Analysis of Pien Tze Huang's Internationalization Strategy: Strategic Considerations Behind the Decline of Foreign Revenue Share to 3.93%

According to the latest data, Pien Tze Huang’s foreign revenue share has undergone significant changes. In 2004, the company’s foreign revenue share was as high as

, but by 2024 it had dropped to [1]. Nevertheless, the scale of Pien Tze Huang’s overseas business revenue has reached , an increase of more than 4 times compared to 114 million yuan in 2004[1].

From the company’s overall financial performance, as of December 2025, Pien Tze Huang’s total market capitalization is approximately

, the current stock price is $170.20, the price-earnings ratio is 42.44 times, and the price-to-book ratio is 7.10 times[0]. The company’s latest financial report shows that the revenue in the third quarter of 2025 was $2.06 billion, and the actual earnings per share was $1.14, which was 25.49% lower than expected[0].

Pien Tze Huang’s internationalization strategy started early. Since 1988, its products have been exported to

, with an average annual export earnings exceeding 10 million US dollars[1]. During that period, overseas markets were an important source of revenue for Pien Tze Huang, and the company established a good market foundation in overseas Chinese communities relying on its unique product advantages and traditional Chinese medicine brand influence.

Over time, Pien Tze Huang’s internationalization strategy has shown obvious adjustments:

• 2004
  : Foreign revenue share 44.96% (historical high)[1]
• 2016 onwards
  : Foreign revenue share began to be below 10%[1]
• 2024
  : Foreign revenue share dropped to 3.93%[1]

This change does not mean the company has abandoned the international market, but reflects a fundamental shift in strategic focus.

The main reason for the decline in foreign revenue share is the

. Data shows that Pien Tze Huang’s domestic revenue has increased significantly from the 2004 level, reaching in 2024, far exceeding foreign revenue[1].

This growth has a certain correlation with the real estate cycle. From 2015 to 2021, national commercial housing sales increased from 8.42 trillion yuan to 17.02 trillion yuan, with a compound annual growth rate of 12.45%; during the same period, Pien Tze Huang’s domestic revenue increased from 958 million yuan to 3.868 billion yuan, with a compound annual growth rate of up to

[1]. Even after the real estate market began to decline in 2022, Pien Tze Huang still maintained high growth, with a compound growth rate of from 2021 to 2024[1].

Pien Tze Huang relies on its unique advantage of “national top-secret formula” and market positioning of “Moutai in Medicine” to establish strong brand premium capabilities in the domestic market[2]. The company extends to big health fields such as cosmetics and oral care around the “Pien Tze Huang” IP, continuously monetizing its brand value[2].

Pien Tze Huang adopts a channel strategy of “high-endization and scarcity”, forming a differentiated positioning with competitors such as Yunnan Baiyao[3]. This strategy focuses more on deep cultivation of the domestic high-end consumer market rather than large-scale overseas expansion.

Based on analysis, Pien Tze Huang’s internationalization strategy shows characteristics of optimization adjustment rather than abandonment:

1. Absolute value of overseas business is still growing
   : From 114 million yuan in 2004 to 458 million yuan in 2024 (calculated according to this caliber), the overseas business itself has not shrunk[1]

2. Market Focus Strategy
   : The company chooses to concentrate resources on the domestic market as the core growth engine while maintaining brand presence in overseas markets

3. Extension to Big Health Fields
   : The company is extending to big health fields such as cosmetics and oral care around the “Pien Tze Huang” IP, which focuses more on domestic monetization of brand value[2]

From the industry perspective, the going global of traditional Chinese medicine has moved from product trade and clinic services to a new stage of integration with local regulations, technical standard export and brand mergers and acquisitions[2]. Enterprises with international vision and cross-cultural operation capabilities will open up broader growth ceilings.

Pien Tze Huang’s case shows that traditional products need to achieve global transformation through concept reconstruction and scientific endorsement[4]. The case of LANSHIN brand founded by a Chinese-American TCM physician successfully entering the European and American high-end markets through cultural translation strategy provides a paradigm reference for the internationalization of traditional Chinese medicine[4].

• Channel Inventory Optimization
  : As of the end of the third quarter of 2025, Pien Tze Huang’s inventory has tripled compared to the same period in 2021 and increased by 34.90% compared to the same period in 2024; attention should be paid to the progress of channel inventory reduction[1]
• Terminal Sales Improvement
  : Promote terminal sales to reduce channel pressure against the background of consumer market recovery

1. Internationalization 2.0
   : Consider learning from the cultural translation strategy of brands like LANSHIN, converting traditional efficacy concepts such as “anti-inflammatory and detoxification” into modern medical language, seeking international certification and clinical verification[4]

2. R&D Innovation Driven
   : The company is actively promoting the project approval of 2 new drugs, and推动 (promoting) the R&D projects of 18 in-research new drugs and classic prescriptions, including 5 Chinese medicine category 1.1, 1 Chinese medicine category 1.2 and 4 chemical medicine category 1 entering the clinical research stage[5]

3. Big Health Field Expansion
   : Continue to deepen brand extension in big health fields such as cosmetics and oral care to realize diversified monetization of brand value

[1] NetEase Finance - Pien Tze Huang’s foreign revenue share once reached 45% (https://www.163.com/dy/article/KHS18QKN0552R1XU.html)

[2] Sina Finance - 2025 Traditional Chinese Medicine Strength Enterprise Inventory: Traditional Giants Hold Their Ground, Innovation and Internationalization Lead the New Stage (https://cj.sina.cn/articles/view/5952915720/162d2490806702yd9g?froms=ggmp&vt=4)

[3] Shanxi Evening News - Sell More but Earn Less: Growth Anxiety of Centennial Pharmaceutical Enterprise Yunnan Baiyao (https://app-new.sxwbs.com/pages/2025/12/05/9bf0b086cc3d4bedb4e8534f70ff3547.html)

[4] Chuhai Wang - TikTok Shop Opening, Selection and Operation Practical Tutorial (https://m.chwang.com/tiktokshop/latest)

[5] 21st Century Business Herald - Policy and Industry Resonance: Traditional Chinese Medicine Industry Accelerates Transformation to Innovation (https://www.21jingji.com/article/20251225/herald/16bd6b3fcc72f011f852e8916229e401.html)

[0] Jinling API Data - Pien Tze Huang Company Overview and Financial Indicators