JIUQUAN, China, May 17, 2024 /PRNewswire/ -- Qilian International Holdings Group Limited (NASDAQ: QLI) ("Qilian" or the "Company"), a pharmaceutical and chemical products manufacturer headquartered in China, today announced: In the past two years, Qilian International Holdings Group Limited has encountered significant challenges stemming from the continuous shrinkage in market demand for its oxytetracycline products, coupled with a persistent decline in market prices and escalating environmental protection standards. These factors have collectively led to a substantial increase in the production and operational costs for Qilian International, consequently impairing the profitability of the oxytetracycline industry. In response to these challenges and in an effort to optimize resource allocation and enhance the company's overall efficiency, Qilian International is planning to reorient its industrial strategy in accordance with the prevailing market conditions and its long-term development objectives.
Firstly, Qilian International will reduce its investment in the oxytetracycline sector. The company plans to substantially decrease its capital allocation to the oxytetracycline industry, aiming to mitigate production and operational costs as well as to manage business risks more effectively.
Secondly, the company intends to bolster its investment in the heparin sodium sector. Recognized for its critical role as a biomedical raw material, heparin sodium offers extensive application prospects and a promising market outlook within the medical field. Qilian International is committed to significantly enhancing its investment in the research and development, production, and market development of heparin sodium. This strategic move is designed to refine the production techniques and expand the scale of heparin sodium production, thereby addressing the escalating market demands.
Thirdly, the company plans to develop a series of licorice products. Qilian International will closely monitor market trends and augment its investment in the research, production, and marketing of licorice-based products, including licorice extract, fluid extract, and compound licorice lozenges. This strategic expansion is intended to broaden the company's market share and enhance profitability.
The fourth is to invest in the financial field (stocks, wealth management, etc.) and software development. With the rapid development of financial technology, the development of financial products and software in the financial field has become a new growth point. The company will actively seize the opportunity to invest appropriately in financial products in the financial field, and gradually increase investment in software development to promote the diversified development of the company.
Adjusting its industrial orientation is a key initiative for the company to proactively adapt to market changes and optimize resource allocation. In the future, through the implementation of the adjustment plan, the company will continue to innovate the business concept, further enhance the overall competitiveness and profitability, promote the sustainable and healthy development of the company, and create greater value for the majority of shareholders and partners.
About Qilian International Holding Group Ltd
Qilian International Holding Group Limited, headquartered in Gansu, is a leading manufacturer of pharmaceutical and chemical products in China. It focuses on the development, manufacture, marketing and sale of licorice products, oxytetracycline products, traditional Chinese medicine derivatives product, heparin product, sausage casings, and fertilizers. The Company's products are sold in more than 20 provinces in China. For more information, visit the Company's website at https://www.qilianholdings.com
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
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Media contact:
JIANG YUBIN
595090812@qq.com
xinchen@qiliancorp.com