Core Viewpoint - The myth surrounding the "medicine Maotai" is gradually collapsing, as evidenced by the significant decline in the prices and performance of Pizhouhuang, a high-end traditional Chinese medicine [1][2]. Group 1: Price and Performance Decline - Pizhouhuang's price has dropped from a peak of 1600 yuan per piece to around 600 yuan, even below the official guidance price of 760 yuan [2][10]. - Since its historical high in July 2021, Pizhouhuang's stock price has decreased by 60%, with its market capitalization shrinking from nearly 300 billion yuan to 105.9 billion yuan, resulting in a loss of over 180 billion yuan [3][12]. - The third quarter of 2025 marked the worst performance in Pizhouhuang's history, with revenue down 11.93% and net profit down 20.74% year-on-year [12][15]. Group 2: Cost and Margin Pressures - The core product, liver disease medication, saw a revenue decline of 9.41% to 3.88 billion yuan in the first three quarters of 2025 [15][32]. - The overall gross margin fell below 40% for the first time in a decade, with the gross margin for Pizhouhuang series products dropping nearly 10 percentage points [15][16]. - The price of key raw materials, such as natural bezoar, has surged over 400% since 2019, further squeezing profit margins [15][16]. Group 3: Market Dynamics and Consumer Behavior - The rising prices have led to a decrease in sales volume, with some retailers reporting that they may sell only a few pieces per month due to high prices [16][18]. - The market's enthusiasm for Pizhouhuang has waned following the end of speculative trading, leading to a price-volume paradox where higher prices result in lower sales [18][19]. Group 4: Strategic Challenges and Future Outlook - Pizhouhuang's efforts to diversify its product line have not yet yielded significant results, with its cosmetics business revenue declining by 23.82% [29][33]. - The company has made several acquisitions and investments to seek new growth avenues, but these initiatives have not produced notable outcomes [37][39]. - Despite the challenges, Pizhouhuang retains its core appeal due to its unique formula and brand influence, but it must find a balance between short-term performance pressures and long-term strategic investments to transition into a modern pharmaceutical enterprise [50][51].