Part I Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's structural overview, and definitions of key terms used throughout the document [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board, supervisory committee, and senior management guarantee the report's truthfulness, accuracy, and completeness, while cautioning investors about risks - The company's board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's principal, chief financial officer, and head of accounting department declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - Investors are advised to note investment risks, primarily including raw material price fluctuations, new product introduction falling short of expectations, and management risks[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report's structure covers important notices, company profile, management discussion, corporate governance, significant matters, share changes, bond information, and financial reports - The report comprises nine main chapters, covering company overview, financials, operations, governance, and risks[7](index=7&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including company names, subsidiaries, industry jargon, and financial period details - The report clearly defines abbreviations for the company and its main subsidiaries, such as "the Company" and "Kuihua Pharmaceutical" referring to Kuihua Pharmaceutical Group Co., Ltd[11](index=11&type=chunk) - It explains pharmaceutical industry terms like OTC (Over-The-Counter drugs), GMP (Good Manufacturing Practice), GSP (Good Supply Practice), and "Dual-Category" (both prescription and OTC drugs)[12](index=12&type=chunk) - The reporting period is defined as January 1, 2025, to June 30, 2025[12](index=12&type=chunk) Part II Company Profile and Key Financial Indicators This section presents the company's basic information, contact details, and a summary of key accounting data and financial performance indicators [I. Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Basic company information, including stock ticker, stock code, listing exchange, Chinese and English names, and legal representative, is disclosed Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Kuihua Pharmaceutical | | Stock Code | 002737 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Kuihua Pharmaceutical Group Co., Ltd. | | Legal Representative | Guan Yuxiu | [II. Contact Persons and Information](index=7&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Names, addresses, phone numbers, faxes, and email addresses for the Board Secretary and Securities Affairs Representative are provided - The Board Secretary is Zhou Guangkou, and the Securities Affairs Representative is Li Haimei, both located at No. 18 Donghu Road, Yingbin Road Centralized Area, Harbin High-tech Industrial Development Zone[15](index=15&type=chunk) [III. Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company confirms no changes in contact information, disclosure channels, or document availability during the reporting period, referring to the 2024 annual report for details - The company's registered address, office address, website, and email address remained unchanged during the reporting period[16](index=16&type=chunk) - Information disclosure and document availability locations remained unchanged during the reporting period, with details available in the 2024 annual report[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents key accounting data and financial indicators for the reporting period and the prior year, highlighting significant year-on-year changes Key Accounting Data and Financial Indicators | Indicator | Current Period/End (Yuan) | Prior Period/End (Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.31 billion yuan | 2.53 billion yuan | -48.17% | | Net Profit Attributable to Shareholders of Listed Company | 81.31 million yuan | 486.33 million yuan | -83.28% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 48.19 million yuan | 459.71 million yuan | -89.52% | | Net Cash Flow from Operating Activities | 349.62 million yuan | -142.16 million yuan | 345.94% | | Basic Earnings Per Share (Yuan/Share) | 0.14 | 0.83 | -83.13% | | Diluted Earnings Per Share (Yuan/Share) | 0.14 | 0.83 | -83.13% | | Weighted Average Return on Net Assets | 1.84% | 9.71% | -7.87% | | Total Assets | 5.72 billion yuan | 5.83 billion yuan | -1.83% | | Net Assets Attributable to Shareholders of Listed Company | 4.46 billion yuan | 4.38 billion yuan | 1.85% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reports no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards for the period - During the reporting period, there were no differences in the company's net profit and net assets between domestic and overseas accounting standards[20](index=20&type=chunk)[21](index=21&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%A2%9D) This section details non-recurring gains and losses for the reporting period, totaling **33.12 million yuan**, primarily from government subsidies and fair value changes Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 653,722.60 yuan | | Government Subsidies Included in Current Profit and Loss | 32.74 million yuan | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 16.95 million yuan | | Other Non-Operating Income and Expenses | -5.56 million yuan | | Other Income and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | 823,048.35 yuan | | Less: Income Tax Impact | 10.61 million yuan | | Minority Interest Impact (After Tax) | 1.87 million yuan | | **Total** | **33.12 million yuan** | Part III Management Discussion and Analysis This section provides an overview of the company's main business, core competencies, operational analysis, non-operating activities, asset and liability status, and investment activities [I. Main Business Activities During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) This section outlines the company's