Qizheng Tibetan Medicine shareholders reduce their holdings and use the proceeds for public welfare.

　　According to publicly available information, on October 23, 2019, Qizheng Tibetan Medicine (002287) shareholder Xizang Yutuo Cultural Development Co., Ltd. (hereinafter referred to as “Yutuo Culture”) reduced its holdings of the company’s shares by 10.6 million shares through a block trade, representing 1.99943% of the company’s total share capital. Prior to this reduction, Yutuo Culture held 108,995,215 shares, accounting for 22.56% of the total share capital. Following this reduction, Yutuo Culture holds 98,395,215 shares, representing 18.56% of the total share capital.

　　Yutuo Culture is the second-largest shareholder of Qizheng Tibetan Medicine and acts in concert with its controlling shareholder, Gansu Qizheng Industrial Group. Both entities are under the control of Lei Jufang, Chairperson of Qizheng Tibetan Medicine. Following Yutuo Culture’s reduction of its stake, the combined shareholding of Qizheng Group—controlled by Lei Jufang—and Yutuo Culture now totals 87.32% of Qizheng Tibetan Medicine’s equity. It is reported that the funds raised from Yutuo Culture’s recent share sale will primarily be donated to the Qizheng Foundation, to be used for public welfare and charitable initiatives in Tibetan areas and western China. The funds will be especially directed toward establishing Tibetan medical education bases, cultivating advanced Tibetan medical professionals, and supporting projects aimed at the preservation and promotion of Tibetan culture.

　　According to available information, Qizheng Tibetan Medicine has been involved in public welfare activities for a long time. In 1995, driven by the spirit of "balancing profit with righteousness and emphasizing moral integrity" that inspired private enterprises to invest in poverty alleviation efforts in underdeveloped, remote, and ethnic minority regions through the Guangcai Initiative, Lei Jufang, the founder of Qizheng Tibetan Medicine, invested in and established a factory in Linzhi, Tibet, thus embarking on her journey into the Tibetan medicine industry. Over the years, while developing her business, Lei Jufang has placed great emphasis on giving back to the local community and has focused her philanthropic efforts on creating a favorable ecological environment for the development of the Tibetan medicine industry. In 2007, under the China Guangcai Foundation, a special fund was set up for the protection and inheritance of Tibetan culture, with a particular focus on grassroots medical care and folk education in Tibetan areas as well as remote Tibetan regions, and initiatives such as the "Hundred Clinics in Tibetan Areas" were launched. In 2017, the Gansu Qizheng Charitable Public Welfare Foundation and the Tibet Qizheng Charitable Foundation were established one after another. Relying on these two foundations, Qizheng’s public welfare activities have been further upgraded.

　　It is understood that the Qizheng Foundation is committed to supporting the inheritance and development of traditional medical practices, funding the construction of basic medical facilities for Tibetan medicine, providing financial assistance for medical treatment and living expenses to people facing severe illnesses and hardship, promoting the preservation and transmission of Tibetan culture, and supporting education—all under the guiding principle of “doing good deeds for others, helping those in need, promoting Tibetan medical culture, and safeguarding its传承.”

　　The foundation’s key projects will focus on establishing a legacy base for the transmission of renowned Tibetan medical practitioners, supporting clinical research in Tibetan medicine, and promoting the integration of Tibetan medicine with cutting-edge technologies to advance research on serious and critical illnesses. The foundation will also donate and build Tibetan hospitals in Tibetan areas and continue to support the “Hundred Tibetan Medical Clinics” project, which is based on traditional Tibetan medical education. Additionally, it will excavate and compile Tibetan medical classics, publish specialized monographs, set up special funds for academic research, conduct scholarly studies on Tibetan medicine, encourage academic research in Tibetan medicine, and improve research conditions for Tibetan medicine. Furthermore, the foundation will support the development of traditional Tibetan medical education, build a robust grassroots system for non-governmental Tibetan medical education, cultivate Tibetan medical talent, and support the implementation of targeted poverty alleviation programs in the health care sector. As of the end of 2018, Qizheng had cumulatively invested over 100 million yuan in public welfare initiatives in Tibetan areas and western China.

　　While supporting the foundation’s efforts to advance public welfare initiatives in Tibet—including healthcare and education—the company is also tapping into the invaluable resources of Tibetan medicine in diagnosing and treating serious and complex diseases. By safeguarding these resources and nurturing talent, the company will ultimately provide genuine support for the Tibetan medicine industry, fostering a seamless integration of industry, academia, and research. This approach will fundamentally drive disciplinary progress, provide clear direction for the industry, and help the company evolve into a sustainable enterprise that creates value for its customers in the field of traditional medicine.

　　Reporting media: Securities Times

　　Report link: http://company.stcn.com/2019/1024/15449578.shtml