Yunnan Baiyao: Holding an earnings presentation on April 1, with participation from multiple institutions including CITIC Construction Investment Securities and Guosheng Securities.

Securities Star News, on April 1, 2026, Yunnan Baiyao (000538) released an announcement stating that on April 1, 2026, the company held a performance briefing session. China Jianyin Securities, Guosheng Securities, Everbright Securities, Xingye Securities, Kaiyuan Securities, Jinguo Securities, Guolian Minsheng Securities, CICC, Oriental Securities, Soochow Securities, GF Securities, CITIC Securities, investors, Northeast Securities, CTF Securities, Zhejiang Securities, Huachuang Securities, Haitai Securities, Hu’an Securities, and Guotai Huarong Securities participated.

The details are as follows:

Q: What is the plan for the strategic layout of innovative drugs, and how are the important pipelines progressing?

A: The innovative drug projects focus on social demand and science and technology empowerment, centered on the development of radiopharmaceuticals. The company will develop multiple innovative drug programs to enhance the impetus for sustainable development.

For the INR101 diagnostic radiopharmaceutical project, 29 out of 32 research centers for Phase III clinical trials were completed and launched, and 239 subjects completed enrollment. For the INR102 therapeutic radiopharmaceutical project, the Phase I/IIa clinical trial low-dose group enrolled 3 subjects and dosed them; the middle-dose group enrolled 1 subject and dosed them; and 2 subjects completed the INR101 screening. For the INB301 therapeutic monoclonal antibody project for cancer cachexia, it has currently received from the National Medical Products Administration the issued “Approval Notice for Drug Clinical Trial,” agreeing that the INB301 injection will carry out clinical trials for cancer cachexia.

2. What is the direction of the company’s digital transformation construction?

The company is committed to building a digital driver, actively seeking digital transformation with a customer-centric approach to enhance customer experience; using new digital technologies such as cloud computing, big data, artificial intelligence, 5G, and the Internet of Things as drivers to promote innovative enterprise development; shifting from function-based process workflows to processes designed to connect customer scenarios, driving enterprise management transformation and organizational development; shifting from establishing a unified “data foundation” and governance strategy to building an intelligent decision-making system based on data and “evidence-based facts.”

Q: What are the product-tier building ideas for the pharmaceuticals business group, and what are the business outlooks for 2026?

A: The pharmaceuticals business group will follow the industry combination and development approach of “1+4+N.” Focusing on “1” core area—pain management—continuously improving the leading advantage in the hospital market through professional operation of product pipelines; continuously driving stable growth in the retail market through brand professionalized operations; screening and supplementing pain-management products with high potential, high quality, and high value to improve the product matrix. Focusing on “4” key areas—cardiovascular and cerebrovascular, respiratory system, digestive system, and urology system—focusing on potential products, relying on advantages in the industrial chain and channel advantages to consolidate and cultivate brand traditional Chinese medicine big single products; continuously incubating and paying attention to multiple (“N”) potential tracks such as the oncology field, autoimmune diseases, and gynecology systems. On the path, relying on the “Yunding Jingwei” model, continuously deepening the strategy for big single products. By leveraging multiple channels across clinical settings, OTC, and O2O, and driving with a dual-wheel mechanism of both endogenous growth and extension-based growth, the company will promote sustainable business development.

Q: What is the company’s plan and approach for building core big single products? Which key single products will be prioritized?

A: The pharmaceuticals and health products segment will continue to replicate and promote the model of Qixuekang “big single” products, building a “big single product system,” and conducting special management for growth of big single products. Pharmaceuticals big single products include 14 single products: Yunnan Baiyao’s core series products, Shenling Jianpiwei granules, Pudilan anti-inflammatory tablets, Xuesaitong capsules, Tongsu capsules, Er Xiao Baotai Kang granules, and Fenghan Cold granules, among others. Health products include 12 products such as anti-allergy, whitening toothpaste, and hair care products. Through effective resource allocation and strong execution, support the Group’s revenue and profit growth.

For segments such as tonics, medical devices, and beauty care, they will screen products with market potential and turn them into “big single” products in sub-segments. Meanwhile, they need to put effort into cost control in management, and, around market-oriented resource allocation, continuously reinforce the positioning of “profit centers.” For international business, the company will continue to screen good products and key regions, deeply cultivate customers, and strive for greater breakthroughs in scale, stepping up to a higher level.

