Hakka Medicine's Leap: A Strategic Play for the Global Health Market

HONG KONG – December 08, 2025 – At the recent Seventh World Hakka Entrepreneurs Convention in Meizhou, Guangdong, a fascinating strategic play unfolded amidst the discussions of cultural heritage and global business. Guangdong Jiaying Pharmaceutical Co., Ltd., a publicly-traded firm, took center stage not just to display its traditional remedies, but to signal a much larger ambition: positioning Hakka medicine, a distinct branch of Traditional Chinese Medicine (TCM), as a viable export for the global health market. This move is more than cultural promotion; it's a calculated investment in a future where ancient healing traditions are validated by modern science and backed by corporate strategy.

From Regional Staple to Public Company

While the press release paints a picture of cultural inheritance, Guangdong Jiaying Pharmaceutical (SZSE: 002198) is a sophisticated commercial entity. Listed on the Shenzhen Stock Exchange since 2007, the company is a significant player in China's proprietary medicine market, with total assets exceeding 1 billion yuan. Its recent financial performance underscores a company in motion. In the first half of 2025, net profit surged by an impressive 254.33% year-on-year, a signal that its domestic strategy is yielding substantial returns.

The company's portfolio is built on a foundation of well-established TCM products. Its star product, "Shuangliao Houfeng San" (Double-ingredient Throat Wind Relief Powder), is not just a relic; it's a nationally protected variety of Traditional Chinese Medicine, granting it a significant competitive moat within China. This product, alongside others for colds, orthopedics, and general wellness, already has a distribution network spanning mainland China, Southeast Asia, and even reaching into European and American markets.

Therefore, the showcase at the Hakka convention was less an introduction and more a strategic declaration. By anchoring its identity to the unique narrative of Hakka medicine—a fusion of northern Chinese medical theory and southern herbal practices forged through centuries of migration—the company is crafting a powerful brand differentiator. In a crowded global wellness market, a compelling story rooted in a unique cultural heritage can be as valuable as a patent.

Blending Ancient Wisdom with Modern Science

The true depth of Jiaying Pharmaceutical's strategy lies in its "inheritance, innovation, and development" model. The company is actively working to bridge the gap between traditional knowledge and the stringent demands of the modern pharmaceutical industry. This isn't just talk; it's backed by concrete investments in research and development that aim to diversify its pipeline and build scientific credibility.

A key indicator of this forward-looking approach is the company's "4+4" strategic plan, which aims to balance its core TCM business with the development of chemical generic drugs. Recent partnerships exemplify this dual focus. In May 2025, a subsidiary inked a deal with Hunan University of Chinese Medicine to co-develop an innovative TCM drug, "Juanbi Lijieqing Granules," for treating gout and hyperuricemia—conditions with a large and growing global patient base. This move directly addresses the need for modern clinical data to support traditional formulas.

Simultaneously, the company is pushing into Western-style pharmaceuticals. An August 2025 announcement detailed R&D agreements to develop Bilastine tablets, a next-generation antihistamine, alongside other projects targeting high uric acid and heart failure. This diversification strategy mitigates the risks associated with the long and arduous path of getting TCM accepted internationally while creating new revenue streams. By investing in a pipeline of both modernized TCM and conventional generic drugs, Guangdong Jiaying is hedging its bets and building a more resilient corporate structure for long-term growth.

The Global Gauntlet: Navigating Hurdles to Internationalization

Exporting a medical tradition is far more complex than exporting a consumer good. The path to internationalizing Hakka medicine is fraught with regulatory, scientific, and cultural challenges. Western regulatory bodies like the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) demand rigorous, double-blind clinical trials and standardized manufacturing processes that are often at odds with the holistic and personalized nature of TCM.

This is the gauntlet that Guangdong Jiaying Pharmaceutical must navigate. Its investment in academic partnerships and the development of new drugs with clear clinical endpoints is a direct attempt to generate the kind of evidence-based data that Western regulators require. By targeting specific ailments like gout, the company can design trials that meet international standards, potentially leading to a breakthrough for a TCM-derived product.

However, the company's journey is not without its own internal complexities. In November 2025, the firm and its senior executives received a warning from regulatory authorities for information disclosure violations related to financial support for unaffiliated companies and undisclosed related-party transactions. While not directly related to its products, such governance issues can impact investor confidence and highlight the operational discipline required of a publicly-listed company with global aspirations. These challenges underscore the tightrope walk Jiaying must perform: maintaining corporate transparency and modern governance while managing a complex strategy of cultural promotion and scientific innovation.

The World Hakka Entrepreneurs Convention serves as an ideal platform in this context. It allows the company to leverage the "soft power" of cultural affinity within the global Hakka diaspora, potentially opening doors for distribution and partnerships in markets where Hakka communities have a strong presence. This cultural connection can act as an initial beachhead, creating market acceptance and demand that can then be supported by a growing body of scientific validation. The strategy appears to be one of building a global presence by intertwining cultural narrative with robust scientific and corporate diligence, a necessary combination for any traditional practice seeking a place on the world stage.