In a conversation with Great-Sun Foods Co.,Ltd. President and Board Secretary Liu Yang, the company's strategic pivot into the pharmaceutical sector was detailed. The firm, originally built on fresh produce, is now leveraging its controlling stake in Shimei Pharmaceuticals to create a second growth engine.
Liu Yang, who comes from a medical family, emphasized that his focus is on product development logic, factory operations, post-merger integration, and the complete journey of a drug to the patient, rather than short-term market hype. He believes there are no shortcuts in the pharmaceutical industry, and lasting corporate value is built on solid project execution and fulfilling commitments.
This cautious approach is reflected in the company's financials. For the 2025 fiscal year, Great-Sun Foods Co.,Ltd. reported revenue of 1.052 billion yuan and a net profit attributable to shareholders of 17.813 million yuan. Net cash flow from operating activities surged 478.07% year-on-year to approximately 205 million yuan. In the first quarter of 2026, the company posted revenue of 202 million yuan and a net profit of 3.0089 million yuan, with operating cash flow reaching 69.7184 million yuan, a 239.89% increase.
Why This Strategic Shift Matters
Liu Yang explained that the move into pharmaceuticals is designed to optimize the business structure, develop a second growth curve, and enhance the company's ability to withstand market risks. His career began in the Shanghai Pudong pharmaceutical system, where he gained experience in quality control, documentation, and drug distribution. Afterward, he worked at Merck, while his partner, Ye Tao, joined Pfizer. This experience ingrained in them the necessity of aligning commercialization with clinical value.
This principle now guides Shimei Pharmaceuticals, which uses mature chronic disease products to generate cash flow, which is then reinvested into innovative drug development. Liu Yang's team later founded Tengrui Pharmaceuticals, which acquired a raw material drug factory from Boehringer Ingelheim in the US in 2014. This cross-border experience taught them about capital markets, global regulations, and resource integration.
Building a Robust Product Pipeline
For Liu Yang, the core strength of a pharmaceutical company lies in its ability to continuously discover and reserve high-quality products. He noted that top multinational companies rarely rely solely on in-house R&D; instead, they excel at identifying promising pipelines and using their clinical, market access, and commercialization systems to amplify value. He believes that while in-house R&D determines a company's innovation endurance, the ability to acquire and integrate products is what allows it to scale from a niche player into a comprehensive platform.
Regarding the common challenge of post-merger integration, Liu Yang is pragmatic. He stated, "A successful deal does not equal successful integration." True high-quality integration, he argues, is measured by hitting R&D milestones, achieving product commercialization, and consistently delivering profits. A capital transaction is just the starting point; the real test is cultural fusion, management synergy, and efficient resource allocation across teams.
Details of the Pharmaceutical Entry
In 2026, Great-Sun Foods Co.,Ltd. completed its core pharmaceutical layout. Through its wholly-owned subsidiary, Shanghai Tengrui, it acquired 41.128% of Jiangxi Shimei Pharmaceutical for 700.052 million yuan, securing effective management control. Public data shows Shimei generated about 355 million yuan in revenue and 145 million yuan in net profit in 2025. The sellers have guaranteed that Shimei's net profit for 2026, 2027, and 2028 will be no less than 156.03 million yuan, 171.63 million yuan, and 188.80 million yuan, respectively, or a cumulative 516.46 million yuan over three years.
Shimei's business covers the full chain from generic drugs, improved new drugs, and innovative drugs to CRO and CDMO services. Its core product, Levamlodipine Besylate Tablets, targets the chronic hypertension market, providing a stable customer base. Liu Yang detailed that by relying on this core product, Shimei has built a solid foundation. The company is accelerating the creation of a portfolio of high-margin, multi-variety, small-volume products to mitigate the impact of centralized drug procurement price cuts on profit margins.
Navigating Market Hype and Future Plans
On July 15, 2026, Great-Sun Foods Co.,Ltd. shares hit the daily limit up, closing at 8.50 yuan, driven by a surge in the "experimental monkey" concept. This led to market jokes linking the company's fruit business to the monkeys used in research. Liu Yang clarified that neither the company nor Shimei is involved in the experimental animal business, and all animal testing is conducted through external CROs. He attributed the stock price movement to a broader recovery in the pharmaceutical sector and market sentiment, emphasizing that long-term value depends on operating results, not market speculation.
Looking ahead, Liu Yang outlined a dual-track strategy: stabilizing the core fruit and vegetable business while continuously strengthening the pharmaceutical operations. In the short term, the mature pharmaceutical platform will provide stable performance and cash flow. In the medium to long term, the company will expand its pharmaceutical footprint through industry collaboration, pipeline acquisition, and resource integration. All business adjustments will strictly follow regulatory disclosure requirements.
Globalization remains a long-term focus. Liu Yang noted that pharmaceutical expansion is not just about selling products; it requires capabilities in R&D, production, local management, and commercialization. He envisions starting with pipeline licensing and regional authorizations to gradually build overseas clinical, regulatory, and market access expertise. With Shimei now integrated into the listed company, Great-Sun Foods Co.,Ltd. is officially entering the pharmaceutical track, committed to using performance as a guide to steadily cultivate its second growth curve.
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