Product strategy yields results: Qizheng Tibetan Medicine’s net profit grew by 11% in 2020, and the company plans to distribute a cash dividend of 3.4 yuan for every 10 shares held.

　　On the evening of the 15th, Qizheng Tibetan Medicine disclosed its 2020 annual report. The company’s operating performance showed steady growth, with full-year revenue reaching 1,476.2138 million yuan, an increase of 5.24% over the same period last year. Net profit attributable to shareholders of the listed company amounted to 4,057.006 million yuan, up 11.38% from the same period last year. The company plans to distribute a cash dividend of 3.4 yuan (including tax) for every 10 shares held by all shareholders.

　　In 2020, Qizheng Tibetan Medicine achieved significant results in its product strategy of “strengthening pain relief” and developing second- and third-tier products. On the one hand, the company actively promoted the further implementation of its core strategy of “strengthening pain relief.” Its flagship product, Xiao Tong Tie Gao (Pain Relief Patch), continued to maintain strong growth momentum through deeper channel penetration. Additionally, the company launched a new product—Tie Bang Chui Li San Tie—centered around an integrated pain management solution. With its differentiated positioning as “joint pain relief bandages,” this product effectively addressed consumers’ pain points regarding the poor adhesion of joint patches, creating a clear distinction from competing products. Through launch events, training sessions, and consumer experience activities, the product quickly gained market traction and achieved impressive sales performance. On the other hand, in line with its strategic goal of expanding the second- and third-tier product portfolio and capturing a larger share of the gynecology market, the company intensified efforts to promote its exclusive product, Hong Hua Ru Yi Wan, resulting in a substantial increase in sales volume. Meanwhile, several products were included in the anti-epidemic drug lists of Tibet, Qinghai, and Gansu provinces, providing effective treatment options for combating the pandemic. The “Hu Fei” family of respiratory system products performed exceptionally well. Furthermore, the “Shan Wei” family of oral Tibetan medicines for the digestive system saw notable sales growth thanks to ongoing Tibetan medicine training programs and community-based patient education initiatives. Leveraging the pain management integration solution as its starting point, the company’s e-commerce platform developed a new product—“Qi Zheng Zang Yu Foot Bath Tablets”—and is now exploring ways to offer consumers a comprehensive, multi-product approach to addressing pain issues.

　　As of the end of 2020, one product of the company had been included in the National Essential Medicines List, 19 products were listed in the "National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List (2020 Edition)," 34 products were included in local provincial medical insurance lists, 49 products were included in local essential medicine lists, 9 products were included in local low-price drug lists, and 2 products were included in the National Emergency (Rescue) Medicines List.

　　In terms of marketing, in 2020, Qizheng Tibetan Medicine further intensified its efforts to expand urban coverage and deepen channel penetration, while actively promoting a digital marketing transformation. The company has been proactively developing new media marketing strategies, expanding sales on e-commerce platforms, exploring the O2O new retail model, and accelerating sales growth in the third-tier distribution channels. At the same time, the company has stepped up its pace and efficiency in launching new products across various therapeutic areas. It has also strengthened organizational development and team execution capabilities through refined management, boosted team motivation with diversified incentive programs, and continuously expanded and enhanced its brand influence via distinctive academic, branding, and cultural promotion initiatives, thereby ensuring the sustainable development of its business.

　　In addition, as of the end of 2020, Qizheng Tibetan Medicine had cumulatively invested 136 million yuan in social welfare initiatives—including medical care, education, and poverty alleviation—in Tibetan areas and western China.

　　Reporting media: Shanghai Securities Journal · China Securities Net

　　Report link: http://ggjd.cnstock.com/company/scp_ggjd/tjd_bbdj/202104/4688664.htm