China Zhongji Investment invests in "Ji Heng Pharmaceutical", continuing its layout in the Greater Health industry
Recently, China Zhongji Investment completed an equity investment in Hebei Ji Heng (Group) Pharmaceutical Co., Ltd. (hereinafter referred to as "Ji Heng Pharmaceutical"). Ji Heng Pharmaceutical is a large-scale modern pharmaceutical comprehensive enterprise with four series of products—raw materials, western medicines, Chinese medicines, and pharmaceutical intermediates—and 150 varieties. It is a leading domestic manufacturer of paracetamol raw materials.
Established in 1996 and headquartered in Hebei Hengshui Industrial New District, Ji Heng Pharmaceutical is a wholly-owned subsidiary of Hebei Ji Heng Group. The company has the right to operate its own import and export business, and its products are sold to 30 provinces, autonomous regions, and municipalities in China, as well as more than 100 countries and regions in South Asia, Southeast Asia, South America, Europe, and Africa, enjoying a good reputation both domestically and internationally.
Industry leader, accelerated growth due to the pandemic
Paracetamol, also known as acetaminophen, is one of the most commonly used antipyretic and analgesic raw materials. Compared with ibuprofen and aspirin, paracetamol has a stronger analgesic and antipyretic effect and better safety. It has been widely used in various cold and flu medicines, arthritis medicines, etc., and new uses are constantly being developed. Paracetamol is contained in common medicines such as Gan Kang, San Jiu Ganmao Ling Granules, and Tylenol. The global demand for paracetamol is increasing year by year.
China is a major producer of paracetamol, accounting for more than 60% of the global total output. As a national production base for antipyretic and analgesic raw materials, Ji Heng Pharmaceutical occupies a leading position in terms of customer quantity, customer quality, and output. Its annual paracetamol production capacity reaches 25,000 tons, with exports accounting for 60% to 65% of total output, approximately 11,000 tons per year.
This year, the global pandemic has led to a significant increase in global demand for paracetamol due to its relevance to the prevention and treatment of COVID-19. On the other hand, India's restrictions on the export of raw pharmaceutical ingredients, including paracetamol, in March this year exacerbated the tight supply chain situation. This provided a good growth opportunity for Ji Heng Pharmaceutical.
In addition, other products of Ji Heng Pharmaceutical, such as aminopyrine, amidopyrine, and pharmaceutical folic acid, also hold leading positions in the domestic market.
Ji Heng Pharmaceutical attaches great importance to drug safety and has established a management system that complies with international quality standards, with a product qualification rate of 100%. The company has passed ISO9001 and ISO14001 certifications and has a three-level quality monitoring network for raw and auxiliary materials, semi-finished products, and finished products, as well as advanced testing facilities. The entire process, from raw and auxiliary materials and packaging materials to plant facilities, the entire production process, and final product shipment strictly follows GMP standards. All products of the company have obtained the national GMP certificate.
The company's leading products, paracetamol, amidopyrine, and folic acid, have obtained EU COS certificates, KOSHER certificates, Indian registration certificates, Russian registration certificates, and US DMF registration numbers. Paracetamol has been the first to pass US FDA certification, Spanish official certification, and Mexican official certification; folic acid has also obtained Kosher, HALAL (Islamic), FAMI-QS (feed additive), and ISO22000 (food additive) certifications.
Through further extension of the upstream and downstream industrial chains, Ji Heng Pharmaceutical's profitability has continued to improve.
Yang Xiaoying, partner and managing director of China Zhongji Investment, said that Ji Heng Pharmaceutical is a well-known enterprise in Hebei. It has maintained steady operations for many years, and its business advantages have gradually become prominent. The synergy with the chemical sector of the Ji Heng Group provides better growth support for Ji Heng Pharmaceutical. The outbreak of the epidemic has brought a new round of growth opportunities to the company's performance. We look forward to the company's future development. China Zhongji Investment will also continue to pay attention to excellent enterprises in the Hebei region and the pharmaceutical industry, promoting the coordinated development of local areas and industries.
