---
title: "Earning over 800 million yuan in half a year, all used for dividends, how did Dong-E-E-Jiao evolve into a 'cash-rich player'?"
type: "Topics"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/topics/33248459.md"
description: "If we were to rank A-share pharmaceutical stocks by their generosity, Dong-E-E-Jiao would definitely be at the top. During the mid-year reporting season, the company continues to adhere to the principle of 'distributing all profits earned,' handing out generous dividends. On the evening of August 21, Dong-E-E-Jiao announced that its board had approved the 2025 interim profit distribution plan, proposing a cash dividend of 12.69 yuan per 10 shares (tax inclusive) based on 644 million shares, with an expected total cash dividend of 817 million yuan, accounting for 99.94% of the net profit attributable to the parent company in the first half of 2025..."
datetime: "2025-08-22T13:36:12.000Z"
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  - [en](https://longbridge.com/en/topics/33248459.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/33248459.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/33248459.md)
author: "[医药研究社](https://longbridge.com/zh-CN/profiles/15545088.md)"
---

> 支持的语言: [English](https://longbridge.com/en/topics/33248459.md) | [繁體中文](https://longbridge.com/zh-HK/topics/33248459.md)


# Earning over 800 million yuan in half a year, all used for dividends, how did Dong-E-E-Jiao evolve into a 'cash-rich player'?

If we were to rank A-share pharmaceutical stocks by their generosity, Dong-E-E-Jiao would definitely be at the top. During the mid-year reporting season, the company continues to adhere to the principle of 'distributing all profits as dividends,' handing out generous red envelopes.

On the evening of August 21, Dong-E-E-Jiao announced that the board of directors had approved the 2025 interim profit distribution plan, proposing a cash dividend of 12.69 yuan (tax inclusive) per 10 shares based on 644 million shares, with an expected total cash dividend of 817 million yuan, accounting for 99.94% of the net profit attributable to the parent company in the first half of 2025. Since its first dividend in 1999, the company has cumulatively distributed dividends of 9.287 billion yuan.

With such strong dividend payouts, Dong-E-E-Jiao is clearly 'not short of money.' According to the latest financial report, in the first half of this year, Dong-E-E-Jiao achieved operating revenue of 3.051 billion yuan, a year-on-year increase of 11.02%; net profit attributable to the parent company was 818 million yuan, up 10.74% year-on-year; and non-GAAP net profit was 788 million yuan, up 12.58% year-on-year.

On the surface, such 'good performance' is mainly attributed to the 'holy grail of blood nourishment'—donkey-hide gelatin. But in reality, it cannot be separated from one key term—evolution. Through business upgrades that align with industry trends and market demand, Dong-E-E-Jiao has likely navigated cycles and achieved true value.

**During the industry adjustment period, Dong-E-E-Jiao demonstrates resilience**

Is Dong-E-E-Jiao's half-year report truly outstanding? **When placed in the context of the entire industry, the company's development resilience is still evident.**

Currently, the pharmaceutical industry is under significant pressure. Data from the National Bureau of Statistics shows that from January to June this year, the operating revenue of large-scale industrial enterprises in the pharmaceutical manufacturing sector nationwide was 1.22752 trillion yuan, a year-on-year decrease of 1.2%; total profits were 176.69 billion yuan, down 2.8% year-on-year. Additionally, in the first half of 2025, the Wind Traditional Chinese Medicine Index fell by 0.79%.

Different sub-sectors face varying challenges. Here, we will focus briefly on the donkey-hide gelatin sector.

First, look upstream at the raw material supply. As is well known, donkey-hide gelatin is made from the dried or fresh skin of donkeys, boiled and concentrated into a solid. The development of pharmaceutical companies with donkey-hide gelatin as their core product is undoubtedly affected by the supply of donkey skins.

In recent years, China's donkey skin supply has been tight. Dong-E-E-Jiao's financial report also mentions this: 'With the advancement of agricultural mechanization and urbanization, the utility value of donkeys has gradually disappeared, and the number of free-range donkeys has continued to decline. At the same time, research on breeding and disease prevention technologies still needs time, leading to a relatively tight supply of raw materials.'

Looking downstream, the retail terminals that donkey-hide gelatin relies on are also in a period of adjustment. According to Menet data, from January to June 2025, the cumulative scale of China's physical pharmacies was 296.1 billion yuan, a year-on-year decline of 2.2%.

Wu Han, chairman of CCM and the West China Pharmaceutical Conference, also mentioned at the 2025 West China Pharmaceutical Conference, 'The growth rate of China's pharmaceutical terminal market continues to decline, with the full-year market expected to decline by 2.9% in 2025, including year-on-year declines of 5.7% and 0.4% in hospitals and pharmacies, respectively, while the growth rate of primary healthcare has slowed to 4.3%, and e-commerce growth has also slowed from double digits to 5.8%.'

