This formula was first recorded in the 'Analytic Collection of Medical Formulas' (yi fang ji jie) by Wang Ang, 1682. However, it was originally developed by Shao Ying-jie during the Ming dynastic period. Over the subsequent centuries it has been widely used both in its original form and also as the basis for a variety of different formulas aimed at restoring hair growth and reversing premature greying of the hair.

Alopecia is mostly caused by deficiency of the Liver and Kidney, leading to failure of the Blood to nourish the hair. The striae (cou li) of the scalp subsequently become loose and Wind may then invade the skin of the scalp. Therefore, Blood deficiency, together with invasion by exogenous Wind are the main underlying factors in hair loss.

The original formula name means the 'seven treasures elixir for beautiful hair (or beard)', as it was composed of seven ingredients. This variant is enhanced with additional ingredients: Astragalus (huang qi), Ginseng (ren shen) and Rehmannia (shu di huang).

The first two strongly tonify the Qi (to benefit the health Qi (zheng qi) and promote Blood production), while the third herb nourishes the Liver and Kidney Yin, enriches the Kidney Essence and nourishes the Blood. Anemone rhizome (shi chang pu) and Polygala root (yuan zhi) are included as envoys to guide the actions of the formula to the upper body, i.e. the head.

The synergistic actions of the herbs are as follows:

• Mulberry fruit (sang shen zi), Angelica root (dang-gui), Rehmannia root (shu di huang), Lycium fruit (gou qi zi): nourish the Blood.
• Mulberry fruit (sang shen zi), Epimedium herb (yin yang huo), Rehmannia root (shu di huang), Lycium fruit (gou qi zi), Cuscuta seed (tu si zi), Achyranthes root (huai niu xi), Cullen seed (bu gu zhi): nourish the Liver and Kidney Yin and enrich the Kidney Essence (to support the Blood).
• Mulberry fruit (sang shen zi), Lycium fruit (gou qi zi), Cuscuta seed (tu si zi): secure the Kidney Essence (to allow it to build up without loss)
• Astragalus root (huang qi), Panax ginseng root (ren shen), Wolfiporia cocos (fu ling): strongly tonify the Qi (to benefit the health Qi (zheng qi) and promote Blood production)