The continuous growth of the income of the Chinese medicine industry has promoted the acceleration of strategic adjustment and upgrading of Chinese medicine enterprises

According to the statistics of the national pharmaceutical industry, the main income of the Chinese medicine industry has increased from 515.
6 billion yuan in 2012 to nearly 700 billion yuan
in 2021.

Under the background of the overall development of the industry, the performance of major Chinese medicine enterprises is also showing a trend of
continuous growth.

It is understood that as of now, the semi-annual reports of major domestic listed pharmaceutical companies have been disclosed successively, among which, the performance of A-share Traditional Chinese medicine-related listed companies in the first half of the year is not lacking in bright spots
.

According to the data, 47 of the 73 A-share listed chinese medicine companies achieved revenue growth in the first half of the year, of which 28 had revenues of more than 1 billion yuan, 5 had revenues of more than 5 billion yuan, and 2 had revenues of more than 10 billion yuan, respectively, Baiyun Mountain revenue reached 37.
2 billion yuan, and Yunnan Baiyao reached 18 billion yuan
.

In addition, the largest increase in net profit was dong ejiao and Jiaying Pharmaceutical, with an increase of 106% and 105.
33%
respectively.

Among them, the main reason for the performance growth of Dong'e Ejiao is: the company solidly promotes the "14th Five-Year Plan" strategic planning, closely follows the strategic main line with consumer demand as the core, continuously optimizes the product structure, and upgrades the product portfolio; Deeply practice the customer-centric digital operation model, deepen the extension and expansion of categories and innovative exploration, and achieve customer growth and performance improvement
.

It is worth noting that while the performance is growing, it can be clearly found that some listed companies in traditional Chinese medicine will further enhance their competitiveness in the future, open up new growth points in performance, and are accelerating the adjustment and upgrading
of their development strategies.

For example, among the listed Chinese medicine companies that disclosed their 2021 annual reports, more than half of the R&D investment of enterprises achieved year-on-year growth
.

In this regard, the industry believes that innovation has become the general trend
of the strategic transformation of Chinese medicine enterprises.
。
Although innovation is difficult, especially traditional Chinese medicine innovative drugs are difficult to develop
because of the particularity of their products.

However, the industry also proposed that with the State Food and Drug Administration has issued a series of documents to promote the registration and declaration of new chinese medicine drugs, it will help encourage pharmaceutical companies to innovate more actively and clearly, and the future innovation of chinese medicine will usher in a new situation
.

In addition to innovation, in the process of transformation and upgrading of pharmaceutical companies, expanding to great health has also become the choice
of many enterprises.

It is understood that with the intensification of aging and the continuous upgrading of consumption, the big health industry is showing a strong momentum
of development.

Incomplete statistics show that the market size of the big health industry will reach 7 trillion yuan
in 2020.

Under the background of the vigorous development of the big health industry, the concept of big health continues to be hot, and more and more Chinese medicine companies have begun to play the "health" brand, trying to break the single situation
of product structure across borders.

For example, Katazai Pharmaceutical Co.
, Ltd.
has already jointly invested with Zhangzhou Chemical Factory to form Fujian Katazai Cosmetics Co.
, Ltd.
; TongRentang established an Asian skincare center and launched a series of herbal cosmetics; Ma Yinglong, a pharmaceutical company focusing on hemorrhoids, launched the "Eight Treasures Ancient Formula" eye cream product; China Resources Sanjiu, which produces 999 dermatitis flat and 999 cold spirit, launched the "Crane Top Red" lipstick set.
.
.
At present, many companies have clearly proposed to increase the layout of the big health field in
the future.

For example, the relevant person in charge of Yiling Pharmaceutical has said that it will focus on the big health industry
in the future.

In terms of product layout, the company will launch prescription drugs
from three dimensions: network disease (chronic disease), sub-health, and healthier.

In addition, Xicheng Health also said that since last year, it has focused on the layout of the big health-related industrial chain, extending many big health products, which have been recognized by
the market.

In the future, the company will also absorb more Chinese medicine culture into the operation of Tsinghuachi stores, so as to integrate
stores, products, biotechnology and health training.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.