The entire donkey-hide gelatin industry's product volume is inevitably affected by channel contraction.

At the same time, competition in the donkey-hide gelatin industry is intensifying. According to the Qianzhan Industry Research Institute, there are currently more than 200 pharmaceutical companies producing donkey-hide gelatin in China. Besides Dong-E-E-Jiao, representative companies include Fu Kee Donkey-Hide Gelatin, Hongjitang, Tongrentang, Jiuzhitang, and Taiji Group.

Under pressure from upstream and downstream and fierce market competition, Dong-E-E-Jiao's continued growth is indeed commendable.

Reviewing recent financial reports, Dong-E-E-Jiao's growth has remained steady: **From 2020 to 2024, the company achieved revenues of 3.409 billion yuan, 3.849 billion yuan, 4.042 billion yuan, 4.715 billion yuan, and 5.921 billion yuan, respectively, with net profits attributable to the parent company of 43 million yuan, 440 million yuan, 780 million yuan, 1.151 billion yuan, and 1.557 billion yuan.**

Additionally, Dong-E-E-Jiao's donkey-hide gelatin blocks have long dominated the donkey-hide gelatin block category, with a market share of about 70%; its compound donkey-hide gelatin oral liquid also leads the blood-nourishing oral liquid category, with a market share of 30%.

So, what has Dong-E-E-Jiao done to solidify its growth path?

**How has Dong-E-E-Jiao actively evolved for growth?**

'The old growth engine has stalled; only active evolution can navigate cycles,' Wu Han said.

Dong-E-E-Jiao is on a path of brand evolution. According to the financial report, in 2025, Dong-E-E-Jiao was ranked for the 16th time on the 'China 500 Most Valuable Brands' list, with a brand value of 49.7 billion yuan, an 11% increase from 2024.

Additionally, the '2025 Healthy China Brand Value List' released by CCM Research Institute recently ranked Dong-E-E-Jiao first for the 11th time, with a brand value of 19.43 billion yuan. Its products, Dong-E-E-Jiao and compound donkey-hide gelatin oral liquid, won the 'West China Gold Award.' Let's examine the company's evolution logic.

**First, new consumer demand guidance.** The expansion of the donkey-hide gelatin industry is often linked to the silver economy and the female market, primarily because groups such as people over 60 and women of childbearing age have strong demand for blood-nourishing products.

For example, regarding the silver economy, by 2025, China's population over 60 will exceed 320 million, accounting for 22.3% of the total population. Under the aging trend, China's silver economy reached 8 trillion yuan in 2024 and is expected to reach 35 trillion yuan by 2035. In this context, there will always be a market for nourishing products like donkey-hide gelatin.

But more importantly, new consumer forces have emerged in the donkey-hide gelatin industry. According to Tmall Health data, since 2025, searches for donkey-hide gelatin powder have increased by 120%, making it one of the fastest-growing categories in donkey-hide gelatin products. Consumers aged 18-29 accounted for 45% of transactions, and they prefer well-known brands.

Clearly, donkey-hide gelatin is no longer exclusive to the elderly. The younger and more diverse consumer demand has also driven Dong-E-E-Jiao's strategic upgrades.

**Second, new strategies accelerate implementation.** In recent years, Dong-E-E-Jiao has frequently mentioned the '1238' strategy in its financial reports.

'1' refers to one positioning: Dong-E-E-Jiao is determined to shoulder the mission of inheriting and innovating traditional Chinese medicine culture and become the most trusted leader in health nourishment. '2' is dual-drive: building a dual-drive business growth model of pharmaceuticals + health consumer goods. '3' is three-industry integration, covering breeding demonstration, main business development, and cultural leadership. '8' mainly refers to capabilities in industrial chain construction, brand building, omnichannel marketing, R&D innovation, capital operations, digital transformation, agile supply, and organizational support.

Among these, '2' has attracted the most attention and is the core of Dong-E-E-Jiao's development, as well as the most obvious growth driver in this financial report.

According to the financial report, Dong-E-E-Jiao currently has products such as donkey-hide gelatin blocks, compound donkey-hide gelatin oral liquid, 'Peach Blossom' donkey-hide gelatin cake, instant donkey-hide gelatin powder, 'Royal Hunting Ground 1619' (which includes key products such as Brain-Tonifying and Kidney-Nourishing Oral Liquid, Tortoise Shell and Deer Antler Oral Liquid, and Sea Dragon Glue Oral Liquid, all with exclusive approvals, as well as tortoise shell glue and deer antler glue, which are covered by medical insurance), 'Zhuangben' donkey-hide gelatin and cistanche original juice, 'Yanzhenqing' donkey-hide gelatin and bird's nest, and many others, forming a 'pharmaceuticals + health consumer goods' dual-drive model to cover diverse market demands.

