Origins: 1902

The origins of YUNNAN BAIYAO are traditionally dated to 1902, when Qu Huanzhang, a physician from Yunnan, developed the medicine that eventually became YUNNAN BAIYAO. The formulation was initially marketed under a different name and became associated with Qu’s medical practice.[2]

Qu’s preparation became particularly known for its applications in traditional medicine involving trauma, wounds, and bleeding. Its reputation gradually spread beyond Yunnan.

An important characteristic of the brand’s history is the secrecy surrounding its formulation and manufacturing process. The formula has traditionally been treated as confidential rather than being publicly disclosed in full.

Transfer to state production

After Qu Huanzhang’s death, the history of the formulation became closely connected with his family and the Chinese state. In 1955, Qu’s widow, Miao Lanying (缪兰瑛), contributed the prescription and related technical knowledge to the government. The medicine was subsequently renamed YUNNAN BAIYAO and entered organized state production.[2]

In 1956, production was formally undertaken by the Fifth Workshop of Kunming Pharmaceutical Factory. The formulation and manufacturing process were subsequently placed within China’s system of protection for confidential traditional medicines.[1]

The medicine was also exported from the 1950s onward to places including Myanmar, Cambodia, Singapore, Malaysia, Hong Kong, and Macau, helping establish its reputation outside mainland China.[2]

Establishment of Yunnan Baiyao Factory

In 1970, Premier Zhou Enlai issued instructions concerning the development of YUNNAN BAIYAO production. The government called for a dedicated factory, a specialized research institution, and the cultivation of plants used as raw materials rather than relying exclusively on wild collection.[2]

The Yunnan Baiyao Factory was established in 1971, providing the foundation for the modern corporate organization that would eventually become Yunnan Baiyao Group.[2]

During the 1970s, the company significantly increased production and exports. According to the company’s historical records, average annual production during 1971–1976 reached approximately 15 million bottles, while exports during 1971–1978 averaged about 1.2 million bottles annually.[2]

The modern Yunnan Baiyao Group developed substantially during China’s economic reforms.

In 1993, the company was reorganized and became a publicly traded enterprise. YUNNAN BAIYAO was the first company from Yunnan Province to be listed, with the stock trading on the Shenzhen Stock Exchange under 000538.[2]

In 1996, the company adopted the name Yunnan Baiyao Group Co., Ltd.[2]

The company subsequently undertook extensive corporate restructuring and modernization. In 2016, it completed a mixed-ownership reform, while in 2018 Yunnan Baiyao Group completed a merger involving Yunnan Baiyao Holdings.[2]

These changes transformed the organization from a relatively specialized traditional-medicine manufacturer into a diversified pharmaceutical and healthcare group.

One of the distinctive aspects of YUNNAN BAIYAO is that the medicine, trademark, and corporation share essentially the same name.

The company has used the historical reputation of YUNNAN BAIYAO as the foundation for a broader brand architecture. Rather than remaining exclusively a traditional medicine brand, it has expanded into modern consumer-health categories.

The company’s own materials describe YUNNAN BAIYAO as a Chinese time-honored brand with more than 120 years of history, emphasizing the combination of traditional Chinese medicine and modern product development.[1]

The trademark was recognized as a China Well-known Trademark in 2002.[2]

YUNNAN BAIYAO’s original reputation comes from its pharmaceutical products, but the modern group has a much broader portfolio.

Traditional medicines

The best-known products associated with the brand include:

• YUNNAN BAIYAO Powder
• YUNNAN BAIYAO Capsules
• YUNNAN BAIYAO Aerosol
• YUNNAN BAIYAO Plaster
• Other formulations and products based on the YUNNAN BAIYAO pharmaceutical brand

These products have historically been associated with traditional Chinese medicine applications involving injuries, bruising, pain, and bleeding.

The company has developed multiple dosage forms to make the traditional medicine more convenient for contemporary consumers.

Oral care

One of the most commercially significant extensions of the brand has been YUNNAN BAIYAO toothpaste.

The toothpaste business represents an important example of the company’s strategy of taking a traditional pharmaceutical brand into everyday consumer healthcare.

