Guangzhou Baiyunshan Pharmaceutical Holdings Company (874) Q2 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 reached RMB41.83 billion, up 1.93% year-over-year, while net profit attributable to shareholders declined 1.31% to RMB2.52 billion due to weaker performance in certain segments and increased competition.

• The company maintained a strong industry position with a diversified portfolio in TCM, pharmaceuticals, health products, and distribution, and continued to expand its international footprint and digital transformation initiatives.

• Digital transformation, innovation, and internationalization were prioritized, with new product launches, overseas registrations, and strategic partnerships expanding the global footprint.

• An interim cash dividend of RMB0.40 per share (totaling RMB650.3 million) was approved, to be paid before the end of September 2025.

Financial highlights

• Operating revenue: RMB41.83 billion (+1.93% YoY); net profit attributable to shareholders: RMB2.52 billion (-1.31% YoY); total profit: RMB3.09 billion (-4.30% YoY).

• Net cash flow from operating activities: -RMB3.40 billion, a significant decrease due to lower receivables collection and higher procurement payments.

• Basic EPS: RMB1.548 (-1.31% YoY); net assets per share: RMB23.23 (+5.17% from end-2024).

• Gross margin for principal operations: 18.19% (down 0.7 percentage points YoY).

• Segment revenue: Great Southern TCM RMB5.24 billion (-15.23% YoY), Great Health RMB7.02 billion (+7.42% YoY), Great Commerce RMB29.0 billion (+4.25% YoY).

Outlook and guidance

• The company will focus on endogenous growth and external expansion, strengthen product development, accelerate internationalization, and continue digital transformation in H2 2025.

• Capital expenditure for 2025 is expected to be RMB2.02 billion, with RMB0.65 billion spent in H1.

• No plans for new fundraising in the next year; future fundraising will be assessed based on market and strategic needs.

• Continued internationalization, targeting Southeast Asia, Middle East, North America, and Europe, with emphasis on TCM product registration and local brand building.

• Ongoing digital transformation and innovation to enhance productivity and smart manufacturing.