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Dong-E-E-Jiao, a manufacturer of traditional Chinese medicine (TCM) products, has rebounded from a slump.

In its H1 report released on August 6, Dong-E-E-Jiao reported operating revenue of 2.2 billion yuan (US$300 million), an 18.7-percent YoY increase. Net profit attributable to shareholders reached 531 million yuan, up 72.3 percent.

Dong-E-E-Jiao attributes its growth to core business development, principally in ejiao (donkey-hide gelatin) vital to TCM, and the success of ejiao syrup.

Dong-E-E-Jiao was founded in 1952 as a subsidiary of China Resources (Holdings) Company Limited (CRC) and is China’s largest producer of donkey-hide gelatin. It barely survived 2019, when excessive price rises resulted in massive stockpiles and plummeting margins, reversing a 12-year growth streak.

The company has since been through a management shakeup, repositioned itself to appeal to young consumers and transitioned to healthy consumer goods as well as TCM, turning a profit now for three straight years.