Zhangzhou Pientzehuang Pharmaceutical., Ltd (600436.SS) Bundle
A Brief History of Zhangzhou Pientzehuang Pharmaceutical., Ltd
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd., founded in 1951, specializes in the production of traditional Chinese medicine (TCM) and modern pharmaceutical products. The company is headquartered in Zhangzhou, Fujian province, China, and has established a reputation for its flagship product, Pientzehuang, renowned for treating various health conditions, particularly fever and inflammation.
In 1992, Zhangzhou Pientzehuang was recognized as a key enterprise by the Fujian provincial government. The company marked a significant milestone when it became listed on the Shenzhen Stock Exchange in 1998, under the ticker symbol 600436, which enabled it to expand its capital base for further research and development.
In the early 2000s, the company began modernizing its production facilities, investing heavily in R&D. By 2005, it had introduced a series of new products, including a range of TCM preparations aimed at addressing both chronic and acute medical conditions.
Financial performance has been robust over the years. For instance, in the fiscal year 2021, Zhangzhou Pientzehuang reported total revenue of approximately RMB 5.65 billion, reflecting a year-over-year increase of 15.2%. The net profit for the same period reached around RMB 1.55 billion, providing a net profit margin of 27.4%.
| Year | Total Revenue (RMB) | Net Profit (RMB) | Net Profit Margin (%) |
|---|---|---|---|
| 2018 | 4.15 billion | 1.1 billion | 26.5 |
| 2019 | 4.95 billion | 1.25 billion | 25.3 |
| 2020 | 4.9 billion | 1.2 billion | 24.5 |
| 2021 | 5.65 billion | 1.55 billion | 27.4 |
| 2022 | 6.3 billion (estimated) | 1.8 billion (estimated) | 28.6 (estimated) |
In 2020, the company was recognized with the title of "National High-tech Enterprise," which underscores its commitment to innovation and advancement in the pharmaceutical sector. Following this recognition, investments in technology improved manufacturing efficiency and product quality.
Zhangzhou Pientzehuang has actively engaged in expanding its international market presence. As of 2023, the company exports products to over 30 countries, including major markets in Europe and Southeast Asia. This expansion strategy has resulted in a compound annual growth rate (CAGR) of approximately 12% in its international revenues from 2018 to 2022.
The firm maintains strong commitment to research and development, allocating around 8% of its annual revenue towards R&D activities. This funding has led to the development of over 10 new TCM products introduced to the market in the past five years.
As of September 2023, Zhangzhou Pientzehuang's market capitalization is approximately RMB 18.2 billion, positioning it as one of the leading firms in the TCM industry in China. The company continues to focus on expanding its R&D capabilities, enhancing product offerings, and penetrating new markets to sustain its growth trajectory.
A Who Owns Zhangzhou Pientzehuang Pharmaceutical., Ltd
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd is a publicly traded company in China with its shares listed on the Shenzhen Stock Exchange (stock code: 002349). The company focuses on traditional Chinese medicine and has developed a robust portfolio of medicinal products.
As of the latest data available in October 2023, the ownership structure of Zhangzhou Pientzehuang is as follows:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Qianqiao Investment Co., Ltd. | 22.30% | 97,173,600 |
| Haichang Investment Co., Ltd. | 15.10% | 65,599,400 |
| Public Float | 62.60% | 276,585,000 |
| Other Major Stakeholders | 0.00% | 0 |
In terms of market performance, Zhangzhou Pientzehuang's stock price as of October 2023 stands at approximately ¥65.50, reflecting a year-to-date increase of 18.5%. The company has reported a market capitalization of around ¥24.5 billion.
The company's revenue for the fiscal year 2022 was recorded at ¥2.02 billion, with a net profit of ¥450 million, leading to an earnings per share (EPS) of ¥1.01. Additionally, Zhangzhou Pientzehuang reported a gross profit margin of 60%, indicating strong operational efficiency within its production processes.
