Qizheng Tibetan Medicine: Making Its Debut in the Capital Market with Traditional Strengths and Modern Innovation

　　The mysterious Tibetan culture embodies the millennia-old wisdom of the plateau’s indigenous peoples and has given rise to the unique field of Tibetan medicine—a true “gem” in the world of pharmacology. Qizheng Tibetan Medicine, which represents the fusion of traditional Tibetan formulas from the snowy plateau with modern innovation, has officially launched its public offering in the capital market. This marks a new milestone: while preserving the distinctive therapeutic efficacy of Tibetan medicine, Qizheng Tibetan Medicine will continue to innovate and enhance its core technological strengths, strengthen its brand, improve its financing capabilities, and standardize its business operations—thus consistently introducing modern Tibetan medicines with unique clinical value.

　　Inheritance and Innovation

　　More than 1,300 years ago, the establishment of the Tibetan Medical College—rooted in the fusion of the core principles of Indian, Persian, and Chinese medicine and dedicated to academic study, research, and production—added a brilliant gem to the treasure trove of Chinese national medicine. The ancient classical texts of Tibetan medicine contain approximately 10,000 different formulations; among these, over 300 have been rigorously validated through long-term clinical practice and are now widely used in clinical settings and have even been incorporated into national pharmacopoeial standards. Qizheng Tibetan Medicine stands out in the field of Tibetan medicine as a leader that leverages the rich Tibetan culture, a comprehensive theoretical framework for Tibetan medicine, the refined extraction of highland medicinal herbs, and the continuous innovation enabled by modern technology, thereby seamlessly integrating traditional Tibetan medicine production with cutting-edge pharmaceutical manufacturing techniques. Founded in 1995, Qizheng Pharmaceutical has invested heavily in funds, technology, and personnel, making the protective development of Tibetan medicinal materials a strategic cornerstone for the company’s long-term growth. At its experimental bases for the domestication and cultivation of precious Tibetan medicinal plants, Qizheng Tibetan Medicine has collected specimens of various rare Tibetan herbs, accumulating invaluable data for indoor cultivation of these herbs and successfully propagating dozens of such precious Tibetan medicinal species.

　　“Science and technology are the primary productive force.” From its very inception, Qizheng Tibetan Medicine has been committed to integrating and innovating production technologies. While the traditional Tibetan medicine preparation techniques possess exquisite craftsmanship, their processes do have certain technical limitations. At the same time, the remarkable efficacy of Tibetan medicines is inseparable from these time-honored methods. Therefore, when introducing new approaches, Qizheng Tibetan Medicine deliberately preserves the traditional preparation techniques—strictly adhering to GMP standards on the one hand, while simultaneously continuing to employ and integrate traditional Tibetan medicine preparation methods into modern production practices on the other. Relying on advanced technologies, Qizheng Tibetan Medicine has carefully selected classic prescriptions and developed a series of innovative Tibetan medicines, including the Qizheng brand “Xiaotong Tie Gao” plaster—a product that has earned eight national patents and been hailed by authoritative experts and scholars as a major breakthrough in the history of topical plasters. These products have achieved outstanding market performance.

　　With its 2,500-year-old classic prescriptions, unique preparation techniques, distinctive medicinal resources, and remarkable therapeutic effects, Tibetan medicine from Qizheng Tibetan Medicine has earned numerous prestigious awards through the fusion of tradition and innovation. Qizheng Tibetan Medicine was among the first enterprises selected as National Innovative Enterprises, a key high-tech enterprise under the National Torch Program, a national-level enterprise technology center, and a key implementation unit for the National “11th Five-Year” Science and Technology Support Program. The company has received the Second Prize of the National Science and Technology Progress Award and holds 22 patented technologies, including 9 invention patents, 69 approved drug registration numbers, 9 exclusive product varieties, and 5 protected traditional Chinese medicine varieties. The “Xiaotong Paste” has been designated by the Ministry of Science and Technology and the State Secrecy Bureau as a “National Secret-Protected Variety.”

