"Rising" has become a hot word of the year, and these traditional Chinese medicine companies have received attention

In 2021, due to global inflation and changes in the domestic production capacity and import situation of Chinese herbal medicines, the Chinese Herbal Medicine World.
com Composite 200 Index will rise strongly, closing at 2710.
04 points for the year, up 10.
29% year-on-year, a significant increase
.
Figure 1: Comprehensive 200 Price Index Chart (Source: Chinese Herbal Medicine World.
com) The general increase in the price of Chinese herbal medicines has a huge impact on Chinese patent medicine manufacturers.
The price increase has aroused the attention of the whole society
.
Zhangzhou Pien Tze Huang Pharmaceutical Co.
, Ltd.
Pien Tze Huang Out of the Circle The price of Pien Tze Huang pills has continued to rise since 2019, and once it rises, it will not stop
.
At the beginning of 2020, the wholesale price of Pien Tze Huang pills was 4,300 yuan per box (ten tablets in a box, the same below), and it rose to 5,300 yuan by the end of the year, an increase of 25%; starting from 2021, the price of the drug has not dropped, and the lunar calendar in February After the Spring Festival, the stock is almost out of stock, the price has risen to about 5,700 yuan, and the wholesale price is already close to the retail guide price of 5,900 yuan
.
At the same time, major stores across the country began to scramble to varying degrees.
After unscrupulous merchants hoarded them, they raised their prices wildly, and they were once hyped to 1,600 yuan per capsule, which was shocking
.
Behind the crazy price increase, it directly reflects the lack of production capacity
.
The main components of Pien Tze Huang are bezoar, musk, Panax notoginseng and snake gall.
Among them, natural bezoar and natural musk have been rising in market prices due to the scarcity of raw materials and the inability to guarantee production capacity
.
As of December 31, 2021, the price increases of natural bezoar and natural musk have reached 27.
91% and 10.
53% respectively, but Panax notoginseng, which accounts for 85% of the raw material consumption, has not experienced significant price increases.

.
Comments: "Moutai in Medicine" is popular in Pien Tze Huang, "one grain is hard to find"! On the one hand, there is an imbalance between supply and demand caused by raw materials and production, but more importantly, it should be driven by artificial speculation to drive prices up rapidly.
Although the prices of natural bezoar and natural musk have risen, the overall consumption of raw materials only accounts for 10%, and the increase is relatively mild.
Is Pien Tze Huang worth so much hype? Jilin Zixin Pharmaceutical Co.
, Ltd.
"King of Ginseng" Thunder In October 2021, Zixin Pharmaceutical rushed to Weibo hot search because of "hoarding 6.
8 billion ginseng and unable to repay 2.
5 billion debts"
.
Under the circumstance that the company's working capital is tight, and there is arrears of wages, taxes, and interest, it is better to have a tight cash flow than cash ginseng
.
According to the performance data of Zixin Pharmaceutical, in the middle of 2021, Zixin Pharmaceutical will have a net loss of 206 million yuan
.
In 2018, Zixin Pharmaceutical made a profit of 170 million yuan.
After that, its performance changed in 2019, and its net profit fell to 70.
29 million yuan; by 2020, the annual loss exceeded 700 million yuan, a year-on-year decrease of 1104.
03%
.
In the first half of 2021, this trend has not changed
.
In the face of the performance of Waterloo, Zixin Pharmaceutical said that the reason for the continuous decline in net profit is that "both proprietary Chinese medicine and ginseng can no longer be sold
.
" Since ginseng cannot be sold, in the first half of 2021, Zixin Pharmaceutical's inventory value is as high as 6.
838 billion yuan, accounting for 65.
44% of total assets, while monetary funds are only 10.
96 million yuan, accounting for only 0.
10% of total assets
.
Comments: Medicine is used to cure diseases, not to hype
.
Once Chinese medicinal materials are attached with financial attributes, their prices will not be regulated by market demand, and become a tool for capital speculation
.
Is the plight of Zixin Pharmaceutical today not related to the hot ginseng price in the past? Typical "win tactics, lose strategy"! On the one hand, since 2010, the ginseng market has entered a rising channel, which has greatly stimulated the enthusiasm of ginseng farmers in the production area.
Foreshadowing; on the other hand, the excess inventory of Kangmei Pharmaceutical, Zixin Pharmaceutical and other companies has also become a hidden "landmine", causing a long downturn in the ginseng market
.
Beijing Tongrentang Co.
, Ltd.
Angong Niuhuang series price increase On December 1, 2021, Beijing Tongrentang issued a price adjustment notice, raising the sales price of its well-known traditional Chinese medicine Angong Niuhuang Pills (3 grams * pills/box) from 780 yuan to 860 yuan Yuan, an increase of about 10%
.
Affected by this, Angong Bezoar products have experienced price increases to varying degrees
.
According to public information, this is the third time that Tongrentang has publicly adjusted the price of Angong Niuhuang Pills in the past 20 years
.
In 2012, Tongrentang raised the price of Angong Niuhuang Pills from 350 yuan.
By the end of 2021, Tongrentang had raised the cumulative price of Angong Niuhuang Pills by 145.
71%
.
The main ingredients of Angong Niuhuang Pill are gardenia, bezoar, musk, coptis, cinnabar, borneol, buffalo horn concentrated powder, realgar, pearl, and skullcap.
The price increases of gardenia, bezoar and musk reached 94.
44%, 80%, 27.
91% and 10.
53% respectively
.
Comments: The disorderly surge in raw material prices has greatly affected the production of enterprises
.
Faced with rising costs of raw materials, auxiliary materials, and energy, companies can only adjust prices to ease the pressure of rising costs and promote sustainable market development
.
Although short-term price adjustment can bring a certain buffer to the development of enterprises, in the long run, only by actively storing raw materials can the risks brought to enterprises due to rising raw material prices can be effectively curbed.