Q: What are the company’s thoughts on outbound M&A for the next 3 years?

A: Outbound M&A is the result of rational thinking and deep understanding of the objective development laws of enterprises. A mature company will inevitably go through a development form that evolves from a production-driven upgrade to a state where production-driven and investment-driven growth coexist. Over its long development history, Baiyao has accumulated relatively deep foundations in various aspects. At the same time, since it was listed in 1993, it has also shown fairly steady performance in the capital market. During the “15th Five-Year Plan to 5th Five-Year Plan” period, in order for Baiyao to achieve even higher-quality and more efficient development, over the next three years the company will elevate investment and M&A work to a strategic level. This both aligns with enterprise development laws and with Baiyao’s own actual development needs. Next, Baiyao will comprehensively enhance its capacity building for investment and M&A, and earnestly carry out investment and M&A work, ensuring that investment targets can achieve functional complementarity, mutual empowerment, and strategic synergy with Baiyao’s existing business. It will create more favorable conditions for the healthy and sound development of the company’s second and third growth curves, realize the company’s sustainable, high-quality development, and ultimately better create value for shareholders and make contributions that the enterprise should make to local economic and social development.

Q: How is the aging of the company’s accounts receivable? What measures will be taken in the future to increase cash collection efforts?

A: As of the end of the reporting period, the company’s accounts receivable within 1 year totaled RMB 9.96B, accounting for approximately 90% of the accounts receivable balance. In the future, the company will strengthen closed-loop management of customer credit across the full process, controlling accounts receivable risk from the source. It will continue to improve the institutional system, strengthen the management foundation, and, by scientifically building credit assessment models, implement customer tiered credit granting and full-cycle risk monitoring. It will establish pre-, during-, and post-event full-process control mechanisms, dynamically track customers’ credit standing, issue timely early warnings, and adopt differentiated response measures, continuing to standardize customer credit management.

Q: What are the reasons for the company’s high growth in the pharmaceuticals business group in 2025?

A: In 2025, the pharmaceuticals business group, guided by strategy, empowered business growth through brand endowments and clinical research, and took big single product building as a breakthrough point. It further dug into channel potential to achieve large-scale growth of the core series products in the trauma/pain field on a high base. Pipeline richness in high-potential tracks such as cardiovascular and cerebrovascular, respiratory, digestive, and urology systems continued to increase, with big single products from the second echelon being continued and stocked for the future. First, driven by clinical value: with clinical academic research driving business growth, the company accelerated the promotion of secondary development and post-listing re-evaluation of key products. Evidence-based research for important single products such as Yunnan Baiyao capsules, Yunnan Baiyao aerosol, Yunnan Baiyao ointment, Qixuekang oral liquid, Gongxue Ning capsules, and Tongsu capsules was steadily advanced, opening broader application scenarios for products, with clear growth momentum for the pharmaceuticals “core base.” Second, building the “Yunding Jingwei” ecosystem cooperation model: it constructed a short-chain, flat, data-and-intelligence-driven first-level distributor direct-supply model, enabling point-to-point delivery of products from production to pharmacies, better enabling the “brand + channel + service” three-in-one ecosystem management model. It continued to strengthen traceability management and sell-through control, promoting the advancement of the big single product strategy and creating a benchmark for channel management enterprises in the pharma industry. Third, actively expanding online markets: it precisely anchored the “immediacy” development trend of O2O channels, built a full-domain coordinated matrix of “on-site + off-site,” and strengthened Yunnan Baiyao’s brand awareness and market competitiveness in immediate health consumption scenarios. During the 2025 618 period, the rankings of Yunnan Baiyao series products in the frequently stocked medicines list rose significantly. In the reporting period, the GMV produced by pharma e-commerce platforms reached RMB 500 million, up 139% year over year. Fourth, the implementation of the large-scale, systematic “big force” strategy: the pharmaceuticals business group concentrated manpower and resources, carried out cross-province big-force promotional activities under a unified policy. A total of 27 chain companies participated, directly driving sales growth. Fifth, the launch of a scenario-based, professional, and youthful content marketing system: around scenarios such as “trauma/pain,” “sports partner,” “long summer tonifying the spleen,” “Qixue and life vitality,” and “family frequently stocked medicines,” leveraging various types of platforms to perform full-domain integrated marketing with deep fusion of product, effect, sales, and measurable performance, effectively driving sales growth.

Q: What is the growth situation on the health consumption products line? What is the development approach going forward?

