Yunding New Glory Wu Yifang: Expected to achieve full-scale profitability by 2028

Ask AI · How Can Yunding Xinyao Achieve Its 2028 Profit Targets Through a Product Portfolio?

Reporter: Huang Yifan

On March 26, 2026, Yunding Xinyao (1952.HK) released its 2025 full-year results report.

The report shows that Yunding Xinyao achieved total revenue of RMB 1.71B in 2025, a year-on-year increase of 142%. Under non-IFRS, it swung to profit with net profit of RMB 187 million. Operating cash flow turned positive in the fourth quarter, and cash reserves at year-end were RMB 2.73B.

That day, Yunding Xinyao held its 2025 annual results briefing session in Shanghai. Chairman of the board Wu Yifang and CEO Luo Yongqing attended and responded in detail, providing analysis on the company’s existing products—especially the roadmap for its five-year plan that the market is focused on.

Regarding profit expectations, on March 27, Wu Yifang told reporters that if the company achieves revenue of RMB 15 billion in 2030 and meets its profit target, the goal Yunding Xinyao must strive for is a profit margin exceeding 20%.

A flagship product with RMB 1.4 billion in its first year of listing sales

From the financial statements, the growth in performance was mainly driven by the commercialization sales of two core products. These two drugs are budesonide enteric-coated capsules (brand name: Naifukang) and the tetracycline-class antibiotic eravacycline (brand name: Yijia). Both drugs were introduced via licensing.

Specifically, Naifukang is the world’s first drug for IgA nephropathy with endocellular treatment. In full-year 2025, its sales revenue exceeded RMB 1.4 billion, growing by more than 300%. Yunding Xinyao’s financial report shows that since January 2025, Naifukang has been officially included in China’s National Reimbursable Drug List, becoming the first non-oncology drug to break RMB 1.0 billion in sales in its first year on the list.

Another product contributing to revenue is Yijia, which is mainly an antibiotic used to treat complicated intra-abdominal infections in adults. In March 2023, Yijia was approved for marketing by China’s National Medical Products Administration. In 2025, its full-year sales revenue was RMB 262 million, and hospital sales increased by 44% year over year. Luo Yongqing, CEO of Yunding Xinyao, revealed at the results briefing that in 2026, Yijia will actively participate in this year’s National Reimbursement Negotiations, and it is expected that next year the domestic version of Yijia can be provided to the market.

The financial report also clearly sets out Yunding Xinyao’s operating targets and expected key milestones for 2026. Among them, Naifukang is expected to achieve sales revenue of RMB 2.4 billion to RMB 2.6 billion. In addition to Yijia, the immunology drug L-arginine etcurmod capsule tablets (brand name: Weishiping), approved domestically in February this year, is also expected to launch reimbursement negotiations within the year, helping it be included in the payment system. Xingbeituo is expected to be approved in Mainland China in the third quarter of 2026, while Leerbaipao is expected to submit its China listing application in the first half of 2026. On the R&D side, multiple projects across the mRNA tumor vaccine platform and the In vivo CAR-T platform will advance clinical development.

A precise timetable

Reporters learned from Yunding Xinyao that the design of the above operating targets and expected plan is closely related to the company’s previously released development roadmap for the next five years.

In December 2025, Yunding Xinyao disclosed that it plans to break the RMB 10 billion revenue mark by 2028, break the RMB 15 billion revenue mark by 2030, and will continue to build a product portfolio in key strategic areas such as nephrology, cardiovascular and metabolism, immunology, ophthalmology, and critical and severe conditions. Meanwhile, the company plans to bring in 3 to 5 major blockbuster products each year, aiming to secure approvals for上市 within 2 to 3 years and to reach its BD collaboration target of achieving peak single-product sales of over RMB 2 billion within 5 to 6 years.

At the results briefing, Wu Yifang, Chairman of Yunding Xinyao’s board, said that to achieve the performance targets for 2028 and 2030, it is necessary to have product support.

He worked out the numbers, showing how management will complete the task: currently, Naifukang has already entered reimbursement and continues to ramp up sales; Weishiping and Yijia both need to be negotiated into reimbursement this year. In 2028, it will be the second year for the two products to enter reimbursement. The cardiovascular drug Etripamil nasal spray (tentative brand name: Xingbeituo), which was just introduced on March 23 this year, is already too late to participate in this year’s reimbursement negotiations; revenue will be achieved through patient self-pay in 2027, and it is expected to enter reimbursement in 2028.

Wu Yifang said that for the first three products (Naifukang, Weishiping, and Yijia), based on the company’s current capabilities, annual sales of RMB 6.5 billion to RMB 7.0 billion can be achieved in 2028. In addition, if one also counts the product portfolio introduced by Haisen Biotechnology, the revenue created by Xingbeituo and MT1013—which is scheduled to be上市 in 2028—and the revenue generated by subsequent BD introductions, then Yunding Xinyao can reach the RMB 10 billion sales target in 2028.

Wu Yifang added that, based on the company’s internal product R&D timeline, the company’s products are expected to be上市 around 2030. Currently, its main products will enter peak sales around 2028, and growth thereafter will rely mainly on BD products. Therefore, the timing and number of drugs brought in are extremely critical.

Reporters noted that over the past six months, Yunding Xinyao has introduced and cooperated on four innovative drugs and six mature original research products.

Regarding this introduction pace, Wu Yifang told reporters, “Under normal circumstances, even if the drugs introduced through BD are in the late stage of R&D, it still takes at least 2 to 3 years to be approved for上市. The products introduced this year basically need to be approved for上市 in 2028.

If the time for products to enter reimbursement is factored in, these products have only a 2-year return period relative to the deadline in 2030.” Therefore, Wu Yifang said, “Bringing in 3 to 5 BD products each year is the basic requirement. If we can’t secure good products now, or if the number introduced is insufficient, it will increase the difficulty of hitting targets later.”

Expected to achieve all-口径 profitability in 2028

The established sales targets place high demands on Yunding Xinyao’s marketing team.

“The company currently requires the sales team to achieve a basic peak for a product within three years. For example, if a product’s expected sales at peak revenue is RMB 2 billion, it may need to reach the target in the third year after the product enters reimbursement.” Wu Yifang said this is because competition in China is fierce, product iterations happen quickly, and follow-on products targeting the same type of targets move rapidly. “If you miss the dividend period, you won’t be able to realize a product’s full lifecycle value.”

It is worth noting that reporters observed that Yunding Xinyao has not disclosed net profit targets corresponding to 2028 and 2030.

In response, Wu Yifang told reporters that 2027 is still a phase of investment. The company must build its internal capabilities solidly to ensure that several innovative drug introduction projects are implemented properly. “When Yunding Xinyao achieves billion-yuan revenue in 2028, if the company cannot achieve profitability, that would really be a failure to oneself.”

He said that by then, regardless of what accounting/statistical approach is used, the company will definitely achieve profitability.

Wu Yifang told reporters that for the introduced varieties, if after assessment they are deemed not to align with the company’s development strategy, the company should decisively drop them, and must not be reluctant to let go. The core value of a product lies in its clinical value. From historical experience, drugs that perform well in sales truly have therapeutic efficacy. In the past, when the market was not well regulated, some drugs were a flash in the pan, but now they have vanished from the market.