Baiyunshan Performance Rebounds: Some Major Products Face Sales Pressure as Company Accelerates Transformation

Questioning AI · Are sales of some major products under pressure? Can innovative drug development turn the situation around?

Last night, Baiyunshan (600332.SH, 00874.HK) released its annual report. Compared to a 30% decline in 2024, the company’s performance is expected to stabilize and rebound in 2025.

The annual report shows: Baiyunshan’s revenue reached 77.656 billion yuan, up 3.55% year-on-year; net profit attributable to shareholders was 2.983 billion yuan, up 5.21%.

Among Baiyunshan’s five main business segments, the pharmaceutical commercial sector, which accounts for over 70% of the company’s revenue, achieved 56.983 billion yuan in revenue in 2025, a 6.21% increase. The segments of modern Chinese medicine, chemical medicine technology, natural beverages, and other businesses generated revenues of 6.776 billion yuan, 2.482 billion yuan, 9.672 billion yuan, and 1.499 billion yuan respectively, with declines of 6.54%, 4.13%, 0.34%, and 5.36% year-on-year.

Specifically, in Baiyunshan’s pharmaceutical manufacturing sector, some major products still face sales pressure.

Among the ten key products listed in the company’s annual report, five—citrus sildenafil tablets, Xiao Chai Hu granules, Kidney Nourishing and Fetal Nourishing Pills, Ake Fu series, and Cefuroxime Sodium for injection—showed declining sales in 2025. Xiao Chai Hu granules and Cefuroxime Sodium for injection experienced double-digit decreases, down 19.59% and 25.85% respectively.

The decline in Xiao Chai Hu granules is mainly due to decreased market demand; the drop in Cefuroxime Sodium for injection’s sales is due to the expiration of national centralized procurement contracts, with increased bidders leading to fierce market competition.

The company states that it is further strengthening its core products, exploring dormant products, and cultivating blockbuster new drugs. Sales of products such as Xiao Ke Tang, Baoji series, Amoxicillin series, Angong Niuhuang Pills, Shujin Jianyao Pills, anti-inflammatory and analgesic plasters, methyl orange glycoside, and candesartan cilexetil tablets have seen rapid year-on-year growth.

In recent years, some traditional pharmaceutical companies leading in innovative transformation have seen growth in innovative drug sales revenue and external licensing income, becoming new performance drivers. In contrast, traditional companies focused on Chinese medicine face challenges such as insufficient innovation capacity, aging product structures, and intensified market competition.

To address these pressures, Baiyunshan is accelerating its transformation towards modernization, technological advancement, digitalization, and internationalization. In 2025, Baiyunshan’s core business revenue from Hong Kong, Macau, and overseas markets increased by 6.93% year-on-year; gross profit margin reached 12.16%, an increase of 4.49 percentage points.

In 2025, Baiyunshan established specialized investment platforms such as Guangyao Phase II Fund, Guangyao Liwan Fund, and Guangyao Kangkai Fund, focusing on strategic directions like innovative drugs, modern Chinese medicine, and high-end medical devices. Notably, Guangyao Phase II Fund strengthened its strategic layout in East China’s pharmaceutical distribution network by acquiring an 11.04% stake in Nanjing Pharmaceutical.

Recently, Baiyunshan’s parent company, Guangzhou Pharmaceutical Group, announced that during the 14th Five-Year Plan period, it expects to invest between 10 billion and 15 billion yuan in R&D, and between 20 billion and 30 billion yuan in industry investments and mergers and acquisitions.

(This article is from Yicai)