industry context, primary business operations, product portfolio, operating model, and performance drivers [1. Industry Overview](index=10&type=section&id=1%E3%80%81%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The pharmaceutical manufacturing industry is a national pillar, with 2025 marking a crucial year for policy implementation and future planning, alongside ongoing revenue and profit declines - The pharmaceutical manufacturing industry is a national pillar industry, with 2025 being the concluding year of the "14th Five-Year Plan" and the planning year for the "15th Five-Year Plan"[26](index=26&type=chunk) - National policies continue to promote high-quality development of drug supply and assurance, focusing on medications for children, the elderly, and patients with mental disorders, while deepening centralized drug procurement and price governance[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) Key Economic Indicators for Pharmaceutical Manufacturing in H1 2025 | Indicator | Amount | | :--- | :--- | | Operating Revenue | 1.23 trillion yuan | | Total Profit | 176.69 billion yuan | | Year-on-Year Change | Operating Revenue: -1.2%; Total Profit: -2.8% | [2. Company's Main Business and Products](index=10&type=section&id=2%E3%80%81%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%8F%8A%E4%BA%A7%E5%93%81) The company is a large-scale pharmaceutical group integrating R&D, manufacturing, and marketing of medicines and health products, focusing on traditional Chinese medicine with chemical and biological drugs as complements - The company's main business involves the R&D, manufacturing, and marketing of traditional Chinese medicine, chemical drugs, biological drugs, health products, and functional foods[29](index=29&type=chunk) - The company adheres to a specialized "elderly, children, women" operating strategy, covering full lifecycle health management through its "Kuihua" adult health product system and "Xiao Kuihua" children's health product system[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - "Xiao Kuihua" children's medicines hold a leading position in the industry in terms of sales scale, product quantity, and number of large-scale single products[32](index=32&type=chunk) [3. Operating Model and Performance Drivers](index=11&type=section&id=3%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E5%8F%8A%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8) The company employs a multi-dimensional synergistic marketing model encompassing brand drugs, common drugs, prescription drugs, big health, and new retail, while advancing digital marketing and e-commerce - The company adopts a multi-dimensional synergistic marketing model encompassing "brand drugs, common drugs, prescription drugs, big health, and new retail"[33](index=33&type=chunk) - The company actively promotes digital marketing transformation and e-commerce channel layout to achieve breakthroughs in market coverage depth and breadth[33](index=33&type=chunk) [II. Analysis of Core Competencies](index=11&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies remain unchanged, driven by a strong product portfolio, "Kuihua" + "Xiao Kuihua" dual-brand strategy, extensive marketing network, innovative marketing models, and stringent quality control - The company's core competencies include variety and category clusters, dual-brand umbrella drive, marketing network, innovative marketing models, large-scale production, and strict quality control[34](index=34&type=chunk) - During the reporting period, the "Kuihua" + "Xiao Kuihua" brand value increased to **36.58 billion yuan**, retaining its position on the "11th Brand Power Forum - 2025 China Top 500 Brands" list[34](index=34&type=chunk) [III. Main Business Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Amidst pharmaceutical industry restructuring, the company proactively optimized channel inventory and adjusted strategies across quality, service, brand, organization, and channel network [Overview](index=11&type=section&id=%E6%A6%82%E8%BF%B0) The pharmaceutical industry is undergoing restructuring with innovation driven by "AI+gene" technologies, leading the company to optimize channel inventory, impacting short-term performance but ensuring long-term stability - The pharmaceutical industry's landscape is being reshaped by policy guidance and technological breakthroughs, with innovative drug R&D entering the "AI+gene" era[35](index=35&type=chunk) - The company proactively optimized downstream channel inventory and controlled shipment volumes, negatively impacting short-term performance but contributing to long-term stable development[35](index=35&type=chunk) Key Operating Performance for H1 2025 | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Operating Revenue | 1.31 billion yuan | | Net Profit Attributable to Parent Company | 81.31 million yuan | [1. Strategic Drive to Normalize Channel Inventory and Build a Symbiotic and Win-Win Industrial Ecosystem](index=11&type=section&id=1%E3%80%81%E6%88%98%E7%95%A5%E6%8E%A8%E5%8A%A8%E6%B8%A0%E9%81%93%E5%BA%93%E5%AD%98%E5%9B%9E%E5%BD%92%E5%B8%B8%E6%80%81%EF%BC%8C%E7%9D%80%E5%8A%9B%E6%89%93%E9%80%A0%E5%85%B1%E7%94%9F%E5%85%B1%E8%B5%A2%E4%BA%A7%E4%B8%9A%E7%94%9F%E6%80%81) The company proactively controlled shipments for respiratory and anti-cold products to normalize channel inventory, impacting short-term performance but strengthening long-term development capabilities - The company proactively controlled shipments of respiratory and anti-cold products, collaborating with downstream businesses to boost sales, addressing previously excessive channel inventory[38](index=38&type=chunk) - As of the end of July 2025, the company's downstream commercial inventory has largely normalized; while impacting short-term performance, this enhances long-term stable development capabilities[38](index=38&type=chunk) [2. Consolidating Corporate Culture and Spiritual