What Shanxi Zhendong Pharmaceutical does

Shanxi Zhendong Pharmaceutical Co., Ltd. (山西振东制药股份有限公司) is a vertically integrated Chinese pharmaceutical manufacturer founded in 1993 and headquartered in Changzhi, Shanxi Province. The company has been listed on the Shenzhen Stock Exchange under ticker 300158 since 2011 and operates four wholly-owned subsidiaries spanning pharmaceutical manufacturing (Taisheng), TCM decoction pieces (Wuhe Tang), pharmaceutical distribution (Zhendong Medical Trade), and medicinal materials cultivation (Zhendong Daodi Medicinal Materials). Its portfolio spans TCM injections (Compound Kushen Injection, Shuxuening Injection, Guanxinning Injection), Western-style generics (captopril, acetaminophen tablets cleared via consistency evaluation), OTC consumer health products (Dafeixin minoxidil hair growth line, Wuhe Tang/Wuhe Foods nutritional supplements), and TCM decoction pieces, with disclosed FY2025 revenue of CNY 5.04 billion.

The company's core technology combines traditional Chinese medicine preparation with Western pharmaceutical manufacturing, supported by a CNAS-accredited laboratory and an FDA IND-cleared novel drug candidate (ZD03 for multiple sclerosis, Phase I completed). The vertically integrated supply chain extends from certified GAP medicinal herb cultivation through decoction piece production to finished injectable, capsule, tablet, and liniment manufacturing. The company has completed development of an innovative lapataxel liposome antitumor formulation and is expanding its Five-Harmony TCM health product system.

Zhendong generates revenue through three primary streams: (1) institutional pharmaceutical sales to hospitals via national pharmaceutical distribution networks and participation in national centralized drug procurement (VBP) tendering, (2) consumer health product sales through the company's own e-commerce health mall, retail pharmacy channels, and short-video livestreaming commerce, and (3) e-commerce logistics services. The primary customer segment is hospitals and healthcare institutions (B2B), with secondary segments in consumer retail and TCM healthcare providers. Pricing on prescription products is determined by VBP tendering and the National Reimbursement Drug List, while consumer health products are sold at market prices through owned and third-party channels. The company also operates a national investment conference as its flagship channel partner recruitment event.

Name

Shanxi Zhendong Pharmaceutical

Legal name

山西振东制药股份有限公司

Website

https://zdjt.com

Company type

Public

Founded year

1993

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Shanxi Zhendong Pharmaceutical is a vertically integrated Chinese pharmaceutical manufacturer (SHE: 300158) that produces TCM injections, Western generics, decoction pieces, and consumer health products, selling primarily to hospitals through national centralized procurement and to consumers via e-commerce and retail channels.

Ownership category

akta.pro rank

Product category

Traditional Chinese Medicine & Pharmaceutical Manufacturing

NAICS

Pharmaceutical Preparation Manufacturing (325412), Medicinal and Botanical Manufacturing (325411)

SIC

Pharmaceutical Preparations (2834), Medicinal Chemicals & Botanical Products (2833)

akta.pro primary industry

Specialty Care Pharmaceuticals (HLAIAAAB)

akta.pro secondary industries

Herbal & Botanical Supplements (CRADAGAD), Dermatology & Aesthetics Pharmaceuticals (HLAIAAAK)

Keywords

• Pharmaceutical manufacturing
• Traditional Chinese medicine
• Prescription drugs
• TCM decoction pieces
• Consumer health products

Headquarters

HQ city

Changzhi

HQ country

China

HQ region

Asia

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Pharmaceutical Manufacturing and Sales: Zhendong generates the majority of its revenue from manufacturing and selling prescription pharmaceuticals, including injectable TCM products, Western-style tablets, capsules, and decoction pieces, distributed to hospitals, pharmacies, and pharmaceutical wholesalers across China. The company participates in national centralized drug procurement (VBP) to secure hospital contracts.
2. Consumer Health Products: Revenue from OTC health products including nutritional supplements, health wines, functional foods (五和食品), and personal care items (健康护理) sold directly to consumers via e-commerce, retail, and pharmacy channels.
3. E-commerce and Logistics Services: Zhendong operates its own e-commerce health mall and procures logistics services for small-parcel last-mile delivery of consumer health products, as evidenced by logistics tender documents for e-commerce fulfillment.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels6 records

Core offering

Shanxi Zhendong Pharmaceutical manufactures and sells prescription pharmaceuticals, TCM injections, capsules, tablets, and decoction pieces, alongside consumer health products including nutritional supplements, health wines, functional foods, and OTC items like minoxidil hair growth liniments. The company operates a vertically integrated supply chain from GAP-certified herb cultivation bases through pharmaceutical manufacturing to hospital distribution and direct-to-consumer e-commerce. Product portfolio spans oncology (Compound Kushen Injection), cardiovascular (Shuxuening and Guanxinning Injections), hair care (Dafeixin minoxidil), and TCM-based wellness categories.

