Qizheng Tibetan Medicine to Invest 180 Million Yuan in Longxi to Build a Chinese Herbal Medicine Slice Production Base

　　Qizheng Tibetan Medicine (002287) aims to develop Chinese medicinal herb slices and their deep-processing industry into a new growth driver for profits. After careful investigation and feasibility studies, the company plans to invest 180 million yuan in Longxi, Gansu Province, to build a base for producing specialty, pollution-free herbal slices. Qizheng Tibetan Medicine stated that this move is intended to further strengthen its resource-based competitive advantages, achieve industrialization and marketization of its Tibetan medicinal herb slices, and open up new avenues for the company’s development.

　　The announcement indicates that the project is being implemented by Longxi Qizheng Pharmaceutical Co., Ltd., a wholly-owned subsidiary established and invested in by Qizheng Tibetan Medicine. The total planned investment for the project amounts to 180 million yuan, with funding sourced entirely from the company’s own resources. The construction period of the project is two years. Upon completion of the project, annual revenue is expected to reach approximately 460 million yuan, and the payback period for the investment will be 6.68 years (before income tax, including the construction period). The project will occupy an area of 252 mu and plans to build a production workshop for processed Chinese medicinal herbs, a production workshop for extracts of Chinese medicinal herbs, a production workshop for Chinese pharmaceutical preparations, as well as circulating water pools and systems for water supply, power supply, and steam supply.

　　Qizheng Tibetan Medicine stated that the company plans to leverage the Gansu Longxi pollution-free specialty medicinal material processing base as a platform, focusing its business on the deep processing of pollution-free medicinal materials, extracts, and herbal slices from western China. With the goal of enhancing the quality of western Chinese medicinal materials and herbal slices, the company aims to establish high-quality, pollution-free medicinal material products from the western region.

　　According to the introduction, this project aligns with national and local policy orientations for the Chinese medicinal materials industry. Currently, the development of the sliced herbal medicine industry is at its prime opportunity. A series of favorable policies, including the "Several Opinions on Supporting and Promoting the Development of Traditional Chinese Medicine" issued by the State Council, will play a positive role in facilitating the smooth implementation and growth of the project. Qizheng Tibetan Medicine stated that the sliced herbal medicine and its deep-processing industries are sunrise sectors with strong growth momentum. Traditional Chinese medicine is increasingly being praised and recognized by the international community, providing an even broader stage for the development of the Chinese medicinal materials industry.

　　The announcement also indicated that establishing a Chinese medicinal herb decoction pieces and deep-processing enterprise in Longxi would ensure a stable supply of raw materials, lower production costs, and ample market potential. Longxi County, known as the “Millennial Medicinal Herb Township,” has now become a major national base for the production of Chinese medicinal herbs. The licorice, angelica sinensis, and astragalus produced locally are of high quality, pure in variety, and abundant in yield, providing a solid raw-material foundation for the production of premium-quality products and making Longxi uniquely well-suited for developing the Chinese medicinal herb decoction pieces and deep-processing industries.

　　Qizheng Tibetan Medicine emphasizes that this project fully leverages the resource advantages of western regions, including the Qinghai-Tibet Plateau, and aims to build a world-class, pollution-free production base for Chinese medicinal herbs and their deep-processing products in a province rich in traditional Chinese medicinal resources. This initiative is an important component of the company’s development strategy. Qizheng Tibetan Medicine also notes that although the projects the company is developing hold promising prospects, they also carry potential risks. The Chinese medicinal herb preparation industry has significant capital requirements, and achieving intensification and scale is one of the company’s key strategies for engaging in the medicinal herb preparation sector. Should funding become constrained, it will directly impact the company’s growth and development.