Core to Fortify the Foundation for Industry Revival](index=12&type=section&id=2%E3%80%81%E5%87%9D%E8%81%9A%E4%BC%81%E4%B8%9A%E6%96%87%E5%8C%96%E4%B8%8E%E7%B2%BE%E7%A5%9E%E5%86%85%E6%A0%B8%EF%BC%8C%E7%AD%91%E7%89%A2%E8%A1%8C%E4%B8%9A%E9%93%81%E5%86%9B%E5%A4%8D%E5%85%B4%E6%A0%B9%E5%9F%BA) Amidst industry transformation, the company strengthens its cultural and spiritual core, adhering to "honest conduct, honest medicine" to optimize its model, strategy, organization, and talent - The company addresses industry challenges by consolidating its corporate culture and spiritual core, adhering to the philosophy of "honest conduct, honest medicine"[39](index=39&type=chunk) - The company strategically promotes a dynamic, four-in-one optimization of "model, strategy, organization, and talent" to fortify the foundation for industry revival[39](index=39&type=chunk) [3. Firmly Adhering to "Elderly, Children, Women" Category-Specific Operations, R&D Investment Resonance to Enrich Product Structure](index=12&type=section&id=3%E3%80%81%E5%9D%9A%E5%AE%9A%E2%80%9C%E4%B8%80%E8%80%81%E4%B8%80%E5%B0%8F%E4%B8%80%E5%A6%87%E2%80%9D%E5%93%81%E7%B1%BB%E7%89%B9%E8%89%B2%E7%BB%8F%E8%90%A5%EF%BC%8C%E7%A0%94%E5%8F%91%E6%8A%95%E8%B5%84%E5%85%B1%E6%8C%AF%E4%B8%B0%E5%AF%8C%E5%93%81%E7%B1%BB%E7%BB%93%E6%9E%84) The company maintains its "elderly, children, women" category strategy, using a "industry + capital" dual-driven approach and "buy, modify, collaborate, research" R&D to expand product categories - The company adheres to the "elderly, children, women" category-specific operating strategy and implements a "industry + capital" dual-driven strategy[40](index=40&type=chunk) - The company employs a "buy, modify, collaborate, research" R&D strategy to expand existing product indications, improve formulations, introduce major products, and build a tiered moat around core categories[40](index=40&type=chunk)[41](index=41&type=chunk) - During the reporting period, products such as Polyethylene Glycol 3350 Powder and Ibuprofen Oral Suspension Drops obtained drug registration certificates, and R&D for big health products like probiotics is actively progressing[42](index=42&type=chunk) [4. Effective Implementation of the Ten-Step Fine Drug Method and Strengthening Qualification Management for Advantageous Products](index=12&type=section&id=4%E3%80%81%E5%AE%9E%E6%95%88%E8%90%BD%E5%9C%B0%E7%B2%BE%E5%93%81%E8%8D%AF%E5%8D%81%E6%AD%A5%E6%B3%95%E3%80%81%E5%BC%BA%E5%8C%96%E4%BC%98%E5%8A%BF%E5%93%81%E7%A7%8D%E8%B5%84%E8%B4%A8%E7%AE%A1%E7%90%86) The company implements a "ten-step fine drug method" from raw material selection to clinical evidence, ensuring product efficacy and quality, while prioritizing qualification management for core and advantageous products - The company implements a "ten-step fine drug method" strategy, from selecting authentic medicinal materials to clinical evidence, ensuring drug efficacy and quality[44](index=44&type=chunk) - The company will focus on promoting qualification access and identity certification for core flagship products, potential golden single products, leading varieties, and advantageous products[44](index=44&type=chunk) [5. Adapting to Change, Thriving Through Transformation: Comprehensive Optimization of Model, Strategy, and Organization](index=13&type=section&id=5%E3%80%81%E4%BB%A5%E5%8F%98%E5%BA%94%E5%8F%98%E3%80%81%E9%A9%AD%E5%8F%98%E5%9B%BE%E5%BC%BA%EF%BC%8C%E6%A8%A1%E5%BC%8F%E3%80%81%E7%AD%96%E7%95%A5%E3%80%81%E7%BB%84%E7%BB%87%E5%85%A8%E9%9D%A2%E4%BC%98%E5%8C%96) Facing industry changes, the company actively connects with end consumers, implements a combined marketing model, and integrates organizational structures to strengthen market and media synergy - The company faces industry changes, focusing on "providing valuable choices for end consumers" as a starting point to actively connect with end consumers[45](index=45&type=chunk) - The company implements a combined marketing model of "brand pull, prescription lead, OTC push, guerrilla grab" and is committed to the operating logic of "creating golden flagship products and golden product clusters"[45](index=45&type=chunk) - The company promotes organizational structure integration, strengthens synergy between market management and media promotion systems, and strategically plans for "expanding prescription business and growing large prescriptions"[46](index=46&type=chunk)[47](index=47&type=chunk) - The "Xiao Kuihua Big Health Model" leverages brand advantages to build an "online-first + omni-channel coverage" operating system, focusing on children's probiotics, mineral-vitamin supplements, and functional foods[48](index=48&type=chunk) [IV. Non-Primary Business Analysis](index=15&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-primary business activities include investment income, fair value changes, asset impairment, and non-operating income/expenses, with investment income primarily from bank wealth management products Non-Primary Business Profit and Loss | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Cause | | :--- | :--- | :--- | :--- | | Investment Income | 10.37 million yuan | 9.22% | Income from purchasing bank wealth management products | | Gains and Losses from Fair Value Changes | 5.81 million yuan | 5.17% | Fair value changes of non-current financial assets held | | Asset Impairment | -3.90 million yuan | -3.47% | Provision for inventory depreciation | | Non-Operating Income | 49,921.96 yuan | 0.04% | Income received from logistics damage | | Non-Operating Expenses | 5.61 million yuan | 4.99% | Taxes paid | [V. Analysis of Assets and Liabilities](index=16&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, both total assets and total liabilities slightly decreased, with an increase in cash and a decrease in inventory and contract liabilities [1. Significant Changes in Asset Composition](index=16&type=section&id=1%E3%80%81%E8%B5%84%E4%BA%A7%E6%9E%84%E6%88%90%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) At