All indicators of Chinese medicine improved in the first half of the year

In the first half of 2020, in the face of the severe test brought by the COVID-19 epidemic, in the process of treating patients and saving lives, we gave full play to the unique advantages of traditional Chinese medicine. The role of traditional Chinese medicine products was outstanding, the performance of industry enterprises was outstanding, and the resumption of work and production of the Chinese medicine industry accelerated With progress, various economic indicators first fell and then rose, gradually improving, and market expectations are generally improving.

According to the data from the China Pharmaceutical Industry Information Center, the main business income of the national pharmaceutical industry (8 sub-sectors) has gradually increased from a negative growth of 8.59% year-on-year from January to March. 1.6% growth rate), to achieve positive growth, especially the recovery growth of 25.8% in June. In terms of total profit, it gradually increased from a negative year-on-year growth of 16.15% from January to March, and achieved positive growth in May. In the first half of the year, it achieved 185.05 billion yuan, an increase of 9.1%.


1. In the fight against the epidemic, traditional Chinese medicine products have played a prominent role, and industry companies have performed well

In the fight against the epidemic, the early intervention, full participation, and classified treatment of Chinese medicine gave full play to the unique advantages of Chinese medicine. Adhere to the combination of Chinese and Western medicine and the combined use of Chinese and Western medicine, and the proportion of Chinese medicine involved in the treatment of confirmed cases has reached 92%. The utilization rate and total effective rate of TCM in confirmed cases in Hubei Province exceeded 90%. Screening of Jinhua Qinggan Granules, Lianhua Qingwen Capsules/Particles, Xuebijing Injection, Qingfei Paidu Decoction, Huashi Baidu Decoction, Xuanfei Baidu Decoction and other "three medicines and three prescriptions" for different types of new coronary pneumonia. The treatment of Chinese patent medicines and prescriptions has a definite clinical effect, effectively reducing the morbidity, turn-over rate, and mortality rate, promotes the conversion of nucleic acid, improves the cure rate, and speeds up the recovery period. During the most severe period of the epidemic, many companies in the traditional Chinese medicine industry worked overtime to produce anti-epidemic drugs to ensure quality and supply. At the same time, they also donated large amounts of drugs and cash, making positive contributions to the victory of the fight against the epidemic.


2. Prices of Chinese herbal medicines are basically stable

According to statistics from the Chinese Medicine World Net, from January 1 to June 30, 2020, the Composite 200 Index rose from 2277 points to 2342 points, an increase of 65 points (2.8%), an increase of 56 points (2.4%) over the same period last year. Despite the major outbreak of new crown pneumonia this year, the price of Chinese medicinal materials has not fluctuated greatly, and the price index of Chinese medicinal materials has declined steadily since late April.

Compared with the price of the same period last year, the price-increasing product regulations accounted for 18% of the total; the price-reducing product regulations accounted for 13% of the total; and the parity product regulations accounted for about 68% of the total. The varieties with higher prices are cardamom, cockles, Radix isatidis, sea scorpion, coix seed, artificial bezoar, and andrographis; varieties with higher prices are evodia, cinnabarinus, flat fritillary, camphor, schisandra, sclerophylla yellow.


2. The production of traditional Chinese medicine industry recovered quickly, and the main business income gradually increased

In the first half of the year, the main business income of the pharmaceutical industry above designated size achieved a year-on-year growth of 0.2%, of which four sub-sectors achieved positive growth, of which the manufacturing of sanitary materials and medical supplies and medical instruments and equipment increased by more than 25%. The chemical medicine preparations, Chinese patent medicines, and Chinese herbal medicines showed negative growth year-on-year, which were -8.2%, -8.9%, and -12.2%, respectively. However, the higher negative growth data from January to March has narrowed. In particular, the month-on-month growth rate increased significantly in June, and the main business income of the pharmaceutical industry increased by 25.8% month-on-month, of which: Chinese patent medicines and traditional Chinese medicine decoction pieces increased by 24.1% and 21.2% respectively.

