Gelonghui January 19丨Teyi Pharmaceutical (002728.SZ) was surveyed by a specific target on January 18, 2024, on “Is the raw material price of Cough Remedies relatively stable?” The company replied that the main raw material for cough medicine tablets is an extract extracted from poppy shells. The poppy shells purchased by the company are purchased from the national agricultural reclamation in Gansu according to the purchase application approved by the State Drug Administration. The price is set by the National Development and Reform Commission, and the adjustment is small; overall, the procurement costs of other Chinese herbal medicines purchased by the company are on an upward trend, but the company generally formulates raw material procurement plans based on market demand and raw material supply and demand. Under the condition of ensuring the quality of delivery, procurement costs are controlled, and the company's operating costs are reduced. As a result, the cost of cough medicine products has not increased much, and their gross sales margin has remained stable.