Chongqing Taiji Industry Group Co Ltd

Taiji Group released its 2026 interim report. During the reporting period, the company's total operating revenue was 5.085 billion yuan, down 10.13% year-on-year. Net profit attributable to the parent company was 87.8573 million yuan, down 36.70% year-on-year. Net cash flow from operating activities was negative 222 million yuan, down 292.93% year-on-year. The company's asset-liability ratio was 74.29%, gross margin was 31.96%, return on equity was 2.45%, and diluted earnings per share was 0.16 yuan. The number of shareholders was 65,800, and the top ten shareholders held 42.82% of the total share capital.

Taiji Group released its 2026 interim report. First-half operating revenue was 5.085 billion yuan, down 10.1 percent year on year. Net profit attributable to the parent company was 87.86 million yuan, down 36.7 percent. Net profit attributable to the parent company after deducting non-recurring items was 40.18 million yuan, down 66.4 percent. Net operating cash flow was negative 222 million yuan, down 292.9 percent year on year. In the second quarter, operating revenue was 2.56 billion yuan, down 9.7 percent year on year. Net profit attributable to the parent company was 22.24 million yuan, down 65.4 percent. Net profit attributable to the parent company after deducting non-recurring items was 1.61 million yuan, down 95.9 percent. The company said the revenue decline was mainly affected by centralized procurement policies. Sales of some anti-infective drugs declined, and some respiratory system drugs were affected by an overall drop in sales of cough and cold products. The profit decline was mainly due to stronger market promotion activities and higher selling expenses. The decline in net operating cash flow was mainly due to higher payments for goods due during the period and increased operating expenditures. By segment, pharmaceutical industry sales revenue was 2.585 billion yuan, down 9.04 percent year on year. Pharmaceutical distribution sales revenue was 3.07 billion yuan, down 8.96 percent. The traditional Chinese medicine resources segment recorded sales revenue of 553 million yuan, up 12.19 percent. International business and other sales revenue was 53 million yuan, down 44.76 percent.

Chengdu University of TCM Yin Hai Eye Hospital has seen its owners’ equity turn negative due to persistent losses, reducing shareholder Taiji Group’s investment book value to zero. Taiji Group’s 2025 annual report shows the investment cost in this associate was 53.99 million yuan, with a year-end book value of zero yuan, as cumulative losses exceeded the initial investment cost. Another shareholder, Tibet Pharmaceutical, disclosed in its 2025 annual report that cumulative unrecognised losses for the hospital amounted to 12.05 million yuan. It invested 32.996 million yuan for a 9.57 percent stake in 2016, and its financial reports over the years have also reflected years of losses. The hospital was established in 2016 as a tertiary-level eye hospital, led by Professor Duan Junguo of Chengdu University of Traditional Chinese Medicine, together with social capital including Taiji Group, Tibet Pharmaceutical, and Guizhou Bailing. However, it has been loss-making since its inception, and recently has experienced situations such as suspension of outpatient services, a deadline to vacate the premises, and wage arrears.