A: In 2025, Yunnan Baiyao toothpaste maintained the #1 position in domestic share across all channels (data source: Nielsen retail research data). While maintaining competitive advantages in offline channels, the health products business group leveraged scenario-based marketing, efficacy education and seeding, and short-to-direct linkage conversion, and expanded efforts in content e-commerce, shelf e-commerce, and instant retail, driving online sales to grow 27% year over year.

In future development, the health products business group will continue to leverage the brand’s cross-channel coordination capabilities. Through refined operations by channel and by product, it will remain highly focused on incremental channels such as instant retail, content e-commerce, and warehouse member stores,坚持 the model of boldly trying new initiatives through small steps and fast running to find incremental growth. At the same time, it will also accelerate product transformation of R&D innovations by advancing industry-university-research platforms, actively cultivating new growth drivers.

Q: What are the reasons that the digital and intelligence-based Yao Platform achieved good results in the short term? What will be the future development direction?

A: The digital and intelligence-based Yao Platform has built a “1+1+N” one-stop traditional Chinese medicine raw-materials origin direct-supply platform, achieving both “the best cost at the origin” and “stable high quality” simultaneously. In 2025, the cumulative transaction amount exceeded RMB 2.1 billion, bringing in more than 410k growers and more than 23k online registered farmers. Regarding the reasons: first, model innovation—cutting out intermediaries. The “origin direct-supply” model directly connects growers with purchasing parties, eliminating multi-layer price markups and information asymmetry, enabling high-quality and fair pricing and facilitating rapid transactions. Second, technical empowerment—opening up trust and efficiency. Through full-chain digitization, traceability via one item one code, and more, it improves transaction efficiency and establishes a trustworthy quality system for medicinal materials. Third, addressing industry pain points—solving compliance challenges. It introduced Leqi United Enterprise and connected with the State Taxation Administration systems to realize “payment means issuing invoices.” Fourth, the platform leader drives cooperation for win-win outcomes. Relying on procurement demands from Yunnan Baiyao and industrial chain cooperation partners provides stable baseline business, forming the synergy effect of an industrial cluster.

In the future, the digital and intelligence-based Yao Platform will continue to focus on the white-list model of medicinal material growers as the core lever. It will use the planned China Wenshan Sanqi digital transaction center and the Baiyao 1902 · Yao Health Industry Culture Park as the regional core hubs. Based on origin warehouses and origin processing centers that have been deployed and are currently being planned, such as Pingbian Amomum villosum, Weishan safflower, Shuangbai poria, Yulong costus root, and Nujiang tsaoko, it will link with distribution markets such as An’guo in Hebei, Bozhou in Anhui, and Yulin in Guangxi. It will build an integrated market operation system of “origin-market,” and concentrate superior resources to deepen and refine the efforts of “cloud medicine going out from Yunnan” and “cloud medicine going overseas,” doing it more deeply, more practically, and more meticulously.

Yunnan Baiyao (000538) main businesses: the research, production, and sales of self-manufactured industrial products, as well as the wholesale and retail business of pharmaceuticals.

Yunnan Baiyao’s 2025 annual report shows that, for the year, the company’s main operating revenue was RMB 410k, up 2.88% year over year; attributable net profit to shareholders was RMB 23k, up 8.51% year over year; net profit excluding non-recurring items was RMB 41.19B, up 7.55% year over year. Among them, in the fourth quarter of 2025, the company’s single-quarter main operating revenue was RMB 5.15B, up 4.1% year over year; single-quarter attributable net profit was RMB 10.53B, down 10.96% year over year; single-quarter net profit excluding non-recurring items was RMB 376M, up 21.86% year over year. The debt-to-asset ratio was 26.02%. Investment income was RMB 315M. Financial expenses were -RMB 46.89 million. Gross margin was 29.51%.

In the most recent 90 days, a total of 2 institutions have issued ratings for this stock, including 2 buy ratings. Over the past 90 days, the consensus target price from institutions was 70.6.

The following are the detailed earnings forecast information:

Margin trading and securities lending data show that over the past 3 months, this stock had a net outflow of margin trading of RMB 149 million, with margin trading balances decreasing; while there was a net inflow of securities lending of RMB 4.389 million, with securities lending balances increasing.

The above content is organized by Securities Star based on publicly available information and generated by an AI algorithm (Cybersecurity Record No. 310104345710301240019), and does not constitute investment advice.