Performance Analysis of Yokon Pharmaceutical Group 2025: Dual Decline in Revenue and Net Profit, Commercialization of Innovative Drug Pipeline Still Takes Time

Based on the collected information, I will conduct a systematic analysis of Yokon Pharmaceutical Group’s performance in the first seven months of 2025, its dividend distribution status, and the R&D progress of its innovative drug pipeline.

Yokon Pharmaceutical Group (Stock Code: 688658) is currently facing severe financial challenges. According to data disclosed in the company’s Hong Kong IPO application materials, the company’s performance saw a sharp decline in the first seven months of 2025 [1]:

Indicator	Same Period in 2024	First 7 Months of 2025	Change Rate
Operating Revenue	RMB 2.152 billion	RMB 1.304 billion	-39.4%
Net Profit	RMB 90 million	-RMB 146 million	Shifted from profit to loss, -261.6%

Even more severely, the company’s revenue has been on a downward trend for three consecutive years. From 2022 to 2024, operating revenue was RMB 4.521 billion, RMB 4.183 billion, and RMB 3.767 billion respectively, with a cumulative decline of 16.7% over three years [1]. In terms of net profit, it was RMB 339 million, RMB 188 million, and RMB 121 million from 2022 to 2024, representing a cumulative decline of as high as 64.3% over three years.

Revenue from the company’s core product, “Yuekangtong®” (Ginkgo Biloba Extract Injection), plummeted from RMB 1.217 billion in the same period last year to RMB 509 million, a decline of 58.2%, and its proportion of total revenue dropped from 56.6% to 39.0%. The company stated that this was mainly affected by the volume-based procurement policy and intensified market competition, leading to a dual decline in product price and sales volume [1].

Financial data shows that the company’s cash and cash equivalents continued to decrease from RMB 1.518 billion at the end of 2022 to RMB 875 million at the end of July 2025, a decline of 42.4% [1]. The net cash flow from operating activities in the first seven months of 2025 was -RMB 27.3 million. Inventory turnover days extended from 151.6 days in 2022 to 195.3 days, indicating a continuous decline in operational efficiency. The asset-liability ratio rose from 17.3% in 2022 to 25.1% in July 2025.

Despite the continuous decline in performance, Yokon Pharmaceutical Group cumulatively distributed

in dividends to shareholders from 2022 to 2024, with a relatively large dividend payout in 2023 [2]. This dividend scale stands in stark contrast to the company’s current profitability and cash flow status. The company’s actual controller is the Yu Weishi Family, and its holding company Fuyang Jingyue holds 40.05% of Yokon Pharmaceutical Group’s equity, so most of the dividends flowed to the actual controller’s family [3].

Currently, the company is sprinting for a Hong Kong listing, having submitted an application for listing on the main board of the Hong Kong Stock Exchange on December 29, 2025, with CITIC Securities as its exclusive sponsor, planning to replenish capital through fundraising [4].

Yokon Pharmaceutical Group fully entered the nucleic acid track after acquiring Tianlong Pharmaceutical in 2021, forming a diversified innovative drug pipeline including

[5]. The company has established a National and Local Joint Engineering Research Center for Nucleic Acid Drugs, and built two technical routes: mRNA and small nucleic acid.

Drug	Target/Mechanism	Indication	R&D Progress
CT102	IGF1R Antisense Nucleic Acid	Primary Liver Cancer	Phase IIa Clinical Trial
YKYY015	PCSK9 siRNA	Hypercholesterolemia	Phase I Clinical Trial (IND approved in China and the US)
YKYY009	SARS-CoV-2 S Protein mRNA	Prevention of COVID-19 Infection	Pre-clinical, Pre-IND submitted
YKYY010	Rabies Virus G Protein mRNA	Prevention of Rabies Virus Infection	Pre-clinical GMP Sample
YKYY017	Coronavirus Membrane Fusion Inhibitor	Prevention/Treatment of COVID-19 Infection	Phase II/III Clinical Trial

The company’s R&D investment intensity has increased year by year. In 2024, R&D expenses were RMB 374 million, accounting for 9.9% of revenue, but this is still lower than the average level of 15%-20% for domestic innovative pharmaceutical companies [1]. Only YKYY017 in the pipeline has entered Phase II/III clinical trials, while the rest are mostly in early stages, showing a significant gap with leading enterprises such as Hengrui Medicine and BeiGene.

Based on the current pipeline progress,

:

• Short-term (2026-2027)
  : 3 innovative traditional Chinese medicines are expected to submit listing applications first, including Hydroxysafflor Yellow A for Injection (acute ischemic stroke), Tongluo Jiannao Tablets (vascular dementia), and Zihua Wenfei Zhisou Granules (post-infection cough)
• Mid-term (2027-2029)
  : If the Phase II/III clinical trial data of the YKYY017 polypeptide drug is positive, it may enter the NDA application stage
• Long-term (After 2029)
  : Oligonucleotide drugs such as CT102 and YKYY015 are expected to take 3-5 years to complete clinical trials and submit listing applications

1. Product Concentration Risk
   : The sharp decline in revenue from Yuekangtong® has a significant impact on the company’s performance
2. Cash Flow Pressure
   : Cash reserves have dropped by 42.4%, and liquidity pressure is gradually emerging
3. Lagging R&D Progress
   : The progress of the innovative drug pipeline lags behind the industry average, and the core technology platform has not yet produced commercial products
4. Uncertainty of Hong Kong IPO
   : Against the background of expanding losses, there is uncertainty about whether the Hong Kong IPO can be completed smoothly

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[1] Sina Hong Kong Stocks - “Hidden Worries of Yokon Pharmaceutical Group’s Hong Kong IPO: Revenue Down 16.7% in Three Years, Net Loss Expanded by 261.6% in H1 2025” (https://www.163.com/dy/article/KI0UEP1005568W0A.html)

[2] Investing.com - “Yokon Pharmaceutical Group (688658.SH) Sees Three Consecutive Years of Decline in Revenue and Net Profit: Why Did the Yu Weishi Family Distribute Over RMB 400 Million in Dividends?” (https://cn.investing.com/news/stock-market-news/article-3156198)

[3] Eastmoney.com - “Yokon Pharmaceutical Group (688658.SH): Short-term Disturbances Gradually Eliminated” (https://pdf.dfcfw.com/pdf/H3_AP202312111613696240_1.pdf)

[4] Baidu Encyclopedia - “Yokon Pharmaceutical Group Co., Ltd.” (https://baike.baidu.com/item/悦康药业集团股份有限公司/24545233)

[5] Eastmoney.com - “Yokon Pharmaceutical Group (688658): A BigPharma with Both Innovation and Profitability” (https://pdf.dfcfw.com/pdf/H3_AP202402091621170584_1.pdf)