On the evening of August 29, traditional Chinese medicine leader Yunnan Baiyao Group Co.,Ltd. (000538.SZ) released its 2025 interim report, with the company's performance reaching record highs for the same period and net profit growing against market trends. In the first half of the year, the company achieved operating revenue of 21.257 billion yuan, representing a year-on-year increase of 3.92%. Net profit attributable to shareholders reached 3.633 billion yuan, up 13.93% year-on-year, setting a historical high for the same period. Non-GAAP net profit attributable to shareholders totaled 3.461 billion yuan, increasing 10.40% year-on-year, also reaching a record high for the corresponding period.
**Substantial Cash Dividend Distribution**
The company's weighted average return on equity for the period stood at 9.09%, marking the highest level for the same period in nearly eight years. Operating cash flow reached 3.961 billion yuan, representing a 21.45% increase compared to the previous year.
Alongside its strong performance growth, Yunnan Baiyao Group plans to implement a special dividend distribution. On August 29 evening, the company disclosed an announcement regarding its 2025 special dividend proposal, stating that it intends to distribute a cash dividend of 10.19 yuan per 10 shares (pre-tax) to all shareholders. The total dividend amount is approximately 1.818 billion yuan, accounting for 50.05% of the company's net profit attributable to shareholders in the first half of 2025. The dividend proposal remains subject to approval by the shareholders' meeting.
As of the market close on August 29, Yunnan Baiyao Group's stock price closed at 57.58 yuan per share, with a market capitalization of 102.7 billion yuan.
**Core Product Spray Revenue Exceeds 1.4 Billion Yuan**
Among the company's core product series, Yunnan Baiyao aerosol spray achieved sales revenue breakthrough of 1.453 billion yuan, representing an increase of over 20.9% year-on-year. Additionally, Yunnan Baiyao plaster, capsules, adhesive bandages, and powder products all demonstrated significant growth compared to their sales revenue in the corresponding period of the previous year.
Meanwhile, the health products business segment, centered on toothpaste products, generated operating revenue of 3.442 billion yuan, up 9.46% year-on-year. According to Nielsen retail research data, Yunnan Baiyao toothpaste ranked first in domestic omni-channel market share during the first half of 2025.
Regarding the commercial segment, Yunnan Baiyao reported that during the reporting period, Yunnan Provincial Pharmaceutical Co., Ltd. implemented multiple initiatives and achieved main business revenue of 12.164 billion yuan, with net profit reaching 351 million yuan, up 17.75% year-on-year.
**"Chain Leader" Industrial Cluster**
In its announcement, Yunnan Baiyao Group stated that the Yunnan Provincial Committee and Government place high importance on the development of the traditional Chinese medicine industry, positioning it as the main focus of Yunnan's plateau characteristic agriculture and important content for strengthening the "resource economy." The "Yunnan Province Traditional Chinese Medicine Industry High-Quality Development Three-Year Action Plan (2025-2027)" proposes building an industrial cluster with Yunnan Baiyao Group as the "chain leader" to strengthen and expand the traditional Chinese medicine industry.
The 2025 interim report shows that Yunnan Baiyao Group's traditional Chinese medicine resources business segment achieved external revenue of 914 million yuan, representing approximately 6.3% growth year-on-year on a comparable basis. The company will fulfill its responsibility as the "chain leader" of Yunnan's traditional Chinese medicine industry, comprehensively promoting the "six unified" operational model covering planting planning, seed source research and development, planting standards, origin processing, procurement and sales, and management to build a traditional Chinese medicine industrial cluster.
Furthermore, in seed innovation, Yunnan Baiyao Group has achieved complete coverage of ten major Yunnan medicine innovative seed sources, added management of over 7,000 acres of new GAP (Good Agricultural Practice) bases, and the cross-border traditional Chinese medicine business "Digital Smart Cloud Medicine Platform" transaction volume exceeded 1 billion yuan.
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