Yunnan Baiyao Group (000538) Q2 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 reached RMB 21.88 billion, up 2.95% year-over-year; net profit attributable to shareholders was RMB 3.70 billion, up 1.88% year-over-year.

• Net profit after deducting non-recurring items was RMB 3.52 billion, up 1.66% year-over-year, a record high for the period.

• Basic EPS was RMB 2.07, up 1.47% year-over-year; weighted average ROE was 9.04%.

• Cash dividend of RMB 10.38 per 10 shares was approved, totaling RMB 1.85 billion, representing 50.04% of H1 net profit.

Financial highlights

• Operating revenue: RMB 21.88 billion (+2.95% YoY); net profit: RMB 3.70 billion (+1.88% YoY).

• Net operating cash flow: RMB 4.11 billion (+3.66% YoY); total assets: RMB 55.15 billion; net assets: RMB 40.97 billion.

• R&D investment: RMB 217 million (+27.13% YoY); selling expenses down 2.62%, administrative expenses down 9.88%.

• Gross margin for industrial sales: 65.83%; commercial sales: 5.96%.

• Non-recurring profit and loss: RMB 182.76 million, mainly from fair value changes, government subsidies, and investment returns.

Outlook and guidance

• Focus on high-quality growth, innovation, and digital transformation.

• Continued expansion in pharmaceuticals, health products, and TCM resources; emphasis on R&D and new product launches.

• Strategic resolve to maintain growth, efficiency, and value creation, with ongoing optimization of business structure and channel management.