The Shanghai Stock Exchange recently issued an inquiry letter to Guizhou Sanli Pharmaceutical regarding its 2025 annual report, focusing on the company's significant performance decline. In 2025, the company's revenue was 1.703 billion yuan, down 21% year-on-year; net profit attributable to the parent was 46 million yuan, down 83% year-on-year. Among these, respiratory medication revenue fell 25% and sales volume dropped 29% year-on-year; tonic medication revenue fell 22% year-on-year. Overall gynecology category revenue rose 19% year-on-year, with the gynecology medication sub-segment sales volume up 62% and segment revenue up 50% year-on-year. The company responded that the respiratory decline was mainly due to hospital cost controls under DRG/DIP payment reforms, a shrinking base of pediatric drug use, channel destocking, and the company's proactive reduction in promotion in 2025 against a high base in 2024. The tonic category was dragged down by pressure on prescription channels and intensified competition for non-exclusive products. For gynecology medications, the company switched to medium and large packaging sizes starting in 2023, experienced channel adjustment pains in 2024, and saw new customers ramp up volumes in 2025, driving segment revenue growth. Over the past three years, the top ten customers together accounted for approximately 18% to 20% of revenue, mostly leading provincial distributors. In 2025, the company's channels continued to concentrate toward large national pharmaceutical distributors, and the list of top ten customers was updated accordingly. The top ten suppliers were mainly herbal medicine and packaging material vendors from places like Bozhou and Chongqing, with the top ten suppliers' procurement share ranging from 69% to 88% over the three years. Only one Guizhou-based pharmaceutical company appeared on both the top ten customer and supplier lists. The subsidiary Sankang Herbal Medicines sold decoction-piece-grade herbs to that company, while the company's pharmaceutical segment purchased raw herbs for formulation from it. The quality standards and pricing for the two were independent of each other, and the arrangement was commercially reasonable.
Guizhou Sanli Pharmaceutical Co LtdRevenue down 21% and net profit down 83% in 2025, triggering an inquiry from the Shanghai Stock Exchange.