24 June 2015 | Analysis | By BioSpectrum Bureau
Slow and Steady Growth
YUNNAN BAIYAO GROUP, China
Chairman: Mr Yin Pinyao
Business: Traditional Chinese Medicines
In 2014, Yunnan based Yunnan Baiyao Group registered net profit of around $407 million, however, the growth rate fell sharply by 46.7 percent as compared to 2013. The company attributed the slower growth to low market demand and high regulatory framework in China.
The company's business revenue increased from $2.4 billion in 2013 to $2.9 billion in 2014. Year-on-year, Yunnan Baiyao Group has been able to reduce the percentage of sales devoted to cost of goods sold, SGA expenses and income tax expenses.
It inked a three year partnership with Taiwan's Grape King Bio, a supplier of probiotics and mushroom mycelium health foods, to co-develop and sell new products in the Chinese and Southeast Asian markets.
Over the years, Yunnan Baiyao has established scientific and technological cooperation with China Medical University, Yunnan Institute of Traditional Chinese Medicine and has successfully completed 15 projected funded by the National Development and Reform Commission, Ministry of Science, and Yunnan Provincial Science and Technology Department.
To further strengthen its platform for information and technology exchange for government, research institutions, and enterprises and to promote the development of the traditional Chinese medicinal materials, 11 organizations in the traditional Chinese medicinal materials planting industry in Yunnan.