Billion Dollar Club: HEALTHCARE

Tianjin Pharmaceutical Da Ren Tang Group Corporation has achieved the rare feat of a clean sweep of all wins within the industry sector. The company is described as the “core” manufacturing arm of Tianjin Pharmaceutical Holdings Co. It is viewed as a high-tech enterprise in China in the field of Traditional Chinese Medicine (TCM). With a listing on the Singapore Exchange as far back as 1997, it is one of the earliest Chinese companies quoted here. Its Shanghai listing came later in 2001.

The Da Ren Tang Group is equipped with a complete industry chain, product chain and talent chain integrating production, management and scientific research. Its business covers several areas, including research, development and manufacturing of Chinese herbal medicines, proprietary Chinese medicines, chemical raw materials and preparations and nutritional and health products. It operates via numerous entities, divided into two major and complementary business segments: the Chinese medicine industry and pharmaceutical commerce.

The company has obtained certificates of approval for 599 medicines, spanning 22 types of preparations, including two that are classified as China’s “treasure-class” traditional medicines. Its products are largely sold within China but enjoy export sales to 12 other countries.

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The company says that after years of practice and exploration, it has integrated and optimised the world’s most advanced Chinese medicine equipment and technology to form an integrated modern Chinese medicine development platform unique to Da Ren Tang Group.

As described in its most recent FY2024 annual report, the company noted that policies and markets in the fields of healthcare, medical insurance, and pharmaceuticals continued to evolve, presenting both opportunities and challenges for the industry.

The company generated revenue of RMB7.3 billion ($1.33 billion), down 11% y-o-y on lower sales of its products. The flagship product, Suzxiao Jiuxin Wan, alone accounted for RMB1.98 billion, followed by Qingyan Di Wan, which fetched RMB350 million in sales. Despite the lower topline, the company reported a 126% y-o-y increase in its earnings to RMB2.23 billion, primarily due to the transfer of its 13% stake in Sino-American Tianjin SmithKline Pharmaceutical, which added RMB1.45 billion in gains. The higher bottom line was partly offset by other one-off items, including provisions for the impairment of goodwill and other long-term assets.

This current FY205, the company will further boost its brand leadership by investing more in marketing, especially of its core product, the Suxiao Jiuxin Wan. It plans to open more stores and improve the management of its sales channels, including online ones.

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The company is upbeat about its prospects. “As a treasure of the Chinese nation, TCM has been elevated to the level of national strategy in recent years, ushering in a golden era of development,” the company says.

Da Ren Tang believes that TCM is “experiencing a renewed vitality” as the public’s demand for health and wellness continues to grow. “TCM, with its unique advantages in preventive care, treatment of major diseases, and rehabilitation, is poised to embrace a broader market potential,” the company says.