YUNNAN BAIYAO toothpaste has become one of the company’s major consumer products, allowing the brand to move from occasional pharmaceutical use into daily oral-care routines.

Personal healthcare

The group has expanded into products including:

• Toothpaste and oral-care products
• Plasters and wound-care products
• Personal-care products
• Healthcare products
• Medical dressings and devices
• Other consumer health products

The company has described its modern portfolio as covering pharmaceuticals, natural medicines, traditional Chinese medicine materials, medical devices, personal care, and healthcare foods, among other areas.[1]

Yunnan Baiyao Group is considerably broader than the original YUNNAN BAIYAO medicine.

According to its 2025 annual report, the group and its subsidiaries were involved in research and development, manufacturing, and sales covering chemical pharmaceuticals, Chinese patent medicines, traditional Chinese medicine materials, biological products, medical devices, healthcare foods, beverages, cosmetics, daily chemical products, and other businesses. The group had 114 subsidiaries and structured entities included in its consolidated financial statements at the end of 2025.[3]

The company’s business structure has therefore evolved from a traditional-medicine manufacturer toward a diversified pharmaceutical, healthcare, and consumer-products group.

YUNNAN BAIYAO’s modern business can broadly be understood through several areas:

Pharmaceuticals

This remains the historical core of the brand. It includes traditional Chinese medicines and other pharmaceutical products.

Traditional Chinese medicine resources

The company has invested in the sourcing, cultivation, processing, and development of Chinese medicinal resources.

Consumer healthcare

This includes products such as toothpaste, personal-care products, and other everyday health products.

Medical products

The group also participates in medical devices, dressings, and related healthcare products.

Pharmaceutical distribution

YUNNAN BAIYAO has developed businesses in pharmaceutical logistics, wholesale, and distribution in addition to manufacturing.

The company describes these activities as part of a broader strategy centered on pharmaceuticals, Chinese medicine resources, healthcare, and pharmaceutical circulation.[2]

YUNNAN BAIYAO has become one of China’s major traditional Chinese medicine and healthcare companies.

The company’s official information reports that revenue increased from approximately RMB 58 million in 1993 to RMB 40.033 billion in 2024. Net profit attributable to the parent increased from approximately RMB 13 million in 1993 to RMB 4.749 billion in 2024.[2]

For 2024, the company reported:

• Revenue: RMB 40.033 billion
• Net profit attributable to shareholders: RMB 4.749 billion
• Industrial revenue share: 36.14%
• Industrial gross margin: 65.93%

The company also reported 416 product varieties across 40 categories, illustrating how far its portfolio has expanded beyond the original medicine.[2]

Although YUNNAN BAIYAO is primarily a Chinese brand, its products have a history of international distribution dating back to the 1950s.

The company’s products have been sold in Southeast Asia and have progressively entered markets in Japan, Europe, and the United States.[2]

Its internationalization has accelerated alongside the expansion of consumer-health products.

A 2025 report from a Hong Kong-listed company involved in overseas distribution stated that it had authorization to distribute YUNNAN BAIYAO products outside mainland China, including the flagship YUNNAN BAIYAO medicine series, toothpaste, and personal-care products.

YUNNAN BAIYAO occupies an unusual position in the Chinese market because it simultaneously functions as:

1. A traditional Chinese medicine brand
2. A pharmaceutical brand
3. A consumer healthcare brand
4. A personal-care brand
5. A corporate brand
6. A symbol of Chinese traditional medicine

This gives it a brand history somewhat comparable to other long-established Chinese pharmaceutical and consumer-health companies, but with a particularly strong connection between its corporate identity and a single historic medicinal formula.

The company’s strategy can broadly be described as “traditional heritage + modern healthcare.” Its stated objective is to integrate traditional Chinese medicine into contemporary life while developing new products and technologies.[1]

YUNNAN BAIYAO has received substantial recognition in Chinese brand rankings.

