DEEJ(SZ:000423)2022-12-07 09:26Group 1: Raw Material Challenges - The traditional Chinese medicine industry faces a bottleneck in raw materials, particularly in donkey farming, which is declining due to mechanization [2] - The company aims to establish a comprehensive raw material base as part of its 12th Five-Year Plan, focusing on improving efficiency in donkey farming [2] Group 2: Marketing Strategies - The company is enhancing cultural marketing and value return for its products, with a 53% price increase for the compound donkey-hide gelatin (Ejiao) approved by the pricing bureau [2] - The new packaging of Ejiao, offering 48 pieces per box, aims to demonstrate significant effects and is a breakthrough innovation [2] - Research investment in Ejiao has reached millions, focusing on clinical studies for various health benefits [2] Group 3: Product Development - The company is developing new products like "Peach Blossom Princess" and small molecule Ejiao, with plans for market testing in Guangzhou [3] - The company is collaborating with universities for research on the safety and efficacy of its products, including evaluations of Ejiao's effects on various health conditions [5] Group 4: Competitive Landscape - The company acknowledges increasing competition in the Ejiao market and plans to focus on leading the industry by expanding its product range [5] - The company is committed to maintaining its market position by supporting upstream suppliers and ensuring profitability for donkey farmers [5] Group 5: Government Support and Market Trends - The total number of donkeys has been declining at a rate of 3% annually, but local areas are seeing some recovery [6] - Government subsidies for donkey farming vary by region, with specific financial support for breeding programs [6] Group 6: Product Classification and Efficacy - Ejiao is classified as a medicine with proven pharmacological effects, primarily promoting hematopoietic stem cell activity [7] - The company is actively researching and validating the health benefits of Ejiao through collaborations with various institutions [7]