Behind this, strengthening R&D has likely played a key role. The financial report shows that in the first half of 2025, Dong-E-E-Jiao's R&D investment increased by 48.02% year-on-year to 114 million yuan, with specific actions including implementing the 'one center, three highlands, N joint' R&D strategy supported by research platforms.

'One center' refers to consolidating the construction of the National Glue-Based Traditional Chinese Medicine Engineering Technology Research Center, which has already been approved. 'Three highlands' include the 'raw material cultivation R&D highland,' 'nourishing traditional Chinese medicine R&D highland,' and 'health consumer goods R&D highland.' 'N joint' refers to the company's collaboration with top domestic research institutions to build multiple joint innovation platforms to achieve scientific and technological innovation strategic goals.

In addition, product volume cannot be separated from channel expansion and commercial promotion. It is reported that Dong-E-E-Jiao's core products have stable sales both online and offline, in hospitals and retail. The volume of new products has also benefited from exposure on short video and social platforms, as well as celebrity + IP marketing strategies, with significant results. The half-year report mentions that in 2024, the donkey-hide gelatin cake category ranked first in market share.

It is not difficult to see that Dong-E-E-Jiao's 'pharmaceuticals + health consumer goods' dual-drive model works mainly due to precise positioning, industrial integration, and capability enhancement. From this perspective, '1238' is also a complete and self-consistent evolutionary system that supports Dong-E-E-Jiao's growth.

However, there are still some market concerns about such a growth model.

**Some positive signals may dispel market concerns?**

Current disputes mainly focus on Dong-E-E-Jiao's cash flow, accounts receivable, and business dependence.

According to the financial report, in the first half of 2025, Dong-E-E-Jiao's net cash flow from operating activities was 965 million yuan, a year-on-year increase of 4.70%, with relatively limited scale and growth. Accounts receivable reached 185 million yuan, a year-on-year increase of 133.31%, mainly due to the company's credit policy based on annual cooperation scale and new product expansion.

In terms of business contribution, in the first half of this year, Dong-E-E-Jiao's donkey-hide gelatin and related products achieved revenue of 2.845 billion yuan, a year-on-year increase of 11.50%, accounting for over 90% of total revenue; other pharmaceuticals and health products only achieved revenue of 142 million yuan, up 7.06% year-on-year.

Therefore, some investors believe there are still potential risks in Dong-E-E-Jiao's development. However, in the view of Pharmaceutical Research Society, the issues should not be significant, and some positive signals should be noted.

For example, in the first quarter of this year, Dong-E-E-Jiao's net cash flow from operating activities was -304 million yuan, while in the second quarter, it reached 1.27 billion yuan, clearly reversing the seasonal pressure of the first quarter; accounts receivable decreased by 356 million yuan compared to the end of the first quarter, a quarter-on-quarter decline of 65.86%, indicating improved collection efficiency.

Additionally, the development of new businesses may be accelerating. Recently, Dong-E-E-Jiao announced plans to acquire 70% of Ma Ji Pharmaceutical's equity from Dongfeng Urban Development Investment (Group) Co., Ltd. for 337.985 million yuan and 80% of Congrong Group's equity from Alxa League Financial Development Co., Ltd. for 599.657 million yuan, with a proportional capital increase of 35 million yuan in Congrong Group, of which the company will contribute 28 million yuan.

After the completion of the above transactions, Ma Ji Pharmaceutical and Congrong Group will become subsidiaries of Dong-E-E-Jiao and be included in the consolidated financial statements. It is reported that the products of these two acquired companies are related to male health nourishment, which may empower Dong-E-E-Jiao's related businesses.

Therefore, the current investment market has a positive outlook on Dong-E-E-Jiao. For example, Guojin Securities released a research report with optimistic earnings forecasts: from 2025 to 2027, Dong-E-E-Jiao's net profit attributable to the parent company may reach 1.83 billion yuan, 2.12 billion yuan, and 2.43 billion yuan, respectively, with year-on-year growth of 17%, 16%, and 15%. Behind this, the 'red envelope rain' may have some incentive role, but the key lies in the company's overall stable operations.

Source: Pharmaceutical Research Society

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## 评论 (1)

- **不翻倍不卖 · 2025-09-22T09:44:19.000Z**: Same major shareholder, why doesn't Boya do the same?
