Financial Report Highlights | 40% of profit comes from financial management, Jinling Pharmaceutical's sales expenses increased far more than revenue last year

Recently, Jinling Pharmaceutical delivered its 2025 performance report: total revenue of 3.2B yuan, down 2.56% year-on-year, marking the first negative growth in nearly three years; net profit attributable to the parent company was 53.9146 million yuan, up 33.42% year-on-year. However, its net profit after deducting non-recurring gains and losses was only 35.0049 million yuan, down 28.45% year-on-year. The Beijing News reporter noted that in 2025, over 40% of Jinling Pharmaceutical’s profit came from financial income, with its dual main businesses under continued pressure. The strategic slogan of “Strengthen Industry, Stabilize Healthcare” has yet to be realized.

Revenue declines for the first time in nearly three years

Jinling Pharmaceutical’s performance growth largely relies on the “phantom” boost from non-recurring gains and losses. According to the annual report, in 2025, the company’s total profit was 65.1913 million yuan, of which investment income was 30.1959 million yuan, accounting for approximately 46.32% of total profit. Meanwhile, sales expenses increased to 139 million yuan, a 62.71% rise, far exceeding revenue growth; the parent company’s accounts receivable grew from 81.7 million yuan to 141 million yuan, an increase of about 72.57%.

As an established pharmaceutical company founded in 1998, Jinling Pharmaceutical’s main business covers drug manufacturing, medical devices, and healthcare services, with products spanning cardiovascular, iron supplements, and other treatment areas. Its ferrous sulfate tablets (Suli Fei) hold a certain advantage in the iron supplement market segment, and it also owns several grade-A hospitals and five-star elderly care institutions.

However, in 2025, its core sectors of medical services and drug production and sales both failed to meet expectations. The medical services segment achieved revenue of 1.65B yuan, down 5.22% year-on-year. Notably, the leading Suqian Hospital lost 14.5833 million yuan; Anqing Petrochemical Hospital lost nearly 20 million yuan, with both hospitals continuing to incur losses and the loss amounts expanding.

While drug production and sales achieved revenue of 1.5B yuan, a slight increase of 0.09%, the quality of growth is concerning. The core product, ferrous sulfate tablets (Suli Fei), faces market saturation; the injection of Moluoning is under dual pressure from centralized procurement price cuts and clinical restrictions, leading to a decline in gross profit margin.

Fundraising projects are significantly delayed

With its main business under pressure, the company’s strategic transformation has also been relatively slow. In 2024, Jinling Pharmaceutical raised 750 million yuan through a private placement, planning to invest in two core projects: Hefei Smart Elderly Care and Raw Material Drug Platform. However, by the end of 2025, the total invested amount was only 29.9372 million yuan, with an utilization rate of less than 4.03%. Among these, the strategic Hefei Jinling Tianyi Smart Elderly Care project received only 374.8k yuan; the raw material drug project is only 2.57% complete and has been announced as delayed until 2028.

Massive idle funds from fundraising have been “lying idle,” with over 680 million yuan shifted to purchase financial products, forming a cycle of “raising funds without investing in projects, relying on financial management to maintain profits.”

To reverse its declining performance, Jinling Pharmaceutical is actively seeking breakthroughs. In 2024, R&D expenses totaled 111 million yuan, a 39.86% increase. In the first half of 2025, R&D investment was 45.3416 million yuan, up 20.51%. The company has stated that increased R&D investment demonstrates its focus on innovation and aims to enhance product competitiveness through research and development, though it may exert short-term pressure on profits.

In 2025, Jinling Pharmaceutical’s R&D expenditure was about 110 million yuan, consistent with previous years. Its ongoing projects under registration include docetaxel injection concentrate, cicada molting cough granules, carbocisteine dry suspension, and Oleracil tablets.

However, Jinling Pharmaceutical also reminds that pharmaceutical R&D is characterized by high technical barriers, high R&D costs, and high R&D risks. The process from early-stage research, clinical trials, review and approval, to production and market launch is long, involves many steps, and is complex. The progress can be affected by policy, technological, and market uncertainties.

Regarding future scale of financial investments, the reasonableness of sales expense growth exceeding revenue growth, the impact of delayed fundraising projects, and other issues, the Beijing News reporter sent interview questions to Jinling Pharmaceutical on April 2. As of the deadline, no response has been received.

Beijing News Reporter: Zhang Zhaohui

Editor: Wang Lu Proofreader: Mu Xiangtong