Qizheng Tibetan Medicine’s half-year revenue grew by 12%, and its leading position in key products continues to be strengthened.

　　On August 22, Qizheng Tibetan Medicine (002287) released its 2019 semiannual report, showing that the company achieved a net profit of 202 million yuan in the first half of the year, an increase of 6.28% year-on-year; and realized operating revenue of 610 million yuan, up 12.44% year-on-year.

　　Qizheng Tibetan Medicine’s core business focuses on the research, development, production, and sale of Tibetan medicines, including topical pain-relief medications and oral Tibetan formulations. The company’s currently produced key products include a range of topical formulations centered around Xiao Tong Tie Gao (Pain-Relieving Patch), Qing Peng Ointment, and Bai Mai Ointment, as well as oral Tibetan medicines such as Hong Hua Ru Yi Wan.

　　The company stated that in the first half of 2019, it continued to consolidate its leading position in the use of its flagship product, the Xiaotong Paste, as a prescription drug for musculoskeletal disorders. At the same time, the company strengthened its management of its pain-relief product line, actively cultivated new products, and developed an integrated pain-management product portfolio comprising Xiaotong Paste, Bai Mai Ointment, Qing Peng Ointment, and Ruyi Zhenbao Tablets.

　　In the field of women’s and children’s healthcare, we are engaging in academic collaborations with experts and professional societies at all levels, leveraging evidence-based research to enhance the academic promotion of our products. Building on the successful pilot experience in 2018, the “Shan Wei” family of digestive system products will continue conducting consumer insight studies to uncover market opportunities. As for the “Hu Fei” family of respiratory system products, we are steadily expanding channel coverage, highlighting our brand strengths, and ensuring greater accessibility of our end-products. For Tibetan medicine’s specialized treatment protocols targeting key disease categories, we have clearly defined the theoretical foundations, observation guidelines, training systems, and other operational procedures. These protocols are being steadily implemented in collaborating hospitals, accumulating evidence-based data and gradually providing specialized treatment solutions for these advantageous disease categories.

　　The semiannual report shows that in the first half of the year, the company launched the construction of the Internet-based Qizheng Greater Health Platform and completed the establishment of an e-commerce front-to-mid-to-back-end organizational structure integrating operations and promotion, customer service, and product management. The Alibaba-Qizheng Pharmaceutical flagship store has also gone live.

　　In terms of R&D, during the first half of the year, the company continued to advance the development of new pharmaceutical and non-pharmaceutical products under its integrated pain management strategy. Progress has been made in modern research based on the foundational theories of Tibetan medicine, and initial results from studies on the Bai Mai therapy are beginning to emerge. In the area of basic research on “Huang Shui Disease,” two new SCI papers were published, detailing the mechanism of action of Qingpeng Ointment. Meanwhile, to support academic marketing efforts, the company launched a series of online medical research projects and established a specialized platform for conducting real-world online studies and collecting clinical cases. In the first half of the year, the company’s R&D investment increased by 64% year-on-year.

　　In its latest research report, Galaxy Securities stated that Qizheng Tibetan Medicine’s flagship product, the Xiantong Paste, is expected to maintain a relatively rapid growth rate thanks to its well-established sales channel network. Its second-tier products, such as ointments and pills, are also poised for continued strong performance, driving high-speed revenue growth through a three-pronged approach involving major hospitals, essential medicines, and retail channels. In addition, the company is vigorously promoting brand building and enriching its product portfolio; thus, its future development holds great promise.

　　Reporting media: Panorama Network

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