"Domestic Viagra" is no longer effective? Baiyunshan has become more stable.

Produced by | Business Era

Editor | Li Xiaoyan

After a brief period of performance fluctuation, Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. recently reported a “recovery” performance: 2025 revenue of 77.656 billion yuan, up 3.55% year-over-year; net profit attributable to parent company of 2.983 billion yuan, up 5.21% year-over-year.

This is not just a mild performance recovery; it also indicates that the company is in a typical growth transition period — under pressure from traditional blockbuster products, new profit pillars and strategic paths are gradually taking shape.

The market’s most关注 remains on the core product known as “Chinese Viagra” — Jin Ge. This citrate sildenafil tablet was once Baiyunshan’s most dazzling growth engine. From its initial market launch relying on “first imitation + cost performance” to quickly gaining market share, to temporarily surpassing the original research drug in retail terminals, Jin Ge almost carried the main growth potential of the company’s chemical drug segment. However, since 2024, this logic has begun to change. By 2025, Jin Ge’s sales volume was about 79.87 million tablets, showing a second consecutive year of decline in both volume and price.

As more pharmaceutical companies enter the ED market, sildenafil has shifted from a “few players” game to a “crowded market”; at the same time, alternative products like tadalafil are continuously diverting demand. Under the dual effects of centralized procurement and downward price pressure, Jin Ge’s growth logic is being restructured — it is no longer a blockbuster capable of sustained volume growth, but more like a mature, standardized product.

This does not mean Jin Ge has lost its value. On the contrary, it remains one of Baiyunshan’s largest revenue contributors, but its role has changed: from a growth engine to a cash flow source. For a company adjusting its structure, this shift is not necessarily a bad thing; it instead provides a relatively stable profit base.

What is truly noteworthy is Baiyunshan’s other major flagship — Wanglaoji.

In 2025, Baiyunshan’s natural beverage segment gross profit margin increased to 45.33%, showing a significant improvement in profitability quality. Among them, the core operating entity, Wanglaoji Health, maintained stable revenue and achieved profit growth, contributing over 40% to the group’s overall profit. In other words, Wanglaoji has shifted from an “important business segment” to a “core profit pillar” within the company’s profit structure.

This change is the result of Baiyunshan’s gradual strategic adjustment in its consumer goods business. In an industry with slowing growth, the company has moved away from pure scale expansion and instead focused more on profit margins and channel efficiency. Through cost control, product structure optimization, and deepening the festive consumption scene, it stabilizes its fundamentals. Meanwhile, Wanglaoji’s brand strength still forms a relatively solid moat — whether in traditional herbal tea consumption, gift markets, or seasonal high-temperature demand, it maintains strong market stickiness. Such assets are characterized not by explosive growth but by certainty, which also makes them act like a “ballast” during overall performance fluctuations.

This shift is highly consistent with external conditions. Whether in the pharmaceutical or herbal tea industries, both have bid farewell to the high-speed expansion phase. The pharmaceutical sector is reshaped by centralized procurement and generic drug competition, compressing profit margins; the beverage industry has entered a stock competition, where brand, channels, and product segmentation are the new keys to victory. In this context, companies can no longer rely solely on a single blockbuster for sustained growth; they need to depend more on systemic capabilities.

Baiyunshan has clearly recognized this. From its strategic moves—whether it’s developing functional beverages, promoting health-oriented products, or pushing brands like WALOVI overseas—these are fundamentally efforts to find new growth curves. Meanwhile, the continuous expansion of its pharmaceutical commercial segment also provides a stable cash flow foundation, enhancing its resilience during transformation.

In an era lacking super blockbuster products, companies are no longer competing to see “who runs faster,” but rather “who is more stable and lasts longer.” Although Jin Ge is sluggish, this does not mean Baiyunshan has lost its growth potential. On the contrary, the company is rebuilding its growth model in a different way.