Financial Report Update | Centralized Procurement Pressures Main Business, Tian Da Pharmaceutical's Losses Widen by 2025

From: Beike Finance

On the evening of March 26, Tianda Pharmaceutical released its 2025 financial report. Affected by centralized procurement policies, sales of its core product, Valsartan capsules (brand name: Topin), declined. During the reporting period, the company achieved total revenue of HKD 323 million, a slight decrease of 2.12% year-on-year, remaining relatively stable; the loss attributable to shareholders further expanded to HKD 70 million, but the adjusted loss narrowed to HKD 55.2 million; gross profit decreased by 12.3% year-on-year to HKD 133 million, with the gross profit margin dropping to 41.4%, down 5.2% year-on-year, further compressing profit margins.

Decline in core product sales puts significant pressure on main business

The pharmaceutical and medical technology business is the core sector of Tianda Pharmaceutical, which includes two major core products: pediatric medication Ibuprofen (brand name: Toin) and cardiovascular medication Topin Valsartan capsules. In 2025, affected by multiple factors such as shrinking market demand, industry overcapacity, and low-price policies for centralized procurement in Jiangsu Province, this sector achieved revenue of HKD 245 million, a year-on-year decline of 13.56%. Among these, the core product Valsartan capsules, which accounts for the highest proportion of sales revenue, was impacted by provincial centralized procurement renewals and low-price rules. Competitors captured centralized procurement shares with low-price strategies, affecting the sales of Valsartan, with sales revenue down 24.79% year-on-year to HKD 105 million, becoming the main reason for Tianda Pharmaceutical’s further losses. However, this product still ranks second in sales among similar products in mainland China. Another major cardiovascular product, injectable Acetylcysteine, achieved sales revenue of HKD 11.5 million, a year-on-year increase of 9.5%.

Ibuprofen, on the other hand, was driven by the recurrent incidence of respiratory diseases, including influenza, and was included in centralized procurement alliances in provinces like Guangdong. Sales revenue grew by 26.57% year-on-year to HKD 66.7 million. Other pediatric respiratory medications are still affected by stockpiling during the COVID-19 pandemic, leading to continued demand pressure. Notably, sales revenues for Meimin Pseudoephedrine Oral Solution and Ambroxol Hydrochloride Syrup fell from HKD 34.3 million and HKD 11.4 million in 2024 to HKD 24.8 million and HKD 6.9 million in 2025, with declines of 27.7% and 40%, respectively. In 2025, Tianda Pharmaceutical made an impairment provision of about HKD 14.8 million for goodwill related to Tianda Pharmaceutical (Zhuhai). As a result, the pre-tax loss for the pharmaceutical and medical technology business segment expanded from HKD 14.7 million in 2024 to HKD 36.2 million in 2025.

Regarding sales expenses, in 2025, Tianda Pharmaceutical’s sales and distribution expenses decreased from HKD 108 million in 2024 to HKD 104 million in 2025. Although the sales and distribution expenses as a percentage of revenue fell to 32.2%, it remains a significant cost.

Explosive growth in traditional Chinese medicine business, but with low gross profit

Against the backdrop of a sluggish chemical pharmaceutical main business, the traditional Chinese medicine sector achieved rapid growth, becoming a highlight in Tianda Pharmaceutical’s 2025 performance. In 2025, the traditional Chinese medicine business achieved revenue of HKD 56.2 million, a substantial year-on-year increase of 107.38%. Over the past two years, Tianda Pharmaceutical has gradually integrated its sales team, reversing the downward trend in sales. After launching Tianda Traditional Chinese Medicine (Bozhou) in the second half of 2024, it opened up new business opportunities for the group’s Chinese medicine products, generating HKD 11.8 million in revenue in 2025.

The medical and healthcare services business achieved revenue of HKD 21.3 million in 2025, a year-on-year increase of 12.7%. Among these, the new type of traditional Chinese medicine clinic, Tianda Clinic, achieved revenue of HKD 16.3 million in 2025, primarily due to the contributions from the Jordan Tianda Clinic and the Central Tianda Clinic, which opened in October 2024 and November 2025, respectively. However, the Tsim Sha Tsui Tianda Clinic ceased operations in April 2025, offsetting some of the increase. The integration of the health product sales business has also shown results, with steady growth in health product sales.

Although other business segments achieved year-on-year growth, they still could not offset the impact of the decline in the core business segment’s performance. Looking at the company’s recent performance, Tianda Pharmaceutical has been consistently losing money since 2021, with losses exceeding HKD 60 million in 2024 and further expanding in 2025.

However, the traditional Chinese medicine business has a low gross profit margin, and its increasing revenue share has directly impacted the gross profit margin for the period. The financial report shows that in 2025, Tianda Pharmaceutical’s gross profit margin fell to 41.3%, mainly due to fixed costs such as depreciation of fixed assets not decreasing with the decline in production volume, leading to rising average production costs, as well as the increased sales proportion of the lower-margin traditional Chinese medicine business.

Expanding business to seek incremental space

Currently, Tianda Pharmaceutical’s product structure is singular, with revenue highly dependent on a few products such as Ibuprofen and Valsartan. In the past two years, Tianda Pharmaceutical has had seven new products approved for market launch, with six ongoing projects covering one Class 1 new traditional Chinese medicine, one Class 3 chemical drug, and four Class 4 chemical drugs. R&D expenses decreased by 37.3% year-on-year to HKD 8.334 million in 2025. However, Tianda Pharmaceutical stated that it is entering a harvest period for research and development, with new products to be launched intensively.

Tianda Pharmaceutical indicated that the company is implementing a “combination of innovation and imitation” strategy, systematically advancing the research and development of innovative drugs and generic drugs, and enriching its product pipeline through independent innovation, external cooperation, and project introduction. The sustained investment in R&D is expected to gradually translate into new products launched in the coming years, providing momentum for the company’s mid- to long-term development.

Leveraging its R&D and production base established in Jinwan, Zhuhai, Tianda Pharmaceutical is actively expanding revenue sources through CDMO and CMO business models. As of December 31, 2025, six new CDMO product projects obtained registration approvals; the group has a total of 30 CDMO projects for pharmaceuticals and health products, with an additional four CDMO products currently under review and approval stages. The CDMO/CMO business is expected to become a driving force for the group’s stable revenue growth in the future.

Currently, Tianda Pharmaceutical’s stock is under suspension, and as of the last trading day on March 23, its stock price had dropped to HKD 0.097 per share, with a price drop of over 24% this year. For Tianda Pharmaceutical, the core business is under pressure, while emerging business is still climbing. How to reverse the current situation of continuous losses and regain investor confidence is urgent.

Tianda Pharmaceutical stated that the company will focus on building core brands represented by the Topin series and Toin series, exploring products with market potential through efficient linkage of business expansion, investment development, and research development, while expanding CDMO/CMO business to further drive development; strengthening the management of traditional Chinese medicinal materials, promoting the scale development of the traditional Chinese medicine business, and continuously improving the chain operation model of traditional Chinese medicine clinics, iterating and upgrading, and developing health products like Tokang and Tianda Clinic · You Life series; examining and optimizing the supply chain system across the entire chain to achieve cost reduction, efficiency increase, and accelerated development.

New Jingjing reporter Wang Kala

Editor Wang Lu

Proofreader Liu Baoqing

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