Guangyuyuan executives quickly complete additional holdings! After state-owned assets take the helm, the century-old JinYao releases multiple positive signals

On April 3, Jinsqi Enterprises Guangyuyuan (600771) released an announcement on the results of its share buy-in. Within only 8 days of planned disclosure, 6 key directors, supervisors, and senior executives completed a total buy-in of 120k shares using their own funds, for a total expenditure of 2.053058 million yuan. This buy-in has also become yet another signal of confidence released by management after the company’s state-owned assets fully took the helm. As a century-old time-honored TCM brand rooted in Shanxi, Guangyuyuan has been making frequent moves recently—from board re-election to share repurchases, and then to product refresh—this old pharmaceutical enterprise is entering a new stage of development.

《Jincai Jingshang》 noticed that the buy-in entities this time include directors, executive vice president and CFO Ren Yan, as well as five vice presidents including Lü Hongyu and Tang Yun. Before the six executives’ buy-ins, none of them held company shares. In the end, each of them precisely bought 20k shares. After the buy-in, each person’s shareholding was 0.0041%, and the total accounted for 0.0245% of the company’s total share capital. This buy-in did not set a price range, and from the plan disclosure on March 27 to completion on April 3, it was finalized in just 8 days. Compared with the original planned implementation period of 1 month, the pace was clearly accelerated, showing that management recognizes the company’s current value.

This high-level executives’ share buy-in is not an isolated move, but a continuation of a series of capital actions after Guangyuyuan’s state-owned assets took the helm. On March 18, the company completed the re-election of its 8th board of directors. Li Xiaojun, Party Secretary of the Shennong Technology Group (100% controlled by the Shanxi Provincial SASAC), was appointed chairman. The key members of the new board all have a Shanxi state-owned assets background, indicating that Guangyuyuan has fully completed its “state-owned asset-led” transformation. Only 9 days after the board re-election, the company issued two announcements in succession, stating that it planned to repurchase shares with 30 million to 50 million yuan, and at the same time disclosed the executives’ share buy-in plan, forming a one-two combination of “repurchase + buy-in.” As of April 1, the company had already completed its first share repurchase, spending 5.08 million yuan to repurchase 300k shares, demonstrating a notably efficient capital-action rollout.

As one of the oldest TCM enterprises in China that has the longest history of uninterrupted inheritance, Guangyuyuan is rooted in Shanxi. Its core products, Gulingji and Dingkunkdan, are national-level intangible cultural heritage, and its business covers three segments: traditional Chinese medicine, premium Chinese medicine, and nourishing liquor. In the first three quarters of 2025, the company achieved revenue of 120k yuan and net profit attributable to the parent of 20k yuan, with both year-on-year growth. Among them, revenue from traditional Chinese medicine accounted for 72.19%, still serving as the core pillar; revenue from premium Chinese medicine accounted for 24.20%, becoming an important driver of earnings growth.

《Jincai Jingshang》’s analysis finds that over the five years since state-owned capital took control, Guangyuyuan has gradually moved out of the operating difficulties it previously faced. Its financial structure has continued to improve. In the third quarter of 2025, its asset-liability ratio was about 32.06%, and net cash flow from operating activities reached 201 million yuan, with steady improvement in cash flow conditions. After the new board was in place, the company’s strategic layout also became clearer. On the one hand, relying on Shanxi’s advantageous resources in Chinese medicinal materials, it is creating the “Jin medicine” brand and promoting the integration of medical and pharmaceutical resources within the province. On the other hand, it is accelerating product refresh, keeping up with consumption trends.

At the Chengdu Spring Festival Fair for wine and spirits held at the end of March, Guangyuyuan unveiled a brand-new product matrix for the Gulingji liquor, introducing the 28° light nourishing “Xiao Pao” series and the Zunyang Yujiao gift-granting series. They focus respectively on young consumers’ in-home drinking scenarios and high-end gifting needs, promoting a transformation of nourishing liquor from a “traditional medicinal liquor” to a “symbol of a healthy lifestyle,” which is also an important part of the company’s layout in the field of big health. In addition, the company has continued to strengthen efforts on the R&D front. Not only has it promoted the second development of classic well-known prescriptions, it has also completed the application for marketing approval of a Class 3.1 new Chinese patent medicine—Banxia Xiexin Tang granules—driving the integration of traditional Chinese medicine with modern technology.

From an industry background perspective, the traditional Chinese medicine and pharmaceutical industry is entering a period of development dividends. In 2024, the industry showed a pattern of “leading players dominating, and differentiated breakthroughs,” while Guangyuyuan has leveraged brand accumulation and exclusive products to build differentiated advantages. This executives’ share buy-in is both management’s endorsement of the company’s intrinsic value and reflects an increase in the certainty of the company’s development after state-owned assets took the helm. The announcement makes it clear that this buy-in will not change the controlling shareholder and the actual controller of the company, nor will it affect its listing status. The buy-in entities also commit not to reduce their holdings within the statutory period, stabilizing market expectations.

What is worth noting is that on April 3, Guangyuyuan’s share price rose by 1.85%, with net inflows of 11.3356 million yuan from main fund channels. For two consecutive days, it received additional shares purchased by main funds, and the market responded positively to a series of actions by the company in the near term. As a core flagship in Shanxi’s traditional Chinese medicine industry, after full state-owned capital control, Guangyuyuan is activating the vitality of its century-old brand by taking multiple measures at once—improving governance, carrying out capital operations, and refreshing products. In the future, how to further integrate Shanxi’s traditional Chinese medicine resources and turn brand advantages into market advantages will become the core issue for this century-old “Jin medicine.” The capital market will also continue to pay attention to how its performance is realized.

(All data in this article come from public information such as Guangyuyuan announcements, Sina Finance, and Shanxi News, and do not constitute investment advice)