Yunnan Baiyao Group (000538) H2 2024 earnings summary

Executive summary

• Achieved operating revenue of RMB 40.03 billion in 2024, up 2.36% year-over-year; net profit attributable to shareholders reached RMB 4.75 billion, up 16.02% year-over-year, and net profit after non-recurring items was RMB 4.52 billion, up 20.18% year-over-year, setting a historical high.

• Net operating cash flow increased 22.68% to RMB 4.30 billion; basic EPS was RMB 2.66, up 16.16% year-over-year; weighted average ROE rose to 11.99%.

• Total assets at year-end were RMB 52.91 billion; net assets attributable to shareholders were RMB 38.83 billion; asset-liability ratio was 26.55%.

• Total cash dividend for 2024 was RMB 4.28 billion, accounting for 90.09% of net profit.

Financial highlights

• Industrial revenue grew 5.30% year-over-year, accounting for 36.14% of total revenue; gross margin of industrial business was 65.93%, up 1.69 percentage points.

• Sales expenses decreased by 2.26% and management expenses by 1.98% year-over-year.

• Non-recurring profit and loss for 2024 was RMB 226 million, mainly from government subsidies and investment income.

• R&D investment reached RMB 348 million, with 619 R&D staff, up 17.46% year-over-year.

Outlook and guidance

• Focus on high-quality, sustainable growth, leveraging flagship products and secondary development of key varieties.

• Strategic plan for 2024-2028 aims to drive internationalization, digital transformation, and innovation in TCM and health products.

• Continued emphasis on cost reduction, efficiency improvement, and new growth drivers in both domestic and overseas markets.