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

AI · Ginkgo Growth Slows: How Baiyunshan Stabilizes Performance Through Wanglaoji

Produced by | Business Times

Edited by | Li Xiaoyan

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

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 point remains the core product known as “Chinese Viagra” — Ginkgo. This citrate sildenafil tablet was once Baiyunshan’s most dazzling growth engine. From its initial reliance on “first imitation + cost performance” to quickly gaining market share, to temporarily surpassing the original drug in retail outlets, Ginkgo almost carried the main growth potential of the company’s chemical medicine segment. However, since 2024, this logic has begun to change. By 2025, Ginkgo sales reached approximately 79.87 million tablets, showing a second consecutive year of declining 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, Ginkgo’s growth logic is being reshaped — it is no longer a blockbuster capable of sustained volume growth, but more like a mature, standardized product.

This does not mean Ginkgo 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 may not be 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’s gross profit margin increased to 45.33%, indicating 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 gradually adjusting its strategy in the consumer goods sector. 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 mix optimization, and deepening engagement in festive consumption scenarios, it has stabilized 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 allows them to act as a “ballast” during overall performance fluctuations.

This shift also aligns closely with external conditions. Both the pharmaceutical and herbal tea industries have bid farewell to rapid expansion phases. 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, relying solely on a blockbuster for sustained growth is increasingly difficult; companies need to rely more on systemic capabilities.

Baiyunshan has clearly recognized this. Its strategic moves—such as developing functional beverages, promoting health-oriented products, and expanding brands like WALOVI overseas—are fundamentally about seeking new growth curves. Meanwhile, the continuous expansion of its pharmaceutical commercial segment 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 Ginkgo’s momentum has waned, this does not mean Baiyunshan has lost growth potential. On the contrary, the company is rebuilding its growth model in a different way.