What insights does Huluwa Pharmaceutical bring behind its resilient development?

Under the complex and ever-changing market environment, as well as policies such as medical insurance coordination and centralized procurement, Hainan Huluwa Pharmaceutical Co., Ltd. has planned and developed a comprehensive layout with the goal of high-quality development. It is committed to pursuing a path driven by research and innovation, laying out the upstream and downstream of the pharmaceutical industry chain, and continuously enhancing its brand influence.

1. Technological innovation promotes the inheritance and development of traditional Chinese medicine

By the end of 2023, the group's Haikou Mei'an Children's Medicine Intelligent Manufacturing Base was successfully completed. The base was planned and constructed with the concept of green environmental protection, and introduced Germany's oral dissolving film production line and domestic professional warehousing and intelligent systems. Here, material flow and information flow can achieve full process planning, tracking, and recording, realizing mechanical automation of production processes, data visualization, promoting innovation in drug research and development, and accelerating the integration of cutting-edge production technologies.

This base is a milestone project in Huluwa's digital transformation, which can accelerate the integration and collaboration of the supply chain, improve operational management efficiency, and promote innovative changes in production methods, business models, and business forms. The application of intelligent and digital technologies will run through the entire process of drug production in the future.

invests in building a domestic professional pediatric formulation research center, Hangzhou Kang Leading Pharmaceutical, focusing on pediatric formulation research and development, and will leverage the advantages of 1+1>2.

Children's Malong Cough Relieving Asthma Granules, LPC-006 Oral Dissolving Membrane and other under development products continue to make new breakthroughs, and the product pipeline continues to extend, making the pediatric medication system more comprehensive.

has laid the foundation for shaping the competitiveness of the pharmaceutical industry chain and achieving high-quality development by expanding the upstream and downstream of the pharmaceutical industry chain and acquiring Jiangxi Rongxing Pharmaceutical, a professional manufacturer of high-quality pharmaceutical and chemical intermediates.

2. Achieved multiple honors

With strong technological innovation, won the "2022-2023 Excellent Brand Enterprise of Chinese National Medicine" award in the pharmaceutical industry. The new Feile brand pediatric lung heat cough asthma granules developed by SEP have won wide recognition in pediatric clinical practice due to their higher standards, better efficacy, safety, and better taste. They have now become a full course medication for the treatment of pediatric respiratory system infections. Due to their clinical contributions, they have been repeatedly rated as the "most clinically valuable" pediatric product by industry institutions. At present, this product has become a representative drug for the treatment pipeline of pediatric respiratory system infections. At the same time, the patent for the self implemented conversion of "Keke tablets and their preparation method" has won the provincial patent award. Since 2010, the patent has been promoted and sold in the national market, achieving good economic and social benefits. According to the internal network of Xiaomi, in 2022, this product accounted for 60.06% of medical institutions in China; The market share of similar drugs in physical pharmacies in Chinese cities is 28.09%. This product has been well received by medical technicians and patients for its cough and phlegm reducing, antibacterial and anti-inflammatory, anti-inflammatory and analgesic effects.

3. Work direction for 2024

The policy environment is becoming increasingly complex and the competitive landscape is becoming more intense. In 2024, we will continue to increase technological innovation, strengthen the core competitiveness of enterprises, and focus on creating value chains and extending industrial chains.

Continuously iterating and upgrading intelligent manufacturing capabilities, deepening the promotion of green factory projects, and shaping new quality productivity for enterprises.

Strengthen the foundation of the Huluwa brand, empower business operations with professional services, continue to do well in children's public welfare, actively practice social responsibility, and enhance brand influence.

We are steadily advancing our international business layout, expanding and deepening our presence in the ASEAN market, converting the two patent certifications obtained by ASEAN countries into funding, and gradually forming an orderly product lineup mainly composed of innovative drugs with significant clinical needs and supplemented by generic drugs with market growth potential.

We will continue to strengthen the construction of scientific research teams, establish specialized R&D teams, collaborate with well-known universities and R&D institutions, actively develop in-house preparations of traditional Chinese medicine, and transform classic prescriptions into effective medicines for generations to come; In response to the phenomenon of "four shortages" in clinical pediatric medication in China (limited variety and dosage forms of pediatric drugs, limited specifications suitable for children's use and dosage, and limited information on adverse reactions and precautions for children's medication in pediatric drug instructions), we will develop drug formulations suitable for children, such as oral dissolving films, nebulized inhalation solutions, and oral liquids, and develop product specifications suitable for children.

Build a comprehensive coverage of the entire medication product chain model, with pediatric medicine as the core and chemical medicine, traditional Chinese medicine, specialty medical food, and medical device health food as the spiral circle.

The B2C, B2B, O2O, and private domain e-commerce channels developed in 2023 will be put into operation, utilizing social media channels for content marketing, creating higher quality, more interesting, and valuable content, strengthening user awareness of the brand, bringing brands closer to users, establishing multi touchpoint and multi-dimensional connections with users, strengthening the new retail field, and enhancing overall marketing competitiveness.

Sunrise Boyuan Analysis and Comments

Over the years, Huluwa Pharmaceutical has closely followed the trend of high growth of traditional Chinese medicine, established a national brand of Chinese pediatric medicine, inherited and developed the essence of traditional Chinese medicine with innovative technology, and forged product quality with intelligent manufacturing. Now, Huluwa Pharmaceutical has developed into a leading enterprise of pediatric medicine. As of 2023, there are a total of 343 drug approval numbers, 66 products have entered the national basic drug catalog, and 112 products have entered the national medical insurance catalog.

It's more urgent for boats to wander in the middle, and it's steeper for people to go halfway up the mountain road. The traditional Chinese medicine industry has entered a period of rapid development. According to the development goals of the "14th Five Year Plan for the Development of Traditional Chinese Medicine", the market size of China's traditional Chinese medicine industry is expected to increase to 1.4336 trillion yuan by 2030, and the development space of the traditional Chinese medicine industry is huge.

Huluwa Pharmaceutical seizes historical opportunities, scientifically plans and layouts, takes one step at a time, and is down-to-earth, contributing wisdom and strength to the high-quality development of the pharmaceutical industry. At the new starting point of 2024, we look forward to better development.