Yuekan Pharmaceutical reports its first loss since listing, with revenue declining for four consecutive years; adjustments in volume and price of core products have led to a sharp decrease in income.

Question: How does the “One Drug, Double Price” incident involving AI Yuekang Tong affect the company’s performance and transformation?

Image source: Visual China

Blue Whale News, March 23 (Reporter Tu Jun) — On March 20, Yuekang Pharmaceutical released its 2025 annual report. The report shows that the company’s revenue for 2025 was 2.446 billion yuan, a decrease of 35.30% year-on-year; net profit attributable to shareholders was -262 million yuan, a decline of 312.09%; and net profit after deducting non-recurring gains and losses was -288 million yuan, down 359.98%, marking its first loss since listing.

In the annual report, Yuekang Pharmaceutical stated that at the end of 2024, the company adjusted the pricing and sales strategy for the product “Ginkgo Biloba Extract Injection,” which had a temporary impact on revenue and profits. Additionally, during the reporting period, the company continued to maintain a high level of R&D investment, with R&D expenses increasing year-on-year. This high R&D expenditure also had a certain impact on net profit.

At the end of 2024, Yuekang Pharmaceutical’s core product, “Ginkgo Biloba Extract Injection,” was embroiled in the “One Drug, Double Price” scandal. According to data from the Ulanhot Public Security Bureau investigation, a drug called “Ginkgo Biloba” had a bottom price of 8.5 yuan per injection and a selling price of 25.28 yuan per injection, with doctors earning a commission of 4 yuan per injection used. Since Yuekang Tong, produced by Yuekang Pharmaceutical Group Co., Ltd., is the only domestically approved chemical drug ginkgo biloba extract injection approved by the National Medical Products Administration, it attracted market attention. Subsequently, Yuekang Pharmaceutical issued a statement saying it would proactively adjust the price of its Ginkgo Biloba Extract Injection.

On December 30, 2024, Yuekang Pharmaceutical announced that it would proactively adjust the price of its Ginkgo Biloba Extract Injection, reducing the nationwide listed price from 24.1 yuan and 18.14 yuan per injection (the bidding prices in some provinces) to 11.2 yuan per injection. The price cuts were 53.53% and 38.26%, respectively. The company also stated it would actively participate in future national centralized drug procurement.

Following this, Yuekang Pharmaceutical’s performance rapidly declined. In Q4 2024, the company’s revenue was 789 million yuan, down 36.3% year-on-year; net loss attributable to shareholders was 86.01 million yuan, a decrease of 364.5%; and net profit after deducting non-recurring gains and losses turned from a loss of 6.04 million yuan in the same period of 2023 to a loss of 91.17 million yuan, with the loss further expanding.

In 2025, Yuekang Pharmaceutical’s performance further deteriorated. Looking at product segments, all main products saw revenue declines. The revenue from the cardiovascular and cerebrovascular category, including Ginkgo Biloba Extract Injection, was 1.062 billion yuan, a sharp drop of 49.54%, which was the core factor for the revenue decline; revenues from anti-infection, digestive system, blood sugar reduction, and raw materials decreased by 25.32%, 19.26%, 2.11%, and 35.74%, respectively, further dragging down overall revenue.

While revenue significantly decreased, the company’s expenses, especially R&D costs, remained high, exerting considerable pressure on net profit. In 2025, Yuekang Pharmaceutical invested 456 million yuan in R&D, accounting for 18.67% of revenue, an increase of 7.51 percentage points compared to the previous year.

Public information shows that on December 24, 2020, Yuekang Pharmaceutical was listed on the STAR Market of the Shanghai Stock Exchange. In 2021, its net profit reached 545 million yuan. However, starting in 2022, the company’s revenue declined year after year. Financial reports show that in 2022, the company achieved revenue of 4.542 billion yuan, down 8.53% year-on-year; net profit was 335 million yuan, down 38.53%. In 2023, revenue fell to 4.196 billion yuan, a decrease of 7.61%; net profit was 185 million yuan, down 44.87%. In 2024, operating conditions remained under pressure, with revenue further declining to 3.781 billion yuan and net profit to 124 million yuan. In 2025, the company posted its first loss since listing, with a net profit of -262 million yuan.