KANGHUI PHARMACEUTICAL(SH:603139) Shan Xi Ri Bao·2025-10-16 23:00Core Insights - Xianyang has a rich traditional Chinese medicine (TCM) resource base and is the only prefecture-level city in China with a TCM university, indicating a strong foundation for the TCM industry [1] Industry Development - The production of medicinal plants in Xianyang exceeds 300 species, with over 20,000 professionals in the pharmaceutical sector and 10 companies with an output value exceeding 100 million yuan [1] - The newly implemented regulations aim to further stimulate the innovation and development of TCM in Xianyang [1][7] Company Highlights - Dongtai Pharmaceutical Co., Ltd. has established a standardized production base for dry toad skin, covering over 460 acres, and reported an annual output value of 1.87 billion yuan [2] - The company operates 11 production lines and produces over 70 types of TCM products, utilizing 30,000 tons of medicinal materials annually [2] - Xianyang has 38 pharmaceutical production enterprises, with nearly 90% being TCM manufacturers, and 607 approved traditional Chinese medicine products [3] Technological Innovation - The shift from manual to automated production in TCM manufacturing is exemplified by the operations at Kanghui Pharmaceutical Co., Ltd., which has reduced the number of operators from over ten to just two [5] - The company is engaged in research on green manufacturing technologies for TCM, collaborating with Shaanxi University of Traditional Chinese Medicine [5] - Xianyang is establishing an innovation cluster for TCM, aiming to create a billion-level TCM industry cluster and enhance technological self-reliance [6] Market Expansion - The new regulations encourage the development of new products using TCM raw materials, such as health foods and medicinal cuisine, to extend the industry chain [7] - Companies like Haitian Pharmaceutical are diversifying into the health sector with products like seabuckthorn masks and functional beverages, aligning with market demands [8] Future Outlook - The focus will be on cultivating new varieties, enhancing the brand recognition of "Xian Medicine," and optimizing traditional formulas to develop more renowned products [9]