TJPC(SH:600488) Mei Ri Jing Ji Xin Wen·2025-08-25 10:08Core Viewpoint - Tianyao Pharmaceutical reported the most significant decline in net profit in 20 years for the first half of 2025, with a 65.28% year-on-year decrease in net profit and an 11.81% drop in revenue, returning to 2019 levels [1][2]. Financial Performance - The company achieved approximately 1.588 billion yuan in revenue, a decrease of 11.81% year-on-year, with a net profit attributable to shareholders of 49.3042 million yuan, down 65.28% [1]. - The net cash flow from operating activities was 20.2006 million yuan, a significant decline of 93.60% year-on-year [1][5]. - The overall gross margin decreased by 4.62 percentage points, with the gross margin for formulation products dropping by over 14 percentage points [2][3]. Product and Market Analysis - Steroid hormone raw materials accounted for over 60% of the company's exports to more than 70 countries and regions [1]. - In the first half of the year, steroid hormone raw materials contributed significantly to the company's revenue, with approximately 60% from steroid hormones and 30% from amino acid raw materials [1]. - The company faced a 20% tariff on raw materials and formulation products exported to the U.S., but the impact was deemed manageable due to the small proportion of revenue from U.S. sales [4]. Regulatory and Compliance Issues - Tianyao Pharmaceutical has faced multiple penalties for monopolistic practices, with fines exceeding 69 million yuan in the first half of the year, surpassing the net profit for the same period [1][6]. - The company has been involved in several antitrust cases, including a significant penalty of over 44 million yuan in 2021 for monopolistic behavior related to a specific raw material [7][9]. - Following recent penalties, the company has committed to implementing corrective measures and increasing R&D investment, which currently accounts for less than 4% of revenue [9].