Eight Years of Welcoming New Entrants: Qizheng Tibetan Medicine Brings New Momentum to the Tibetan Capital Market

　　On August 28, Qizheng Tibetan Medicine made its debut by issuing A-shares and officially listing for trading on the Shenzhen Stock Exchange. As the first Tibetan enterprise to list on the ChiNext board, Qizheng Tibetan Medicine broke the eight-year silence since 2001 during which no companies from Tibet had gone public, setting a successful example of the marriage between Tibet’s distinctive traditional pillar industries and the capital market. Having been active in the Tibetan medicine industry for over a decade, Qizheng Tibetan Medicine has come to deeply appreciate the unique and profound health wisdom embedded within this sector. Taking inheritance and innovation as its development cornerstone, the company is committed to discovering outstanding products and aspires to become a modern leader in Tibetan medicine—providing natural solutions for the physical and mental well-being of humanity. As a highly acclaimed flagship player in the Tibetan medicine industry, on its very first trading day, Qizheng Tibetan Medicine’s stock performed exceptionally among newly listed shares, bringing positive news that has boosted market confidence and attention toward the Tibetan medicine sector.

　　Inheritance lays the foundation.

　　Tibetan medicine boasts a long history, with well-established theoretical foundations, proven clinical efficacy and safety, time-tested classic prescriptions, unique preparation techniques, and exclusively high-quality, highly active medicinal resources sourced from the pristine plateau. These attributes have made Tibetan medicine an exceptionally precious treasure within the vast repository of traditional Chinese medicine. After more than two millennia of rigorous validation and careful selection, Tibetan medicine has preserved a wealth of classic, time-honored medicinal formulations. These formulations have demonstrated remarkable therapeutic value in addressing a wide range of challenging and common human ailments—including lifestyle-related diseases, musculoskeletal disorders, nervous system conditions, cardiovascular and cerebrovascular diseases, liver and gallbladder disorders, digestive system issues, rheumatic diseases, geriatric conditions, and gynecological disorders—possessing both significant practical economic benefits and profound social impact.

　　Without inheritance, traditional industries lose their soul. As for the treasure trove of Tibetan medicine that has been passed down through millennia, Tibetan medicine practitioners must draw closer to it, gain a deeper understanding of it, and respect it wholeheartedly. Qizheng Tibetan Medicine regards Tibetan medicinal traditions as an integral part of traditional science. Relying on profound insights into contemporary medical needs and harnessing the scientific and technological content embedded in time-honored classic prescriptions and ancient preparation techniques, Qizheng carefully selects from this historical treasure chest those medicines that demonstrably enhance therapeutic efficacy, reduce treatment risks, and fill critical gaps in existing treatments—medicines with uniquely effective properties. At the same time, Qizheng places great emphasis on preserving and applying traditional preparation methods to ensure consistent therapeutic outcomes. At Qizheng’s production base, a team of Tibetan medicine experts and graduates from Tibetan medicine universities meticulously adhere to ancient preparation methods, painstakingly carrying out each step of the process. Although the national pharmacopoeia does not mandate such practices, Qizheng Tibetan Medicine, while strictly complying with GMP standards for pharmaceutical production, consistently implements the highly challenging, time-consuming, and costly preparation protocols of ancient Tibetan medical formulas—protocols that are often closely guarded secrets. Adhering to both sets of standards provides Qizheng Tibetan Medicine products with a robust quality guarantee. After all, therapeutic efficacy is the universal language of medicine and the ultimate key to winning the market. By wholeheartedly preserving and passing on these traditions, Qizheng has laid a solid foundation for its continued development.

　　Innovation wins the market.

