The performance of the traditional Chinese medicine sector is divided, with mixed results

As of March 1, 2022, a large number of pharmaceutical companies have already announced their performance in 2021
.
Among them, the performance of the traditional Chinese medicine sector showed mixed results
.
For example, many companies such as Kangenbei, Tasly, Dong'e Ejiao, and Zuoli Pharmaceutical are expected to double their performance in 2021
.
In addition, Zhendong Pharmaceutical, Jianmin Group and other companies also announced that their net profit will increase by more than 100%
.
However, there are also some traditional Chinese medicine companies that have suffered losses
.
From the perspective of companies with good performance, Dong'e Ejiao is expected to achieve a year-on-year increase of 888%-997% in net profit attributable to the parent company in 2021, about 428 million yuan to 475 million yuan; Kang Enbei expects to achieve a net profit attributable to shareholders of listed companies in 2021.
Net profit increased by 325%-375% year-on-year, about 1.
93 billion-2.
15 billion yuan; Tasly expects to achieve a year-on-year increase of 112%-119% in net profit attributable to shareholders of listed companies in 2021, about 2.
38 billion yuan to 2.
47 billion yuan
.
Zuoli Pharmaceutical expects that the net profit attributable to shareholders of listed companies in 2021 will increase by 91.
44%-110.
58% year-on-year, about 170 million yuan to 187 million yuan
.
Jianmin Group expects that the net profit attributable to shareholders of listed companies in 2021 is expected to increase by 115%-125% year-on-year, to approximately RMB 317,745,000 to RMB 332,523,900
.
In response to changes in performance, Dong'e Ejiao said that the company will begin to adjust its marketing model and product structure from 2020
.
On the one hand, Dong’e Ejiao reduces inventory, controls delivery, drives pure terminal sales, and deeply integrates online and offline channels.
Rejuvenation
.
Zuoli Pharmaceutical also stated that the company has also strengthened the adjustment of its marketing strategy.
Based on its three core products, Wuling Capsules, Bailing Tablets and Lingze Tablets, it has the advantage of entering the National Essential Drugs List, and adheres to the principle of "stable self-operation, strong investment promotion, and cloth retailing".
, full module" marketing strategy
.
In addition, Zhendong Pharmaceutical recently released a performance report showing that in 2021, the company's operating income will increase by 5.
05% year-on-year to 5.
093 billion yuan; net profit attributable to the parent will increase by 903.
37% year-on-year to 2.
629 billion yuan
.
Several companies are happy and some are sad.
In 2021, some traditional Chinese medicine companies will perform well, but some traditional Chinese medicine companies will also experience losses
.
Among them, Tai'an Tang's pre-loss is relatively large.
According to the performance forecast released by Tai'an Tang, the company's operating loss is about 332 million yuan to 342 million yuan
.
Zhongheng Group's net profit attributable to shareholders of listed companies in 2021 will drop by 30%-50% compared with the same period of the previous year
.
In addition, the performance of traditional Chinese medicine companies such as Dali Pharmaceutical, Taiji Group, and Xiangxue Pharmaceutical also declined
.
Regarding the development of the traditional Chinese medicine industry, some analysts said that with the strong support of the policy, the traditional Chinese medicine industry is facing a golden period of development
.
It is understood that in the past 10 years, the state has attached great importance to the development of the traditional Chinese medicine industry.
Since 2015, more than 20 national-level policies and documents have been issued, especially the National Law on Traditional Chinese Medicine and the Outline of Strategic Planning for the Development of Traditional Chinese Medicine (2016- 2030)” and other major laws and documents, laying the foundation for the healthy and sustainable development of the traditional Chinese medicine industry
.
In addition, in 2021, the state has issued a total of 6 important documents on traditional Chinese medicine.
For example, in December 2021, the National Medical Insurance Bureau issued the "Guiding Opinions on Medical Insurance Supporting the Inheritance and Innovation of Traditional Chinese Medicine", which clearly proposed to further expand the coverage of traditional Chinese medicine medical insurance; 2021 In September 2019, Hubei-led 19 provinces launched the centralized procurement of Chinese patent medicines in bulk, involving 76 kinds of 650 bulk Chinese patent medicine products, which will directly affect the supply and price operation of related traditional Chinese medicine raw materials
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.