HPGC(SH:600664) Chang Jiang Shang Bao·2025-10-27 01:45Core Viewpoint - The long-established pharmaceutical company Harbin Pharmaceutical Group Co., Ltd. (哈药股份) has reported a decline in its operating performance for the first three quarters of 2025, with revenue and net profit both decreasing significantly compared to the previous year [1][5]. Financial Performance - For the first three quarters of 2025, the company achieved approximately 12 billion yuan in revenue, a year-on-year decrease of about 1.9%, and a net profit attributable to shareholders of approximately 330 million yuan, down about 35% [1][5]. - In the third quarter of 2025, the net profit attributable to shareholders was approximately 68.89 million yuan, reflecting a year-on-year decline of about 58% [2][5]. - The company’s revenue and net profit have shown a continuous decline over two consecutive quarters, with significant drops in both metrics [7]. Market Conditions and Competition - The company attributes its declining performance to intensified market competition, particularly from non-pharmaceutical products that aggressively capture market share through strong promotional strategies [2][6]. - Despite the company's efforts to adjust sales strategies and increase promotional activities, it continues to face pressure on sales, particularly for key products [6][8]. Marketing vs. R&D Expenditure - Harbin Pharmaceutical has been criticized for its heavy reliance on marketing over research and development, with marketing expenses totaling 1.806 billion yuan, which is 13.28 times the R&D expenditure for the year [2][11]. - The marketing expenses have consistently increased, comprising a growing percentage of total sales expenses, while R&D spending has remained relatively stagnant despite significant revenue growth [10][12]. Dividend Policy - The company has not distributed cash dividends since 2018, which is notable given its previous high dividend payouts from 2015 to 2017 [3][12]. Stock Market Performance - The stock price of Harbin Pharmaceutical has been underperforming, remaining below 5 yuan per share since February 2020 [4][13].