　　How can millennia-old Tibetan medicine regain modern vitality, and how can this unique treasure of plateau medicine step into the modern world? Since its establishment in 1995, Qizheng Tibetan Medicine has continuously pursued technological and marketing innovation, swiftly rising to become a leader in the Tibetan medicine industry and forging a distinctive path toward excellence that bears the hallmark of Qizheng. Over more than a decade of development, Qizheng Tibetan Medicine has left behind a clear trajectory of growth: it has sprouted and flourished through breakthroughs in R&D and market expansion; seizing opportunities along the path of independent innovation, it has become a benchmark enterprise, leading the physical revolution in the Tibetan medicine industry. Qizheng was among the first to integrate modern pharmaceutical standards, advanced manufacturing processes, cutting-edge medical research, sophisticated market studies, and modern marketing systems into the development of the Tibetan medicine sector, thereby accelerating the modernization of this ancient medicinal tradition and successfully bringing Tibetan medicine into mainstream markets across China. After years of dedicated effort, Qizheng Tibetan Medicine’s achievements in industrial innovation have earned widespread social recognition. The company has been successively recognized as a National High-Tech Enterprise, a National Enterprise Technology Center, and one of the first batch of National Innovative Enterprises. Moreover, Qizheng has become the primary implementing unit for the key project “Research and Demonstration on Key Technologies for the Modernization of Tibetan Medicine,” part of the national “Eleventh Five-Year” Science and Technology Support Program. Relying on the fusion of traditional classic formulations with modern technology, the company’s flagship product—the Qizheng Pain Relief Plaster—has won the Second Prize for National Scientific and Technological Progress, been designated as a Protected Chinese Medicinal Product, and classified as a State-Confidential Variety. It has become the most potent, purely natural topical analgesic, consistently ranking first in China’s topical pain relief market for six consecutive years.

　　The future is worth looking forward to.

　　After more than a decade of development, Qizheng Tibetan Medicine has, through continuous inheritance and innovation, successfully pioneered a model for transforming millennia-old Tibetan medicinal practices into the modern market. Its outstanding brand building, leading channel marketing strategies, R&D innovations that ensure a robust pipeline of new products, abundant resources in Tibetan regions, comprehensive modern pharmaceutical research, strong financial health, and profound cultural heritage have become the golden keys to unlocking the treasure trove of millennia-old Tibetan medicine.

　　Over the past three years, the company’s annual compound growth rate of operating revenue has been 24.2%, reaching 413 million yuan by 2008. In terms of profitability, the company’s earning capacity has also been among the highest in the industry, with net profits exceeding 100 million yuan for three consecutive years. In 2008, the company’s net profit was 136 million yuan. Based on the total share capital of 406 million shares after the issuance, earnings per share reached 0.33 yuan. From January to June 2009, the company achieved a net profit of 78 million yuan.

　　The funds raised from Qizheng Tibetan Medicine’s IPO are planned to be allocated to three projects: the renovation and expansion of the Tibetan medicine production line, the construction of a Tibetan medicine engineering technology center, and the development of a marketing network. The implementation of these fundraising projects will expand the production capacity of the company’s flagship product, Qizheng Pain Relief Plaster, as well as other products. At the same time, it will strengthen Qizheng Tibetan Medicine’s new drug R&D capabilities and significantly enhance its process and technological expertise. In addition, reinforcing the construction of the marketing network will greatly boost the company’s market competitiveness and enable rapid growth in both main business revenue and profits.

　　Looking ahead, Qizheng Tibetan Medicine will continue to uphold its mission of “promoting health wisdom and restoring inner and outer harmony.” Leveraging the global trend of rapid growth in the traditional medicine market, we will seize the historic opportunity presented by the nation’s strong support for the development of Chinese and ethnic medicines. Taking the revitalization of ethnic medicine as our own responsibility, we will be market-demand oriented, driven by marketing innovation, empowered by technological innovation and product R&D, and underpinned by management innovation. We will continuously enhance our company’s marketing capabilities, technological level, quality standards, and management efficiency, further strengthening our overall strength and core competitiveness. We aspire to become a leader in the field of distinctive traditional medicine—a long-lasting enterprise cherished by our employees, trusted by our customers, respected by society, and beneficial to our investors.