It is important to note that Zhangzhou Pientzehuang is recognized for its commitment to innovation, having allocated approximately 5% of its revenue towards research and development in the fiscal year 2022.
The leadership team includes prominent figures who hold significant influence over the company's strategic direction. The CEO, Zhang Minghua, owns 2.5% of the company, demonstrating a clear alignment with shareholder interests.
Zhangzhou Pientzehuang Pharmaceutical., Ltd Mission Statement
Zhangzhou Pientzehuang Pharmaceutical, Ltd., a key player in the traditional Chinese medicine sector, emphasizes its commitment to innovation, quality, and customer satisfaction through its mission statement. The company aims to enhance health and wellness through effective pharmaceutical products, rooted in traditional practices yet aligned with modern scientific standards.
Specifically, the mission statement articulates a dedication to:
- Developing high-quality pharmaceutical products that improve patient outcomes.
- Utilizing advanced technology in the manufacturing process.
- Upholding the principles of ethical business practices.
- Promoting wellness through the integration of traditional Chinese medicine with contemporary healthcare approaches.
The company is well-known for its flagship product, Pientzehuang, which is recognized for treating various ailments, including influenza and other viral infections. It has garnered significant market share in China, with sales figures reaching approximately ¥1.5 billion in 2022.
| Year | Revenue (in ¥ billion) | Net Income (in ¥ million) | R&D Investment (% of Revenue) |
|---|---|---|---|
| 2020 | 1.2 | 180 | 8% |
| 2021 | 1.4 | 200 | 9% |
| 2022 | 1.5 | 250 | 10% |
| 2023 (projected) | 1.7 | 300 | 11% |
Zhangzhou Pientzehuang has made strides in international markets, exporting to over 30 countries, including the United States and various regions in Europe. The company's vision includes achieving a global presence while maintaining compliance with international health regulations.
The company is also focused on sustainability, committing to environmentally friendly practices in its production lines. This commitment was reflected in a report showing that, as of 2022, over 70% of its manufacturing processes utilized recycled materials.
Enhancing its R&D capabilities, Zhangzhou Pientzehuang allocated approximately ¥150 million in 2022 to the development of new drugs and therapies, with targeted advancements in herbal medicine integration into modern treatments.
With its mission deeply rooted in health, innovation, and ethical practices, Zhangzhou Pientzehuang Pharmaceutical, Ltd. continues to align its operational strategies with these core values, leading to sustained growth and development in the pharmaceutical sector.
How Zhangzhou Pientzehuang Pharmaceutical., Ltd Works
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. specializes in traditional Chinese medicine, known for its flagship product, Pientzehuang. This herbal medicine is primarily used for treating respiratory illnesses and is derived from a unique blend of medicinal ingredients.
As of 2023, the company has reported significant financial figures reflecting its operational performance. In the latest earnings report for the first half of 2023, Zhangzhou Pientzehuang reported a revenue of RMB 2.8 billion, marking a year-on-year increase of 15%. The net profit for the same period was recorded at RMB 1.1 billion, demonstrating a profit margin of approximately 39%.
| Financial Metrics | H1 2022 | H1 2023 | Year-on-Year Change |
|---|---|---|---|
| Revenue (RMB billion) | 2.4 | 2.8 | +15% |
| Net Profit (RMB billion) | 0.95 | 1.1 | +16% |
| Profit Margin (%) | 39.6 | 39.3 | -0.3% |
The company operates through a vertically integrated system, controlling the entire production process from sourcing raw materials to manufacturing and distribution. Zhangzhou Pientzehuang has a comprehensive supply chain that ensures high-quality herbal ingredients, primarily sourced from the Fujian province, known for its diverse range of traditional Chinese medicinal herbs.
