Pien Tze Huang's growth myth ends? Both revenue and profit stall

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Pianzihuang delivered a clearly decelerating report card in 2025, with revenue and profit both declining, ending its long-term growth narrative.

In 2025, Pianzihuang achieved revenue of 9.001 billion yuan, down 16.56% year-on-year; net profit attributable to shareholders was 2.159 billion yuan, down 27.49% year-on-year.

This is the first time in ten years that Pianzihuang has seen both annual revenue and profit decline.

The core drag on performance came from the pharmaceutical manufacturing segment, where both income and gross margin decreased.

As the base business, the pharmaceutical manufacturing sector achieved revenue of 4.441 billion yuan in 2025, a year-on-year decrease of 21.57%, with a gross margin of 59.29%, down 5.36 percentage points year-on-year.

Among these, liver disease medicines remained the absolute core, generating revenue of 4.268 billion yuan in 2025, shrinking by nearly 20% year-on-year. This means the core single-product system that supported Pianzihuang’s high growth for years is now facing slowing demand and multiple pressures from pricing and sales channels.

The structural risk of relying on a single product has been further amplified in this downward cycle.

As the second largest segment, pharmaceutical distribution business achieved revenue of 3.755 billion yuan in 2025, a year-on-year decrease of 8.05%, with a gross margin of only 7.62%, down 3.74 percentage points year-on-year.

This segment has always been driven mainly by scale, with limited profit margins. Against the backdrop of intensified industry competition and pressured demand, it is unable to provide profit support or offset volatility in manufacturing.

The cosmetics business, once expected to be the “second growth curve,” has not been spared.

In 2025, Pianzihuang’s cosmetics business generated revenue of 567 million yuan, shrinking by almost a quarter year-on-year.

In an environment where competition among domestic beauty brands is intensifying and traffic costs are high, Pianzihuang’s brand premium and channel capabilities have clearly not formed a decisive advantage.

Overall, the “high margin + high growth” myth Pianzihuang once achieved by relying on the scarcity of its core single product and brand endorsement is being challenged.

Facing growth pressure, Pianzihuang proposed a series of transformation and expansion plans in 2026, including ramping up R&D and innovation, advancing clinical trials for new traditional Chinese and biomedicines; strengthening raw material supply chain construction by importing bezoar to stabilize costs; accelerating channel expansion and e-commerce layout, promoting “hundred cities, thousand stores” and private domain operations; while pursuing mergers and investments in eight major areas such as traditional Chinese medicine formulations, medical aesthetics, medical devices, etc., seeking new growth points. However, it is clear that these new initiatives can hardly offset the pressure from core business decline in the short term.

Pianzihuang’s return to the path of growth remains full of challenges.

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