Core Viewpoint - The conference on high-quality development of traditional Chinese medicine (TCM) highlighted the strategic layout of Guoshengtang in promoting the internationalization of TCM through "management empowerment + AI technology + products" to establish itself as the leading TCM health brand for the global Chinese community [1] Group 1: Management Expansion - Guoshengtang's acquisition of Singapore's Baozhongtang in March 2024 marks the beginning of its internationalization journey, achieving a revenue growth of 119% year-on-year by July 2025 [2] - The company plans to expand to 30 clinics in Singapore by the end of 2026, leveraging its mature domestic operational model [2] - Guoshengtang employs a multi-faceted strategy for overseas expansion, including self-built flagship stores, strategic partnerships with local TCM institutions, and acquisitions of quality Western medical clinics and hospitals [2] Group 2: AI Technology Deployment - The launch of 10 AI avatars of renowned TCM doctors addresses the shortage of quality TCM talent overseas, facilitating online follow-up consultations [4] - The AI avatars have achieved over 86% consistency in expert simulation, receiving high praise for their diagnostic accuracy and medication rationality [4][5] - The AI technology not only enhances domestic operations but also plays a crucial role in the company's international endeavors, breaking down barriers in the distribution of TCM talent [5] Group 3: Product Internationalization - Guoshengtang has made significant strides in the development of innovative TCM products, with its first self-developed TCM product receiving certification from Singapore's Health Sciences Authority [6] - The company is collaborating with Huaxi Hospital and Baidu to establish a clinical evaluation platform for TCM, aiming to address challenges in real-world data assessment [6] - Guoshengtang has accumulated extensive high-quality TCM data over 10 years, including over 17 million consultation records and 8 million medical records, which supports its innovative drug development efforts [6] Group 4: Future Outlook - The company aims to enhance its research and development of TCM formulations, creating a robust platform for innovative TCM services [7] - By integrating traditional TCM with modern technology, Guoshengtang is making significant progress towards its goal of becoming the global leading TCM brand for the Chinese community [7]

Core Viewpoint - The conference on high-quality development of traditional Chinese medicine (TCM) highlighted the strategic layout of Guoshengtang in promoting the internationalization of TCM through "management empowerment + AI technology + products" to establish itself as the leading TCM health brand for the global Chinese community [1] Group 1: Management Strategy - Guoshengtang has initiated its internationalization journey by acquiring Singapore's Baozhongtang, achieving a revenue increase of 119% year-on-year by July 2025 [1] - The company plans to expand to 30 clinics in Singapore by the end of 2026, leveraging its successful operational model from China [1] - The company employs a multi-faceted strategy for overseas expansion, including self-built flagship stores, strategic partnerships, and acquisitions of local medical institutions [2] Group 2: AI Technology - Guoshengtang launched 10 AI avatars of renowned TCM doctors to address the shortage of quality TCM talent overseas, enhancing the internationalization of TCM [2][3] - The AI avatars have achieved over 86% consistency with expert simulations, improving diagnostic accuracy and medication rationality [4] - The AI technology aids in alleviating the scarcity of quality TCM resources and enhances the efficiency of top experts, while also supporting the training of younger doctors [4] Group 3: Product Development - Guoshengtang has made significant advancements in the development of traditional Chinese medicine (TCM) products, with its first proprietary TCM product receiving certification in Singapore [5][6] - The company has initiated a project to create an integrated platform for clinical evaluation of TCM, leveraging AI and big data to enhance clinical research and innovation [6] - Guoshengtang aims to strengthen its product development efforts, focusing on innovative TCM formulations and ensuring the legacy of renowned TCM practitioners through its products [7]

Core Insights - The conference on high-quality development of traditional Chinese medicine (TCM) and the launch of the Guoshengtang National Medicine AI system took place in Guangzhou, highlighting significant collaborations and achievements by Guoshengtang [1] Group 1: Partnerships and Collaborations - Guoshengtang signed medical alliance agreements with Shenzhen Baoan District Traditional Chinese Medicine Hospital and Guangzhou University of Traditional Chinese Medicine Shenzhen Hospital, marking a milestone in expanding quality TCM services [3] - The company acquired a secondary specialized hospital in Shenzhen, enhancing its offline and online medical service capabilities [3] - Collaborations with various partners, including Xiaohongshu and Guotu Innovation, aim to integrate resources, improve patient services, and provide technical support [1][3] Group 2: Service Enhancement - Guoshengtang's partnership with Xiaohongshu represents a significant step in digitalizing TCM services, allowing for a more extensive reach to both domestic and international audiences [6][8] - The collaboration will enable Guoshengtang to utilize Xiaohongshu's content ecosystem for better customer engagement through various formats like notes and live broadcasts [8][9] Group 3: Technological Innovation - The launch of 10 National Medicine AI avatars aims to accelerate the internationalization of TCM by enhancing diagnostic capabilities and ensuring consistency with expert decision-making [10][12] - The AI avatars are designed to improve the productivity of experts significantly, allowing for more efficient online consultations [12] - Guoshengtang is also establishing a TCM inheritance studio in Singapore to train overseas practitioners, thereby addressing the talent gap in international TCM services [12][13] Group 4: Strategic Vision - Guoshengtang aims to combine traditional TCM with modern technology and AI, positioning itself as a leading TCM brand for the global Chinese community [13][14] - The company's mission is to facilitate the global reach of TCM, leveraging technology to enhance its traditional practices [14]