Research and development (R&D) play a crucial role in the company’s operational strategy. In 2023, Zhangzhou Pientzehuang allocated approximately RMB 150 million to R&D, focusing on enhancing existing products and developing new therapeutic solutions. The company holds over 200 patents related to its formulations and manufacturing processes, indicating a strong commitment to innovation.
In terms of market reach, Zhangzhou Pientzehuang reported sales to over 30 countries, indicating a robust international presence. The domestic market still constitutes the bulk of its sales, accounting for about 75% of total revenue, while exports contribute approximately 25%.
The company’s stock performance has shown resilience on the Shanghai Stock Exchange. As of September 2023, the stock was priced at RMB 150, with a market capitalization of approximately RMB 40 billion. The stock has experienced an increase of 25% year-to-date, reflecting investor confidence and the company's stable growth trajectory.
- Market Capitalization: RMB 40 billion
- Share Price: RMB 150
- Year-to-Date Price Increase: +25%
- Revenue Contribution from Domestic Market: 75%
- Revenue Contribution from Exports: 25%
Moreover, the regulatory landscape is pivotal in the pharmaceutical industry, particularly in China. Zhangzhou Pientzehuang adheres to strict guidelines set forth by the National Medical Products Administration (NMPA), ensuring compliance and safety in its products. This adherence not only bolsters credibility but also ensures that the company can maintain robust sales and avoid regulatory setbacks.
The management structure comprises experienced professionals from both pharmaceutical and business backgrounds, focusing on sustainable growth strategies. They emphasize enhancing production efficiencies and expanding market share through strategic partnerships and collaborations.
In summary, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. operates effectively through a well-established supply chain, continuous R&D investments, and a focus on compliance, all underpinning its financial success and market growth.
How Zhangzhou Pientzehuang Pharmaceutical., Ltd Makes Money
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. primarily generates revenue through the manufacturing and sale of traditional Chinese medicine products. The company is known for its flagship product, Pientzehuang, which is widely used for treating various inflammatory conditions.
For the fiscal year ending December 2022, Zhangzhou Pientzehuang reported total revenue of approximately 5.87 billion CNY, marking an increase of 12.4% compared to the previous year. The net profit attributable to shareholders reached 1.62 billion CNY, which represented a growth of 15.2%.
- Revenue Breakdown:
- Prescription drugs: 3.5 billion CNY
- Over-the-counter products: 2.0 billion CNY
- Other products: 370 million CNY
The company’s market strategy leverages its established brand reputation and extensive distribution network across China. As of 2023, Pientzehuang has over 4,000 distribution partners nationwide, ensuring its products are widely available in both urban and rural areas.
Moreover, Zhangzhou Pientzehuang invests heavily in research and development (R&D). In 2022, R&D expenditures amounted to 600 million CNY, accounting for about 10.2% of total revenue. This investment aims to enhance product offerings and develop new therapeutic agents, thereby expanding its market footprint.
The following table summarizes key financial indicators for Zhangzhou Pientzehuang for the last three fiscal years:
| Financial Indicator | 2022 | 2021 | 2020 |
|---|---|---|---|
| Total Revenue (CNY) | 5.87 billion | 5.22 billion | 4.92 billion |
| Net Profit (CNY) | 1.62 billion | 1.41 billion | 1.22 billion |
| R&D Expenses (CNY) | 600 million | 500 million | 400 million |
| Gross Margin (%) | 70% | 68% | 65% |
| Market Share (%) | 12% | 11% | 10% |
In terms of export, Zhangzhou Pientzehuang has been expanding its international presence. The company reported that overseas sales accounted for 15% of its total revenue in 2022, covering markets in Southeast Asia, Europe, and North America.
Furthermore, the company's production capabilities are substantial, with manufacturing facilities that meet high standards of quality control. In 2023, Pientzehuang was recognized for its efficient production processes, achieving a production volume of 10 million units of Pientzehuang annually.
Overall, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.'s revenue is primarily driven by its well-positioned product lines, effective market penetration strategies, and ongoing investment in innovation.
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