Open Source Securities: Special Strategy Report on the Beijing Stock Exchange —— Five-Year New Blueprint for Traditional Chinese Medicine Released, Uncovering Dual Mainlines of Ethnic Medicine and Brand Promotion on the Beijing Stock Exchange

Implementation Plan for High-Quality Development of the Traditional Chinese Medicine (TCM) Industry (2026-2030)" Encourages Promotion of Ethnic Medicines and Renowned BrandsOn February 5, 2026, eight departments including the Ministry of Industry and Information Technology jointly issued the "Implementation Plan for High-Quality Development of the Traditional Chinese Medicine (TCM) Industry (2026-2030)," mapping out a whole-industry-chain roadmap for the development of the TCM industry over the next five years. The plan specifies core objectives for 2030: the preliminary formation of a whole-industry-chain collaboration system, significant improvement in raw material supply, digital intelligence, and green levels, breakthroughs in key technologies, and enhanced innovation collaboration led by the Ministry of Industry and Information Technology. Specific quantifiable goals include cultivating 60 high-standard raw material bases, establishing 5 centers for upholding tradition and fostering innovation, developing 10 major varieties of proprietary Chinese medicines, formulating or revising 10 digital intelligence technology standards, constructing 20 smart factories, and building 10 green factories. The plan outlines 15 tasks across six major initiatives, covering critical aspects such as improving raw material quality, collaborative innovation, manufacturing upgrades, revitalization of ethnic medicines, promotion of renowned brands, and enterprise cultivation. In terms of scale, according to data from the China Business Industry Research Institute, the planting area of Chinese medicinal materials was approximately 56.9 million mu in 2024, with a market turnover of 211 billion yuan; by 2025, it is expected to increase to 57 million mu and 220.6 billion yuan. The market size of TCM products reached 480.5 billion yuan in 2024 and is projected to reach 506.1 billion yuan in 2025. The scale of TCM decoction pieces was 303.8 billion yuan in 2024 and is forecasted to reach 324.9 billion yuan in 2025. However, the industry faces challenges due to policies like medical insurance cost control and restrictions on intravenous infusions. In 2024, the output of proprietary Chinese medicines was 19.53 million tons, a year-on-year decrease of 7.26%, and may drop to 18.55 million tons in 2025. The 2025 version of the medical insurance directory added seven new proprietary Chinese medicines, bringing the total number of proprietary Chinese medicines in the directory to 1,335 (including 95 ethnic medicines). The fourth batch of centralized procurement for proprietary Chinese medicines covers 90 drugs across 28 procurement groups, driving the industry towards high-quality and intensive transformation. There are five TCM industry chain-related stocks listed on the Beijing Stock Exchange: Zitong Palace, Datang Pharmaceutical, Oukang Pharmaceutical, Xingan River, and Bio Valley.