On the evening of October 24, Dong-E-E-Jiao Co., Ltd. (hereinafter referred to as "the company") released its third-quarter report for 2025. The report indicates that in accordance with the retrospective adjustment of data (following the merger of companies under the same control), the company achieved an operating income of 4.766 billion yuan in the first three quarters, a year-on-year increase of 10.10%. It reported a net profit attributable to shareholders of listed companies of 1.274 billion yuan, up 10.58%; the net cash flow from operating activities amounted to 1.310 billion yuan; basic earnings per share reached 1.9781 yuan, a 10.35% increase year-on-year. In the third quarter alone, the company generated an operating income of 1.716 billion yuan, reflecting an 8.50% growth, with a net profit of 456 million yuan, rising 10.29% year-on-year.
The company's profitability continued to improve in the first three quarters, with the gross margin increasing by 3.33 percentage points to reach 73.69%. This growth is largely attributed to stable expansion in its core product matrix and a focused strategy on high-margin categories. The company effectively enhanced its overall profitability through the deepening of supply chain digital management and optimization of product structure.
In terms of expenses, the company has continuously advanced refined operations, keeping sales and administrative expenses within reasonable limits. Research and development expenses amounted to 145 million yuan in the first three quarters, a notable increase of 62.29%, primarily directed at building the company's R&D innovation system and nurturing extended products, highlighting its commitment to technological innovation and long-term competitiveness.
Furthermore, the company maintained a net cash ratio of 1.03 for the first three quarters, indicating improved operational efficiency and ongoing optimization of financial structure. Additionally, its debt-to-assets ratio remained low at 21.77%, signifying minimal repayment risk and laying a solid foundation for long-term development.
Stable and orderly pure sales at the terminal, with a solid foundation for core products
In recent years, the Chinese medicine industry has been propelled into a rapid path of innovative development, transitioning from "inheritance and protection" to "innovation-driven" strategies, thanks to comprehensive policy and market support. The company's core product matrix continued to play a pillar role in the first three quarters, with substantial growth in three major product lines: Dong-E-E-Jiao blocks, Compound Dong-E-E-Jiao Liquid, and Peach Blossom Ji Dong-E-E-Jiao Cake, further solidifying market share.
Data from China’s Sourcing and Supply Network indicated that in Q1 2025, Dong-E-E-Jiao's products ranked first and second in the top 20 brands of tonifying traditional Chinese medicine at urban pharmacies and online pharmacies in China, respectively. The Compound Dong-E-E-Jiao Liquid also ranked first in both the top 20 brands of internally consumed traditional Chinese medicine solutions in urban pharmacies and online pharmacies in Q1 2025. Specifically, Dong-E-E-Jiao blocks, the company's traditional competitive product, maintained its leading position in the OTC market with robust terminal sales performance. The ongoing high-end and youth-oriented strategies have effectively attracted a diverse consumer base. Concurrently, the Compound Dong-E-E-Jiao Liquid experienced continuous revenue growth driven by increased sales in hospitals and retail, winning the "West Lake Award - Most Popular Star Product in Pharmacies" at the 2025 Wuzhen Health Conference, enhancing its market influence.
Peach Blossom Ji Dong-E-E-Jiao Cake, representing the company's health consumer product line, accelerated market recovery through product innovation and marketing campaigns. The introduction of low-sugar certified products effectively boosted repeat purchase rates among female consumers. In April this year, it was successfully included in the "Sosotut Health Goodies" list, and the marketing project “Cross-border Joint Branding - Peach Blossom Ji × Winona × Chain Cross-sector Partnership” was awarded the “West Lake Award - Innovative Marketing Case.”
Overall, these three core products collaborated to promote the diversification of the company's revenue structure and enhancement of profitability, providing strong support for achieving annual targets.
Continuing to Drive Growth, Diversifying Brand Value
While solidifying its traditional main business, the company is actively developing a second growth curve, focusing on the silver economy and men's health sectors to inject new growth momentum into products like Dong-E-E-Jiao blocks.
Previously, the Ministry of Civil Affairs stated that China would accelerate the qualitative and quantitative expansion of the silver economy, which holds significant potential. It is projected that by 2035, the share of the silver economy in GDP will rise from 6% to 9%. Given its traditional blood-nourishing properties, Dong-E-E-Jiao blocks have widespread recognition among the elderly demographic. The company is expanding the middle-aged and elderly markets through product form innovation and channel deepening.
