YILING PHARMACEUTICAL(SZ:002603) Quan Jing Wang·2025-09-09 13:42Core Viewpoint - Yiling Pharmaceutical, as a national innovative enterprise, maintains a strong position in China's pharmaceutical industry through its deep accumulation and continuous innovation in patented traditional Chinese medicine (TCM) [1] Group 1: Financial Performance - In the first half of 2025, the company achieved a net profit of 669 million yuan, a year-on-year increase of 26.03%, reflecting significant improvement in profitability [12] - The overall gross profit margin increased by 6 percentage points to 59.52% compared to the same period last year, driven by a decrease in the prices of some Chinese medicinal materials and internal efficiency improvements [12][11] - The company’s operating revenue reached 4.04 billion yuan in the first half of 2025, with a notable contribution from cardiovascular products, which generated 1.96 billion yuan, accounting for 48.60% of total revenue [2][11] Group 2: Product Portfolio and Market Position - Yiling Pharmaceutical has developed 17 patented TCM products covering 8 major clinical disease systems, with key products like Tongxinluo and Lianhua Qingwen leading in their respective markets [2][4] - The market share of Tongxinluo, Sansong Yangxin Capsule, and Qiliqiangxin Capsule in the cardiovascular market increased from 13.64% in 2015 to 18.13% in 2024, ranking them among the top 10 in the public medical market [3] - Lianhua Qingwen remains the top cold medication in the public medical market with a market share of 20.74% in 2024 [4] Group 3: Research and Development - The company invested 399 million yuan in R&D in the first half of 2025, accounting for 9.87% of its operating revenue, which is significantly higher than industry peers [12][13] - Yiling Pharmaceutical holds over 870 valid patents, including 511 invention patents, establishing a strong technological barrier [13] - The company is actively pursuing innovation in TCM, with ongoing projects in various therapeutic areas, including respiratory, endocrine, and digestive systems [13][16] Group 4: Industry Outlook - The TCM industry is experiencing a golden development period driven by supportive policies, increasing demand, and technological advancements [17] - The Chinese government has introduced multiple policies to support TCM, enhancing quality and promoting modernization and internationalization [17] - The aging population and rising prevalence of chronic diseases in China are expanding the market space for TCM, highlighting its unique advantages in chronic disease management [17]