Financial Performance - In 2024, the company achieved operating revenue of 8.401 billion yuan, a slight decrease of 0.34% year-on-year [2] - The net profit for 2024 was 648 million yuan, representing a year-on-year increase of 19.86% [2] - The non-recurring net profit reached 419 million yuan, up 25.09% compared to the previous year [2] - Basic earnings per share were 0.86 yuan, an increase of 21.13% from 0.71 yuan in 2023 [3] Key Financial Metrics - The weighted average return on equity was 9.52%, an increase of 0.97 percentage points from 8.55% in 2023 [3] - Operating cash flow net amount was 808 million yuan, reflecting a year-on-year growth of 7.12% [3] - Net assets decreased by 19.94% year-on-year to 5.253 billion yuan [3] Business Segment Analysis - Oral liquid revenue was 3.692 billion yuan, a year-on-year increase of 1.18%, with a gross margin decrease of 2.11 percentage points [4] - Injection revenue fell to 539 million yuan, down 49.09% year-on-year, with a gross margin decrease of 0.84 percentage points [4] - Revenue from the retail and wholesale of drugs and medical devices was 3.655 billion yuan, a decline of 3.72% year-on-year, with a gross margin decrease of 1.58 percentage points [4] Product Performance - The cardiovascular sector remained the main revenue contributor with 2.195 billion yuan, a year-on-year decline of 17.45% [4] - Revenue from the digestive system drugs was 548 million yuan, showing a growth of 2.46% [4] - Gynecological products generated 401 million yuan, an increase of 15.67% year-on-year [4] Research and Development - The company invested 143 million yuan in R&D, with 20 new patents granted [4] - The first-class innovative drug KPC000154 (for non-alcoholic fatty liver) entered clinical trials [4] - The second-class modified new drug KYAH02-2020-149 received approval for trials [4] - Progress in generic drugs included the consistency evaluation of chlorazepate injection and colchicine tablets [4] Dividend Distribution - The company plans to distribute a cash dividend of 3.0 yuan per 10 shares (including tax) [4]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The Chinese traditional medicine sector is expected to experience a relative recovery in 2025, with opportunities in key lines and individual stocks [4][12] - The overall market demand is gradually recovering due to the end of the pandemic and the impact of influenza, leading to a high base and inventory digestion pressure in 2024 [4][12] - The State Council's March 2025 document supports the quality improvement of traditional Chinese medicine, which is expected to stimulate innovation and commercialization of high-quality products [5][13] Summary by Sections Industry Trends - In April 2025, the pharmaceutical and biotechnology sector rose by 1.16%, outperforming the CSI 300 index by 0.77 percentage points [6][15] - The medical research outsourcing sector saw the largest increase of 6.34%, while the vaccine sector experienced the largest decline of 3.78% [20][21] Investment Opportunities - Four main investment lines are identified: 1. Innovative R&D-focused companies with strong capabilities, benefiting from accelerated approvals and optimized procurement, recommended stocks include Fangsheng Pharmaceutical, Yuyuan Pharmaceutical, Tianshili, and Yiling Pharmaceutical [5][14] 2. State-owned enterprises undergoing operational efficiency improvements, recommended stocks include Dong'e Ejiao, Jiangzhong Pharmaceutical, and Kunming Pharmaceutical [5][14] 3. Companies with strong brand power and relatively scarce products, recommended stocks include Zoli Pharmaceutical and Lingrui Pharmaceutical [5][14] 4. Companies experiencing turnaround and valuation recovery, recommended stock includes Jichuan Pharmaceutical [5][14] Market Performance - The traditional Chinese medicine sector has faced pressure since the pandemic, but the situation is expected to improve in 2025 as macro disturbances ease [4][12] - The price index of traditional Chinese medicine materials has been declining since mid-July 2024, which is expected to alleviate the gross margin pressure on companies in 2025 [5][12]

Investment Rating - The report maintains an "Outperform" rating for the company [4][7]. Core Insights - In 2024, the company achieved revenue of 8.40 billion RMB, a decrease of 0.34% year-on-year, while net profit attributable to shareholders was 648 million RMB, an increase of 19.86% year-on-year [4][7]. - The company adjusted its earnings per share (EPS) forecast for 2025 and 2026 to 0.97 RMB and 1.15 RMB respectively, with a new forecast for 2027 EPS at 1.38 RMB [4][7]. - The target price is set at 21.34 RMB, reflecting a 12% decrease based on an industry average valuation with a 2025 price-to-earnings (PE) ratio of 22X [4][7]. - Oral dosage forms showed stable performance with revenue of 3.69 billion RMB in 2024, up 1.18% year-on-year, while injectable products faced challenges with revenue of 539 million RMB, down 49.09% year-on-year [4][7]. - The company is undergoing deep restructuring and brand/channel remodeling, with a five-year strategic plan released under the guidance of China Resources Group [4][7]. Financial Data Summary - The company’s revenue projections for the next few years are as follows: 9.25 billion RMB in 2025, 10.17 billion RMB in 2026, and 11.22 billion RMB in 2027, reflecting growth rates of 10.1%, 10.0%, and 10.3% respectively [2][4]. - Net profit attributable to shareholders is projected to be 733 million RMB in 2025, 871 million RMB in 2026, and 1.04 billion RMB in 2027, with growth rates of 13.1%, 18.7%, and 19.9% respectively [2][4]. - The company’s return on equity (ROE) is expected to improve from 12.3% in 2024 to 15.0% in 2027 [2][4].

