TAIJI GROUP(SH:600129) Xin Lang Cai Jing·2025-04-09 10:41Core Insights - The company reported a revenue of 12.386 billion, a year-on-year decline of 20.72%, and a net profit attributable to shareholders of 0.027 billion, down 96.76% year-on-year [1] - The company is facing short-term performance pressure due to high inventory levels and a high base from 2023, leading to a significant drop in sales across various therapeutic areas [2] - The company is undergoing marketing transformation aimed at revitalizing its brand and improving sales performance through innovative marketing strategies and organizational restructuring [3] - The company is projected to experience revenue growth in the coming years, with expected revenues of 13.663 billion, 15.047 billion, and 16.627 billion for 2025-2027, reflecting a compound annual growth rate of approximately 10% [4] Financial Performance - In 2024, the company achieved a revenue of 12.386 billion, a decrease of 20.72% year-on-year; net profit attributable to shareholders was 0.027 billion, down 96.76% year-on-year; and non-recurring net profit was 0.039 billion, down 95.02% year-on-year [1] - In Q4 alone, the company reported a revenue of 1.952 billion, a decline of 43.25% year-on-year, with a net loss of 0.518 billion, marking a shift from profit to loss [1] Sales Performance by Therapeutic Area - The pharmaceutical segment generated sales of 7.038 billion, a year-on-year decrease of 32.25%, with notable declines in various therapeutic areas: - Respiratory medications: 2.164 billion, down 18.11% - Digestive and metabolic medications: 1.873 billion, down 35% - Anti-infective drugs: 0.964 billion, down 48.43% - Neurological medications: 0.614 billion, down 31.65% - Health products: 0.605 billion, down 28.77% - Cardiovascular medications: 0.505 billion, down 34.12% - Anti-tumor and immune-regulating drugs: 0.205 billion, down 16.49% [2] Marketing and Organizational Changes - The company is implementing a marketing transformation that includes youth-oriented branding and cross-industry promotions, such as featuring its products at London Fashion Week [3] - The organizational structure has been revised, with the establishment of a market center and sales center, and a reduction of functional departments to 16, aimed at enhancing management efficiency and employee engagement [3] Future Projections - Revenue projections for 2025-2027 are as follows: - 2025: 13.663 billion, growth of 10.31% - 2026: 15.047 billion, growth of 10.13% - 2027: 16.627 billion, growth of 10.50% - Net profit projections for the same period are: - 2025: 0.597 billion, growth of 2138.21% - 2026: 0.732 billion, growth of 22.76% - 2027: 0.861 billion, growth of 17.55% - Earnings per share (EPS) are expected to be 1.07, 1.32, and 1.55 for 2025, 2026, and 2027 respectively [4]