According to data released by the National Bureau of Statistics, the total retail sales of consumer goods in the first half of the year was a negative growth of 11.4 year-on-year, while the total retail sales of Chinese and Western medicines reached 253.5 billion yuan, a year-on-year increase of 5.8%.

With the gradual improvement of the epidemic situation, the smooth implementation of policies such as centralized drug procurement, and the efforts of the majority of cadres and employees on the Chinese medicine front, the main business income of Chinese patent medicines and Chinese medicine decoction pieces is expected to achieve positive growth as soon as possible.


3. The loss of the traditional Chinese medicine industry is expanding, and the total profit is gradually increasing

In the first half of the year, the national pharmaceutical industry above designated size suffered a loss of 23.2%, of which the Chinese patent medicine industry suffered a loss of 28.8%, and the Chinese medicine decoction piece suffered a loss of 20.5%. The total profit of the pharmaceutical industry above designated size across the country achieved a growth of 9.1%, but the total profit of the chemical preparations, proprietary Chinese medicines, and decoction pieces of traditional Chinese medicine showed a negative growth year-on-year. Among them, decoction pieces of traditional Chinese medicine were -31.9%, and that of proprietary Chinese medicines was -11.8%. The high negative growth data has narrowed. In particular, the month-on-month growth rate increased significantly in June. The total profit of the pharmaceutical industry increased by 29.4% month-on-month, of which: Chinese patent medicines and Chinese herbal medicines increased by 29.5% and 23.1% respectively. With the gradual improvement of the pharmaceutical situation, the positive growth of the total profit of the Chinese medicine industry requires greater efforts from industry enterprises.


4. The growth rate of fixed asset investment remains low

In the first half of the year, the total fixed assets of the pharmaceutical industry above designated size increased by 11.8% year-on-year. The total fixed assets of the Chinese medicine industry also increased, but the growth rate was the lowest. Among them, the Chinese patent medicine industry increased by 5%, and the Chinese herbal medicine industry increased by 3.6%.

5. Negative growth in accounts receivable for proprietary Chinese medicines, and a higher increase in accounts receivable for Chinese medicine decoction pieces

In the first half of the year, the accounts receivable of the pharmaceutical industry above designated size increased by 11.3% year-on-year. Among them, the traditional Chinese medicine decoction piece industry increased by 17.2% year-on-year. In the case of a relatively high negative growth in main business income, accounts receivable remained high year-on-year. Normal; the accounts receivable of the Chinese patent medicine industry decreased by 1.3% year-on-year, which is the only negative growth in the various sub-sectors of the pharmaceutical industry. The decrease in accounts receivable is a good thing, but it also shows that the sales of Chinese patent medicines are facing greater pressure.

6. Growth in foreign trade of Chinese medicine

In the first half of the year, my country's pharmaceutical product import and export trade achieved a growth of 6.8%, of which the import and export of Chinese medicine products increased by 3.63% year-on-year. The export of Chinese medicinal products increased by 6.18% year-on-year, of which 18.5% of Chinese medicinal materials and decoction pieces, 9.7% of health products, and a small increase in exports of extracts and proprietary Chinese medicines; imports of Chinese medicine increased by -1.8% year-on-year. Except for health products, the other Negative growth.

Generally speaking, in the first half of the year, my country's traditional Chinese medicine economy has gradually overcome the adverse effects of the epidemic, and economic operations have shown a recovery growth and steady recovery. In the next step, the Chinese medicine industry must further implement the spirit of the "Decision of the Central Committee of the Communist Party of China and the State Council on Further Promoting the Inheritance and Innovation and Development of Traditional Chinese Medicine" and relevant policies issued by relevant departments, recognize changes and respond to changes, focus on key points, make up for shortcomings, strengths and weaknesses. To reverse the backward growth of the Chinese medicine industry as soon as possible, and make due contributions to the healthy China strategy.