion yuan and maintained a growth rate of more than 20%.
In 2019, the sales exceeded 2.
4 billion yuan
.
At present, in addition to Guangyuyuan, the manufacturers of Angong Niuhuang Pills include Tongrentang, China Resources Sanjiu, Jiuzhitang, Pien Tze Huang and other enterprises
.
Since 2021, the prices of Angong Niuhuang Pills from many manufacturers have basically risen
.
For example, the sales price of Angong Niuhuang Pills (3g*pills/box) under Tongrentang has been raised from 780 yuan to 860 yuan from December 1, 2021, an increase of about 10%
.
It is reported that this is the third public price increase for this product by Tongrentang in the past 20 years
.
Subsequently, there was also news that the unit price of Tongrentang's An Gong Niuhuang Pills would rise to 1,000 yuan per pill, but this has been denied by Tongrentang
.
In December 2021, China Resources Sanjiu stated on the investor interaction platform, "As the overall cost, especially the cost of raw materials and labor, has continued to rise in recent years, different pricing strategies have been adopted for different stages of different products
.
" It is reported that, The ex-factory price of China Resources Sanjiu Angong Niuhuang Pills has also increased this year
.
Behind the rising prices of traditional Chinese medicine products, it reflects the current situation of rising prices of traditional Chinese medicinal materials
.
In recent years, the prices of many Chinese medicinal materials have risen significantly, and some have risen by more than 100%
.
For example, the prices of more than half of the varieties in the Chinese herbal medicine market in Bozhou, Anhui have risen to varying degrees
.
From the perspective of the industry, price fluctuations of Chinese herbal medicines are market behaviors, but it is also necessary to break some bottlenecks in the links from planting to circulation of Chinese herbal medicines.
Strike force,
etc.
So, will the prices of traditional Chinese medicine products continue to rise? The industry believes that in the long run, with the upgrading of domestic consumption, the steady rise in the price of traditional Chinese medicine is inevitable, but it will definitely not return to the past
.
Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to anyone
.