Men's health has been a key focus for the company in recent years. The company’s “Royal Weichang 1619” strategy emphasizes male health and wellness, establishing a matrix covering exclusive products such as brain-boosting and kidney-nourishing oral liquids, as well as medical insurance products including turtle shell glue and deer antler glue. Leveraging its core materials and technical advantages, the company has created health solutions targeting men's issues such as kidney deficiency and fatigue. Additionally, it introduced the “Zhuang Ben” Dong-E-E-Jiao Meat and Cistanche Raw Liquid, positioned as a plant-based health supplement for men’s vigor, and deepened its layout through a full industry chain model. In June, the “Zhuang Ben” series was granted brand authorization at the "I Have an Appointment with the Grassland" event organized by the Inner Mongolia Cultural and Tourism Department, enhancing brand cultural connotation and market recognition. With in-depth clinical research and market education, men's health products are expected to become a crucial growth driver for the company in the future.
Regarding brand development, the company continues to innovate in building its brand moat. In June, the company was once again listed among “China's Top 500 Most Valuable Brands,” with a brand value of 49.697 billion yuan. In August, it topped the “2025 Health China Brand Value List” for the eleventh time, with a brand value of 19.43 billion yuan; its products Dong-E-E-Jiao and Compound Dong-E-E-Jiao Liquid won the “New Era Gold Medal.” In September, the company ranked among the “Top 100 Most Valuable Chinese Brands” in the 2025 Kantar BrandZ, representing a significant rise in brand value within the healthcare sector. Additionally, the company was recognized as a "2025 AAA-rated Enterprise in Market Quality Credit," the highest honor in the domestic market quality credit evaluation system.
Moreover, the company actively contributes to agricultural sustainability through the integration of research and development in the donkey industry, developing deep-processing products, and providing technical training. It promotes ecological protection and industry chain upgrades through a million-acre Cistanche planting project in Alxa. In September, at the Phoenix Bay Financial Forum and the "2025 Phoenix Star Listed Company Awards" held in Guangzhou, the company received the “Most Socially Responsible Listed Company” award for its outstanding practices in sustainable development and innovative exploration in the field of social welfare.
Synergistic Industry Ecosystem Empowerment, Innovative Layouts for Overseas Expansion
China Resources Group, an important shareholder of the company, continuously empowers it at the capital, industrial chain, and governance levels, providing deep support for its strategic transformation and ecological building.
Through capital collaboration and industrial chain integration, China Resources Group is continually empowering the company. The company has invested in a 1 billion yuan pharmaceutical industry investment fund led by China Resources Pharma, focusing on tonifying traditional Chinese medicine and synthetic biology, laying the groundwork for future high-quality project incubation and strategic development. Furthermore, the company has reached strategic cooperation with China Resources Longdi to explore the overseas pathways for traditional Chinese medicine in the Belt and Road market, enhancing the in-depth integration of supply chains. In October of this year, Dong-E-E-Jiao's flagship health supplement store officially opened in Victoria Harbour, Hong Kong. As a pivotal move in its global layout, the company is enhancing its "cultural export" and "industry localization" strategies, providing a new bridge for products to enter Southeast Asia and the Belt and Road markets, forming a new strategic pattern of global influence driven by the "Hengqin-Hong Kong" dual-core model.
It is anticipated that, under the ecological empowerment of China Resources, the company will be able to advance its brand strategy with greater confidence. China Resources Pharma's expertise in research and development, internationalization, and capital operations will provide robust support for the company's innovative development, accelerating its role as an innovation engine in developing the traditional Chinese medicine health industry.
In summary, the company's performance in the first three quarters reflects a healthy development trend of "steady progress with improved quality and efficiency." The three core businesses achieved stable growth, and research and development investments, along with expense management, remain optimized. At the same time, the company proactively cultivates a second growth curve by strategically entering the silver economy and men's health sectors, leveraging capital and industry collaboration through the China Resources system to accelerate innovation incubation and international exploration. Looking ahead, as the strategic transformation deepens and the health ecosystem layout evolves, the company's comprehensive competitiveness and long-term investment value in the traditional Chinese medicine health sector are expected to be further consolidated and released.
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