Core Insights - The article highlights the strategic partnership between Guoshengtang and Xiaohongshu, marking a significant step in the digital transformation of traditional Chinese medicine (TCM) services [1][2] Group 1: Partnership with Xiaohongshu - Guoshengtang has established a deep commercial collaboration with Xiaohongshu, becoming the first TCM institution in China to do so, which signifies a shift from single-brand traffic to a platform-based traffic matrix [1][2] - Xiaohongshu's user demographic aligns well with TCM, as over 70% of its users are aged 20-35, and the number of TCM-related posts has increased by over 200% in the past year [2] Group 2: Multi-Platform Ecosystem - The partnership with Xiaohongshu is a crucial part of Guoshengtang's strategy to build a matrix-style traffic ecosystem, complementing existing collaborations with platforms like Meituan, Douyin, and Gaode Map [3] - This multi-channel approach allows for diverse entry points for users and enhances the conversion process by leveraging the unique characteristics of each platform [3] Group 3: Focus on Traffic Entry Capabilities - Guoshengtang's focus on building traffic entry capabilities is a strategic move, with plans to enhance partnerships with popular platforms to improve customer acquisition efficiency [4] - As of July 2025, Guoshengtang reported over 40,000 traffic acquisition orders, a 40% increase from June 2025, indicating the effectiveness of its traffic platform ecosystem [4] Group 4: Empowering TCM Popularization - The formation of a matrix-style traffic ecosystem not only improves operational efficiency for Guoshengtang but also serves as a vital platform for the popularization of TCM services [5] - The collaboration with younger platforms facilitates the dissemination of TCM knowledge to younger audiences, promoting cultural penetration among Generation Z [5] Group 5: Future Outlook - As platform collaborations deepen and operational capabilities enhance, the traffic ecosystem is expected to continuously drive business growth for Guoshengtang, aiming to create diverse value for customers [6]

Core Insights - The article highlights the top short-selling stocks in the market, focusing on their short-selling ratios, amounts, and deviation values [1][2][3] Short-Selling Ratios - The top three stocks by short-selling ratio are: - China Resources Beer-R (80291) at 100.00% - Bank of China Hong Kong-R (82388) at 88.69% - Kuaishou-WR (81024) at 80.08% [1][2] Short-Selling Amounts - The leading stocks by short-selling amount are: - Alibaba-SW (09988) with a short-selling amount of 2.949 billion - Tencent Holdings (00700) with 2.711 billion - Meituan-W (03690) with 2.333 billion [1][3] Deviation Values - The stocks with the highest deviation values are: - China Resources Beer-R (80291) at 51.62% - Kuaishou-WR (81024) at 43.86% - Bank of China Hong Kong-R (82388) at 39.84% [1][2][3]

Group 1 - The core event was the launch of the "National Medicine AI Avatar" system by the company, aimed at enhancing the quality development of traditional Chinese medicine (TCM) and accelerating its international expansion [2][5] - The company has established partnerships with multiple hospitals in Shenzhen and internet platforms like Xiaohongshu, focusing on integrating medical resources and improving patient services [2][3] - The company has signed cooperative agreements with two new medical alliance units, enhancing the distribution of quality medical resources to grassroots levels and addressing public healthcare challenges [3] Group 2 - The company has expanded its medical alliance network to over 20 top TCM universities and hospitals, further broadening its national collaboration footprint [3] - The acquisition of Shenzhen Tianyuan Traditional Chinese Medicine Hospital aims to strengthen the synergy between offline stores and online medical platforms [3] - The company is committed to an integrated development model of "medical education research," focusing on building specialized TCM departments and a full-time physician training system [3][6] Group 3 - The "National Medicine AI Avatar" system covers eight core TCM specialties, leveraging the clinical experience of ten renowned TCM experts [5] - The AI system allows for efficient patient information collection and analysis, enabling quicker online consultations [6] - The company has established a TCM inheritance workshop in Singapore to enhance overseas TCM service capabilities and has developed 16 clinical formulations that have been approved for use [6] Group 4 - The company has formed partnerships with platforms like Meituan, Douyin, and Gaode Map, creating a multi-channel ecosystem for TCM service dissemination [4] - The collaboration with Xiaohongshu allows the company to utilize content formats like notes and live broadcasts to educate users about TCM [4]