Financial Performance - The company's operating revenue for 2024 was approximately ¥8.40 billion, a slight decrease of 0.34% compared to ¥8.43 billion in 2023[24]. - Net profit attributable to shareholders for 2024 increased by 19.86% to approximately ¥648.08 million, up from ¥540.71 million in 2023[24]. - The net profit after deducting non-recurring gains and losses was approximately ¥419.21 million, reflecting a growth of 25.09% compared to ¥335.11 million in 2023[24]. - The net cash flow from operating activities for 2024 was approximately ¥808.07 million, an increase of 7.12% from ¥754.33 million in 2023[24]. - Total assets as of the end of 2024 reached approximately ¥12.61 billion, a 2.57% increase from ¥12.30 billion at the end of 2023[24]. - The net assets attributable to shareholders decreased by 19.94% to approximately ¥5.25 billion, down from ¥6.56 billion at the end of 2023[24]. - The basic earnings per share for 2024 was CNY 0.86, an increase of 21.13% compared to CNY 0.71 in 2023[25]. - The weighted average return on equity increased to 9.52% in 2024, up by 0.97 percentage points from 8.55% in 2023[25]. - The company achieved a historic breakthrough in overall sales scale for "Kun Traditional Medicine 1381," with core products in the digestive, emotional treatment, and respiratory categories growing by 20% year-on-year[45]. - The revenue scale of "Qingfei Huatan Wan" surpassed 100 million, while "Shu Gan Granules" and "Canling Jianpi Granules" set new historical revenue highs[45]. Strategic Initiatives - The company is focusing on the "silver hair health industry" and aims to be a leader in chronic disease management, aligning with national strategies to address aging[39]. - The company is implementing a five-year strategic development plan (2024-2028) to anchor high-quality development goals amid a complex market environment[41]. - The integration with China Resources Sanjiu is entering a critical phase, enhancing the company's operational capabilities and market positioning[41]. - The company is committed to deepening reforms and restructuring to create a patient-centered, innovation-driven, and agile organization[41]. - The company is enhancing its brand reputation and product iteration capabilities to gain a competitive advantage in the market[38]. - The company is actively participating in centralized procurement to enhance the coverage of its chronic disease product series in hospitals[50]. - The company aims to become a leader in the "silver-haired health industry" and "premium traditional Chinese medicine," focusing on the "777" brand series of oral products and the "1951" serious treatment product group for elderly health[79]. Research and Development - The company achieved a research and development investment of CNY 143.11 million, focusing on innovative drug development in the aging health sector[55]. - The company has established a comprehensive drug research and development system covering innovative drugs, generic drugs, and secondary development drugs, supported by various research platforms[83]. - The company is committed to R&D innovation, focusing on plant-based medicines and chronic disease management[70]. - The company has received approval for changes in the formulation and specifications of Dandelion granules, with the application submitted for a 24-month extension of the validity period[124]. - The company is currently developing several key pharmaceutical projects, including KYAH01-2016-079 for solid tumors in clinical phase I and KYAH01-2018-111 for non-alcoholic fatty liver disease, which has received clinical approval[123]. Market Trends and Challenges - The pharmaceutical industry is undergoing profound changes driven by policy and demand, moving towards a new stage of high-quality development[35]. - The ongoing national medical procurement is expected to lower drug prices while ensuring reasonable profit margins for pharmaceutical companies, promoting sustainable development[38]. - The aging population in China is increasing the demand for chronic disease management, with a significant rise in the prevalence of diseases such as cardiovascular diseases and diabetes among the elderly[62]. - The government has implemented policies since 2015 to promote chronic disease management, enhancing funding and encouraging social participation in healthcare services[64]. - The centralized procurement system is being expanded, with a focus on reducing drug prices and improving the quality of medical products, benefiting both patients and pharmaceutical companies[65][66]. Governance and Compliance - The company’s governance structure complies with relevant laws and regulations, ensuring the rights of all shareholders are protected[167]. - The company’s board of directors and supervisory board actively fulfill their responsibilities, ensuring compliance and oversight of financial matters[167]. - The company has implemented measures to address competition issues with its controlling shareholder, including commitments to resolve conflicts[167]. - The company is committed to maintaining independence from its controlling shareholder, ensuring no harm to the interests of the company and its shareholders[167]. - The company has conducted regular meetings to review and approve significant financial and operational decisions, ensuring transparency[171]. Future Outlook - The company aims for double-digit revenue growth in 2025, with net profit expected to match revenue growth levels[151]. - The strategic focus is on the "aging health" sector and chronic disease management, with a core emphasis on the "777" series products and "Kun Zhong Yao 1381" premium traditional Chinese medicine[149]. - The company plans to enhance its product pipeline by integrating both traditional and Western medicine, targeting a comprehensive solution for the elderly population[152]. - The company is expanding its market presence internationally, particularly in countries along the Belt and Road Initiative, and is focusing on the development of anti-malarial drugs[159].

