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 well-known 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 approximately 105.9 billion yuan, resulting in a loss of over 180 billion yuan [3][12]. - The company reported its worst performance ever in Q3 2025, with revenue down 11.93% and net profit down 20.74% year-on-year [12][16]. Group 2: Cost and Margin Pressures - The gross margin of Pizhouhuang has fallen below 40% for the first time in a decade, with the gross margin of its core product series dropping nearly 10 percentage points [17][18]. - The price of key raw materials, such as natural bezoar, has surged over 400% since 2019, while the price of natural musk has also increased by over 200% in recent years [19][20]. Group 3: Market Dynamics and Sales Challenges - The decline in sales volume has led to a price inversion in the retail market, where high prices have resulted in lower sales, creating a vicious cycle [20][22]. - The market's enthusiasm for Pizhouhuang has waned following the end of speculative trading, contributing to the company's struggles [23][28]. 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% in Q3 2025 [31][35]. - The company has made several acquisitions and investments to seek new growth avenues, but these initiatives have not produced notable outcomes so far [39][41]. - Despite the challenges, Pizhouhuang retains its status as a leading player in the liver disease treatment market, with its unique formula and brand still providing a competitive edge [45][46].

Core Viewpoint - The myth surrounding "Pianzaihuang" is gradually breaking down, as evidenced by declining prices and poor performance in the market [2][3][6]. Price Trends - The wholesale price of "Pianzaihuang" has dropped significantly, with current prices around 600 yuan, even below the official guidance price of 760 yuan [5][20]. - The price of "Pianzaihuang" has seen a dramatic increase over the years, from 125 yuan per piece in 2004 to 600 yuan in 2023, with a peak price of 760 yuan earlier this year [20][21]. Stock Performance - Since its historical high in July 2021, "Pianzaihuang" stock has plummeted by 60%, with its market capitalization shrinking from nearly 300 billion yuan to approximately 105.9 billion yuan, resulting in a loss of over 180 billion yuan [7][10]. Financial Performance - In 2023, "Pianzaihuang" achieved revenue exceeding 10 billion yuan, a year-on-year increase of 15.69%, and a net profit of 2.797 billion yuan, up 13.15% [22]. - However, the third-quarter results for 2025 showed a significant decline, with revenue down 11.93% and net profit down 20.74%, marking the worst performance since its listing [24][27]. Cost and Margin Issues - The overall gross margin for "Pianzaihuang" has fallen below 40%, a ten-year low, with the gross margin for its core product dropping nearly 10 percentage points [29]. - The price of key raw materials, such as natural bezoar, has surged to 1.7 million yuan per kilogram, a more than 400% increase since 2019 [31]. Market Dynamics - The decline in sales volume has led to price inversions in the retail market, where high prices have resulted in lower sales, creating a vicious cycle [33][35]. - The market enthusiasm for "Pianzaihuang" has waned, especially after the speculative hype has subsided [36]. Strategic Challenges - "Pianzaihuang" has struggled to diversify its product offerings, with its cosmetics and health products failing to significantly contribute to revenue [47][49]. - The company has invested in acquisitions and funds to seek new growth avenues, but these efforts have yet to yield substantial results [58][59]. Future Outlook - Despite the challenges, "Pianzaihuang" retains its core appeal due to its unique medicinal properties and market position in the liver disease sector [63][64]. - The company needs to balance short-term performance pressures with long-term strategic investments to transition from a "myth" to a modern pharmaceutical enterprise [70].