Financial Performance - In 2024, the company achieved a revenue of 40.033 billion CNY, a year-on-year increase of 2.36% [2] - The net profit attributable to shareholders reached 4.749 billion CNY, up 16.02% from 4.094 billion CNY in the previous year [2] - The net profit excluding non-recurring items was 4.523 billion CNY, reflecting a 20.18% increase from 3.764 billion CNY [2] - Operating cash flow net amount was 4.297 billion CNY, a growth of 22.68% [3] - The weighted average return on equity was 11.99%, an increase of 1.48 percentage points [3] - Basic earnings per share were 2.66 CNY, up 16.16% year-on-year [2] Business Structure and Efficiency - Industrial revenue accounted for 36.14% of total revenue, with an industrial revenue growth rate of 5.30% [3] - The gross margin for industrial products was 65.93%, an increase of 1.69 percentage points [3] - Sales expenses decreased by 2.26% and management expenses decreased by 1.98% compared to the previous year [3] - Total assets at the end of the reporting period were 52.914 billion CNY, with net assets attributable to shareholders at 38.832 billion CNY and a debt-to-asset ratio of 26.55% [3] Dividend Distribution - The company distributed a cash dividend of 11.85 CNY per 10 shares (before tax) based on a total share capital of 1,784,262,603 shares [4] - A special dividend of 12.13 CNY per 10 shares (before tax) was completed in November 2024, totaling 2.164 billion CNY [4] - The total cash dividend for 2024 was 23.98 CNY per 10 shares, amounting to 4.279 billion CNY, which represents 90.09% of the net profit attributable to shareholders [4] Pharmaceutical Business Highlights - The pharmaceutical segment focused on pain management and launched a new pain management model [5] - Clinical research on core products showed steady progress in areas like diabetic foot and skeletal pain [6] - Marketing initiatives included the successful promotion of a sports IP to enhance brand youthfulness [6] - The production efficiency was improved through the establishment of an online business process [6] Health Products and Channel Development - The health products segment maintained a leading market share in toothpaste and high brand penetration in oral care [7] - The company optimized its channel strategy, strengthening traditional channels while exploring new retail formats [8] Provincial Pharmaceutical Company Performance - In 2024, the provincial pharmaceutical company achieved a revenue of 24.607 billion CNY, a year-on-year increase of 0.48% [9] - Non-pharmaceutical business segments like medical devices and special medical foods saw a sales growth of 14% [9] - The OTC segment experienced an 18% sales increase, while the new specialty drug pharmacies grew by 29% [9] - Future plans include enhancing customer health services and integrating upstream and downstream resources [10]

Group 1: Investor Relations Activity - The meeting was categorized as a telephone conference [2] - Participants included representatives from Orient Securities Company Limited [2] - The meeting took place on May 19, 2025, at the company's headquarters [2] Group 2: Company Representatives - The meeting was attended by the board secretary, Qian Yinghui, and other investor relations personnel [2] - Securities affairs representative was Li Mengjue [2] - Other attendees included Zhang Yuxin and Yang Kexin [2] Group 3: Main Content of the Meeting - The primary focus was to understand the company's production and operational status [2] - Relevant questions regarding the company's performance were discussed [2]

Group 1: Pharmaceutical Business Performance - In 2024, the pharmaceutical segment achieved a revenue of 6.924 billion CNY, a year-on-year increase of 11.8% [2] - The sales revenue of Yunnan Baiyao aerosol exceeded 2.1 billion CNY, growing over 26% [2] - The sales of other traditional Chinese medicine products, such as Pudilan's anti-inflammatory tablets, reached nearly 200 million CNY, with a significant growth of over 22% [4] Group 2: Traditional Chinese Medicine Supply Chain Development - Yunnan Baiyao is committed to being the "chain leader" in the traditional Chinese medicine supply chain in Yunnan Province [3] - The company established a specialized traditional Chinese medicine seed company to control genetic resources [4] - The "Shuzhi Cloud Medicine" platform was launched, facilitating transactions exceeding 100 million CNY [4] Group 3: Oral Care Product Sales and Market Strategy - The health product segment generated 6.526 billion CNY in revenue, with a year-on-year growth of 1.6% [5] - Yunnan Baiyao toothpaste maintained the top market share in the domestic oral care sector [5] - The company is enhancing its channel strategy by optimizing traditional offline channels and exploring new retail formats [5] Group 4: Q1 2025 Financial Performance - In Q1 2025, the company reported a revenue of 10.841 billion CNY, a year-on-year increase of 0.62% [7] - The net profit attributable to shareholders was 1.935 billion CNY, growing by 13.67% [7] - The cash flow from operating activities reached 714 million CNY, up 35.39% year-on-year [7] Group 5: Nuclear Medicine Research Progress - The INR101 diagnostic nuclear medicine project received clinical approval in May 2024 and completed its I/IIa phase clinical summary report in November [8] - The company’s subsidiary received approval for the clinical trial of INR102, aimed at treating metastatic castration-resistant prostate cancer [9]

