Baiyunshan (00874) announced interim results, net profit of 2.55 billion yuan decreased by 9.31% year-on-year

According to the Zhitong Finance App, Baiyunshan (00874) announced interim results for the six months ended June 30, 2024. The group achieved operating income of 41,043 billion yuan (RMB, same below) during the period, an increase of 2.68% over the previous year; net profit to mother was 2.55 billion yuan, a decrease of 9.31% year on year; and basic earnings per share were 1.568 yuan.

According to the announcement, the Group's key activities during the reporting period include:

Gather resources and strong varieties to consolidate the development foundation of the Danan Pharmaceutical sector. During the reporting period, the Danan Pharmaceutical sector continued to explore the market, continuously promote “1+4" marketing integration to promote the steady development of the terminal market; give full play to the advantages of brand linkage, increase the promotion of famous products and enhance brand influence; promote the organic integration of the digital economy with medicine and health, open up new marketing paths, and promote the continuous development of e-commerce business; increase international expansion efforts to accelerate the pace of fashionable and international development of traditional Chinese medicine products. During the reporting period, sales revenue of products such as Snake Tan Chuanbei Loquat Cream, Honey Chuan Bei Loquat Cream, Wind Oil Extract, Xiaochaihu Granules, Kidney Nourishing Pills, Cefuroxime Sodium for Injection, Waist and Kidney Pills, Ammonia and Huangmin Capsules, Qingkailing Series, Yin and Lung Cleansing Cream, etc., achieved the same and relatively rapid growth.

Expand the market, develop new products, and enhance the development momentum of the health sector. In the first half of 2024, the health sector strives to promote restorative growth through measures such as focusing on market demand, cultivating diverse new products, comprehensively developing the ready-to-drink market, continuing to develop e-commerce channels, and developing international markets, so as to reduce the impact of factors such as macroeconomic fluctuations, rainy weather, and intense industry competition. In the first half of 2024, Wang Laoji Health launched new products such as rose flavor, freesia flavor, ear root flavor, and herbal tea to further enrich the product matrix; Wang Laoji's English logo launch campaign was carried out in an orderly manner to speed up the international market layout.

Strengthen the construction and brand building, and open up space for the development of the large medical sector. In the first half of 2024, Baiyunshan Hospital established three new internal medicine departments with “neurological, respiratory, and chronic and severe rehabilitation” as the main diagnosis and treatment direction, to accelerate the construction of three major centers, including a chest pain center, trauma center, and stroke center, comprehensively strengthen the hospital's overall discipline construction, and continue to improve its comprehensive strength. The internal medicine ward of Baiyunshan Hospital of Traditional Chinese Medicine, Traditional Chinese Medicine Gynecology Clinic, TCM Surgery Clinic, and Traditional Chinese Medicine Orthopedic Clinic have been completed and approved. By increasing publicity and marketing efforts and deepening cooperation between upstream and downstream industries, Runkang's subsidiary continuously enhances brand influence and continues to increase occupancy rates.

Strengthen scientific research, promote innovation, and continuously improve scientific research and development capabilities. In the first half of 2024, the Group spent a total of 391 million yuan on R&D and obtained 12 pharmaceutical-related approvals, including tadalafil tablets, gliclazide tablets, and ceganlithin oral solution, including 6 production approvals for chemical raw materials and formulations, 4 supplementary consistency evaluation applications, and 2 clinical approvals. Gansu Guangyao Baiyunshan Traditional Chinese Medicine Technology Co., Ltd. and Baiyunshan Biotech passed the provincial qualification certification. The company and joint ventures received a total of 7 international awards and national association awards. Among them, Baiyunshan and Huang Company's “Integrated Innovation and Support System Creation and Application of Traditional Chinese Medicine Quality Inspection Technology” project won the second prize of the National Science and Technology Progress Award, and Baiyunshan Pharmaceutical General Factory's famous proprietary Chinese medicines - antiviral softgels for treating viral respiratory infections won the gold medal at the 49th Geneva International Invention Exhibition.