证券代码：600422 证券简称：昆药集团 公告编号：2025-026 昆药集团股份有限公司 2025 年第三次临时股东大会决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 本次会议是否有否决议案：无 一、 会议召开和出席情况 (一)股东大会召开的时间：2025 年 4 月 18 日 (二)股东大会召开的地点：云南省昆明市国家高新技术开发区科医路 166 号昆药 集团股份有限公司管理中心 (三)出席会议的普通股股东和恢复表决权的优先股股东及其持有股份情况： | 1、出席会议的股东和代理人人数 | 366 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 362,441,010 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股份总 | 47.8801 | | 数的比例（%） | | (四)表决方式是否符合《公司法》及《公司章程》的规定，大会主持情况等。 本次会议的召集、召开程序符合《中华人民共和国公司法》《上市公司股东 会规则》（下称"《股东会规则》"）及 ...

北京德恒（昆明）律师事务所 关于昆药集团股份有限公司 2025 年第三次临时股东会的 法律意见 北京德恒（昆明）律师事务所 Beijing DeHeng Law Offices (KunMing) 云南省昆明市西山区西园路 126 号"融城优郡"B5 幢 3、4 层 电话（传真）：0871-63172192 邮编: 650032 北京德恒（昆明）律师事务所 关于昆药集团股份有限公司 2025 年第三次临时股东会的 法 律 意 见 昆药集团股份有限公司： 二、关于出席本次股东会人员的资格 北京德恒（昆明）律师事务所（下称"本所"）作为贵公司的常年法律顾问， 本次指派刘书含律师、杨敏律师出席贵公司 2025 年第三次临时股东会（以下简 称"本次股东会"），并按照律师行业公认的业务标准、道德规范及勤勉尽责精 神，对贵公司提供的与本次股东会有关的文件资料进行了审查，现根据《公司法》 《证券法》《上市公司股东会规则》及贵公司《章程》的规定，就贵公司本次股 东会的相关事项出具如下法律意见： 一、关于本次股东会的召集和召开程序 根据贵公司提供的有关资料及公开披露的信息，表明贵公司董事会已于 2025 年 3 月 25 日召 ...

Core Insights - The company achieved operating revenue of 8.401 billion yuan in 2024, a slight decrease of 0.34% year-on-year, while net profit attributable to shareholders increased by 45.74% to 648 million yuan [1] - The company reported a significant increase in profitability, with a gross margin of 43.46%, despite a year-on-year decline of 1.36 percentage points, primarily due to a decrease in the revenue share of high-margin cardiovascular products [1] Business Performance - The revenue from the cardiovascular product line decreased by 17.45% year-on-year to 2.195 billion yuan, while the orthopedic series saw a significant decline of 52.80% to 103 million yuan [2] - The anti-malarial products generated revenue of 133 million yuan, reflecting a year-on-year growth of 45.89%, and the "Kunzhong Medicine 1381" division's digestive system products achieved revenue of 549 million yuan, up 2.46% [2] - The company is focusing on building a premium national medicine platform through its "Kunzhong Medicine 1381" series, which includes various traditional Chinese medicine products [2] Strategic Developments - The company completed the acquisition of a 51% stake in China Resources Shenghuo, marking a critical phase in the integration with China Resources Sanjiu [2] - A five-year strategic plan (2024-2028) was released, positioning the company as a leader in the elderly health industry, leveraging the "1246" model from China Resources Group [2] Investment Outlook - The investment rating remains "strongly recommended," with expectations for the core product, the blood clotting series, to gain traction post-collection renewal, benefiting from the advantages of focusing on the aging population [3] - Projected net profits for 2025-2027 are estimated at 778 million, 891 million, and 1.011 billion yuan, representing year-on-year growth rates of 20.0%, 14.6%, and 13.5% respectively [3]

