Gansu Longshenrongfa Pharmaceutical Industry Co Ltd

Gansu Longshen Rongfa Pharmaceutical Co., Ltd. announced that its flagship product, Yuanhu Zhitong Dripping Pills, has received the Chinese Patent Medicine Registration Certificate approved and issued by the Pharmaceutical Administration Bureau of the Macao Special Administrative Region Government. The registration number is MAC-C00613, the category is over-the-counter Chinese patent medicine, and the registration holder is Tak Seng Tong Pharmaceutical Products Import, Export and Wholesale Firm. Yuanhu Zhitong Dripping Pills are a classic Chinese patent medicine included in the National Pharmacopoeia and are an exclusive product nationwide. Their functions are to regulate qi, promote blood circulation, and relieve pain, and they are used for menstrual abdominal pain, stomach pain, hypochondriac pain, and headache. They are a non-addictive pure Chinese herbal analgesic. The company stated that this approval marks its qualification to sell the drug in Macao, which is conducive to expanding overseas market business and enhancing brand and market competitiveness. However, it is not expected to have a significant impact on recent operating performance, and the company reminded that there are uncertainties in drug production and sales.

In this morning's session, Zhongyan Technology shares saw wild swings, opening at the daily limit-up before heavy volume broke the board and sent the stock plunging straight down, briefly hitting the daily limit-down during the session in a classic limit-up to limit-down reversal. As of the midday break, the stock traded at 18.30 yuan, down 6.44 percent, with half-day turnover of 486 million yuan. The market widely attributes the recent volatility to the company's announcement of plans to acquire a 60 percent stake in Shenzhen Xinhuan Yu Jinggong Technology through cash purchase and capital increase, though the company subsequently disclosed that the transaction is subject to significant uncertainty. On the broader market, A-shares opened sharply higher on weekend policy tailwinds, with the baijiu sector leading the gains. Gujing Gongjiu hit the daily limit-up, while Kweichow Moutai rose 5.58 percent by midday after the company announced it would raise the retail price of its 53 percent ABV 500 milliliter Feitian Moutai on the iMoutai platform to 1,639 yuan per bottle starting July 18. The traditional Chinese medicine sector also followed through to strengthen, with Longshen Rongfa touching the 20 percent daily limit-up during the session. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.

The State Council has approved in principle the Traditional Chinese Medicine Revitalization and Development 15th Five-Year Plan, igniting the TCM sector. On July 13, Longshen Rongfa hit the 20 percent daily limit up, Shanghai Kaibao and Biotech Valley surged over 10 percent, Tianmu Pharmaceutical hit the daily limit up, and many other stocks rose in sympathy. CITIC Securities believes that the cliff-like drop in upstream precious medicinal material prices has shed the cost burden, the midstream destocking cycle is nearing its end, and cost savings will flow through to the income statement. The current moment is the optimal window for contrarian positioning in the profit recovery inflection point of the TCM OTC sector. China Post Securities noted that branded TCM companies have stable cash flows, and high-dividend TCM firms are trading at historically reasonable or low valuations, offering allocation appeal in a low-interest-rate environment. It suggests paying attention to names such as Dong-E-E-Jiao, Jumpcan Pharmaceutical, and China Resources Jiangzhong.

Star-net Ruijie shot straight up after the open and hit its daily limit up within two minutes, marking its sixth limit-up board in ten trading days. The company expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 310 million and 430 million yuan, representing year-on-year growth of 46.27 percent to 102.90 percent. The increase is mainly due to a substantial rise in data centre switch business from its subsidiary serving internet clients, as well as higher fair value gains from an industry fund and increased equity transfer income. On the news front, institutional research notes point out that AI data centre switches are entering a triple resonance of demand surge, speed upgrades, and domestic substitution, with the adoption rate of domestic switches expected to rise. In addition, the electronic specialty gas theme strengthened, with Jove Energy hitting limit up at the open and notching two consecutive boards, after the Ministry of Commerce and the General Administration of Customs decided to impose temporary export controls on helium. The Huawei Ascend concept saw a sudden surge, with Sichuan Changhong hitting limit up in a straight line, as the 2026 World Artificial Intelligence Conference is about to open and Ascend's super node will make its debut. The traditional Chinese medicine theme was active, with Longshen Rongfa surging by the 20 percent limit, after the State Council approved in principle the 15th Five-Year Plan for the Revitalisation and Development of Traditional Chinese Medicine.

China's A-share market saw all three major indices decline in the morning session on July 13, with the Shenzhen Component Index and the STAR Composite Index both falling more than 2%. Over 4,500 stocks across the market ended in the red. The memory chip sector suffered a sharp pullback, with Demingli hitting its daily limit down, Shannon Core Innovation plunging 19.93%, and Puya Semiconductor and Beijing Junzheng both dropping over 11%. Bank stocks bucked the trend and moved higher, with Bank of Suzhou surging over 6%, Bank of Ningbo rising over 4%, and Industrial and Commercial Bank of China and Bank of Communications gaining more than 2%. The total dividends of 41 banks for the 2025 fiscal year exceeded 645.6 billion yuan, setting a new record. The traditional Chinese medicine sector saw a short-term spike, with Longshen Rongfa hitting its 20% daily limit up and Tianmu Pharmaceutical reaching its 10% daily limit up. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.