ST Bailing released its 2026 interim report, showing operating revenue of 970 million yuan, down 33.62 percent year on year, net profit of 30.03 million yuan, down 42.07 percent, and non-GAAP net profit of 27.69 million yuan. The company said the decline was affected by multiple overlapping factors including market demand, the industry environment and policy changes, with pressure on product end prices and compressed profit margins. The traditional Chinese medicine industry has entered a period of structural adjustment. In 2025, operating revenue and total profit of the Chinese patent medicine industry fell 6 percent and 2.9 percent year on year respectively, but policy dividends continue to be released, and centralized procurement rules have been optimized from a sole focus on low prices toward quality first and reasonable pricing. In July this year, the National Essential Medicines List 2026 edition was released. Twelve of ST Bailing's main products, including Yindan Xinnaotong soft capsules, Xiaoer Chaigui Tuire granules and Hugan tablets, were selected, which will give them priority in deployment and use and accelerate coverage of primary-level channels. In addition, Compound Yizhihuanghua spray was approved as the first second-class protected variety of traditional Chinese medicine, with its indicated population expanded to children aged 6 to 13. In terms of production capacity, the company's preprocessing capacity for Chinese medicinal materials has been raised from 25,000 tonnes per year to 60,000 tonnes per year, and its granule workshop renovation project has received 15 million yuan in funding support from national ultra-long-term special government bonds.
Guizhou Bailing Group Pharmaceutical Co LtdFirst-half revenue and net profit declined significantly, with pressure on product prices and compressed margins.
