Yunnan Baiyao Group Co. Ltd released its 2021 annual report on March 26, reporting a net profit of 2.8 billion CNY (440.3 million dollars) attributable to shareholders in the listed company, a 49.17% decrease year-on-year.
According to Times Finance, the leading Chinese pharmaceutical company’s report shows that Yunnan Baiyao made revenue of 36.37 billion CNY (571.3 million dollars) in 2021, up 11.09% from 2020. However, its net profit plummeted by 49.17% year-on-year.
The report said that the 2021 profit was only 33 million CNY (5.2 million dollars) higher than the 2015 results and was the only negative growth in the past ten years.
The loss on investment securities was the main reason for the sharp decline in the net profit of Yunnan Baiyao in 2021.
The 2021 annual report showed that changes in the net value of the securities and fund units held by Yunnan Baiyao generated a loss of 1.93 billion CNY (303 million dollars).
In 2021, Yunnan Baiyao invested in nine stocks, including Xiaomi Group, Tencent Holdings, Yili, Hengrui Pharmaceutical, which all suffered losses of varying degrees. Among them, the investment in Xiaomi Group lost more than 1.4 billion CNY (220 million dollars), Tencent Holdings lost 134 million CNY (21 million dollars), Hengrui Medicine lost 220 million CNY (34.5 million dollars), and Yili lost 126 million CNY (19.8 million dollars).
In addition, Times Finance reported that Yunnan Baiyao was on the hot seat for losing 1.5 billion CNY (235.6 million dollars) in stock speculation when it released the 2021 third-quarter report in October 2021.