the end of the reporting period, cash and cash equivalents increased by **7.35%** of total assets, while inventory decreased by **1.80%** and contract liabilities by **1.05%** Changes in Asset Composition | Item | Proportion of Total Assets at End of Current Period | Proportion of Total Assets at End of Prior Year | Change in Proportion | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 25.21% | 17.86% | 7.35% | | Inventories | 13.09% | 14.89% | -1.80% | | Contract Liabilities | 3.83% | 4.88% | -1.05% | [3. Assets and Liabilities Measured at Fair Value](index=16&type=section&id=3%E3%80%81%E4%BB%A5%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F%E7%9A%84%E8%B5%84%E4%BA%A7%E5%92%8C%E8%B4%9F%E5%80%BA) At the end of the reporting period, financial assets measured at fair value totaled **1.25 billion yuan**, primarily comprising trading financial assets and other non-current financial assets Assets and Liabilities Measured at Fair Value | Item | Period-End Amount (Yuan) | Period-Start Amount (Yuan) | Fair Value Change Gains and Losses for Current Period (Yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1.20 billion yuan | 1.26 billion yuan | 0 | | Other Equity Instrument Investments | 2.86 million yuan | 2.83 million yuan | 31,449.60 yuan | | Other Non-Current Financial Assets | 51.92 million yuan | 51.09 million yuan | 5.81 million yuan | | **Total** | **1.25 billion yuan** | **1.31 billion yuan** | **5.84 million yuan** | [4. Asset Rights Restriction Status as of the End of the Reporting Period](index=17&type=section&id=4%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%B5%84%E4%BA%A7%E6%9D%83%E5%88%A9%E5%8F%97%E9%99%90%E6%83%85%E5%86%B5) As of the end of the reporting period, the company's total restricted assets amounted to **71,500 yuan**, primarily due to subsidiary litigation freezes and ETC business margin deposits - As of the end of the reporting period, the company's total restricted assets amounted to **71,500 yuan**[63](index=63&type=chunk) - Reasons for restrictions include subsidiary litigation freezes and ETC business margin deposits[63](index=63&type=chunk) [VI. Investment Analysis](index=17&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investments totaled **60 million yuan**, primarily comprising capital injection into its subsidiary, Kuihua Pharmaceutical Group (Jilin) Linjiang Co., Ltd [1. Overall Situation](index=17&type=section&id=1%E3%80%81%E6%80%BB%E4%BD%93%E6%83%85%E5%86%B5) The investment amount for the reporting period was **60 million yuan**, representing a year-on-year change of **100.00%** Investment Amount for the Reporting Period | Indicator | Amount (Yuan) | Change Rate | | :--- | :--- | :--- | | Investment Amount for the Reporting Period | 60.00 million yuan | 100.00% | [2. Significant Equity Investments Acquired During the Reporting Period](index=17&type=section&id=2%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%8E%B7%E5%8F%96%E7%9A%84%E9%87%8D%E5%A4%A7%E7%9A%84%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company injected **60 million yuan** into its wholly-owned subsidiary, Kuihua Pharmaceutical Group (Jilin) Linjiang Co., Ltd., maintaining a **100%** stake - The company injected **60 million yuan** into its wholly-owned subsidiary, Kuihua Pharmaceutical Group (Jilin) Linjiang Co., Ltd[66](index=66&type=chunk) - Following the capital increase, the company's shareholding in Linjiang Kuihua is **100%**, and this investment has been completed[66](index=66&type=chunk) [3. Significant Non-Equity Investments in Progress During the Reporting Period](index=18&type=section&id=3%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%AD%A3%E5%9C%A8%E8%BF%9B%E8%A1%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E7%9A%84%E9%9D%9E%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company's ongoing non-equity investments include fund investments in Hangzhou Xiaochi Feihong Venture Capital Partnership and Ningbo Meishan Bonded Port Area Huagai Lisheng Equity Investment Partnership, with cumulative actual investments of **1 million yuan** and **10 million yuan**, respectively Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Cumulative Actual Investment Amount as of Period-End (Yuan) | Cumulative Realized Income as of Period-End (Yuan) | | :--- | :--- | :--- | :--- | | Hangzhou Xiaochi Feihong Venture Capital Partnership | Fund Investment | 1.00 million yuan | -93,628.39 yuan | | Ningbo Meishan Bonded Port Area Huagai Lisheng Equity Investment Partnership | Fund Investment | 10.00 million yuan | -780,912.46 yuan | | **Total** | | **11.00 million yuan** | **-874,540.85 yuan** | [4. Financial Asset Investments](index=18&type=section&id=4%E3%80%81%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E6%8A%95%E8%B5%84) The company's financial asset investments primarily include domestic and overseas stocks (Guiyang Bank) and other equity instrument investments, with a total book value of **817,689.60 yuan** at period-end Financial Asset Investment Status | Security Type | Security Code | Security Abbreviation | Period-End Book Value (Yuan) | Accounting Subject | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic and Overseas Stocks | 601997 | Guiyang Bank | 817,689.60 yuan | Other Equity Instrument Investments | Own Funds | [5. Use of Raised Funds](index=19&type=section&id=5%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The company had no use of raised funds during the reporting period - During the reporting period, the company had no use of raised funds[74](index=74&type=chunk) [VII. Significant Asset and Equity Sales](index=19&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not sell any significant assets or equity during the reporting period - During the reporting period, the company did not sell any significant assets or equity[75](index=75&type=chunk)[76](index=76&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists