Chongqing Taiji Industry Group Co Ltd: Quarterly Results, Strategic Adjustments, and Leadership Transition

Chongqing Taiji Industry Group Co Ltd. (ticker SH 600129) announced its latest quarterly performance on 24 October 2025, following its scheduled financial conference on 24 October. The company’s earnings‑per‑share (EPS) for the quarter ended 30 September was 0.05 CNY, a decline from 0.09 CNY in the same period last year. Revenue fell by 6.30 % to 2.43 billion CNY, down from 2.59 billion CNY a year earlier, reflecting the broader market slowdown and inventory‑management challenges that have been noted across the Chinese pharmaceutical sector.

Despite the short‑term dip, Taiji’s management highlighted several areas of progress. The group’s third‑quarter revenue of 2.43 billion CNY accounted for a 7.13 % year‑over‑year decline, markedly narrower than the 27.6 % drop recorded in the first half of the year. This trend suggests a stabilisation of the company’s operating dynamics and an effective mitigation of the inventory‑pressure that has been a concern for the industry.

Strengthening Cash Flow and R&D Investment

Taiji’s cash‑flow statement for the first three quarters of 2025 shows operating cash flow netting 166 million CNY, in line with its net profit of 166 million CNY for the same period. The company’s focus on robust cash‑flow management is cited as a key pillar of its resilience during a period of industry‑wide pressure.

The firm’s research and development (R&D) spend has accelerated, with 1.95 billion CNY invested in 2025 to date, compared with 1.49 billion CNY in 2023 and 1.87 billion CNY in the first nine months of 2024. This incremental outlay underscores Taiji’s commitment to its innovation‑driven strategy, particularly in areas such as anti‑cancer, immune‑regulation, and metabolic‑system therapies. The company’s portfolio covers a broad spectrum of therapeutic domains—from respiratory and cardiovascular drugs to anti‑infection agents and health‑supplement products—providing a diversified revenue base that can absorb market volatility.

Policy Support and International Expansion

The Chinese government’s recent policy package, notably the 2025 Ministry of Health directive to elevate traditional Chinese medicine (TCM) quality and promote digital transformation, offers a favourable backdrop for Taiji’s TCM‑related ventures. The group’s flagship product, Tongtian oral liquid, received approval from the Canadian Health Authority in July 2025, marking a significant milestone in its internationalisation efforts and opening new channels in high‑end Western markets.

Governance Update

In a related development, Taiji announced the resignation of its former Chief Financial Officer and the appointment of a new finance chief, as disclosed in the formal announcement released on 25 October 2025. The change in leadership is expected to reinforce the company’s financial oversight and support its strategic initiatives.

Market Context

Taiji’s stock traded at 21.84 CNY as of 23 October 2025, positioned between a 52‑week low of 18.70 CNY and a high of 29.49 CNY set in late 2024. With a market cap of approximately 12 billion CNY and a price‑earnings ratio of –34.39, the share reflects the sector’s current earnings volatility. Nonetheless, the company’s comprehensive product line, proactive R&D investment, and alignment with national policy priorities suggest a long‑term value proposition that may appeal to investors seeking exposure to China’s mature pharmaceutical landscape.