Sanli Pharmaceutical disclosed a cliff-like decline in its 2025 performance. Operating revenue fell 21 percent year-on-year to 1.703 billion yuan, net profit attributable to the parent company dropped 83 percent to just 46 million yuan, and recurring net profit plunged 90 percent to 26 million yuan. The company's core product, the Kaihoujian spray, falls under respiratory system medications. The average selling price of respiratory drugs rose 5.21 percent year-on-year to 23.47 yuan per box, while tonic drugs saw a 16.21 percent price increase to 37.47 yuan per box. However, sales volume of respiratory drugs fell 28.84 percent from 60.4995 million boxes to 43.0512 million boxes, and tonic drug volume dropped 37.56 percent from 10.3822 million boxes to 6.4829 million boxes. These two categories together account for over 90 percent of main business revenue, and the decline in their sales volumes directly led to the sharp drop in full-year performance. The company admitted that the roughly 400 million yuan decline in main product revenue and the 273 million yuan drop in gross profit were mainly due to lower sales volumes, with price changes having a relatively small impact. In addition, post-merger problems erupted. Subsidiary Hanfang Pharmaceutical saw its 2025 revenue fall 31.3 percent year-on-year and net profit drop 51.31 percent. Sanli Pharmaceutical recorded a goodwill impairment loss of 122 million yuan for the subsidiary, accounting for 253.31 percent of the period's net profit. As of year-end, the carrying value of goodwill remained as high as 433 million yuan, representing 28.61 percent of net assets. The company's short-term debt repayment pressure is prominent. At the end of the first quarter of 2026, short-term interest-bearing debt totaled approximately 558 million yuan, while cash on hand was only 200 million yuan. The company has disclosed a private placement plan to raise up to 700 million yuan from Cenli Technology, wholly owned by the actual controller, to replenish working capital and repay loans. The company expects net profit attributable to the parent company in the first half of 2026 to decline by 45.82 percent to 61.47 percent year-on-year, citing continued pressure on the traditional Chinese medicine segment due to factors such as deepening medical insurance payment reforms.
Guizhou Sanli Pharmaceutical Co LtdPrice hikes on core products led to volume declines, causing revenue and profit to plunge.
Subsidiary Hanfang's revenue and profit fell, triggering a 122 million yuan goodwill impairment.