Differentiator

Problem solved

Functional benefit

Brands

• 达霏欣 (Dafeixin): Hair growth products including minoxidil liniment for treating male pattern baldness and alopecia areata
• 安欣 (Anxin)
• 泰盛 (Taisheng)
• 五和堂 (Wuhe Tang)
• 五和食品 (Wuhe Foods)
• 维尔康 (Weierkang)

Products and services

• Compound Kushen Injection (复方苦参注射液)

Quantifiable outcome

• 360,000+ farmers' income increased through Zhendong's herb cultivation base and integrated supply chain
• +3 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Three partnerships are on record, tiered core.

• Government (Local/Provincial Government)coreStrategic or Co-development Partner · 20 January 2024Zhendong's subsidiary entered into a strategic cooperation framework agreement with local government authorities for the development of TCM herb cultivation, pharmaceutical production, and regional health industry development in Shanxi Province.
• Strategic Partner (unspecified)coreStrategic or Co-development Partner · 27 May 2021Zhendong signed a strategic cooperation agreement for joint development in pharmaceutical R&D, production, and market expansion. The specific partner name is listed in the announcement dated 2021-05-27.
• Strategic Partner (unspecified)coreStrategic or Co-development Partner · 9 October 2019Zhendong entered into a strategic cooperation agreement in October 2019 for pharmaceutical development and market collaboration. Specific partner details are available in the official announcement.

Scale indicators4 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Livzon Pharmaceutical Group (丽珠医药): Specialty pharmaceutical manufacturer (000513.SZ / 1513.HK) producing branded chemical drugs, TCM preparations, and biologics across oncology, gastrointestinal, and cardiovascular categories. Comparable to Zhendong in the specialty pharma + TCM injection space with similar hospital-channel focus and VBP participation.
• China Traditional Chinese Medicine Holdings (中国中药): Major TCM pharmaceutical group (570.HK) controlled by Sinopharm, focused on TCM decoction pieces, granules, and finished Chinese medicine preparations. Comparable to Zhendong's Wuhe Tang TCM decoction piece operations and downstream TCM hospital/clinic procurement model.
• Yunnan Baiyao Group (云南白药): Integrated TCM and consumer health leader (000538.SZ) spanning proprietary TCM formulations, OTC health products, and modern pharmaceuticals. Highly comparable business model to Zhendong combining branded TCM manufacturing with consumer-facing health products and OTC pharmacy distribution.
• Pien Tze Huang (片仔癀): Premium TCM pharmaceutical manufacturer (600436.SH) with a high-margin proprietary TCM product (Pien Tze Huang) and a strong consumer health/retail pharmacy presence. Comparable to Zhendong's branded TCM injection and Five-Harmony consumer health strategy, with deeper brand pricing power.
• Beijing Tongrentang (同仁堂): One of China's most iconic TCM pharmaceutical and consumer health brands (600085.SH), producing branded TCM preparations, decoction pieces, and health products for hospital and retail channels. Closely comparable to Zhendong in TCM injectables, decoction pieces, and Five-Harmony-style wellness offerings, with a far larger brand.

Others

• Jointown Pharmaceutical Group (九州通): China's largest private pharmaceutical distributor (600998.SH) handling wholesale and logistics of drugs and healthcare products. Comparable to Zhendong's distribution channel layer (wholesale to hospitals and retail) but operating as a pure distributor rather than a manufacturer.

Broad incumbents

• Shanghai Pharmaceuticals Holding (上海医药): One of China's largest integrated pharmaceutical groups (601607.SH / 2607.HK) combining pharmaceutical manufacturing, distribution, and retail pharmacy operations. Comparable to Zhendong's combined manufacturing-plus-distribution model but at vastly greater scale and broader product portfolio.
• Jiangsu Hengrui Pharmaceuticals (恒瑞医药): China's largest innovative specialty pharma company (600276.SH) with leading positions in oncology and anesthesia injectables, including liposomal drug delivery platforms. Comparable to Zhendong's oncology injection and lapataxel liposome pipeline but at a much larger R&D and commercialization scale.
• Guangzhou Baiyunshan Pharmaceutical Holdings (白云山): One of China's largest state-owned pharmaceutical conglomerates (600332.SH / 0874.HK) with broad portfolios in TCM, chemical drugs, and consumer healthcare products. Comparable to Zhendong's diversified pharma + TCM + consumer health model at substantially greater scale, including well-known OTC brands distributed via similar pharmacy channels.
• China Resources Sanjiu Medical & Pharmaceutical (华润三九): Major state-owned OTC and TCM pharmaceutical company (000999.SZ) with dominant positions in OTC Chinese medicine, health products, and consumer healthcare. Comparable in TCM and OTC categories but operates at substantially larger scale under China Resources' broad healthcare portfolio.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/shanxi-zhendong-pharmaceutical-co-ltd

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Shanxi Zhendong Pharmaceutical