昆药集团股份有限公司 为适应上市公司规范运作，提高股东大会议事效率，保障股东合法权益，确保大 会程序合法性，根据《中华人民共和国公司法》《中华人民共和国证券法》《公司章 程》以及《公司股东大会议事规则》等精神，特制定如下大会须知，望出席昆药集团 股份有限公司（以下简称"昆药集团"或"公司"）股东大会的全体人员严格遵守： 一、本次股东大会由公司董事会办公室具体负责大会的组织工作。 KPC Pharmaceuticals, Inc. 2025 年第三次临时股东大会 会 议 资 料 股票简称：昆药集团 股票代码：600422 2025 年 4 月 2025 年第三次临时股东大会会议资料 会 议 须 知 二、董事会以维护股东的合法权益，确保大会正常秩序和议事效率为原则，认真 履行法定职责。 三、出席本次股东大会的股东，依法享有发言权、表决权等各项权利。 四、会议期间请保持会场纪律、严肃对待每一项议题，会议期间全过程录音。 五、股东及股东代表参加本次股东大会，应当认真履行法定义务，不得侵犯其他 股东的权益，不得扰乱大会的正常程序和会议秩序。 六、会议议题全部说明完毕后统一审议、统一表决；股东大会采取现场投票和网 络投票 ...

Industry Overview - Chinese herbal medicine is a unique drug used in traditional Chinese medicine for disease prevention and treatment, encompassing both herbal medicine and traditional Chinese drugs [1][5] - The market size of Chinese herbal medicine planting in China is projected to grow from 156.3 billion yuan in 2019 to 295.68 billion yuan in 2024, with a year-on-year growth rate of 30.2% [9] - The planting area for Chinese herbal medicine has increased from 52.5 million mu in 2019 to 59.56 million mu in 2024, reflecting a year-on-year growth rate of 5.87% [5][9] Industry Chain - The upstream of the industry chain includes the planting of Chinese herbal medicine, breeding of medicinal animals, and collection of raw materials, with key players such as Baiyunshan, Kangmei Pharmaceutical, and Yunnan Baiyao [2] - The midstream involves the processing and manufacturing of Chinese herbal products, including traditional Chinese medicine and herbal pieces, with companies like Kangmei Pharmaceutical and Huaren Sanjiu leading this segment [2] - The downstream focuses on the distribution and sales of Chinese herbal products through traditional pharmacies and e-commerce platforms [2] Market Dynamics - The demand for Chinese herbal medicine is increasing due to factors such as industrialization, urbanization, and an aging population, alongside supportive government policies [9] - The recognition of traditional Chinese medicine in international markets is also on the rise, contributing to the industry's rapid growth [9] Competitive Landscape - The competitive landscape of the Chinese herbal medicine planting industry is tiered based on registered capital, with the first tier exceeding 1 billion yuan, including companies like Yunnan Baiyao and Kunming Pharmaceutical [11][13] - The second tier has registered capital between 500 million to 1 billion yuan, featuring companies like Yibai Pharmaceutical and Dong'e Ejiao [11][13] - The third tier consists of companies with registered capital below 500 million yuan, such as Foci Pharmaceutical and Zhendong Pharmaceutical [11][13] Development Trends - The establishment of geographical indication and ecological planting models is accelerating the construction of authentic medicinal material protection zones [17] - The standardization of seeds and seedlings is expected to overcome industry bottlenecks, with significant improvements in the coverage of quality seeds [17] - International certifications such as EU organic certification and US NOP standards are becoming essential for export enterprises, enhancing the competitiveness of Chinese herbal products in global markets [18]

Group 1 - The core viewpoint is that Kun Pharmaceutical Group successfully won the bid for the national Chinese medicine procurement expansion renewal at the end of 2024, which will enhance the sales range of its products "Luo Tai" and "Li Xuan Wang" blood stasis soft capsules in hospitals, thereby increasing product coverage and driving external repurchase through initial hospital visits [1] - The company's gross margin in 2024 is expected to fluctuate due to changes in traditional Chinese medicine material costs and adjustments in revenue structure, while the injectable blood stasis product faces dual challenges of market expansion and intensified competition due to the procurement bid win [1] - Kun Pharmaceutical emphasizes long-term win-win strategies, integrating channel resources to improve product circulation efficiency, and is implementing channel reforms and brand building to optimize sales expense ratios [1] Group 2 - The company plans to increase brand investment for its core products to enhance terminal coverage, with a brand renewal expected in 2025 [1] - A cash dividend of 3 yuan per share is planned for 2024, with a continued focus on shareholder returns in the future [1]