Another Chinese medicine enterprise joined the price increase team. On January 5, several media reported that Jiuzhitang Co.Ltd(000989) raised the prices of Chinese patent medicines under 21 product specifications, including Liuwei Dihuang pill, by 6% – 30%. On January 6, the reporter of Beijing news confirmed the above news from the e-commerce platform. Prior to this, several traditional Chinese medicine enterprises such as Beijing Tongrentang Co.Ltd(600085) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Chongqing Taiji Industry (Group) Co.Ltd(600129) announced product price increases.
In this price adjustment, Jiuzhitang Co.Ltd(000989) the price of Liuwei Dihuang pill, the main product, increased by 10%, and the price of Angong Niuhuang Pill increased by 12% – 25%. These two products are large varieties, with sales of more than 100 million yuan. For whether the price increase news is true, the reporter of the Beijing News repeatedly called the Jiuzhitang Co.Ltd(000989) securities affairs department on January 6, and the phone has not been answered. Subsequently, the Beijing News reporter confirmed the above price increase from several e-commerce platforms in China. The relevant person in charge of an e-commerce platform said that the price increase is the behavior of manufacturers. After the ex factory price increases, it is bound to affect the retail price of products.
In fact, the price rise of Jiuzhitang Co.Ltd(000989) products has long been a clue. On December 27, 2021, Jiuzhitang Co.Ltd(000989) said during the investigation by the organization that the price of traditional Chinese medicine raw materials generally increased in 2021 due to the influence of climate, planting area and other factors, especially the scarcity of precious and fine raw materials and the contradiction between supply and demand. For different products, Jiuzhitang Co.Ltd(000989) will adopt different pricing strategies in due time by comprehensively considering cost changes, policies, product audience and market environment.
Also affected by the rising price of raw materials, a number of traditional Chinese medicine products have announced price increases. In December 2021, Chongqing Taiji Industry (Group) Co.Ltd(600129) said that the ex factory price of Huoxiang Zhengqi oral liquid had been adjusted, with an average increase of 12%. Huoxiang Zhengqi oral liquid is the backbone variety of Chongqing Taiji Industry (Group) Co.Ltd(600129) . In the ranking of China’s over-the-counter drugs in 2020, Huoxiang Zhengqi oral liquid won the first place in the “gold variety” of China’s over-the-counter drugs and the “cold, heat and dampness category of Chinese patent medicine”. In 2020, Huoxiang Zhengqi oral liquid achieved a sales revenue of 689 million yuan. On December 13, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) responded to investors’ questions on the interactive platform and said that the ex factory price of China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) Angong Niuhuang Pill has increased. From December 1, Beijing Tongrentang Co.Ltd(600085) will take Angong Niuhuang Pill (3 G × The sales price of pills / box) increased from 780 yuan to 860 yuan, an increase of about 10%.
(Beijing News)
