Kangmei Pharmaceutical

Kangmei Pharmaceutical Co., Ltd. (stock code: 600518) was established in 1997 and listed on the Shanghai Stock Exchange in 2001. In 2021, it introduced state-owned capital and strong industrial investors, becoming an enterprise actually controlled by Guangdong Shennongshi Enterprise Management Partnership (Limited Partnership). Guided by the national strategy of revitalizing traditional Chinese medicine, the company adheres to its corporate mission of "Dedicated to healthy life, creating a better life," maintains its strategic positioning as a "smart TCM and big health brand enterprise centered on TCM decoction pieces," and is committed to the corporate vision of "New Kangmei, Healthy Beauty." It promotes the implementation of the "12355" strategic plan, persists in focusing on its main business, and continuously consolidates the layout of the entire TCM industry chain. With TCM decoction pieces as the core and smart pharmacies as a key lever, it further strives to build an influential precision service-oriented "Smart+" big health industry enterprise across the entire TCM industry chain. In 2025, the company was rated as "Guangdong Province AAA-level Enterprise Credit," ranked 368th among "Top 500 Guangdong Enterprises," and 102nd among "Top 500 Guangdong Manufacturing Enterprises." It also ranked 6th in the "2024 Top 50 Industrial Enterprises of Jieyang City" and was honored as a "Major Taxpayer," with its overall strength and growth potential highly recognized by the industry.

With over two decades of dedicated cultivation in the TCM industry, Kangmei Pharmaceutical has basically covered the upstream, midstream, and downstream segments, with its business penetrating all key links of the entire TCM industry chain. Currently, the company owns nearly ninety enterprises nationwide covering medicinal material cultivation, TCM trading markets, modern logistics centers, and industrial bases. It has built eight modern production bases for TCM decoction pieces and pharmaceuticals, and the trading scale of TCM materials it manages accounts for over 60% of the national total.

In terms of industry standard development, Kangmei has taken the lead in establishing various national standards, including: formulating national standards for TCM decoction pieces and national standards for production management GMP, small packaging, color code management, and processing. It participated in the formulation of the Ministry of Commerce's grade classification standards for TCM materials; undertook the compilation of over 700 national standards for TCM coding; compiled and operated the first national TCM price index approved and authorized by the National Development and Reform Commission—the Kangmei·China TCM Price Index; and participated in projects such as the Chinese Pharmacopoeia Commission's processing specifications for TCM decoction pieces.

In terms of technological research and innovation, as a National Intellectual Property Demonstration Enterprise, a Guangdong Province Standard Leading Enterprise, a Guangdong Province International Standardization Information Direct Reporting Point, and a construction unit of the Guangdong Province Science and Technology Expert Workstation, the company persists in leading the development of new quality productive forces through scientific and technological innovation. Leveraging its CNAS-accredited and CMA-accredited testing centers certified by international organizations, and relying on open innovation platforms such as the National and Local Joint Engineering Research Center for TCM Decoction Pieces, the Key Research Laboratory for TCM Decoction Piece Standards, the Guangdong Province Engineering Technology Research and Development Center for TCM Decoction Pieces, and the Guangdong Province Key Laboratory for TCM Decoction Piece Enterprises, it is committed to the sustainable utilization and development of TCM resources, covering seeds and seedlings, cultivation, and standards of TCM materials, processing techniques, artificial intelligence, processing standards, specifications and grades of TCM decoction pieces, as well as TCM formula granules, classic famous formulas, medicinal and edible health products, and pharmaceutical services. As of now, Kangmei Pharmaceutical has cumulatively participated in the drafting and formulation of 227 standards, including 3 international standards, 43 national standards, 24 industry standards, 52 local standards, and 105 group standards. In terms of intellectual property, it has applied for over 910 patent protections, holds over 370 valid patents, 3 data intellectual property rights, 228 software copyright registrations, 1,761 approved registered trademarks, 43 nationally filed patented products, 13 Guangdong Province high-tech products, and 26 high-quality TCM decoction pieces.

In terms of TCM pharmaceutical services, Kangmei Pharmaceutical invests in and manages Kangmei Hospital, Kangmei TCM Clinics, etc., and has established long-term cooperative relationships with multiple medical institutions and pharmacies. Leveraging its entire industry chain resource advantages, it took the lead in creating the "Smart Pharmacy" model, which now covers cities such as Guangzhou, Shenzhen, Beijing, Shanghai, Chengdu, Chongqing, Zhuhai, Zhangzhou, Jiangmen, Puning, Changshou, and Nanchong. As of December 31, 2025, Kangmei Smart Pharmacy has cumulatively served over 19 million patients, processed over 47 million prescriptions, and handled approximately 304 million doses. Kangmei Smart Pharmacy has created a new model for medical treatment and medication in the internet era, and Kangmei Pharmaceutical has been designated as a "National TCM Service Standardization Research Base."

In terms of social responsibility, the company fully leverages the resource synergy advantages of a listed pharmaceutical enterprise and actively fulfills social responsibilities. It has successively driven millions of medicinal herb farmers, including hundreds of thousands of impoverished farmers, out of poverty. During epidemics and natural disasters such as typhoons, earthquakes, and floods, it promptly donated anti-epidemic and disaster relief materials to affected areas, continuously provided shortage drugs to cooperative medical institutions, and maintained the supply of drugs and other big health products and services, ensuring the important livelihood projects related to the safety and health of the people with practical actions.

Looking to the future, Kangmei Pharmaceutical will maintain strategic focus and firm development confidence, adhere to the overall work tone of "seeking progress while maintaining stability, promoting stability through progress, establishing the new before abolishing the old, and upholding integrity while innovating." By organically integrating the company's advantages in industrial layout, online-offline collaborative procurement, R&D and manufacturing and quality management, and marketing services, it will develop new quality productive forces tailored to local conditions, continuously build a new and high-quality development pattern of connotative growth for New Kangmei, and wholeheartedly serve and integrate into the new pattern of high-quality development of the TCM industry, contributing "TCM wisdom" and "New Kangmei strength" to the Guangdong practice of Chinese-style modernization and the deep integration of the TCM industry.