The Chinese traditional medicine company Pien Tze Huang continues to experience a downturn in performance, with a nearly 15% decrease in revenue and over 24% decrease in net profit in the first half of this year. The revenue from its core products has also dropped by nearly 20%. The company’s market value has evaporated over 200 billion yuan from its peak in 2021.
In a recent announcement of its half-year report, Pien Tze Huang disclosed that its operating income for the first half of the year was 4.573 billion yuan, a decrease of 14.98% compared to the same period last year. The net profit attributable to the parent company was 1.093 billion yuan, a decline of 24.22%, and the net profit after deducting non-recurring gains and losses dropped by 27.41%. This marks the second consecutive decline in both revenue and net profit for Pien Tze Huang over two consecutive reporting periods.
According to a report by the Caixin Media, the company’s net profit for the second quarter was approximately 349 million yuan, a decrease of around 52% from the 743 million yuan in the first quarter.
The revenue from liver disease medications, primarily Pien Tze Huang tablets and capsules, amounted to 2.348 billion yuan, down by 18.92% year-on-year. Looking at different business segments, revenue from pharmaceutical manufacturing, pharmaceutical distribution, and cosmetics business decreased by 17.87%, 14%, and 3.25%, respectively.
Moreover, Pien Tze Huang’s stock price has experienced an overall decline. As of August 28 this year, the stock closed at 127.30 yuan, marking a cumulative decrease of over 20% for the year.
The company’s data shows that Pien Tze Huang currently has approximately 603 million shares, the same as in 2021. Based on the closing prices of two trading days, the company’s total market value decreased from approximately 295.5 billion yuan on July 21, 2021, to around 76.8 billion yuan on August 28 this year.
Over the past five years, Pien Tze Huang’s market value has shrunk by around 218.7 billion yuan, a decline of about 74%, now only equivalent to approximately one-fourth of its peak value.
Data from China’s medical information platform Mochong Medical Data indicates that in the first quarter of this year, the total sales of Pien Tze Huang products in physical pharmacies amounted to 346 million yuan, a decrease of 9.85% year-on-year. Online pharmacy and hospital terminal sales also saw declines.
In the first half of this year, Pien Tze Huang’s sales expenses increased to 279 million yuan, a year-on-year increase of 27.5%. By the end of June, accounts receivable reached 1.018 billion yuan, up by 35.14% compared to the end of last year.