Yunnan Baiyao Group (000538) H2 2025 earnings summary

Executive summary

• Operating revenue reached RMB 41.19 billion in 2025, up 2.88% year-over-year, with net profit attributable to shareholders at RMB 5.15 billion, an 8.51% increase, and net profit after non-recurring items at RMB 4.87 billion, up 7.55% year-over-year, both setting historical highs.

• Basic EPS was RMB 2.89, up 8.65% year-over-year; weighted average ROE rose to 13.02%, the highest in five years.

• Industrial revenue grew 10.7% to RMB 16.02 billion, now 38.89% of total revenue, up 2.75 percentage points year-over-year.

• Net operating cash flow increased 7.04% to RMB 4.60 billion; total assets at year-end were RMB 54.27 billion, with net assets attributable to shareholders at RMB 40.04 billion.

• Cumulative cash dividends for 2025 reached RMB 4.64 billion, representing 90.09% of net profit attributable to shareholders.

Financial highlights

• Operating revenue: RMB 41.19 billion (+2.88% YoY); net profit attributable to shareholders: RMB 5.15 billion (+8.51% YoY); net profit after non-recurring items: RMB 4.87 billion (+7.55% YoY).

• Basic and diluted EPS: RMB 2.89 (+8.65% YoY); weighted average ROE: 13.02% (+1.03 ppt YoY).

• Net cash flows from operating activities: RMB 4.60 billion (+7.04% YoY).

• Total assets: RMB 54.27 billion (+2.56% YoY); net assets attributable to shareholders: RMB 40.04 billion (+3.12% YoY).

• Gross margin for industrial products: 65.19%; commercial sales gross margin: 6.69%.

• R&D investment: RMB 423 million (+21.51% YoY), 2.64% of industrial revenue.

• Cumulative cash dividend payout: RMB 4.64 billion, 90.09% of net profit.

Outlook and guidance

• Strategic focus on high-quality, sustainable, and profitable growth, aiming for revenue to exceed RMB 100 billion in the coming years.

• Continued emphasis on flagship product strategy, resource optimization, and international expansion.

• Plans to cultivate a second growth curve through organic growth, M&A, and new business models.

• Ongoing investment in digital transformation, innovation, and talent development.