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Best known for its century-old TCM products, in 2024, Yunnan Baiyao's aerosol sprays, plasters, medicated bandages, toothpaste, and Panax notoginseng extracts maintained leading market shares in their respective categories. Notably, its flagship aerosol spray product achieved sales revenue exceeding 2.1 billion yuan ($294.78 million), marking a 26 percent year-on-year increase. Additionally, Yunnan Baiyao toothpaste has consistently led the Chinese market in terms of all-channel market share.

At the same time, the company has concentrated on its core business and deepening its roots in the pharmaceutical industry. It actively promotes the "TCM + Big Health" strategy under the 14th Five-Year Plan (2021-25), driving business development and performance growth.

Alongside its consumer-facing brands, the company has steadily invested in securing supply chain quality. It has built a full industrial chain for TCM resources, from planting to processing, as well as distribution to ensure safety and consistency.

The company has utilized technologies such as satellite imaging and AI-assisted procurement to monitor herb cultivation and improve sourcing. These measures, according to the company, are helping standardize upstream production and enhance the credibility of TCM in modern healthcare.

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Operating research and development centers in Kunming, Beijing, Shanghai, Tianjin, and Wuxi — focusing on TCM research, drug development, and product upgrades — innovation is key to Yunnan Baiyao's business strategy.

Its innovation push also extends to manufacturing. In September, the World Economic Forum named Yunnan Baiyao's Smart Factory to the Global Lighthouse Network — the first facility in the TCM health products sector to receive the honor.

Despite a changing market environment, Yunnan Baiyao has maintained steady financial growth. Its operating revenue climbed from 32.7 billion yuan in 2020 to 40 billion yuan in 2024, with net profit attributable to shareholders also growing during this period.

Shareholders have benefited from the company's robust profitability. From 2022 to 2024, it distributed 10.7 billion yuan in cash dividends, with the payout ratio consistently above 90 percent — among the highest in the industry.

Internationally, Yunnan Baiyao is guided by the "dual circulation" development pattern. It leverages its subsidiary, Yunbai International, to strengthen its international platform in Hong Kong Special Administrative Region and develop an operational system that meets international standards. Additionally, it is accelerating its expansion into the ASEAN market, capitalizing on Yunnan's geographical advantages.

In February, Yunnan Baiyao achieved its first import clearance of TCM materials via the Mohan port, actively engaging in the international trade of TCM materials with Southeast Asian countries like Laos, thus contributing to the high-quality development of the TCM industry and regional economic growth. Four months later, the first batch of Yunnan Baiyao toothpaste produced in Thailand was successfully sold outside the Chinese mainland.

Analysts note that Yunnan Baiyao exemplifies how a traditional brand can adapt to modern market needs. By integrating TCM heritage with advanced R&D and a digitalized supply chain, the company has laid a foundation for sustainable growth.

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Looking ahead, Yunnan Baiyao plans to achieve a new pattern of coordinated development in scale, structure, and quality.

"Yunnan Baiyao aims to become a leading domestic and world-class modern pharmaceutical industry group," Zhang Wenxue, Party secretary and chairman of Yunnan Baiyao, said. "We are committed to deepening our roots in the pharmaceutical industry, focusing on our strengths in the health sector, and strategically and prudently advancing new business growth points. Through these efforts, we hope to contribute to the long-term development of China's healthcare industry."