Guangzhou Baiyunshan Pharmaceutical Holdings Company (874) Q4 2024 earnings summary

Executive summary

• Operating revenue for 2024 was RMB74.99 billion, down 0.69% year-over-year; net profit attributable to shareholders was RMB2.84 billion, down 30.09% year-over-year.

• Decline in profit mainly due to weak demand, industry transformation, policy changes, competition, and a RMB386 million impairment on Yixintang Pharmaceutical investment.

• The company remains a leading player in TCM, pharmaceutical manufacturing, distribution, health products, and medical care, with a broad product portfolio and strong brand presence.

Financial highlights

• Net profit attributable to shareholders: RMB2.84 billion, down 30.09% year-over-year.

• Operating revenue: RMB74.99 billion, down 0.69% year-over-year.

• Net cash flow from operating activities: RMB3.44 billion, down 16.11% year-over-year.

• Basic EPS: RMB1.744, down 30.09% year-over-year.

• Gross profit margin of principal operations: 16.57%, down 2.04 percentage points year-over-year.

Outlook and guidance

• The pharmaceutical market is expected to continue expanding, supported by national policies, aging population, and increased health awareness.

• The company will focus on strengthening its pharmaceutical supply chain, expanding healthcare services, accelerating digital transformation, and enhancing R&D and internationalization in 2025.

• Capital expenditure for 2025 is planned at RMB2.014 billion, mainly for R&D and production base upgrades.