According to Caixin, on November 27 (Reporter Zhang Liangde), affected by the decline in the pharmacy industry's prosperity, centralized procurement, and volume-based procurement, tasly pharmaceutical group (600535.SH) saw a drop in net income in the third quarter. During a performance briefing held today for the third quarter of 2024, the company's management stated that in the third quarter of this year, due to the overall low prosperity of the pharmacy industry, the company's pharmaceutical commerce revenue decreased; however, the core business pharmaceutical industrial sector still experienced a year-on-year increase of 2.18%, though the gross margin in that sector declined due to price reductions on some products. The future gross margin is expected to remain stable at the current level.

Regarding the equity trade matter between the company's major shareholder and china resources sanjiu medical & pharmaceutical, the company's general manager Cai Jinyong stated, "Currently, the due diligence, auditing, evaluation or appraisal, and major asset restructuring verification related to this transaction are ongoing. The company and relevant parties are actively advancing all aspects of this transaction."

Due to the need for review and approval from multiple relevant parties and departments, the company stated that there is uncertainty regarding whether the transfer of control will obtain approval or authorization, as well as the timing of any approval or authorization. A risk reminder is made to investors regarding this matter.

Regarding investors' concerns about the company's development after china resources sanjiu medical & pharmaceutical takes over tasly pharmaceutical group, general manager Cai Jinyong stated, "In the future, after the change of control, china resources sanjiu and tasly will empower each other, making tasly’s innovative advantages more prominent and solidifying its leading position in modern traditional chinese medicine research and development. With the support from china resources sanjiu in management, marketing, and policy resources, tasly will be able to enhance its competitiveness rapidly from multiple dimensions and achieve better development prospects."

In the third quarter, amidst a general decline in the traditional chinese medicine industry, tasly's pharmaceutical industrial sector saw a relatively low decline compared to the industry. In the first three quarters of this year, the company achieved a net income of 0.842 billion yuan, a year-on-year decline of 18.41%, while the non-recurring net income was 0.982 billion yuan, a year-on-year decline of 6.78%. The company's secretary Wang Jie stated that the company is actively addressing changes in industry regulatory trends such as national centralized procurement, volume-based procurement, and uniform pricing of drugs, striving to exchange price for volume while also working to minimize the impact on the company's profits. In the first three quarters, the company overcame the negative effects of declining drug prices caused by national centralized procurement and volume-based procurement, achieving stable growth in sales revenue of industrial products.

According to bidding data from MoShang Pharma (formerly Yaoru Yunyun), the winning bid price for the company’s main product, Compound Danshen Dripping Pills, in local centralized procurement is 22.18 yuan, with adjustments also made to the network price in some provinces and regions.

Compared to other listed traditional chinese medicine companies, tasly believes that the rise in medicinal material prices has limited impact on the company. The company's financial director Wei Jie stated, "The changes in medicinal material costs have a controllable impact on the company's profits. The company regularly ensures its supply of medicinal materials through strategic reserves and base planting, mitigating the impact of price fluctuations. Taking into account the characteristics of different medicinal materials, the company's inventory of raw medicinal materials remains at a reasonable level."