Kunming Pharmaceutical boosts shareholder returns despite revenue dip

** Kunming Pharmaceutical Group (KPC Pharmaceuticals), a major Chinese pharmaceutical company (SSE:600422), announced a plan to increase cash dividends to shareholders, proposing a cash dividend of RMB 3.0 per 10 shares. The planned dividend increase occurs even as the company reported a slight decrease in operating revenue to RMB 8,401.45 million, down 0.34% from 2023. Despite the revenue dip, net profit attributable to shareholders grew by 19.86% to RMB 648.08 million, attributable to strategic business optimization and the successful acquisition of Yunnan Holy Medicine. The company highlighted its strategy to focus on specialty pharmaceuticals in elderly healthcare and chronic disease management to drive long-term sustainable growth. They further highlighted the increase of cash flow from operations, up 7.12% to RMB 808.07 million, with total assets reaching RMB 12,611.37 million, a 2.57% increase. The company also stated that this announcement is in accordance with the guidance to enhance shareholder returns, although subject to shareholder approval.