Traditional Chinese medicine enterprises expand production area by hand

When it comes to the rising price of traditional Chinese medicine, many traditional Chinese medicine enterprises begin to cry Kangyuan Pharmaceutical Co., Ltd [23.98-3.31%] (600557) said that in the first quarter of this year alone, the various costs and expenses brought by the sharp rise in the prices of Panax notoginseng and honeysuckle to Kangyuan Pharmaceutical Co., Ltd were over 10 million yuan on a year-on-year basis, accounting for a quarter of the company's net profit in the first quarter As the main producing area of Chinese medicinal materials such as Panax notoginseng and honeysuckle, the drought in Southwest China has become the fuse for the price of medicinal materials to double However, at present, the prices of many kinds of Chinese herbal medicines, including isatis root, donkey gum and so on, have risen sharply, and Chinese herbal medicine enterprises are under increasing cost pressure Many enterprises bear the heavy burden of cost Kangyuan pharmaceutical related people said that Sanqi and honeysuckle are the main raw materials of Kangyuan pharmaceutical's main products, Sanjie analgesic capsule and Reduning injection, respectively The purchase price of Sanqi has increased from less than 100 yuan last year to more than 500 yuan at present, while honeysuckle has also increased from 70-80 yuan / kg last year to more than 400 yuan at present The company's main business cost rate in the fourth quarter of 2009 So it's up 2.22 percentage points from the previous three quarters It is understood that the two products of Kangyuan pharmaceutical Sanjie analgesic capsule and Reduning injection have been listed in the national medical insurance catalogue, and the drug is subject to the highest price limit Therefore, in the view of the above people, in the face of rising costs, traditional Chinese medicine enterprises are "very passive in the short term" In addition to Kangyuan pharmaceutical industry, enterprises such as Tianshili [30.22-0.98%] and Lizhu Group [44.40-1.33%] with Panax notoginseng as the main raw material also bear the cost pressure While the price of Panax notoginseng is soaring, the overall price of traditional Chinese medicine is also rising The price of donkey gum, the main raw material of dong'a-jiao [32.43-0.70%], has doubled recently, which makes dong'a-jiao (000423) unable to eat The price rise of sugar and Pseudostellaria ginseng has also made Jiangzhong pharmaceutical [34.11-4.61%] (600750) start to cut down on food and cost This time, the price of traditional Chinese medicine is rising It seems that there is not only "natural disaster", but also "man-made disaster" Some insiders said that it was not surprising to simply resell medicinal materials for many years It is not uncommon for pharmaceutical traders to wait for opportunities to stock up and enlarge the deviation between supply and demand when the price of medicines fluctuates However, the price increase of this March 7th is extraordinary, showing the figure of hot money The government's regulation of real estate and the sluggish stock market have led to a group of hot money eager to find new targets for speculation Traditional Chinese medicine and even agricultural products [15.66-3.57%] are considered likely to be the next hotbed of speculation In the view of people in the pharmaceutical industry, it is not impossible for hot money to enter into the speculation of rare Chinese herbal medicines On the one hand, the rising price of Chinese herbal medicines in the past decade is a general trend, with a rigid color On the other hand, unpredictable factors such as meteorological disasters and influenza epidemic situation also give room for hot money speculation However, Chinese herbal medicines are not suitable for long-term preservation, and the speculation is seasonal and cyclical The market capacity is not large, and the possibility of large amount of hot money entering is not too great Compared with hot money, traditional Chinese medicine enterprises are more concerned about how to solve the problem of high cost In the face of high cost "hanging sword", most traditional Chinese medicine enterprises have made two preparations, one is to reduce daily cost, such as reducing management cost and energy consumption level, improving technology and product output rate, the other is to increase the planting amount of traditional Chinese medicine to improve self-sufficiency rate, such as Kangmei pharmaceutical [13.50-3.43%] invested 1.5 billion yuan to build Huatuo international traditional Chinese medicine city project in Bozhou, Anhui Province, Guangzhou Baiyunshan and Huangpu traditional Chinese Medicine Co., Ltd has invested 50000 mu of Banlangen GAP base in Heilongjiang Province Although the price increase of March 7th has obvious impact on Tesco, fortunately, Tesco has its own gap planting base in Wenshan Prefecture, Yunnan Province, which can relieve the cost pressure of the company in a short time And Jia zetao, Dong's secretary of Tongrentang, is more calm in the face of the rising cost of medicinal materials She said that the company's traditional Chinese medicine products are relatively rich, and the raw materials used are not limited to several varieties Comparatively speaking, the risk of large fluctuations in product costs has been decentralized and balanced In addition, the company makes corresponding purchases and reserves of traditional Chinese medicine according to the price fluctuation cycle of traditional Chinese medicine every year to avoid the risk of sudden increase in costs caused by emergencies Kangyuan Pharmaceutical Co., Ltd has also made continuous efforts to reduce costs Relevant people of the company said that the company also decided to launch new products to disperse risks, and expand market share to exchange scale for benefits As he said, "in the short term, it is very passive, and in the long term, it practices internal skills.".