During the 2025 National People's Congress, Zhao Jing, deputy to the National People's Congress and vice chairman of Buchang Pharmaceutical (603858), made suggestions on "AI empowering the inheritance and innovation of traditional Chinese medicine" and proposed solutions for the modernization of traditional Chinese medicine from the aspects of policy planning, technology integration, and industrial upgrading.

Zhao Jing suggested that by establishing a standard system for traditional Chinese medicine data to standardize traditional Chinese medicine terminology, promote cross-domain data sharing, formulate a strategy for the integration of AI and traditional Chinese medicine, and clarify demonstration projects for application scenarios such as intelligent diagnosis and telemedicine. In the field of intelligent manufacturing, she proposed the use of AI technology to transform production links, including precise control of temperature and humidity, screening of Chinese herbal medicine ingredients, and the construction of a full-process quality traceability system. She suggested that the government should issue special plans and set up coordination agencies to integrate the resources of leading enterprises to tackle key technologies.

As a leading enterprise in the traditional Chinese medicine industry, Buchang Pharmaceutical has started intelligent manufacturing practices. The "Chinese medicine green intelligent manufacturing factory" it built realizes the full process of automated production from the entry of medicinal materials into the factory to the delivery of finished products. It is currently exploring deep technical integration with technology companies such as DeepSeek. Public information shows that the company has 63 exclusive Chinese patent medicine varieties, and its core products such as Naoxintong Capsules and Danhong Injection have entered the national diagnosis and treatment plan. In recent years, the company has paid nearly 32 billion yuan in taxes and covered hundreds of thousands of border people through the "Forge China's Heart" public welfare project.

In terms of industrial layout, Buchang Pharmaceutical has established three strategic directions: accelerating the internationalization of products such as Xuanfei Baidu Granules in the Canadian and Russian markets; promoting the research and development of biological drugs such as BC008-1A Injection; and expanding the diversified layout of chemical drugs and vaccines. Its R&D investment focuses on major disease areas such as cardiovascular and cerebrovascular diseases, and has formed a three-dimensional product system covering Chinese medicine, biological drugs, and chemical drugs.

At present, the integration of traditional Chinese medicine and AI has become an industry trend. In addition to Buchang Pharmaceutical, many listed companies have deployed the research and development of intelligent diagnosis and treatment equipment, including AI tongue diagnosis robots, TCM constitution identification systems and other applications, and promoted the digital inheritance of diagnosis and treatment experience by building a knowledge map covering tens of thousands of prescriptions and medicinal ingredients. At the policy level, Shanghai and other places have issued documents to promote the intelligent integration of the experience of famous old Chinese medicine practitioners, indicating that the Chinese medicine industry is entering a new stage of "intelligence + technology".

Buchang Pharmaceutical's 2024 annual performance forecast shows that the company expects its full-year net profit attributable to the parent company to be -800 million to -430 million yuan, a loss compared with the profit of 320 million yuan in the previous year. The performance changes are mainly affected by two factors: First, the core products of subsidiaries Tonghua Guhong and Jilin Tiancheng have been removed from the provincial medical insurance catalog and are subject to key monitoring restrictions, resulting in a decline in market competitiveness. The company plans to make an impairment provision of about 700 million to 1 billion yuan for related goodwill; second, the sales of some products have decreased due to adjustments to medical insurance policies and key monitoring, and changes in revenue structure have superimposed a decline in gross profit margin. The above factors have jointly led to the company's operating performance being lower than expected.

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