Group 1: Investor Relations Activity - The meeting was categorized as an analyst meeting and included one-on-one communication with various investment firms [2] - Participants included representatives from multiple investment firms and individual investors [2] Group 2: Meeting Details - The meeting took place on November 12, 2025, at the company's headquarters [2] - The main purpose of the meeting was to understand the company's production and operational status [2] Group 3: Attendees - Notable attendees included representatives from Jiangxi Zhifeng Consulting, Guangdong Zhenyuan Private Equity Fund, and other investment entities [2] - Company representatives included Zhang Yu, Yang Kexin, and Yu Yang from the investor relations management team [2]

Group 1: Investor Relations Activity - The meeting was categorized as a specific object survey [2] - Participants included representatives from various investment firms and individual investors [2] - The meeting took place on December 10, 2025, at the company's headquarters [2] Group 2: Purpose of the Meeting - The main objective was to understand the company's production and operational status [2]

Group 1: Health Products Business Performance - In the first half of 2025, the health products segment achieved revenue of 3.442 billion CNY, a year-on-year growth of 9.46% [2] - The segment focuses on a full-channel operation strategy, enhancing offline distribution and increasing online promotion efforts [2] - Key products include oral care toothpaste, which maintains a leading position, and hair care brand Yangyuanqing, which continues to grow driven by online sales [2][4] Group 2: Pharmaceutical Business Performance - The pharmaceutical segment reported a main business revenue of 4.751 billion CNY in the first half of 2025, with a year-on-year increase of 10.8% [5] - Sales of Yunnan Baiyao aerosol exceeded 1.453 billion CNY, showing a significant growth of over 20.9% [5] - Other traditional Chinese medicine products also saw notable growth, with sales of Qianling Jianpi Granules surpassing 100 million CNY and Pudilan Anti-inflammatory Tablets nearing 100 million CNY [5] Group 3: Traditional Chinese Medicine Resource Business - The traditional Chinese medicine resource segment generated external revenue of 914 million CNY in the first half of 2025, reflecting a year-on-year growth of approximately 6.3% [6] - The segment implements a "six unifications" operational model to enhance the traditional Chinese medicine industry chain [7] Group 4: R&D and Innovation Progress - The company emphasizes innovation-driven development, focusing on both traditional Chinese medicine and innovative drugs [8] - In the first half of 2025, the company initiated phase III clinical trials for the prostate cancer diagnostic nuclear drug project INR101, with 60 subjects enrolled [9] - The innovative drug project INR102 for prostate cancer treatment received clinical trial approval, and phase I trials have commenced [9] Group 5: Dividend Distribution - For the 2024 fiscal year, the company distributed a cash dividend of 11.85 CNY per 10 shares, totaling approximately 2.164 billion CNY [10] - The total cash dividend for 2024, including special dividends, amounted to 4.279 billion CNY, representing 90.09% of the net profit attributable to shareholders [10] - In the first half of 2025, the company distributed a cash dividend of 10.19 CNY per 10 shares, totaling 1.818 billion CNY, which accounted for 50.05% of the net profit for that period [10]

Group 1: Investor Relations Activity - The meeting was categorized as a specific object survey [2] - Participants included individual investors: Huang Kaiwei, Li Minggui, Chen Jiahe, Guo Hao, and Cui Weigang [2] - The meeting took place on December 10, 2025, at the Group's headquarters [2] Group 2: Company Overview - The main purpose of the investor relations activity was to understand the company's production and operational status [2] - Company representatives included Zhang Yu, Yang Kexin, and Yu Yang from the investor relations management team [2]

Group 1: Pharmaceutical Business Performance - In the first half of 2025, the pharmaceutical business group achieved a main business revenue of 4.751 billion yuan, a year-on-year increase of 10.8% [2] - Sales revenue of Yunnan Baiyao aerosol exceeded 1.453 billion yuan, with a significant year-on-year growth of over 20.9% [2] - Other core products, including Yunnan Baiyao plaster and capsules, also saw notable growth, contributing to the overall revenue increase [2] - Plant-based products, such as Qixue Kang oral liquid, reached sales of 202 million yuan, with a year-on-year growth of approximately 116.2% [2] Group 2: Health Product Channel Development - The company has established a comprehensive national sales team for health products, maintaining a leading market share in Yunnan Baiyao toothpaste [4] - Continuous optimization of the entire channel has strengthened traditional offline advantages while also focusing on emerging retail formats like instant retail and community group buying [4] Group 3: Traditional Chinese Medicine Cultivation Achievements - The company has implemented a precise research and transformation model for seed innovation, achieving coverage of ten major Yunnan medicinal sources [5] - The area of high-quality seed promotion has reached 90% of the annual target, with significant progress in the construction of "Yun Medicine Seed Valley" [5] - Over 7,000 acres of GAP management have been added for various medicinal herbs, integrating low-altitude economy and IoT technology [5] Group 4: Online Sales Performance - The pharmaceutical business group has expanded its online market, with O2O sales increasing by over 20% year-on-year [6] - During the 2025 "618" shopping festival, the company achieved a GMV of 254 million yuan through e-commerce platforms, attracting 48.45 million visitors [7] - Yunnan Baiyao toothpaste maintained the top market share in the domestic channel, while Yangyuan Qing ranked first in Tmall for anti-hair loss shampoo [7] Group 5: Nuclear Medicine Research Progress - The INR101 diagnostic nuclear medicine project has initiated Phase III clinical trials, with 32 research centers established and 60 subjects enrolled [8] - The INR102 therapeutic nuclear medicine project has received a clinical trial notification, with Phase I trials underway and 12 patients enrolled [8]

