With the release of Tasly Pharmaceutical Group Co.,Ltd.'s first interim report since CR Sanjiu's formal takeover, the veteran pharmaceutical company delivered a disappointing performance.
In the first half of 2025, the established pharmaceutical company achieved operating revenue of 4.288 billion yuan, down 1.91% year-on-year. Both core segments - pharmaceutical manufacturing and pharmaceutical commerce - experienced deceleration, with pharmaceutical manufacturing revenue declining slightly by 0.45% to 3.879 billion yuan, while pharmaceutical commerce revenue plummeted 14.88%.
Against the backdrop of overall industry pressure (National Bureau of Statistics data shows pharmaceutical manufacturing revenue and profits declined 1.2% and 2.8% respectively in the first half), revenue from Tasly Pharmaceutical's cardiovascular and metabolic segment, where its core product Compound Danshen Dripping Pills operates, fell 2.98%, becoming the primary drag on performance.
Surprisingly, however, its attributable net profit grew against the trend by 16.97% to 775 million yuan. Behind this impressive profit figure, a substantial 135 million yuan in non-recurring gains and losses played a crucial role. Excluding "inflated" items such as asset disposal gains, government subsidies, and fair value changes in financial assets, the company's adjusted net profit actually declined 12.87%, with core profitability remaining under sustained pressure.
**Non-recurring Items "Embellish" Profits, Operating Quality Concerns Emerge**
Profit "inflation" breakdown: Among the 135 million yuan in non-recurring gains, non-current asset disposal, government subsidies, and financial asset changes became the three pillars beautifying net profit, masking the weakness in main business operations.
Continued gross margin pressure: Pharmaceutical manufacturing gross margin declined 0.7 percentage points, dragging overall gross margin down slightly to 67.54%, with cost control and product competitiveness facing challenges.
Deteriorating cash flow and collections: Net cash flow from operating activities decreased 10.95% year-on-year to 790 million yuan; accounts receivable surged 46.86% to 1.169 billion yuan, with its proportion of revenue climbing to 27.26%, significantly increasing collection pressure and revealing potential bad debt risks.
**CR Sanjiu's Entry Initiates "Major Restructuring," Integration Effectiveness Awaits Testing**
Accompanying the change in controlling stake, Tasly Pharmaceutical's management underwent dramatic changes. After ten years of leadership by founder Yan Xijun's son, "second-generation pharmaceutical heir" Yan Kaijing stepped down as chairman, with former vice-chairman Jiang Xiaomeng, Sun He, and nearly ten other core executives collectively departing. CR Sanjiu's entry, just months old, remains in early integration stages. Against the backdrop of deep industry adjustment and sluggish growth in core products, whether this veteran pharmaceutical company can be revitalized remains uncertain.
CR Sanjiu's takeover has opened up imaginative possibilities for Tasly Pharmaceutical, but immediate challenges are more pressing. When profit growth supported by 135 million yuan in non-recurring gains proves unsustainable, deeper issues including high accounts receivable, weakening cash flow, and sluggish core business growth have already surfaced.
The Yan family's exit through cashing out leaves behind a "CR Department" new member urgently needing revitalization. Whether it can break through in the pharmaceutical industry's structural differentiation and rejuvenate this traditional Chinese medicine brand tests CR's integration wisdom and strategic determination. Tasly Pharmaceutical's second half has only just begun.
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