Qizheng Tibetan Medicine’s net profit grew by 77.21% in 2021, and it plans to distribute a cash dividend of 5.9 yuan for every 10 shares held.

On the 29th, Qizheng Tibetan Medicine disclosed its 2021 annual report. For the full year, the company achieved operating revenue of 1.77 billion yuan, an increase of 19.22% over the same period last year; net profit attributable to shareholders of the listed company reached 716 million yuan, up 77.21% from the same period last year; net profit excluding non-recurring gains and losses amounted to 345 million yuan, representing a growth of 0.64% over the same period last year. The company proposes to distribute a cash dividend of 5.90 yuan (including tax) for every 10 shares held by all shareholders.

Focus on the core pharmaceutical business and expand therapeutic areas.

During the reporting period, the company continued to implement its core strategy of "strengthening pain management." The company’s pain-relief product line—including Xiao Tong Tie Gao (Pain Relief Patch), Qing Peng Ointment, Bai Mai Ointment, Ru Yi Zhen Bao Tablets, and Tie Bang Chui Dispersed Plaster—maintained a steady growth trend. The company’s flagship product, Xiao Tong Tie Gao, continues to hold a leading position in the category of traditional Chinese medicine topical pain-relief products. The company’s newly acquired products—Shi Wei Long Dan Hua Capsules, Shi Wei Long Dan Hua Granules, Xiao Er Chai Qin Qing Jie Granules, Xin Nao Xin Capsules, and Rhodiola Oral Liquid—have further enhanced and strengthened the company’s presence in therapeutic areas such as respiratory medicine, cardiovascular and cerebrovascular diseases, and pediatrics, laying a solid foundation for the future development of blockbuster products and the exploration of new indications.

The annual report shows that the company currently holds 141 approved product registration numbers, with 25 exclusive products—such as Xiaotong Paste and Baimai Ointment—at their core. Among these, 60 are over-the-counter (OTC) products, and 3 are classified as national confidential technologies (secret level). As of the end of the reporting period, 23 products have been included in the National Essential Medicines List, 62 products have been listed in the "National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List (2021 Edition)," 35 products have been incorporated into local provincial medical insurance lists, 49 products have been included in local essential medicine lists, 9 products have been added to local low-price drug lists, and 2 products have been included in the National Emergency (Rescue) Medicines List.

Channels are being broadened and deepened, and R&D investment continues to be ramped up.

In terms of channels, the company is focused on expanding high-tier healthcare services, further implementing channel下沉 (downward channel expansion), and paying close attention to the development of county-level and grassroots communities. We are also refining our personnel deployment and resource allocation. Through strategies such as strategic planning in key cities, refined customer management, and academically driven marketing, we aim to promote the comprehensive penetration of our core products at medical terminals. In the commercial and retail channels, on the one hand, we are leveraging online digital initiatives and offline consumer experience events to drive rapid growth among our core customers and new products. On the other hand, we are strengthening the organizational structure of our new retail business, deepening strategic partnerships with new retail platforms, and accelerating the launch of new product categories on O2O platforms. Based on data insights from these platforms, we will enhance coverage in underserved areas, collaborate closely with key chain retailers to attract new customer segments for our brands, and simultaneously implement a strategy of “moderate brand rejuvenation.”

In terms of R&D, in 2021 the company’s R&D investment reached 104 million yuan, an increase of 8.59% over the same period last year. The number of R&D personnel stood at 276, up 8.24% from the previous year. During the reporting period, the company continued to advance the development of its R&D organizational structure and capability enhancement, strengthening the capacity-building of its basic research platforms. It also accelerated clinical studies on existing products, new drug research, studies on new indications for already-marketed products, and research on new target populations. Additionally, the company expedited the process of transferring manufacturing technologies and obtaining regulatory approvals for newly acquired products. The national key R&D program led by the company—“Demonstration Development Study on the Treatment of Baimai Disease, a Major Tibetan Medical Condition, Using the Classic Tibetan Medicines Ruyizhenbao Tablets and Baimai Ointment”—was implemented according to schedule and has now produced a phased report.

It is reported that the company has simultaneously released the “Qizheng Tibetan Medicine 2021 Social Responsibility Report and Environmental, Social, and Governance (ESG) Report.” This marks the 13th consecutive year that Qizheng Tibetan Medicine has published a social responsibility report. According to the report, as of the end of 2021, the company had cumulatively invested 140.8 million yuan in social welfare initiatives—including healthcare, education, and rural revitalization—in Tibetan areas and western China.

Reporting media: Dazhong Securities Network

Report link: http://www.dzzq.com.cn/bond/45237203.html