On January 26, Zhejiang Jolly Pharmaceutical Co.Ltd(300181) announced that the company plans to issue shares to no more than 35 specific objects and raise no more than 910 million yuan for the construction and upgrading of intelligent traditional Chinese medicine production base, the upgrading of enterprise R & D center, the upgrading of digital operation decision-making system and the replenishment of working capital.
In January 15, 2022, the one of one belt, one road development plan (2021-2025 years) was launched by the State Administration of traditional Chinese medicine (TCM). Deepen health industry cooperation and strive to expand the development scale of traditional Chinese medicine; Deepen regional and international cooperation and strive to promote the open development of traditional Chinese medicine.
Covid-19 epidemic is raging all over the world. The special efficacy of traditional Chinese medicine in fighting covid-19 virus proves the unique advantages of traditional Chinese medicine, so that more people have a new understanding of traditional Chinese medicine, and the manufacturing output of Chinese patent medicine is gradually increasing. According to the data of the National Bureau of statistics, the cumulative output of Chinese patent medicine reached 2.318 million tons in 2021, a year-on-year increase of 6.5%.
In terms of market scale, according to the relevant data of Euromonitor, China’s proprietary Chinese medicine market has maintained stable growth. The market scale has increased from about 625.2 billion yuan in 2015 to about 814.9 billion yuan in 2019, with a compound annual growth rate of about 6.8%; It is estimated that the total market scale of Chinese patent medicine will further increase from about 853.2 billion yuan in 2020 to about 977.4 billion yuan in 2023.
According to the performance forecast, Zhejiang Jolly Pharmaceutical Co.Ltd(300181) 2021 is expected to achieve a net profit of 170 million yuan to 187 million yuan, with a year-on-year increase of 91.44% to 110.58%, maintaining a high growth rate. In the context of the vigorous development of the main industry of traditional Chinese medicine, the Zhejiang Jolly Pharmaceutical Co.Ltd(300181) plans to invest 590 million yuan in the construction and upgrading project of intelligent traditional Chinese medicine production base, with a total investment of 620 million yuan.
It is reported that Zhejiang Jolly Pharmaceutical Co.Ltd(300181) at present, the preparation production capacity is relatively tight. After the completion of the project, the bottleneck of the company’s preparation production will be lifted, laying a good foundation for the future growth of Lingze tablets, polycarbofel calcium tablets, xiantaocao tablets and other products. After the completion of the project, the production capacity of Wuling mushroom powder, the key raw material of the company’s core products, will be significantly improved, which can ensure the rapid growth of the subsequent Wuling series products in the future market. After the completion of the plant extraction digital workshop, it will comprehensively improve the production capacity of high-quality plant extracts required by Wuling series products, ensure the stability and reliability of its material foundation, and lay a solid foundation for the controllable quality and clinical safety of Chinese patent medicine preparations.
Zhejiang Jolly Pharmaceutical Co.Ltd(300181) said that through the implementation of this raised investment project, the company will further enhance the production and manufacturing capacity of the whole industrial chain of fermentation, extraction and preparation of core products, which is conducive to the company’s active participation in new policies such as volume procurement, accelerate the launch of new varieties, deepen the product management line under research, and further strengthen the “soft power” in operation management and marketing promotion.
