CR Sanjiu's Q1 revenue drops amid strategic shift

China Resources Sanjiu Medical & Pharmaceutical (SZSE:000999) reported first-quarter revenue of CNY 6,853.66 million, a 6.04% decrease year-over-year, while net profit attributable to shareholders stood at CNY 1,270.07 million, down 6.87%. The company highlighted its strategic focus on restructuring and optimizing its portfolio, including its recent acquisition of a 28% stake in TianShiLi which will enhance its traditional Chinese medicine offerings. Operating cash flow surged 24.57% to reach CNY 979.86 million. The company saw significant increases in its investments, with long-term equity investments rising by 302.07% due to the TianShiLi acquisition and other non-current financial assets increasing by 221.82%. Research and development expenditure increased by 202.83% to CNY 2,164.27 million reflecting its commitment to innovation.