Group 1: Company Overview - Yunnan Baiyao Group Co., Ltd. is engaged in production and operation activities [1] - The investor relations activity aimed to understand the company's operational status [2] Group 2: Investor Relations Meeting Details - The meeting took place on May 19, 2025, at the company headquarters [2] - Participants included representatives from Matthews International Capital Management LLC and Yunnan Baiyao's investor relations team [2] Group 3: Key Participants - Securities affairs representative: Li Mengjue [2] - Investor relations management: Zhang Yu, Yang Kexin [2]

Investment Rating - The report maintains a "Buy" rating for the company [4][12]. Core Insights - The company has shown steady growth in its core business, with profit growth exceeding expectations due to a strong industrial segment and effective cost control [1][8][10]. - For Q1 2025, the company achieved total revenue of 10.841 billion yuan, a year-on-year increase of 0.62%, and a net profit attributable to shareholders of 1.935 billion yuan, up 13.67% year-on-year [2][8]. Financial Performance - Key financial indicators for the company are as follows: - Revenue (million yuan): 39,111 in 2023, projected to reach 41,691 in 2025E, with a CAGR of 4.1% [3]. - Net profit (million yuan): 4,094 in 2023, projected to reach 5,124 in 2025E, with a CAGR of 7.9% [3]. - Gross margin: Expected to increase from 26.5% in 2023 to 28.5% in 2025E [3]. - Net margin: Expected to rise from 10.5% in 2023 to 12.3% in 2025E [3]. - ROE: Expected to improve from 10.3% in 2023 to 12.8% in 2025E [3]. - EPS: Projected to grow from 2.29 yuan in 2023 to 2.87 yuan in 2025E [3]. Business Segments - The company is focusing on enhancing its core product lines, particularly in the pharmaceutical division, which is expected to achieve steady growth driven by its flagship products [9][10]. - The health products division is anticipated to maintain stable operations despite industry pressures, with innovations in oral care and hair care products [9][10]. - The traditional Chinese medicine resources division is expected to grow due to ongoing brand development and market leadership in specific herbal products [9][10]. Future Outlook - The company aims to solidify its main business while exploring new growth opportunities in emerging sectors such as health supplements and medical devices [10][12]. - Revenue projections for 2025-2027 are 41.691 billion yuan, 43.593 billion yuan, and 45.734 billion yuan, respectively, with net profit forecasts of 5.124 billion yuan, 5.622 billion yuan, and 6.203 billion yuan [12].

Group 1: Financial Performance and Growth - In 2024, the company achieved over 1 billion RMB in sales for 10 products, with the core product, Yunnan Baiyao aerosol, generating over 2.1 billion RMB, a year-on-year increase of over 26% [2][3] - Other traditional Chinese medicine products also saw significant growth, with Pudilan anti-inflammatory tablets reaching nearly 200 million RMB, a year-on-year increase of over 22% [2][3] - The company aims to optimize its product system and provide comprehensive operational plans to achieve strategic growth in major disease treatment areas [3][4] Group 2: Strategic Development and Market Positioning - The company has established four strategic positions across its business segments: Traditional Chinese Medicine Resources, Pharmaceutical, Health, and Pharmaceutical Commerce [3][4] - It plans to enhance its product matrix in the pharmaceutical industry and strengthen its channel capabilities in hospitals [3][4] - The company is focused on international business growth, leveraging its geographical advantages and policies to expand overseas market sales [8][11] Group 3: Digital Transformation and AI Integration - The company is implementing a digital development plan (2022-2026) that integrates AI technology across all industry chain segments to drive transformation and innovation [5][6] - It has developed a digital ecosystem for traditional Chinese medicine, enhancing efficiency in product development and supply chain management [5][6] Group 4: Product Development and Market Expansion - The company is focusing on major health issues related to aging and has launched several key products targeting these markets [7][8] - It is actively developing innovative drugs and has received clinical trial approvals for new products, including a diagnostic nuclear medicine project [10][11] Group 5: Brand Management and Investor Relations - The company is working to reshape its brand perception beyond just toothpaste, emphasizing its heritage in traditional Chinese medicine and expanding its product offerings [12][13] - In 2024, the total cash dividend amounted to 4.279 billion RMB, accounting for 90.09% of the net profit attributable to shareholders [14]

