After boost from viral dance challenge, Chinese medicine firm’s shares languish
South China Morning Post
by Julie ZhangFebruary 22, 2026
AI-Generated Deep Dive Summary
The shares of Shandong Xinhua Pharmaceutical, China’s leading ibuprofen maker, have seen a sharp decline after an initial surge fueled by a viral social media trend. The company’s net profit fell 26% year-on-year to 256.2 million yuan ($37 million) in the first three quarters of 2025, reflecting broader challenges faced by drug manufacturers due to oversupply and weakening demand. This downturn began in 2024 when Shandong Xinhua reported a 5.3% year-on-year decline in net profit, attributed to price cuts on key products to retain market share.
The brief but significant boost in the company’s shares came in late 2022 during the COVID-19 pandemic, when a viral dance challenge on Douyin (TikTok)模仿了布洛芬包装盒上的红色人形标志，引发广泛关注。这一现象迅速吸引了数万用户的参与，使得Shandong Xinhua的股价在两周内上涨超过200%。然而，随着中国逐步放松“清零”政策，疫情相关需求下降，公司面临供应过剩和市场需求减弱的双重压力。
This story highlights the fleeting nature of social media-driven trends and their limited impact on long-term profitability. As Shandong Xinhua continues to grapple with economic challenges, its experience underscores broader issues in the pharmaceutical industry, particularly during periods of shifting demand and market saturation. For global readers, this serves as a cautionary tale about the volatility of stock markets influenced by short-lived trends and the importance of sustainable business strategies in fluctuating industries.
For those interested in global economics, Shandong Xinhua’s trajectory offers insights into how social media can influence financial markets and corporate performance. The company’s struggle to maintain profitability despite initial success during the pandemic underscores the challenges of aligning market demand with supply in dynamic industries. This case also raises questions about the long-term viability of businesses heavily reliant on short-term trends, as well as the importance of adaptability in应对市场变化。
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Originally published on South China Morning Post on 2/22/2026