Group 1 - Yunnan Baiyao has undergone significant management changes, with Dong Ming stepping down as the legal representative and Wang Minghui resigning as chairman, replaced by Zhang Wenxue [1][2] - The registered capital of Yunnan Baiyao has increased from approximately 1.04 billion RMB to about 1.78 billion RMB [1][2] - The company was established in November 1993 and operates in various sectors including chemical raw materials, traditional Chinese medicine, and medical devices [1][3] Group 2 - The company is jointly held by Yunnan Provincial State-owned Assets Management Company, Xinhua Duhua Industrial Group Co., Ltd., and Yunnan Hehe Group Co., Ltd. [1][4] - The 11th Board of Directors meeting announced Zhang Wenxue as chairman and Dong Ming as vice chairman for a term of three years [1][2] - The company has a diverse business scope that includes sales of pharmaceuticals, medical devices, and technology consulting services [1][3]

据交易所数据显示，截至2025年12月5日收盘，云南白药（000538）报收于55.93元，上涨0.36%，换手 率0.27%，成交量4.72万手，成交金额2.64亿元。 资金流向方面，今日主力资金净流入4330.81万元，占比成交额16.43%。其中，超大单净流入228.63万 元、占成交额0.87%，大单净流入4102.18万元、占成交额15.56%，中单净流出流出1617.16万元、占成 交额6.13%，小单净流出2713.66万元、占成交额10.29%。 天眼查商业履历信息显示，云南白药集团股份有限公司，成立于1993年，位于昆明市，是一家以从事医 药制造业为主的企业。企业注册资本104139.9718万人民币，实缴资本43884.2484万人民币。公司法定代 表人为董明。 通过天眼查大数据分析，云南白药集团股份有限公司共对外投资了35家企业，参与招投标项目5000次， 知识产权方面有商标信息2375条，专利信息543条，此外企业还拥有行政许可1240个。 来源：市场资讯 云南白药最新一期业绩显示，截至2025三季报，公司营业总收入306.54亿元、同比增长2.47%，归属净 利润47.77亿元，同比 ...

Core Insights - Yunnan Baiyao has transformed from a traditional Chinese medicine brand into a modern pharmaceutical group, achieving significant growth in revenue and net profit over the past 32 years since its listing [2] - The company emphasizes strategic focus and product quality as keys to success in a changing external environment [2] Financial Performance - Revenue increased from 0.58 billion to 40.033 billion, a growth of 690 times; net profit rose from 0.13 billion to 4.749 billion, a growth of 365 times [2] - In the first three quarters of 2025, Yunnan Baiyao achieved revenue of 30.654 billion, a year-on-year increase of 2.47%, and net profit of 4.777 billion, a year-on-year increase of 10.41% [4] Digital Transformation - The company has implemented a comprehensive digital transformation across its entire supply chain, establishing a "Smart Cloud Medicine" platform to enhance quality control and traceability of traditional Chinese medicinal materials [4][6] - The smart factory has reduced production process switching time from 20 minutes to 1 minute and active ingredient testing time from 710 minutes to 2 minutes [3] Industry Challenges - The traditional Chinese medicine industry faces challenges such as unstable quality and price volatility due to the agricultural nature of medicinal materials [3] - Yunnan Baiyao is addressing these issues by controlling quality from the seed level and ensuring traceability throughout the production process [5][6] Strategic Focus - The company is focusing on its core business of traditional medicine while also innovating in the pharmaceutical sector, aiming to create a competitive edge through continuous R&D investment [8] - Yunnan Baiyao's strategic planning includes three development curves: short-term focus on major traditional medicine products, mid-term innovation in traditional medicine and new transdermal preparations, and long-term development of nuclear medicine [9] Market Position - In the first half of 2025, the sales revenue from pharmaceuticals and health products reached 8.504 billion, accounting for 40.01% of total revenue, marking an 11.13% year-on-year increase [9]