major subsidiaries and participating companies significantly impacting the company's net profit, including their financial performance Financial Data of Major Subsidiaries | Company Name | Company Type | Registered Capital (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Heilongjiang Kuihua Pharmaceutical Co., Ltd. | Subsidiary | 100.00 million yuan | 276.93 million yuan | 77.63 million yuan | | Kuihua Pharmaceutical Group (Hengshui) Defier Co., Ltd. | Subsidiary | 70.00 million yuan | 110.18 million yuan | 3.64 million yuan | | Kuihua Pharmaceutical Group Chongqing Xiao Kuihua Children's Pharmaceutical Co., Ltd. | Subsidiary | 100.00 million yuan | 44.28 million yuan | -524,408.16 yuan | | Kuihua Pharmaceutical Group (Xiangyang) Longzhong Co., Ltd. | Subsidiary | 30.07 million yuan | 185.47 million yuan | 8.10 million yuan | [X. Risks Faced by the Company and Countermeasures](index=20&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) This section details the company's exposure to raw material price volatility, new product introduction risks, and management challenges, along with corresponding mitigation strategies [1. Raw Material Price Fluctuation Risk](index=20&type=section&id=1%E3%80%81%E5%8E%9F%E6%9D%90%E6%96%99%E4%BB%B7%E6%A0%BC%E6%B3%A2%E5%8A%A8%E9%A3%8E%E9%99%A9) The company faces significant raw material price volatility, particularly for traditional Chinese medicine ingredients, which impacts operating costs - The company faces raw material price fluctuation risk, primarily because its traditional Chinese medicine products are highly affected by the prices of Chinese medicinal materials[78](index=78&type=chunk) - Countermeasures include differentiated procurement strategies, optimized supply chain management, and dynamic inventory control[78](index=78&type=chunk) [2. Risk of New Product Introduction Falling Short of Expectations](index=20&type=section&id=2%E3%80%81%E6%96%B0%E5%93%81%E5%AF%BC%E5%85%A5%E4%B8%8D%E8%BE%BE%E9%A2%84%E6%9C%9F%E9%A3%8E%E9%99%A9) New product introduction carries the risk of delayed performance due to the time required for market cultivation and building consumer trust - New product introduction carries the risk of phased delays in performance realization, as market cultivation and consumer trust building require time[79](index=79&type=chunk) - Countermeasures include strengthening demand forecasting, precise project initiation, enhancing resource synergy, and optimizing product sales promotion strategies[79](index=79&type=chunk) [3. Management Risk](index=20&type=section&id=3%E3%80%81%E7%AE%A1%E7%90%86%E9%A3%8E%E9%99%A9) The company faces management risks due to frequent policy changes and increasingly stringent regulatory environments in the pharmaceutical industry - Frequent policy releases and a strict regulatory environment in the pharmaceutical industry lead to management risks for the company[80](index=80&type=chunk) - Countermeasures include continuous investment in policy interpretation, internal management optimization, strengthening intellectual property protection, and increasing investment in digitalization and intelligence construction[80](index=80&type=chunk) Part IV Corporate Governance, Environment, and Society This section covers changes in the company's directors, supervisors, and senior management, profit distribution, employee incentive plans, environmental information disclosure, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company appointed Liu Guangtao, Yang Yang, and Xiao Lin as Vice General Managers, while Ma Xin and Chen Liang's Vice General Manager positions were terminated - During the reporting period, the company appointed Liu Guangtao, Yang Yang, and Xiao Lin as Vice General Managers[83](index=83&type=chunk) - Ma Xin (retired) and Chen Liang (personal reasons) were relieved of their Vice General Manager positions[83](index=83&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[84](index=84&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company's 2022 employee stock ownership plan remains effective, involving 81 employees holding **0.18%** of total shares, though the third unlocking period's equity was not unlocked due to unmet performance targets Overview of 2022 Employee Stock Ownership Plan | Indicator | Content | | :--- | :--- | | Number of Employees | 81 | | Total Shares Held (Shares) | 1,032,600 | | Proportion of Listed Company's Total Share Capital | 0.18% | | Source of Funds | Employees' legal remuneration, self-raised funds, and other methods permitted by laws and regulations | - The company-level performance targets for the third unlocking period of the 2022 employee stock ownership plan were not met, and the underlying stock equity was not unlocked[464](index=464&type=chunk) [IV. Environmental Information Disclosure](index=22&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its eight major subsidiaries are listed as enterprises required to disclose environmental information by law, with corresponding inquiry indexes provided - The company and its eight major subsidiaries are included in the list of enterprises required to disclose environmental information by law[88](index=88&type=chunk) [V. Social Responsibility](index=23&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company integrates social responsibility with its development strategy, actively engaging in public welfare activities, including donations and health education through "Xiao Kuihua Mama Classroom" and "Kuihua Liver Protection Lecture Hall" - The company integrates social responsibility with its development strategy and actively participates in public welfare donation activities[89](index=89&type=chunk) - The company fulfills its social responsibilities by disseminating health knowledge through public welfare platforms like "Xiao Kuihua Mama Classroom" and "Kuihua Liver Protection Lecture Hall"[89](index=89&type=chunk) Part V Significant Matters This section addresses commitments, related party transactions, litigation, penalties, and other significant events concerning the company and its subsidiaries [I. Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period](index=24&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) There were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, or other committed parties during the reporting period - During the reporting period, there were no fulfilled or overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, or other committed parties[91](index=91&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=24&type=section&id=%E4%BA%8C%E3%80%81%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation by controlling shareholders or other related parties of the listed company during the reporting period - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the company[92](index=92&type=chunk) [III. Irregular External Guarantees](index=24&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - During the reporting period, the company had no irregular external guarantees[93](index=93&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=24&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual report was not audited - The company's semi-annual financial report was not audited[94](index=94&type=chunk) [VIII. Litigation Matters](index=24&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period - During the reporting period, the company had no significant litigation or arbitration matters[96](index=96&type=chunk) [IX. Penalties and Rectification](index=25&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The actual controller, Guan Yanbin, was involved in a judicial case, which did not affect the listed company's normal operations or his shareholder rights - The company's actual controller, Guan Yanbin, was involved in a judicial case, but it did not affect the listed company's normal production and operation activities, nor his exercise of shareholder rights[97](index=97&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=25&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or overdue large debts - During the reporting period, the company and its controlling shareholder and actual controller maintained good integrity, with no unfulfilled court judgments or overdue large debts[98](index=98&type=chunk) [XI. Significant Related Party Transactions](index=25&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in a related party transaction with Wuchang Kuihua Sunshine Rice Industry Co., Ltd. for rice procurement, totaling **2.70 million yuan** [1. Related Party Transactions Related to Daily Operations](index=25&type=section&id=1%E3%80%81%E4%B8%8E%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E7%9B%B8%E5%85%B3%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company purchased rice from Wuchang Kuihua Sunshine Rice Industry Co., Ltd. for **2.70 million yuan**, remaining within the approved **20 million yuan** limit Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Transaction Amount (10,000 Yuan) | Proportion of Similar Transactions | Approved Transaction Limit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Wuchang Kuihua Sunshine Rice Industry Co., Ltd. | Rice Procurement | 2.70 million yuan | 0.30% | 20.00 million yuan | [XII. Significant Contracts and Their Performance](index=26&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant guarantees or major contracts during the reporting period, but engaged in wealth management with **1.20 billion yuan** in outstanding bank wealth management products [1. Custody, Contracting, and Leasing Matters](index=26&type=section&id=1%E3%80%81%E6%89%98%E7%AE%A1%E3%80%81%E6%89%BF%E5%8C%85%E3%80%81%E7%A7%9F%E8%B5%81%E4%BA%8B%E9%A1%B9%E6%83%85%E5%86%B5) The company had no custody, contracting, or leasing situations during the reporting period - During the reporting period, the company had no custody, contracting, or leasing situations[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [3. Entrusted Wealth Management](index=27&type=section&id=3%E3%80%81%E5%A7%94%E6%89%98%E7%90%86%E8%B4%A2) The company invested its own funds in bank wealth management products, with an outstanding balance of **1.20 billion yuan** at period-end and no overdue unrecovered amounts Entrusted Wealth Management Status | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Transactions (10,000 Yuan) | Outstanding Balance (10,000 Yuan) | Overdue Unrecovered Amount (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 600.00 million yuan | 600.00 million yuan | 0 | | Bank Wealth Management Products | Own Funds | 400.00 million yuan | 400.00 million yuan | 0 | | Bank Wealth Management Products | Own Funds | 200.00 million yuan | 200.00 million yuan | 0 | | **Total** | | **1.20 billion yuan** | **1.20 billion yuan** | **0** | [XIV. Significant Matters of Company Subsidiaries](index=28&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company increased capital in Kuihua Pharmaceutical Group (Jilin) Linjiang Co., Ltd. by **60 million yuan**, transferred **100%** equity of Kuihua Pharmaceutical Group (Yangpu) Pharmaceutical Technology Co., Ltd., and plans to reduce registered capital for some subsidiaries - The company increased capital in its subsidiary, Kuihua Pharmaceutical Group (Jilin) Linjiang Co., Ltd., by **60 million yuan**, changing its registered capital to **100 million yuan**[116](index=116&type=chunk) - The company transferred **100%** equity of its wholly-owned subsidiary, Kuihua Pharmaceutical Group (Yangpu) Pharmaceutical Technology Co., Ltd[117](index=117&type=chunk) - The company plans to reduce the registered capital of some subsidiaries (and sub-subsidiaries), including Chongqing Xiao Kuihua Health Industry Development Co., Ltd., Guangdong Kuihua Pharmaceutical Co., Ltd., and Beijing Pharmaceutical Research Institute