　　Use of raised funds

　　Currently, Tibet Qizheng Tibetan Medicine Co., Ltd. has seven wholly-owned and controlling subsidiaries, including four GMP-certified manufacturing enterprises (including the parent company), two GSP-certified marketing companies, one Tibetan medicine external treatment research institute, and one Tibetan medicine cultural development company. The funds raised from this new share issuance will be primarily allocated to three areas: 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.

　　As the largest and first Tibetan medicine manufacturer in China to obtain GMP certification, Qizheng Tibetan Medicine will introduce modern pharmaceutical standards[10.05 0.50%] into the Tibetan medicine industry, continuously driving innovation in dosage forms, leading a physical revolution in the Tibetan medicine sector, and ensuring that Tibetan medicines better align with the usage habits of modern consumers. Moreover, the leading position and brand advantages of flagship products such as Qizheng Pain Relief Plaster will help the company’s product lineup capture greater industrial value. Therefore, the construction of the production line expansion and renovation project will first break through the company’s capacity bottlenecks, enabling it to better serve consumers. Second, the Tibetan Medicine Engineering Technology Center project will bring modern medical research into the Tibetan medicine industry. Through systematic pharmacological and efficacy evaluations, as well as the secondary development of classic Tibetan medicinal formulas, this project will promote the acceptance of Tibetan medicines within mainstream medicine, enhance the technological level of Tibetan medicine production processes and formulations, and strengthen the company’s R&D capabilities in the field of topical preparations. The company plans to establish China’s first R&D system dedicated to the systematic development and evaluation of transdermal drug delivery technologies, thereby deeply exploring the potential of Tibetan medicine and filling gaps in the therapeutic market. Meanwhile, Qizheng Pharmaceutical is also undertaking a key project under the Eleventh Five-Year National Science and Technology Support Program—the critical task of overcoming technical bottlenecks in solid dosage forms of Tibetan medicines. Finally, through the construction of a marketing network, Qizheng Tibetan Medicine will introduce modern marketing systems into the Tibetan medicine industry—adopting advanced marketing concepts, building a professional marketing team, successfully bringing Tibetan medicines into mainstream markets across mainland China, and strengthening regional marketing management capabilities. At the same time, the company will reinforce its information systems, enhance system control capabilities, promote business process reengineering and optimization, strengthen collaboration among production, supply, and sales, and improve the company’s market responsiveness and product distribution capabilities.

　　Qizheng Tibetan Medicine boasts a prominent core business, a stable asset structure, excellent asset liquidity, strong debt-servicing capacity, and robust cash flow generation from operating activities. In 2008, its revenue reached 413 million yuan; in the first half of this year, revenue stood at 196 million yuan. Over the past three years, its revenue has grown at a compound annual rate of 24.2%, accounting for nearly 20% of the entire domestic and international market for pain-relief patches. Among these, Qizheng’s Xiaotong Patch has contributed over 80% of the company’s main business revenue during the same period over the past three years. The company’s return on net assets has consistently remained above 20%, demonstrating sustained high profitability.

　　After entering the capital market, Qizheng Tibetan Medicine’s brand strengths have been further reinforced. At the same time, standardized corporate governance will also significantly enhance the company’s operational efficiency. The funds raised will enable Qizheng Tibetan Medicine to further improve its production capacity and technological level for its core products, optimize its product mix and marketing capabilities, and thereby further boost the company’s profitability.

　　In the future, Qizheng Tibetan Medicine will have a convenient corporate financing platform. Leveraging the robust growth trend in the global traditional medicine market, the historic opportunity presented by the state’s strong support for the development of Chinese and ethnic medicines, and the overall impetus provided by the new healthcare system reform, the Tibetan medicine industry will become one of the most dynamically growing pharmaceutical sectors.

　　Source of information: Sohu Securities

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