"Pian Zihuang, the 'Maotai of Chinese Medicine,' Sees Market Cap Plunge by 20 Trillion Won After Two Years of Decline"

Pian Zihuang’s Performance Continues to Decline

Controversies Escalate Over False and Exaggerated Advertising

Pian Zihuang, a "famous Chinese medicine" often called the Maotai of the Chinese traditional medicine industry, has been suffering from sluggish sales and has seen its performance decline for two consecutive years.

According to multiple media outlets in China, including China.com on August 30, Pian Zihuang, once dubbed "Guizhou Maotai" and with a market capitalization surpassing 100 billion yuan (approximately 20.43 trillion won), is now experiencing a dramatic fall in its performance.

Pian Zihuang, known as the Maotai of traditional Chinese and Western medicine. Baidu China.

Sudden Product Price Increase and Poor Sales

The latest 2026 semiannual earnings report released by Pian Zihuang shows the company still stuck in a correction phase. During the reporting period, total sales amounted to 4.573 billion yuan (about 935.59 billion won), a decrease of 14.98% compared to the same period last year. Net profit attributable to the parent company also dropped by 24.22% to 1.093 billion yuan (about 223.62 billion won). Deducted net profit, which represents the actual results of the company’s main business, fell by 27.41% to 1.055 billion yuan (about 215.8 billion won).

The decline has been attributed to stagnation in the retail market for the company's flagship product, Pian Zihuang tablets. This occurred because the company raised product prices in 2023, citing increased costs of key raw materials and labor. The retail price of Pian Zihuang tablets in China, which used to be 590 yuan (about 120,000 won) per tablet, increased to 760 yuan (about 155,000 won).

The company faces additional headwinds in the stock market. Pian Zihuang’s stock price has continued to fall since the beginning of this year. As of the closing on August 28, it stood at 127.30 yuan (about 26,000 won), down more than 20% from the beginning of the year. The current market capitalization is about 76.82 billion yuan (approximately 15.7 trillion won), which means more than 190 billion yuan (about 39 trillion won) in market capitalization has been wiped out compared to its peak price of around 460 yuan (about 94,000 won) per share in 2021.

False, Exaggerated Advertising and Distribution Channel Controversy

Pyeonjahuang, known as the Maotai of traditional Chinese medicine. Baidu China.

Pian Zihuang requires a doctor’s prescription, but due to its high popularity and price, it has often been secretly traded for speculative or gift-giving purposes.

However, in recent years, incidents surrounding false and exaggerated advertisements for Pian Zihuang have triggered controversy. According to local industry insiders, this is attributable to the rapid expansion of Pian Zihuang’s distribution channels and contradictions among consumers.

Some Pian Zihuang promotional materials distributed online claim it is effective not only for liver diseases and tumors but also for liver cancer, colon cancer, shingles, and even COVID-19 infection. However, the official description published by the National Medical Products Administration (NMPA) states the drug's proven effects as reducing fever, detoxifying, cooling the blood, and eliminating blood stasis. It is also specified for reducing swelling and relieving pain, as well as for treating acute and chronic viral hepatitis, boils, unexplained edema, traumatic injuries, and various inflammations.

Secret distribution-related corruption and illegal marketing have also contributed to performance deterioration. In 2024, a large-scale corruption case worth 2 million yuan involving defrauding insurance payouts by buying Pian Zihuang through medical insurance and reselling it was reported by CCTV. In 2025, a pharmacy in Hong Kong was caught switching the medicine in Pian Zihuang boxes for mainland Chinese tourists, inflating the price from HKD 980 to HKD 9,800—a tenfold increase—before the employee was arrested by customs authorities.

This content was produced with the assistance of AI translation services.