Ejiao block price increase 20%

Tong Ren Tang Technology said that the ex-factory price and retail price of the company's Ejiao block have been increased by 20%, and the current retail price has reached 690 yuan/500g.

The price of the Ejiao block produced by Tong Ren Tang Technology is from 570 yuan/500g to 690 yuan/500g. On November 12, 2012, an insider of the company stated that the company raised the ex-factory price of the Ejiao block at the beginning of October, and the price increase rate was about 20%, while the ex-factory price increase was basically the same as the retail price increase. However, the company did not announce the price increase. The above-mentioned sources stated that the main reason for price increase was the increase in the price of donkey hides.

There are many domestic E-Jiao block manufacturers, but the majority of consumers are widely recognized as the East E-Jiao, Fu-Jiao and Tong Ren Tang three. At present, the terminal price of Donga donkey-hide gelatin block is 825 yuan/500g, and that of blessing gum block is 720 yuan/500g. It can be seen that after the price increase of the company, the price of the company's donkey block is still lower than the other two companies.

Compared to the two annual output of more than 1,500 tons, the production and sales volume of Tong Ren Tang is relatively small. It is reported that the company’s previous capacity was about 6 million (31.25g/block, or about 190 tons). The above persons confirmed that on October 26, 2012, the company’s Tangshan base was formally put into production, and the production capacity of the Ejiao block was increased to approximately 20 million pieces (approximately 640 tons), and production is expected to be completed in 2015.

In 2010 and 2011, the sales of the company's Ejiao blocks were approximately 50 million yuan and 90 million yuan respectively, which is not significant compared to the annual income levels of 1.58 billion yuan and 1.94 billion yuan.

In response, Sun Fengqiang, an analyst at Guotai Junan (Hong Kong) Pharmaceuticals, told reporters that "Ejiao blocks are high-margin products that the company can raise prices by itself, and about half of the company's (about 150) products can raise prices by themselves, and these products The gross profit rate of the company is also higher than the company's overall gross profit rate, which together accounts for about 20% to 25% of the company's revenue.In fact, the company's product price hikes have never been formally announced to investors, and the company’s Angong Niuhuangwan began on July 1, 2012. The price increase is 60%. This is basically the first time that the company's products have increased its price in recent years. We have determined that the above products of the company have entered a new price increase cycle and will become the company's major growth point in the future."