Breaking Down Mayinglong Pharmaceutical Group Co., LTD. Financial Health: Key Insights for Investors

From a Ming Dynasty apothecary founded in 1582 to a modern public company with a legacy spanning more than four centuries, Mayinglong Pharmaceutical Group Co., Ltd. combines time-honored traditional Chinese medicine with contemporary pharmaceutical rigor-its Hemorrhoid Ointment stands as a flagship product that underscores this blend while products now reach over 50 countries; the group's strategic expansion (including a 60% acquisition of Jiangxi Shuanghe Pharmaceutical Co., Ltd. in 2021) and sustained investment in innovation (allocating roughly 10% of revenue to R&D and spending about ¥1.2 billion on R&D in 2022) have helped drive financial momentum-reported revenue of ¥2.1 billion in FY2022 reflecting a 15% year-on-year increase and an operationally healthy 8% net margin-while market performance showed resilience with a 25% year-to-date stock rise as of October 2023 and a market capitalization near ¥30 billion, all underpinned by core values of integrity, innovation, customer-centricity, sustainability, excellence and social responsibility that shape its mission to marry traditional remedies with modern healthcare advances

Mayinglong Pharmaceutical Group Co., LTD. (600993.SS) - Intro

• Deliver safe, affordable OTC and prescription products that meet mass-market primary care needs.
• Preserve and modernize TCM heritage through science-driven product development.
• Expand manufacturing and distribution to improve healthcare accessibility across urban and rural China.

• Be the leading household TCM-pharma brand in Greater China, recognized for safety, efficacy and innovation.
• Scale regional export and cross-border cooperation to introduce Mayinglong formulations to global Chinese-diaspora markets.
• Drive long-term, double-digit revenue growth through product diversification, digital channels and manufacturing consolidation.

• Heritage & Respect - safeguard centuries-old TCM knowledge while applying modern quality standards.
• Safety & Efficacy - prioritize clinical evidence, GMP-compliant manufacturing, and pharmacovigilance.
• Accessibility - affordable pricing and broad distribution to serve diverse socioeconomic groups.
• Integrity - transparent governance as a publicly listed company (600993.SS) with stakeholder accountability.
• Innovation - invest in R&D, reformulation and strategic M&A to sustain competitiveness.

• Integrate acquired production lines (Jiangxi Shuanghe) to raise utilization and reduce per-unit COGS.
• Expand OTC distribution via e-commerce and provincial pharmacy chains to capture urban & rural demand.
• Increase R&D spend to validate TCM formulations, target improved clinical claims and international registration.
• Strengthen brand trust and regulatory compliance to support margin improvement beyond 8% net profit.

Mayinglong Pharmaceutical Group Co., LTD. (600993.SS) - Overview

• Mission Statement: To lead the pharmaceutical industry through rigorous research, continuous innovation, and the development of high‑quality healthcare products that integrate TCM and modern medicine.
• Strategic emphasis: Harmonize technology and nature while promoting accessible, evidence‑based traditional remedies.
• R&D commitment: An average of 10% of annual revenue is allocated to research and development to sustain pipeline growth and product quality.

• Become a globally respected pharmaceutical leader that advances integrative medicine-melding TCM heritage with modern clinical standards.
• Expand international reach while maintaining rigorous quality controls and sustainable sourcing.

• Innovation: Prioritizing R&D investment and technological partnerships to drive novel therapies and improved formulations.
• Quality & Safety: Upholding strict manufacturing and clinical standards across product portfolios.
• Heritage & Science: Respecting TCM traditions while validating efficacy through modern research methodologies.
• Sustainability: Balancing natural resource stewardship with scalable production practices.
• Patient‑Centricity: Designing products and distribution strategies to improve health outcomes and accessibility.

• R&D pipeline investments targeting both TCM‑derived and synthetic formulations.
• Quality management systems aligned with national and international regulatory expectations.
• Strategic alliances and clinical collaborations to accelerate product validation and market entry.

Mayinglong Pharmaceutical Group Co., LTD. (600993.SS) - Mission Statement

• Global integration of TCM and modern pharmaceuticals to deliver safe, effective therapies.
• Expand international reach while preserving traditional therapeutic knowledge and scientific rigor.
• Invest in R&D to translate traditional formulas into standardized, clinically validated products.
• Promote sustainable manufacturing and responsible supply-chain practices to ensure long-term access to care.

• Global leadership ambition: integrate TCM with modern practices and be recognized as a trusted global brand.
• International distribution: products available in over 50 countries as of 2023.
• R&D enhancement: continuing to grow research capacity to meet evolving global healthcare needs.
• Sustainability and CSR: targeted programs to improve access to healthcare in underserved regions.
• Operational excellence: ongoing improvements in manufacturing processes and supply-chain management.

• Clinical validation of TCM-derived products to meet international regulatory standards.
• Scaling manufacturing to ensure consistent product quality and supply reliability.
• Strategic partnerships and distribution networks to penetrate new markets.
• Investment in talent and technology to drive innovation and process optimization.

Mayinglong Pharmaceutical Group Co., LTD. (600993.SS) - Vision Statement

• Integrity: Upholding the highest ethical standards, ensuring transparent governance, regulatory compliance, and trust across supply chains and partnerships.
• Innovation: Sustained investment in research and development to expand proprietary product pipelines and platform capabilities.
• Customer-Centricity: Prioritizing patient and customer needs through product quality, service responsiveness, and lifecycle support.
• Sustainability: Integrating environmental stewardship and resource efficiency into manufacturing, packaging, and logistics.
• Excellence: Continuously improving quality systems, manufacturing yields, and commercial performance to exceed industry benchmarks.
• Social Responsibility: Expanding healthcare access, public-health education, and community programs in underserved regions.

• R&D intensity and pipeline growth to accelerate product differentiation.
• Quality assurance and regulatory adherence to minimize risk and build market trust.
• Operational efficiency and margin enhancement to fund innovation and social programs.
• Geographical expansion of distribution to reach rural and international markets.

• Integrity: Maintain >99% compliance rate in internal audits and regulatory submissions; zero-tolerance for major non-compliance events.
• Innovation: Launch 6-8 new clinical or commercial products by 2026; increase patent filings by 50% vs. FY2023.
• Customer-Centricity: Target Net Promoter Score (NPS) improvements of 15-20 pts across key channels.
• Sustainability: Reduce manufacturing CO2 intensity by 25% and single-use plastic in packaging by 40% vs. FY2023 baseline.
• Excellence: Improve on-time delivery to >98% and reduce product defect rate below 0.2%.
• Social Responsibility: Expand rural outreach programs to 200 new clinics/communities per year and increase donated product value by 30% annually.