Group 1 - The company expects to achieve revenue of approximately RMB 1.474 billion to RMB 1.529 billion in the first half of 2025, representing an increase of about 8% to 12% compared to RMB 1.365 billion in the first half of 2024 [1] - The anticipated net profit for the first half of 2025 is projected to be around RMB 149 million to RMB 155 million, which is an increase of approximately 39% to 44% from RMB 107 million in the first half of 2024 [1] - The adjusted net profit for the first half of 2025 is expected to be between RMB 167 million and RMB 175 million, reflecting an increase of about 13% to 18% compared to RMB 148 million in the first half of 2024 [1] Group 2 - The increase in revenue, net profit, and adjusted net profit is primarily attributed to a rise in patient visits at medical institutions, driven by the company's efforts to provide comprehensive and high-quality traditional Chinese medical services, enhancing the recognition of the "Gushengtang" brand [2] - Business expansion, including an increase in the number of physicians and the growth in the number and geographical coverage of medical institutions, has also contributed to the positive financial outlook [2]

Core Viewpoint - The company, Guoshentang (02273.HK), anticipates significant revenue and profit growth for the first half of 2025 compared to the same period in 2024, driven by increased patient visits and business expansion efforts [1][2] Financial Projections - The company expects to achieve revenue between RMB 1,474 million and RMB 1,529 million in the first half of 2025, representing an increase of approximately 8% to 12% compared to RMB 1,365 million for the first half of 2024 [1] - The projected net profit for the first half of 2025 is estimated to be between RMB 149 million and RMB 155 million, reflecting a growth of approximately 39% to 44% from RMB 107.3 million in the first half of 2024 [1] - Adjusted net profit is expected to be between RMB 167 million and RMB 175 million, which is an increase of approximately 13% to 18% compared to RMB 147.9 million in the first half of 2024 [1] Business Drivers - The increase in revenue, net profit, and adjusted net profit is primarily attributed to a rise in patient visits at the company's medical institutions, which is a result of the company's ongoing efforts to provide comprehensive and high-quality traditional Chinese medical health services, enhancing the recognition of the "Guoshentang" brand [2] - The company's business expansion, including an increase in the number of physicians and the growth of medical institutions and geographical coverage, has also contributed to the positive financial outlook [2]

本公告乃由固生堂控股有限公司（「本公司」，連同其附屬公司及併表聯屬實體 統稱為「本集團」）根據香港法例第571章證券及期貨條例第XIVA部項下內幕消 息條文（定義見香港聯合交易所有限公司證券上市規則（「上市規則」））及上市 規則第13.09(2)(a)條而刊發。 本公司董事（「董事」）會（「董事會」）謹此通知本公司股東（「股東」）及本公司潛 在投資者，根據目前可獲得的資料及對本集團截至2025年6月30日止六個月 （「2025年上半年」）未經審核綜合管理賬目的初步審閱，預期本集團將(a)於2025 年上半年錄得收入約人民幣1,474百萬元至人民幣1,529百萬元，相比截至2024 年6月30日止六個月（「2024年上半年」）的收入人民幣1,365.0百萬元增加約8%至 12%；(b)於2025年上半年錄得溢利淨額約人民幣149百萬元至人民幣155百萬元， 相 比2024年上半年的溢利淨額人民幣107.3百萬元增加約39%至44%； 及(c)於 2025年上半年錄得經調整溢利淨額人民幣167百萬元至人民幣175百萬元，相比 2024年上半年的經調整溢利淨額人民幣147.9百萬元增加約13%至18%。 – 1 – ...

Core Viewpoint - UBS initiates coverage on Guosheng Tang (02273) with a "Buy" rating and a target price of HKD 48.30, corresponding to 20x/17x projected P/E ratios for 2025/2026 and a PEG of 0.9 for 2026 [1] Company Summary - Guosheng Tang is positioned as a leading player in the healthcare services sector due to its strong growth prospects and low valuation [1] - The company has established a sustainable and rewarding career development platform for traditional Chinese medicine practitioners, presenting significant opportunities for increasing practitioner coverage and productivity [1] - Guosheng Tang is expanding its self-paid value-added services to mitigate policy risks, leveraging its advantages in the Chinese medicine supply chain, talent resources, and technology [1] Industry Summary - The report highlights potential catalysts for Guosheng Tang, including sustained strong profit growth, rapid clinic expansion, and advancements in in-hospital formulations, artificial intelligence technology, and overseas expansion [1] - The company is well-positioned to benefit from the long-term opportunities arising from the reform of payment methods such as DRG/DIP, which may incentivize higher-tier public hospitals to refer chronic disease patients downwards [1] - Guosheng Tang is expected to maintain a 20% adjusted profit CAGR from 2024 to 2027, with strong visibility in growth, compared to the Visible Alpha consensus expectation of 19% [1]