.
Kangmei Pharmaceutical Co.
, Ltd.
passed the reorganization plan On November 19, 2021, Kangmei Pharmaceutical issued an announcement stating that the property security creditor’s rights group, the ordinary creditor’s rights group and the investor group all voted to pass the draft reorganization plan and the corresponding investor’s rights adjustment plan
.
This means that the enterprise reorganization plan has been officially passed
.
According to the reorganization plan, GPHL, Guangzhou Shennong's Traditional Chinese Medicine Development Co.
, Ltd.
, Guangdong Guangdong Industrial Investment Fund Partnership, Guangdong Hengjian Asset Management Co.
, Ltd.
, Jieyang Jinye Development Co.
, Ltd.
and other state-owned enterprises jointly The formed Shennong partnership and some social capital will participate in the company reorganization of Kangmei Pharmaceutical
.
In 2018, Kangmei Pharmaceutical suffered a thunderstorm due to financial problems.
The change from the "Sanqi Incident" in 2009 to the "Ginseng Incident" in 2017 revealed a corner of the financial fraud case of Kangmei Pharmaceutical
.
It is precisely because of the pursuit of short-term interests that the raw materials of traditional Chinese medicine used to treat diseases are used as a hype tool, and as a result, the whole game is lost
.
Comments: The raw materials of traditional Chinese medicine have been put on the cloak of capital, and the price changes have largely been separated from their real value
.
Under the catalysis of the butterfly effect, the entire industry chain will be affected.
The skyrocketing market will induce disorderly expansion of planting and production, unbalanced supply of raw materials for production, and rising consumption costs, which will eventually make the entire industry chain pay for it
.
In 2018, Kangmei Pharmaceutical suffered a thunderstorm due to financial problems.
The change from the "Sanqi Incident" in 2009 to the "Ginseng Incident" in 2017 revealed a corner of the financial fraud case of Kangmei Pharmaceutical
.
It is precisely because of hype, fraud, and the lack of adherence to "inheritance and innovation" that he has fallen into the abyss
.
I believe that Kangmei Pharmaceutical, and even our entire Chinese medicine industry can learn from this incident
.
Taiji Group Co.
, Ltd.
Huoxiangzhengqi series price adjustment on December 21, 2021, affected by the continuous increase in the cost of main raw materials, auxiliary materials, energy and other materials, in order to alleviate the pressure of rising costs, Taiji Group has adjusted the production of its Huoxiangzhengqi oral liquid.
The price is adjusted, with an average increase of 12%
.
This is another Chinese patent medicine company that announced price adjustments after Pien Tze Huang, Tong Ren Tang and other pharmaceutical companies
.
It is reported that Huoxiang Zhengqi Oral Liquid, like Jizhi Syrup, is the flagship product of Tai Chi Group and is well known by many Chinese
.
In 2020, Huoxiang Zhengqi Oral Liquid was also included in the "Diagnosis and Treatment Program for Pneumonia Infected by Novel Coronavirus" (trial), a Chinese patent medicine recommended for treatment during the medical observation period
.
According to data from Minet.
com, in 2021, among the TOP20 Chinese patent medicine products in the digestive system of Chinese urban physical pharmacies, Huoxiang Zhengqi Oral Liquid ranks second, second only to Jianwei Xiaoshi Tablets, with market sales exceeding 1.
3 billion yuan
.
As of December 31, 2021, the prices of its core raw materials Angelica, Magnolia, Poria, and Atractylodes have increased by 87%, 30%, 16.
67%, and 10.
71%, respectively
.
Comments: The new crown epidemic will continue in 2021.
Although the production of anti-epidemic traditional Chinese medicinal materials such as Huoxiang and Perilla is rapidly recovering, and prices have fallen sharply, there are still more long-term varieties and wild varieties to be resumed
.
Entering 2022, in addition to some wild medicinal materials, it is believed that the production and supply of more anti-epidemic Chinese medicinal materials can be basically guaranteed, and the rising trend of Chinese patent medicine prices can also be curbed to a certain extent
.
How to ensure the production and price stability of Chinese herbal medicines? "Price increase" has become the annual buzzword of the traditional Chinese medicine industry in 2021, and the general increase in raw materials of traditional Chinese medicine has brought a chain impact to the entire production chain and consumption chain
.
From the perspective of planting: manufacturers must empower the source of planting
.
As a prescription preparation, Chinese patent medicine cannot be produced with few raw materials
.
In particular, some raw material varieties with large demand and rapid decline in production capacity can easily become the target of "hunting" by speculators.
"Kangmei Sanqi Incident" and "Zixin Ginseng Incident" are typical events
.
At the same time, this phenomenon also promotes the connection between enterprises and production areas to a certain extent, feeds back the production side, and forms an effective anti-hunting camp
.
From the perspective of production: a sound supply chain system is the basis for ensuring the supply of raw materials, and timely raw material reserves are the premise to achieve corporate revenue
.
The first is the construction of an information monitoring system to make accurate market predictions; the second is the establishment of dynamic inventories to reserve production raw material inventories
.
From the perspective of the consumer: the price of the finished product of the enterprise directly or indirectly affects the demand of the consumer group
.
Enterprises and consumer groups are in a symbiotic relationship.
Once they are separated from each other, the survival dilemma of enterprises will become more prominent
.
Therefore, in the next five years, it is fundamental for traditional Chinese medicine manufacturers to achieve significant growth in performance, achieve new economic growth points, pay attention to consumer demand, and develop good products that people need with stable cost performance
.