Co., Ltd[118](index=118&type=chunk) Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder numbers, and major shareholder holdings, confirming no changes in total shares or controlling shareholder [I. Share Change Status](index=29&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total shares remained unchanged at **584 million shares**, with restricted shares decreasing by **375 shares** and unrestricted shares increasing by **375 shares** Share Change Status | Share Type | Quantity Before This Change (Shares) | Increase/Decrease in This Change (Shares) | Quantity After This Change (Shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 375 | -375 | 0 | | Unrestricted Shares | 583,999,625 | 375 | 584,000,000 | | **Total Shares** | **584,000,000** | **0** | **584,000,000** | [III. Number of Shareholders and Shareholding Status](index=30&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the reporting period, the total number of common shareholders was **54,493**, with controlling shareholder Kuihua Group Co., Ltd. holding **45.41%** and actual controller Guan Yanbin holding **6.03%** - At the end of the reporting period, the total number of common shareholders was **54,493**[123](index=123&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (Shares) | | :--- | :--- | :--- | :--- | | Kuihua Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 45.41% | 265,200,000 | | Guan Yanbin | Domestic Natural Person | 6.03% | 35,220,422 | | Heilongjiang Jinkui Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.11% | 24,000,000 | [V. Changes in Controlling Shareholder or Actual Controller](index=31&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or actual controller during the reporting period - During the reporting period, neither the company's controlling shareholder nor its actual controller changed[126](index=126&type=chunk) Part VII Bond-Related Information The company had no bond-related matters during the reporting period [Bond-Related Information](index=33&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - During the reporting period, the company had no bond-related matters[129](index=129&type=chunk) Part VIII Financial Report This section includes the audit report, consolidated and parent company financial statements, company basic information, basis of financial statement preparation, significant accounting policies, and tax information [I. Audit Report](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[131](index=131&type=chunk) [II. Financial Statements](index=34&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity [1. Consolidated Balance Sheet](index=34&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) At period-end, total current assets were **3.85 billion yuan**, non-current assets **1.87 billion yuan**, total assets **5.72 billion yuan**, total current liabilities **867.79 million yuan**, non-current liabilities **180.10 million yuan**, and total liabilities **1.05 billion yuan** Consolidated Balance Sheet Summary as of June 30, 2025 | Item | Period-End Balance (Yuan) | Period-Start Balance (Yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1.44 billion yuan | 1.04 billion yuan | | Trading Financial Assets | 1.20 billion yuan | 1.26 billion yuan | | Inventories | 748.51 million yuan | 867.31 million yuan | | **Total Current Assets** | **3.85 billion yuan** | **3.89 billion yuan** | | Fixed Assets | 1.21 billion yuan | 1.27 billion yuan | | **Total Assets** | **5.72 billion yuan** | **5.83 billion yuan** | | Accounts Payable | 328.21 million yuan | 319.05 million yuan | | Contract Liabilities | 218.89 million yuan | 284.08 million yuan | | **Total Liabilities** | **1.05 billion yuan** | **1.24 billion yuan** | | Total Owners' Equity Attributable to Parent Company | 4.46 billion yuan | 4.38 billion yuan | [3. Consolidated Income Statement](index=38&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) During the reporting period, total operating revenue was **1.31 billion yuan**, a **48.17%** year-on-year decrease, and net profit attributable to parent company shareholders was **81.31 million yuan**, a **83.28%** year-on-year decrease Consolidated Income Statement Summary for H1 2025 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1.31 billion yuan | 2.53 billion yuan | | Operating Cost | 801.11 million yuan | 1.12 billion yuan | | Selling Expenses | 186.84 million yuan | 517.72 million yuan | | Administrative Expenses | 185.38 million yuan | 221.08 million yuan | | R&D Expenses | 45.18 million yuan | 51.43 million yuan | | Financial Expenses | -3.13 million yuan | -20.96 million yuan | | Total Profit | 112.46 million yuan | 640.20 million yuan | | Net Profit Attributable to Parent Company Shareholders | 81.31 million yuan | 486.33 million yuan | | Basic Earnings Per Share (Yuan/Share) | 0.14 | 0.83 | [5. Consolidated Cash Flow Statement](index=42&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash flow from operating activities was **349.62 million yuan**, a **345.94%** year-on-year increase, while net cash flow from investment activities was **56.05 million yuan**, and from financing activities was **-2.27 million yuan** Consolidated Cash Flow Statement Summary for H1 2025 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 349.62 million yuan | -142.16 million yuan | | Net Cash Flow from Investing Activities | 56.05 million yuan | 476.08 million yuan | | Net Cash Flow from Financing Activities | -2.27 million yuan | -915.67 million yuan | | Net Increase in Cash and Cash Equivalents | 403.54 million yuan | -581.86 million yuan | [III. Company Basic Information](index=52&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company was established on September 7, 2005, with a current total share capital of **584 million shares**, and its main business is pharmaceutical manufacturing, primarily traditional Chinese medicine - The company was established on September 7, 2005, with an initial registered capital of **56 million yuan**[165](index=165&type=chunk) - As of June 30, 2025, the company's total share capital was **584 million shares**[166](index=166&type=chunk) - The company's parent company is Kuihua Group Co., Ltd., and the ultimate controller is natural person Guan Yanbin[167](index=167&type=chunk) - The company's main business is pharmaceutical manufacturing, primarily traditional Chinese medicine, with key products including Liver Protection Tablets, Weikangling Capsules, and Children's Lung Heat Cough and Asthma Oral Liquid[167](index=167&type=chunk) [IV. Basis of Financial Statement Preparation](index=52&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7