Group 1: Investor Relations Activity - The meeting was categorized as an "Investor Performance Briefing" [2] - Participants included investors from the "Panorama Roadshow" website [2] - The meeting was held on May 16, 2025 [2] Group 2: Company Representatives - Company representatives included Secretary of the Board Qian Yinghui and Securities Affairs Representative Li Mengjue [2] - Investor Relations Management was represented by Zhang Yu and Yang Kexin [2] - Public Relations Manager Zhou Ran was also present [2] Group 3: Meeting Objectives - The main purpose of the meeting was to understand the company's production and operational status [2]

Group 1: Pharmaceutical Business Direction - The pharmaceutical business group aims to be a model for the inheritance and innovative development of traditional Chinese medicine, focusing on optimizing existing products and providing comprehensive operational plans for major disease treatment areas such as cardiovascular, respiratory, and pediatrics [2] - The group will continue secondary development of existing products and selectively extend external projects to strengthen the pharmaceutical system [2] Group 2: Traditional Chinese Medicine Industry Chain Development - The company is committed to building a world-class modern traditional Chinese medicine industry in Yunnan, focusing on seed industry, planting, processing, marketing, and branding [3] - A specialized company for traditional Chinese medicine seed industry has been established, with 7 GAP varieties applied for in 2024 covering 4,593 acres [4] - The production of Qi Xue Kang oral liquid won the title of Yunnan Province's manufacturing single champion, with a 180% increase in production during the reporting period [4] - The "Shuzhi Yun Yao" platform was launched, achieving over 100 million yuan in transaction volume, enhancing the standardization of traditional agricultural products [4] Group 3: Yao Yuan Qing Product Performance - In 2024, Yao Yuan Qing hair care products achieved sales revenue of 422 million yuan, a year-on-year increase of 30.3% [5] - The brand has gained significant market penetration, ranking first in Tmall's domestic anti-hair loss shampoo category during major sales events [6] Group 4: Q1 2025 Financial Performance - In Q1 2025, the company reported revenue of 10.841 billion yuan, a year-on-year increase of 0.62% [7] - Net profit attributable to shareholders was 1.935 billion yuan, up 13.67% year-on-year, with a basic earnings per share of 1.08 yuan [7] - The net cash flow from operating activities increased by 35.39% to 714 million yuan [7] Group 5: Health Product Channel Development - The company has a well-established national sales team for health products, maintaining a leading market share in toothpaste [8] - Continuous optimization of the entire channel has strengthened traditional offline advantages while exploring new retail formats [9]

Group 1: Investor Relations Activity - The investor relations activity was categorized as a telephone conference [2] - Participants included representatives from Citi PWM and the company's board secretary [2] - The meeting took place on May 15, 2025, at the company's headquarters [2] Group 2: Purpose of the Meeting - The main focus was to understand the company's production and operational status [2] - Questions related to the company's performance were addressed during the meeting [2] Group 3: Attendees - Company representatives included the board secretary, a securities affairs representative, and a project manager [2] - The meeting involved direct communication with investors to clarify operational queries [2]

Financial Performance - In 2024, the company achieved a revenue of CNY 40.033 billion, a year-on-year increase of 2.36% [2] - The net profit attributable to shareholders reached CNY 4.749 billion, up 16.02% from CNY 4.094 billion in the previous year [2] - The net profit excluding non-recurring items was CNY 4.523 billion, reflecting a 20.18% increase from CNY 3.764 billion [2] - Operating cash flow net amount was CNY 4.297 billion, a growth of 22.68% [3] - The weighted average return on equity was 11.99%, an increase of 1.48 percentage points [3] - Basic earnings per share were CNY 2.66, up 16.16% [3] Dividend Distribution - The company proposed a cash dividend of CNY 11.85 per 10 shares (tax included) based on a total share capital of 1,784,262,603 shares [4] - A special dividend of CNY 12.13 per 10 shares was completed in November 2024, totaling CNY 2.164 billion [4] - The total cash dividend for 2024, including the special dividend, amounts to CNY 23.98 per 10 shares, totaling CNY 4.279 billion, which is 90.09% of the net profit attributable to shareholders [4] Business Strategy - The company focuses on both "internal" and "external" growth strategies, emphasizing strategic mergers and collaborations to enhance its industry portfolio [6] - The aim is to overcome growth bottlenecks and build a sustainable industry portfolio for high-quality development [6] Research and Development - The company is committed to developing both traditional Chinese medicine and innovative drugs, establishing a comprehensive research system for traditional medicinal resources [7] - It aims to create competitive innovative drugs aligned with national and local biopharmaceutical strategies [7] - The INR101 diagnostic nuclear medicine project received clinical approval in May 2024, with positive results reported in November [8] - The INR102 injection for prostate cancer treatment has also received approval for clinical trials [9]