Tianjiang Pharmaceutical Co., Ltd. is a publicly traded company on the Hong Kong Stock Exchange under China Traditional Chinese Medicine Co. Limited (HK0570). TianJiang pharmaceutical is the world's largest manufacturer of Premium Chinese Granule Herbs, also is the leader in scientific research and production globally in the industry. TianJiang sales network reaches all over the world, more than 30 countries and regions. The company owns 17 patents for invention, 1 application model patent, and all the independent intellectual property rights of key technologies for concentrated granule herb production.
Tianjiang Pharmaceutical Co., Ltd. is a publicly traded company
Based in Jiangsu Province, Tianjiang Pharmaceutical is principally engaged in the research, development, manufacture and sale of concentrated TCM granules (中藥配方顆粒). Tianjiang Pharmaceutical was one of the first "experimental manufacturing enterprises of concentrated TCM granules" approved by China Food and Drug Administration ("CFDA"), and the first manufacturer of concentrated TCM granules that received the State Good Manufacturing Practice (GMP) for Pharmaceutical Products of the PRC certification. Currently, Tianjiang Pharmaceutical produces approximately 700 types of single-herb concentrated granules. For the six months ended 30 June 2014, the sales revenue of Tianjiang Pharmaceutical amounted to RMB1,459.6 million, equivalent to approximately HK$1,824.5 million.
Mr. Wu Xian, Chairman of China Traditional Chinese Medicine Co. Limited, said, "The acquisition is in line with our development strategy to grow our business, and Tianjiang Pharmaceutical impressively meets our strict criteria of M&A targets. According to the '2013-2018 PRC Concentrated TCM Granules Industry Trends and Investment Forecast Report' published by askci Corporation, the market for concentrated TCM granules is expected to maintain a growth of approximately 30% in the coming years and the overall size of the market is expected to exceed RMB11 billion and RMB18.8 billion in 2016 and 2018 respectively. Tianjiang have managed to take more than a 50% market share in the PRC's concentrated TCM granules market in terms of revenue in 2013. We, therefore, believe that the acquisition allows the Company to gain access to this alluring market and take advantage of such industry growth.
We also expect to realize synergies from the acquisition through 1) the sharing of resources in management, research and development, raw materials and production, marketing, sales and distribution; 2) the cross-selling benefits derived from the customer base of the Company and Tianjiang Pharmaceutical; 3) expanded management expertise; and 4) additional negotiating power relative to both customer and supplier relationships. The acquisition serves the better interests of the Company and the shareholders as a whole. In the future, we will continually adopt an M&A strategy, which we believe is the most cost effective way to further expand our business on a fast track for profit contribution."
Source: China Traditional Chinese Medicine Holdings Co. Limited
TianJiang pharmaceutical is a high-tech research enterprise and the national standard creator for Premium Chinese Herbal Granule Extract production. Established in 1993, Tianjiang Pharmaceutical Co., Ltd. is the first R&D manufacturer of Chinese herbal granule extractsin China. Apart from achieving widespread recognition among consumers and medical sectors, Tianjiang was appointed as the first "National Experimental Enterprise of Chinese Medicinal Granules" by the State Drug Administration of China to produce and distribute Chinese herbal granules. The company has been GMP certificated by the SFDA since 2002 and is the largest domestic manufacturer of Chinese herbal granule extracts, TianJiang's research and manufacture ability is in the international leading position.
The company possesses modern facilities such as multi-function extraction, efficiently purifying, vacuum concentrating, spray drying, dry granulation and automated capsule filling. The fertility has the capability of producing botanical extracts, herbal teas, raw herbs, single TCM standardized granules, classic TCM formulas, nutraceuticals and functional foods.
The main products - Tianjiang Chinese herbal granule extracts are a series of single Chinese herbs products made from the qualified prepared Chinese herbal pieces. They are botanical extracts from roots, stems, barks, flowers, fruits, seeds and entire grass. By applying modern scientific technology and referring to the traditional making of Chinese herbal decoction, The products are refined by modern industrial ways of extraction, concentration and drying. With stable and reliable quality, these products keep the properties and effect of the original Chinese herbal pieces, and are suitable to be used according to the Chinese medical theory and differential diagnosis. They also possess such advantages as non-decoction, direct intake, rapid absorption, precise dosage, safety, clean and convenience.
Tianjiang products are produced in accordance with the Good Manufacture Practice (GMP), and the company takes strict control of the entire process from raw materials selection, processing, production to packaging, which can provide reliable guarantee for stable quality, efficiency and safety. the company possesses modern analytical and testing instruments such as CAMAG REPROSTAR, HPLC, GC and ICP-AES. Widely using modern analytical and testing means, the products are given quantitative and qualitative analysis to ensure their quality.
Tianjiang performs continuous research and development to improve the quality and medical efficacy of the products. The company possesses a strong scientific research staff team, and professional personnels covers 40% of the whole staff. The company has set up a department of scientific research in charge of the development of new products, technical study, drawing up of quality standard, and information management. In order to accelerate the industrialization of the achievements in scientific research, the company has established widespread cooperation with China Academy of Traditional Chinese Medicine, Nanjing University of Traditional Chinese Medicine, China Pharmaceutical University and Nanjing Agricultural University.
Tianjiang products have been widely applied in hospitals in China for many years and expanded to more than 30 countries and regions in the world. They were considered to be the most convenient-to-use products among professional Chinese Medicine practitioners and users.