Qizheng Tibetan Medicine: Leveraging Modern Technology to Build a Leading Tibetan Medicine Brand

　　As the SME board and the ChiNext board continue to expand steadily, an increasing number of distinctive companies are gaining favor among investors. Qizheng Tibetan Medicine (002287, stock forum), a rising star on the SME board, is a prime example.

　　In an exclusive interview with a reporter from the Securities Times, Lei Jufang, Chairwoman of Qizheng Tibetan Medicine, stated that as a pharmaceutical company originating from the snowy plateau, the company has always been committed to leveraging modern technology to preserve and develop Tibetan medicine. Going public will propel the company’s development to a new level. “Our corporate vision is to become a leader in the field of distinctive traditional medicine—a long-lived enterprise cherished by employees, trusted by customers, respected by society, and beneficial to investors,” said Lei Jufang.

　　Lei Jufang introduced that in 1995, as the Guangcai Poverty Alleviation Project was being promoted in Tibetan areas, Qizheng Tibetan Medicine set foot on the Qinghai-Tibet Plateau and became deeply involved in the first batch of Guangcai poverty alleviation and development projects, taking root in the snowy region. From then on, the company embarked on a journey of modernizing and commercializing Tibetan medicine, and established its fundamental entrepreneurial philosophy: “To produce the finest Tibetan medicines using the purest raw materials and the most advanced manufacturing techniques; and to elevate the status and dignity of Tibetan medicine through both cultural heritage and therapeutic efficacy.”

　　Under this philosophy, Qizheng Tibetan Medicine actively embraces new technologies and has consistently invested in production technology innovation for many years. This has enabled the integration of traditional Tibetan medicine production with modern, advanced pharmaceutical technologies, driving the scaling up and industrialization of Tibetan medicine. As the market leader in topical pain-relief patches, Qizheng Tibetan Medicine has become a well-known brand in China’s pharmaceutical industry, bringing the essence of superior Tibetan medicine into the mainstream markets across mainland China.

　　After years of dedicated effort, the company has become a leading enterprise in the modernization of Tibetan medicine. It has successively been recognized as one of the first batch of National Innovative Enterprises, a National Enterprise Technology Center, and a National-Local Joint Engineering Laboratory, making it the company with the strongest innovative edge in the Tibetan medicine industry.

　　Lei Jufang pointed out that going public and raising capital have further strengthened the company’s overall strength and core competitiveness, enabling the company to achieve sustainable and rapid development. Since going public, the company has been able to implement its investment projects, laying a solid foundation for enhancing its overall competitive capabilities. At the same time, corporate governance has been significantly improved, with the board of directors and its subordinate committees fully exercising their functions, thereby providing further assurance for the smooth implementation of the company’s strategies.

　　As an important component of its corporate development strategy, Qizheng Tibetan Medicine is not only building comprehensive resource-based competitive advantages but also placing great emphasis on deeply exploring the value of the industrial chain—from medicinal herb cultivation and processed herbal medicine production to herbal medicine trading. By fully leveraging the resource advantages of authentic medicinal herbs from western regions, including the Qinghai-Tibet Plateau, the company has established a world-class, pollution-free base for the production and deep processing of Chinese herbal medicines in Gansu Province—a major province rich in traditional Chinese medicinal resources. This initiative aims to develop a distinctive, pollution-free Chinese herbal medicine industry, positioning the production and deep processing of Tibetan and Chinese herbal medicines as a new growth driver for the company’s profitability.

　　With the support of the capital market, Qizheng Tibetan Medicine’s development has become even more solid. According to the company’s semi-annual report for 2010, in the first half of the year, the company achieved operating revenue of 229 million yuan, an increase of 16.50% over the same period last year; and operating profit of 81.6788 million yuan, up 10.94% from the same period last year.