Qizheng Tibetan Medicine Releases Its Sixth Annual Social Responsibility Report

　　On April 10, Tibet Qizheng Tibetan Medicine Co., Ltd. released its 2014 Corporate Social Responsibility Report, detailing the company's responsible practices in areas such as compliant operations, technological innovation, resource conservation, employee development, and cultural heritage preservation. This marks the sixth consecutive year since the company went public in 2009 that it has voluntarily issued a corporate social responsibility report based on both domestic and international standards.

　　As a value-driven enterprise, Qizheng Tibetan Medicine continuously adopts a top-down, sustainable-development perspective to categorize its grassroots operations. It has established a key performance indicator system for corporate social responsibility, which guides the company’s business activities and promotes its healthier, more sustainable development. In 2014, Qizheng Tibetan Medicine achieved an operating revenue of 950 million yuan, with its core pharmaceutical business generating sales revenue of 811 million yuan and a net profit of 238 million yuan. The company paid a total of 166 million yuan in taxes, including 151 million yuan in taxes paid in the Tibet region—a cumulative total of 1.082 billion yuan in taxes paid in Tibet to date. The company employs 1,631 people and provides products and services to patients through 1,700 hospitals, 23,000 primary healthcare institutions, 22,000 pharmacies, and nearly 100 chain drugstores.

　　Tibetan medicine is hailed as a “germplasm resource” of Eastern civilization and wisdom. Over more than two millennia of传承, tens of thousands of time-tested formulations—safe, reliable, and clinically effective—have been preserved. Since adopting low-temperature vacuum freeze-drying technology to transform traditional paste-like black ointments into modern wet dressings and bringing them into the mainland market, Qizheng Tibetan Medicine has remained steadfastly committed to the modernization of the Tibetan medicine industry. Through scientific research innovation, technological innovation, and marketing innovation, the company validates Tibetan medicine using modern medical methods and promotes its academic value, continuously enabling this ancient Tibetan medical practice to realize greater significance in today’s society. In 2014, all of the company’s production lines and product varieties successfully obtained certification under the new GMP standards. Moreover, Honghua Ruyi Pills made their debut in the authoritative Western medical guideline—the “Clinical Practice Guidelines for Pelvic Inflammatory Disease” issued by the Obstetrics and Gynecology Branch of the Chinese Medical Association (2014 edition)—marking the first time that a traditional ethnic medicine has been included in such a guideline. At the inaugural China National Medicine Science and Technology Awards, the company’s “Integrated Innovation in Key Manufacturing Technologies for Tibetan Pain-Relieving Plasters” won the First Prize for Scientific and Technological Progress, while “Driving the Development of the Tibetan Medicine Industry through Technological Innovation” was awarded the First Prize for Innovation in the Ethnic Medicine Industry.

　　Through continuous insights into consumer needs and deep exploration of the core characteristics of Tibetan medicinal resources, Qizheng Tibetan Medicine delivers its brand message to consumers via multiple channels, consistently providing high-quality, safe, and effective Tibetan medicine products. Moreover, by implementing a drug recall management system, a monitoring and reporting system for adverse drug reactions, as well as consumer consultation and complaint manuals and procedures, the company ensures that consumers can shop with peace of mind. In 2014, the company organized community education activities aimed at consumers, reaching a total of 40,000 participants. At the same time, the company launched the “Qizheng Pain Management Butler” WeChat platform, which provides pain management knowledge to consumers through training pharmacy staff. The company’s ongoing and in-depth efforts to educate pain patients on self-medication have earned widespread social recognition, and it was awarded the Best Contribution to Consumer Education Prize at the 2nd China Over-the-Counter Drug Brand Communication Awards.

　　A key feature of ethnic medicine is the use of plant-based medicinal materials, and its industry is largely concentrated in the central and western regions. Over the years, Qizheng Tibetan Medicine has consistently emphasized the protective development of natural resources and the environment, building a commercial ecosystem that focuses on long-term benefits. The company pays close attention to maintaining communication with local residents and government authorities through field visits to production areas and holding symposiums. In the procurement of Tibetan medicinal materials, the company relies on frontline procurement staff to impart knowledge about sustainable harvesting practices to local farmers and herders in the source regions, standardizing harvesting and drying procedures to enhance the content of active ingredients in the herbs. At the same time, the company strives to preserve as much of the roots, stems, and other parts of the plants as possible, making full use of flowers, fruits, branches, and leaves. Meanwhile, in line with the company’s strategic goals and the status of Tibetan medicinal resources, Qizheng Tibetan Medicine has been engaged in long-term research and the establishment of conservation bases across three key areas: Tibetan medicinal resource protection, Tibetan medicinal plant cultivation research, and wild Tibetan medicinal herb management. As of 2014, the company had established conservation research bases covering 3,090 mu of land and was conducting conservation studies on 31 different species of Tibetan medicinal herbs.

　　In ethnic regions, human resources are relatively scarce, and the skill levels of talent are comparatively underdeveloped. Moreover, these regions are characterized by numerous cultural and linguistic differences. As a result, enterprises face even greater challenges than those in inland areas when it comes to cultivating talent, managing labor practices, and protecting workers’ rights and interests. Since 1996, when the first group of Tibetan local employees joined Qizheng Tibetan Medicine in Linzhi, Tibet, the company has consistently placed great emphasis on nurturing talent from ethnic regions throughout its years of development. In recruitment, the company gives priority to local residents and treats the cultivation and development of local talent as equally important as attracting external talent. The company actively promotes ethnic integration, cultural integration, and talent integration. In 2014, the company had 250 employees from ethnic minority groups, among whom 22 held positions in the company’s management. Local residents accounted for 51% of the company’s senior managers.

　　Qizheng Tibetan Medicine is deeply rooted in the Tibetan region. In terms of inheriting and protecting Tibetan culture as well as providing public welfare assistance, the company has consistently focused on establishing long-term mechanisms to give back to the Tibetan areas and achieve shared progress with Tibet. In 2014, the company’s specially established “Tibetan Culture Inheritance and Protection” fund invested a total of 4.901 million yuan, supporting 15 projects—including the establishment of an international scholarship program aimed at nurturing outstanding talents who can contribute to the civilization and development of China’s western regions and Tibetan areas, and cultivating high-quality, locally-rooted technical and business professionals. In 2014, thanks to its sustained efforts in ethnic minority regions, Qizheng Tibetan Medicine was selected as one of the “2013 Global Compact China Best Practice Cases.”

　　The concept of corporate social responsibility, which originated in Western business societies, has recently become a growing consensus among an increasing number of Chinese enterprises. As a national pharmaceutical company that has grown from the western region, Qizheng Tibetan Medicine has consistently and consciously practiced corporate social responsibility throughout its nearly 20-year development journey, making numerous valuable explorations in the area of social responsibility for small and medium-sized enterprises (SMEs) in China. Qizheng Tibetan Medicine believes that, in the process of sustainable development, enterprises will undoubtedly play an increasingly important role. In 2014, Qizheng Tibetan Medicine actively participated in multiple platforms for social responsibility exchange, proactively sharing its practical experience in corporate social responsibility with various sectors. Through concrete actions, Qizheng aims to influence more enterprises and organizations, encouraging even more SMEs to join the cause of sustainable development.

　　Reporting Media: China Securities Journal - CS.com

　　Web link: http://www.cs.com.cn/ssgs/gsxl/201504/t20150413_4686146.html