According to the company’s 2023 annual report, Brand Finance included YUNNAN BAIYAO among the world’s top 25 most valuable pharmaceutical brands in its 2023 healthcare ranking. The company also reported that Interbrand’s 2023 Best China Brands ranking placed YUNNAN BAIYAO 35th overall among Chinese brands and first within the pharmaceutical industry.[2]

The company has also reported repeated inclusion in the Kantar BrandZ Top 100 Most Valuable Chinese Brands.[2]

One of YUNNAN BAIYAO’s most distinctive characteristics is the confidentiality of its traditional formula and manufacturing technology.

Unlike a conventional pharmaceutical whose active ingredients and manufacturing process may be extensively disclosed, YUNNAN BAIYAO has historically been protected as a confidential traditional medicine formulation.

Company historical materials state that its prescription and production process were placed within China’s national confidentiality framework for traditional medicines in 1956.[2]

This secrecy has become an important part of the brand’s identity and competitive positioning.

At the same time, the company has increasingly invested in patents and modern research and development as part of its broader effort to modernize the brand.

YUNNAN BAIYAO is often regarded as an example of how a traditional Chinese medicine can be transformed into a modern national brand.

Its history spans several distinct periods of Chinese history:

• The late Qing period, when Qu Huanzhang developed the original medicine
• The Republican period, when the medicine became commercially established
• The early People’s Republic, when the formulation entered state production
• The planned-economy period, when a dedicated Yunnan Baiyao factory was established
• The reform era, when the company became publicly listed
• The modern consumer economy, when the brand expanded into toothpaste, personal healthcare, and other products

This historical continuity is a major component of its brand value.

• Official company name: Yunnan Baiyao Group Co., Ltd.
• Chinese: 云南白药集团股份有限公司
• English: Yunnan Baiyao Group Co., Ltd.
• Stock: Shenzhen Stock Exchange, 000538
• Headquarters: No. 3686 Yunnan Baiyao Street, Chenggong District, Kunming, Yunnan Province, China.[1]

The company itself describes its mission as “To guard life and health.” Its current strategic positioning emphasizes strengthening its pharmaceutical core business while expanding healthcare products, traditional Chinese medicine resources, pharmaceutical distribution, and innovation.[2]

• 1902 — Qu Huanzhang develops the medicine that becomes the foundation of YUNNAN BAIYAO.[2]
• 1930s — The medicine gains broader recognition and commercial development.
• 1955 — Qu Huanzhang’s widow, Miao Lanying, contributes the prescription and technical knowledge to the government.[2]
• 1956 — Formal production of YUNNAN BAIYAO begins at Kunming Pharmaceutical Factory; the formulation and process enter China’s confidential traditional-medicine system.[2]
• 1970 — Zhou Enlai calls for the establishment of a dedicated Yunnan Baiyao factory and research institution.[2]
• 1971 — Yunnan Baiyao Factory is established.[2]
• 1993 — YUNNAN BAIYAO becomes publicly listed on the Shenzhen Stock Exchange.[2]
• 1996 — The company adopts the name Yunnan Baiyao Group Co., Ltd.[2]
• 2002 — The YUNNAN BAIYAO trademark is recognized as a China Well-known Trademark.[2]
• 2011 — The company moves to a new industrial base and begins implementing its “New Baiyao, Great Healthcare” strategy.[2]
• 2016 — Mixed-ownership reform is completed.[2]
• 2017 — Company market capitalization exceeds RMB 100 billion.[2]
• 2018 — Yunnan Baiyao Group merges with Yunnan Baiyao Holdings.[2]
• 2023 — YUNNAN BAIYAO ranks first in Interbrand’s Chinese pharmaceutical-industry brand ranking and is included among Brand Finance’s top global pharmaceutical brands.[2]
• 2024 — Revenue reaches RMB 40.033 billion and the product portfolio reaches 416 varieties across 40 categories.[2]
• 2025 — The group reports 114 subsidiaries and structured entities within its consolidated reporting scope.[3]

1. 云南白药门户网站
2. Company Profile – Yunnan Baiyao – The Certified Online Shop
3. 2025 Annual Report of Yunnan Baiyao Group Co., Ltd.