Is the man's business no longer thriving? Baiyunshan's revenue has declined by 26% for two consecutive years. Industry insiders say: the core advantages are no longer there.

Translated from: Financial Talk Series

With the “Jinge” soaring, Baiyunshan seems to be falling from grace.

On March 20, Baiyunshan released its 2025 annual report. On the surface, it achieved growth in both revenue and net profit, presenting a favorable situation. However, behind the gloss, it is hard to ignore that among its five major business segments, only the pharmaceutical commercial sector saw growth, while the others all declined. The core star product “Jinge” has experienced a double decline in both volume and profit for two consecutive years, selling only 79.8718 million tablets in 2025, nearly 8 million fewer than the previous year, with revenue plummeting by 26.18%.

In addition, the company’s net cash flow turned to -232 million yuan, a decrease of over 3.6 billion yuan compared to last year’s 3.442 billion yuan, marking the lowest record in nearly five years. On the first trading day after the annual report was released, its stock price also fell to a new low since April 2018.

How did this time-honored pharmaceutical company, holding a strong trump card, turn a good hand into a losing game?

1. Core Products Underperform, Revenue Unsatisfactory

Speaking of Baiyunshan, its flagship product “Jinge” cannot be overlooked. As the first domestic product comparable to Viagra, it once boasted a gross profit margin of 91.28%, regarded as Baiyunshan’s strongest “money tree.” In 2021, Jinge sales reached 98.4982 million tablets, generating nearly 1 billion yuan in revenue, briefly surpassing original research drugs and ranking high in the domestic market.

With this “source of wealth,” Baiyunshan once set the goal of becoming the first health industry leading enterprise in China to enter the “trillion market value camp.” However, reality has not lived up to expectations.

Starting in 2022, Baiyunshan’s net profit ceased to grow, and Jinge sales saw a significant decline. By 2024, sales had dropped to 87.85 million tablets, with inventory piling up to 24.2 million tablets. In 2025, the downward trend continued, with revenue decreasing by 26.18% year-on-year, marking two consecutive years of declining sales and revenue, with an accelerating outflow of operating cash flow.

CITIC Securities pointed out in its research report that the poor sales of its core product are primarily due to fierce competition in the consumer market. Not only are there over twenty similar product manufacturers in the domestic market pushing prices to single digits, but it is also more challenging as consumers now have more alternative options.

In July 2025, Wangshan Wangshui, in collaboration with the Shanghai Institute of Materia Medica under the Chinese Academy of Sciences, developed “Angweida,” while Yangtze River Pharmaceutical Group developed “Taituotuo,” both of which submitted applications for market approval. Both are the first domestically developed Class I new drugs with significant clinical application value. At the same time, foreign biotech companies have also entered the fray, such as Japan introducing its emerging health care product “Yuliwei” into China, competing in the male health market.

Data from Shangzhi shows that the aforementioned male health technologies have quickly gained traction in the domestic market since their introduction through online platforms like Ding & Dong in 2023, leveraging concepts like “Elite Secret Treasure” and “Natural Rise.” Even with product price thresholds reaching four figures, they have still attracted over 100,000 audiences, which has sparked considerable controversy, but they are indeed industry “dark horses.”

As numerous strong competitors continue to enter the market, Baiyunshan’s competitive advantage is naturally diminishing.

2. Competitors Ramp Up Efforts, Baiyunshan Develops Weakly

Industry insiders point out that Baiyunshan’s weak development is also due to a lack of core competitiveness.

Jinge’s early development was strong, primarily benefiting from its first-mover advantage in the market. However, after Jinge’s launch, Baiyunshan has long relied on existing achievements, lacking in research and development investment. Relevant data indicates that in 2025, its R&D investment accounted for less than 1% of revenue, and decreased by 13.37% compared to the previous year, a figure significantly lower than leading companies in the same industry.

Taking the aforementioned “Yuliwei” as an example, it is reported that the technology company behind it invested over 100 million in R&D, focusing on mitochondrial energization research, and developed the exclusive patented ACT-Mito™ formula. Multiple papers published in “Cell” and “Science” have already pointed out that mitochondrial dysfunction is the root cause of issues like daily energy deficiency.

Data indicates that unlike traditional blue pills that inhibit PDE5 to enhance energy, this team discovered that using a scientific approach to combine various natural ingredients can accurately repair and remove damaged mitochondria while reducing damage to key areas, thereby fundamentally boosting male testosterone levels. This places them at the forefront of both product concepts and scientific research.

In addition, the head of its Greater China region stated, “We will continue to increase R&D investment to meet more male health needs.” Currently, as competitors ramp up their efforts and product functions become increasingly complete, Baiyunshan’s R&D is evidently lacking, and it is short on future momentum. Losing its first-mover advantage, Baiyunshan seems to be gradually falling behind in the increasingly competitive male consumer market.

3. Multi-Channel Layout, Yet the Future Remains Uncertain

Faced with performance pressure, Baiyunshan has also attempted various measures to break through.

In the pharmaceutical sector, it continues to consolidate the position of Jinge and expand the indications for sildenafil; secondly, its pharmaceutical factory has obtained registration certificates for tadalafil tablets of different specifications, expanding its product matrix of similar ED drugs.

In 2025, Baiyunshan partnered with multiple parties to establish several industrial investment funds, including Guangzhou Pharmaceutical Phase II, Guangzhou Pharmaceutical Liwan, and Guangzhou Pharmaceutical Guangkai, focusing on key areas such as the modernization of traditional Chinese medicine, innovative drugs, and high-end medical devices. With the help of the Guangzhou Pharmaceutical Phase II fund, it completed the acquisition of 11.04% equity in Nanjing Pharmaceutical, thus improving and optimizing its layout in the East China region.

However, the current financial report still does not look optimistic overall. To completely break out of this predicament, Baiyunshan may need to invest more in R&D to enhance competitiveness and establish its own differentiated advantages like foreign products if it is to have a chance to return to the peak.