Group 1 - Dongyangguang Pharmaceutical's total revenue from 2022 to 2024 is projected to reach 14.2 billion, with R&D investment of 2.5 billion over the past three years, and operating profit exceeding 2.1 billion in the last two years [21] - Huaren Sanjiu's R&D investment is expected to reach 950 million in 2024, a 63.97% increase from 2020, with R&D personnel increasing to 876, more than double that of 2020 [21] - Yunnan Baiyao achieved a net profit of 4.777 billion in the first three quarters of 2025, a year-on-year increase of 10.41%, surpassing the full-year profit of 4.749 billion in 2024, marking a historical high for the same period [21] Group 2 - Yunnan Baiyao emphasizes the importance of returning to its core business and focusing on continuous effective R&D investment to build a competitive moat [22] - Huaren Sanjiu is accelerating its merger and integration pace, focusing on consumer health, medical health, and elderly health sectors, while enhancing R&D investment to drive innovation transformation [22] - Dongyangguang Pharmaceutical has developed three self-researched new drugs and has nearly 50 new drugs in the pipeline, actively seeking international markets for growth [26][31] Group 3 - Yanhuilong has invested over 1 billion in R&D from 2021 to 2024, with annual R&D investment accounting for over 20% of its main business revenue [21][51] - The company is shifting from rapid market capture to deep innovation, focusing on high-quality development and establishing a unique project advantage in the IVD industry [49][50] - Yanhuilong's overseas revenue exceeded 200 million in the first three quarters, a nearly 40% year-on-year increase, indicating successful market expansion [54] Group 4 - Yunnan Baiyao's revenue has grown from 58 million to 40.033 billion over 32 years, a 690-fold increase, with net profit rising from 1.3 million to 4.749 billion, a 365-fold increase [40] - The company has established a digital transformation strategy, creating a full-chain digital system to enhance operational efficiency and product quality [41][42] - Yunnan Baiyao's strategic planning includes three R&D curves focusing on traditional Chinese medicine, innovative drugs, and nuclear medicine [48] Group 5 - Dongyangguang Pharmaceutical has built a comprehensive R&D system and a modern factory with an annual production capacity of 1.8 billion tablets [29] - The company is actively integrating AI into drug discovery processes to enhance efficiency and reduce costs [30] - Huaren Sanjiu's revenue is projected to reach 27.6 billion in 2024, a 102% increase from 2020, with a compound annual growth rate of 23.6% in revenue and 24.5% in profit over the past three years [35]

Core Viewpoint - The Chinese traditional medicine sector is experiencing increased activity due to a surge in flu cases, with the Chinese Medicine ETF (560080) showing a slight decline but still attracting investor interest [1][9]. Market Performance - The Chinese Medicine ETF (560080) closed down 0.91% today, remaining in a consolidation phase, with a trading volume exceeding 84 million yuan, a 7% increase from the previous trading day [1]. - The ETF's closing premium rate was 0.06%, indicating ongoing investor attention, with two out of the last five days seeing inflows [1]. - The ETF's latest scale reached 2.598 billion yuan, leading its peers in the same category [1]. Stock Performance - Most constituent stocks of the Chinese Medicine ETF closed in the red, with notable declines including: - Pianzaihuang down 1.59% to 168.75 yuan, marking a five-year low [3]. - Yiling Pharmaceutical down over 3%, and Zhongsheng Pharmaceutical down over 2% [3]. - Conversely, stocks like Yunnan Baiyao and Jilin Aodong saw slight increases [3]. Valuation Metrics - As of December 3, the TTM price-to-earnings (PE) ratio for the ETF's index was 25.12, positioned at the 23.11% percentile over the past decade, suggesting that the index is cheaper than 76% of the time historically [5]. - The TTM PE is just 0.38 away from the calculated opportunity value, indicating a potential entry point for investors [5]. Historical Performance - The year-to-date return for the Chinese Medicine Index remains negative at -2.24%, with a decline of 8.13% projected for 2024 [7]. - The index has shown a pattern of consecutive declines, with four consecutive negative years if 2023 is considered a down year [7]. Demand Drivers - The recent flu outbreak has led to a significant increase in demand for respiratory medications, with flu cases reported rising by 53.8% compared to the previous week [9]. - The flu activity is at its highest level since 2022, which is expected to boost the demand for related medications [9]. Industry Outlook - Analysts from Zheshang Securities predict an inflection point for the Chinese medicine sector, suggesting that the sector will attract more investment due to its stable cash flow and lower volatility compared to other sectors [9]. - The industry is expected to see improved revenue and net profit growth in the second half of 2025, aided by reduced cost pressures from declining raw material prices [9].