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the "miracle medicine" pian zai huang tablets, which were once sold by scalpers for thousands of yuan per pill, have been met with a cold reception in the recycling market this year.

according to cailianshe, a recycler told reporters, "the market conditions are not good this year. the price of one pien tze huang tablet has dropped by nearly 100 yuan within a year." in addition, angong niuhuang pills, which also uses bezoar as the main ingredient, is also experiencing a similar situation as pien tze huang.

why are the "miracle drugs" that were once expensive and hard to get falling from grace?

the second-hand recycling price of pien tze huang tablets has fallen

according to red star capital bureau, three years ago, the 3-gram tablet of pien tze huang was hard to come by, and was even sold by scalpers at 1,500 yuan per tablet in the second-hand recycling market, making it a "luxury chinese medicine." in addition to clinical use, pien tze huang is also often used for daily health care and as a gift.

according to blue whale news, the most intense hype about pian zai huang was at the end of june 2021. the price of a single pian zai huang tablet, which originally had an ex-factory price of 590 yuan, was once raised to between 900 yuan and 1,600 yuan by "scalpers" on the market. before that, there was a "buying spree" in many places. under the "miracle drug" effect, supply was in short supply, resulting in the product being out of stock for several consecutive months.

according to southwest securities research data, from 2004 to 2020, the price of pien tze huang tablets was raised 19 times, with the retail price rising from 325 yuan/tablet to 590 yuan/tablet. however, pien tze huang also ushered in a three-year price increase "window period" after announcing in january 2020 that the domestic market retail price of tablets would be raised from 530 yuan/tablet to 590 yuan/tablet. until may 2023, it issued another announcement stating that the domestic market retail price of pien tze huang tablets would be raised from 590 yuan/tablet to 760 yuan/tablet.

but nowadays, the second-hand recycling price of pian zai huang tablets is no longer strong, and there is a clear downward trend.

on september 24, the red star capital bureau asked recyclers in sichuan, beijing, guangdong, inner mongolia and other places as consumers. when talking about the recycling price of pien tze huang tablets, a recycler from sichuan said: "it has fallen too much now, and it will fall at any time this year."

the above-mentioned recycler said that the latest recycling price of pien tze huang is now 500 yuan/ingot, which has dropped by nearly 100 yuan compared with the end of last year. another recycler from shenzhen, guangdong said that if the recycled pien tze huang is before 2024, the price will be even lower, about 460 yuan/ingot. a recycler from inner mongolia said that the lowest recycling price has now dropped to 400 yuan/ingot.

the red star capital bureau learned that the price of hong kong version of pien tze huang tablets is slightly higher. a recycler from zhongshan, guangdong, showed the hong kong version he had just received and said the recycling price was 530 yuan per tablet.

the above recyclers are also not optimistic about the future market price. one recycler said, "it is estimated that the price will fall further."

according to cailianshe, after interviewing recyclers in many places, the reporter learned that since june this year, the recycling prices in the second-hand market have dropped significantly. at present, the price of new-dated pien tze huang is about 550 yuan per tablet, and the price of angong niuhuang wan (tongrentang shuang tianran) is between 450-500 yuan per tablet. the recycling prices of expired or near-expiry drugs are even lower, and the recycling price of near-expiry pien tze huang tablets has fallen to 400 yuan per tablet.

at present, the official price of pien tze huang tablets is 760 yuan per tablet, and the price of tong ren tang angong niuhuang pills in iron box is 860 yuan per tablet. the reporter visited many physical pharmacies and experience stores in zhengzhou and shijiazhuang, and the offline prices were consistent with the official website prices. however, the product prices of some online pharmacies have begun to be lower than the official prices. among them, the prices of mainstream online pharmacies such as alibaba and jd.com are still stable, but the prices of pien tze huang and angong niuhuang pills (tong ren tang iron box) in some online pharmacies have been inverted by dozens of yuan.

why are prices falling?

as for the reason for the decline in the second-hand recycling price of pien tze huang, some recyclers said that the market is too saturated and there are too many products on the market. other recyclers said that the recycling prices of high-priced gifts are falling and not many people are buying them.

on september 24, wu zewei, a researcher at xingtu financial research institute, said that in the past, the reason why pien tze huang could maintain a high price was mainly due to the demand for business gifts caused by the hot economy. for example, pien tze huang and moutai formed a "maotai combination". rather than saying that they are medicine and liquor, it is better to say that they are a kind of "social currency".

"however, with the economic adjustment, non-essential high-end consumer demand has been compressed to a certain extent, and the decline in the recycling price of pian zai huang is reasonable," said wu zewei.

public information shows that the name "pian zai huang" comes from the minnan dialect. it is a precious chinese patent medicine with a history of one hundred years. it is famous for "one tablet can clear away heat and detoxify". its specific formula and production process were listed as a "national top secret formula" by the state administration of traditional chinese medicine in 1992. the confidentiality period is permanent, and it is also one of the only two top secret formulas in the country.

it is worth noting that "price increase" has always been the core model of pien tze huang's previous profit growth. with the 19 price increases of pien tze huang tablets from 2004 to 2020, pien tze huang's operating performance has also been growing all the way. from 2016 to 2021, pien tze huang's net profit increased from 536 million yuan to 2.431 billion yuan, and its net profit nearly doubled five times in five years, which in turn drove the company's market value to nearly 300 billion yuan, making it the chinese medicine company with the highest market value in the a-share market.

however, with the "window period" of pien tze huang's price increase, the performance growth rate of pien tze huang, which had not increased its price for three years, began to decline. since the fourth quarter of 2021, the year-on-year growth rate of pien tze huang's net profit has begun to decline sharply. in 2022, pien tze huang's revenue growth rate was only 8.38%, a new low since 2014; during the same period, the company's net profit attributable to the parent company increased by only 1.66%, a new low since 2009. in 2023, pien tze huang's revenue growth rate was 15.69%; the growth rate of net profit attributable to the parent company was 13.15%.

according to the 2024 semi-annual report recently released by pianzihuang, during the reporting period, the company achieved operating income of approximately rmb 5.651 billion, a year-on-year increase of 12%; and achieved net profit attributable to shareholders of listed companies of approximately rmb 1.722 billion, a year-on-year increase of 11.73%.

from a single quarter perspective, in the second quarter of 2024, pianzihuang achieved operating income of 2.48 billion yuan, a year-on-year increase of only 2.65%; the net profit attributable to shareholders of the listed company was 747 million yuan, a year-on-year decrease of 3.13%, and a month-on-month decline of 23%.

(the content and data of the article are for reference only and do not constitute investment advice. investors act accordingly at their own risk.)