Kunming Pharmaceutical Group's net profit in 2025 decreased by 46% year-over-year

(Source: V-View Financial Reports)

Kunming Pharmaceutical Group announced after market close on the 19th that its 2025 revenue is expected to be 6.575 billion yuan, a decrease of 21.74% year-on-year; net profit attributable to shareholders of the listed company is 350 million yuan, down 46%; net profit excluding non-recurring gains and losses is 107 million yuan, down 74.45% year-on-year; and it plans to distribute a cash dividend of 1.8 yuan (tax included) per 10 shares to all shareholders.

Kunming Pharmaceutical Group stated that in 2025, the company was affected by a complex external environment and internal transformation, leading to declines in revenue, net profit, and operating cash flow year-on-year. The progress of centralized procurement of Chinese patent medicines was below expectations, and medical insurance cost control was deepening, putting pressure on existing businesses while new businesses are still in the cultivation stage. Additionally, fluctuations in retail terminal foot traffic and intensified competition have significantly impacted the expansion of some products in the premium national medicine channel due to industry cycles.

Furthermore, the company is deepening channel and model reforms, continuously investing in brand building and market expansion, which further increases short-term performance pressure. Due to these factors, the company’s product sales scale and gross profit margin have declined, and cash inflows have decreased.

By industry segment, Kunming Pharmaceutical Group’s oral dosage product revenue decreased by 37.36% year-on-year, mainly due to core products being affected by fluctuations in retail terminal foot traffic and increased industry competition, leading to a decline in sales of oral dosage series products. Other operating income increased by 11.95% year-on-year, mainly because the company actively expanded its health industry product lines around the “Healthy Aging” strategy, resulting in sales growth of related products. However, this segment mainly consists of cultivation-stage products, and due to changes in product structure, gross profit margin decreased by 28.67 percentage points year-on-year.

Data shows that Kunming Pharmaceutical Group operates in the pharmaceutical manufacturing industry, covering the entire pharmaceutical industry chain, with core businesses including drug research and development, production and sales, pharmaceutical distribution, and the big health industry.

Kunming Pharmaceutical Group stated that in 2026, the deep adjustment of the pharmaceutical industry will continue, and the company’s internal transformation will enter a critical stage. The company will actively respond to policies and market demands related to the silver economy, focusing on the core strategic group of “Silver Youth,” and continue to develop fields such as elderly health and aging management. It will seize centralized procurement opportunities, accelerate hospital network coverage, improve access efficiency, deepen grassroots terminal layout, strengthen professional academic promotion, and enhance internal team collaboration. The company will fully learn from the mature management systems and tools of China Resources Sanjiu, adhere to lean management principles, implement multiple measures to reduce costs and increase efficiency, and continuously optimize operational efficiency and risk control levels.

In the secondary market, as of the close on March 19, Kunming Pharmaceutical Group’s stock price was 11.92 yuan per share, with a total market value of 9.023 billion yuan.

(The views expressed in this article are for reference only and do not constitute investment advice. Investment involves risks; please proceed with caution.)

Cover and introductory images sourced from AI-generated graphics