Core Insights - The pharmaceutical retail market has undergone significant structural adjustments since 2024, driven by external forces such as the "same drug price comparison" policy, leading to increased price transparency and rationality in the market [1][3] - Leading companies in the industry, particularly in the OTC sector, are initiating proactive marketing transformations and optimizing channel inventories to adapt to these changes [1][5] Industry Overview - The Chinese traditional medicine and OTC industry has faced challenges over the past year, with policies driving retail drug prices back to a more transparent and rational range, directly impacting production companies' profits [3][4] - Many A-share traditional Chinese medicine companies have reported losses or significant performance reductions, indicating that the industry is at a cyclical low point [3][4] Company Strategies - Leading companies like Kewflower Pharmaceutical are viewing the current adjustments as strategic opportunities, implementing comprehensive changes in channel management, product innovation, and digital empowerment [5][6] - Kewflower Pharmaceutical has adopted a proactive strategy to control short-term shipment volumes and optimize channel inventories, aiming for a healthier sales system [6] Product Innovations - Kewflower Pharmaceutical plans to launch two key new products in the first half of 2025, targeting unmet needs in adult constipation and children's medication markets [7] - The company has developed a new adult constipation medication and a children's ibuprofen suspension, enhancing product safety and efficacy to capture market share [7] Market Positioning - Kewflower Pharmaceutical has established a strong brand presence with its "Kewflower" and "Little Kewflower" brands, achieving significant brand value growth [11] - The company is leveraging its extensive product line and strong brand recognition to benefit from increasing demand for pediatric medications due to supportive national policies [10][11] Digital Transformation - Kewflower Pharmaceutical is embracing digitalization with its "532" vision, aiming to establish a comprehensive cloud platform for better management of downstream distributors and retail pharmacies [12] - The introduction of the "Kewflower Smart Travel" app is set to enhance sales efficiency through data-driven decision-making [12] Conclusion - The OTC industry is at a critical juncture, with leading companies like Kewflower Pharmaceutical poised to navigate through the cyclical downturn by leveraging product innovation, channel adjustments, and digital capabilities [13]

Core Insights - The 18th Health Industry Ecological Conference in Hainan Boao highlighted the theme "Rapid Transformation, Crossing New Cycles - Reconstructing Growth Drivers and Evolving Industry Ecology" [1] - Kew Flower Pharmaceutical has established a dual-engine growth strategy focusing on "Elderly and Children" as its core development direction [2] Group 1: Strategic Focus - Kew Flower Pharmaceutical's "Elderly and Children" strategy is based on in-depth analysis of China's demographic changes, policy benefits, and health demands [2] - The "Elderly" segment focuses on adult chronic disease management, while the "Children" segment continues to address children's health needs, creating a dual growth pattern [2] - The 2024 National Aging Development Report indicates that by the end of 2024, the elderly population (aged 60 and above) will reach 31.03 million, accounting for 22.0% of the total population, while the population aged 0-15 will be 23.99 million, making up 17.1% [2] Group 2: Market Opportunities - The "Elderly and Children" pharmaceutical market presents both explosive demand and market gaps, offering opportunities in the "silver economy" and children's health consumption upgrades [2] - The adult constipation medication market in China reached a sales figure of 8.401 billion yuan in 2024, with expectations for continued growth by 2029 [3] Group 3: Product Launch and Innovation - The launch of Kew Flower's Kecang® Polyethylene Glycol 3350 Powder is a key innovation under the "Elderly" strategy, filling a gap in the market for adult long-term constipation medications [5] - The product features a "four-dimensional targeted defecation mechanism" and is designed for ease of use, enhancing patient compliance [5] Group 4: Retail and E-commerce Strategy - The forum on "How to Activate New Growth Vitality in Pharmacies" emphasized the need for pharmacies to transition from merely selling drugs to becoming health service hubs [7] - Kew Flower Pharmaceutical advocates for a differentiated model combining "products + service packages" to enhance user engagement and address health management needs [7] - The integration of online platforms with brand partners to create health zones for "Elderly and Children" is seen as a way to achieve full-chain coverage [7][9]

登录新浪财经APP 搜索【信披】查看更多考评等级 申请事项：国产保健食品新产品注册 证券代码：002737 证券简称：葵花药业 公告编号：2025-052 葵花药业集团股份有限公司关于收到小葵花牌 多种益生菌粉注册申请受理通知书的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记载、误导性陈述或重大遗 漏。 葵花药业集团股份有限公司（以下简称"公司"或"本公司"）全资子公司 哈尔滨葵花药业有限公司于近 日收到国家市场监督管理总局下发的关于"小葵花牌多种益生菌粉"注册申请的《受理通知书》，现将有 关情况公告如下： 一、产品的基本情况 产品名称：小葵花牌多种益生菌粉 受理号：国食健申 G20250134 葵花药业集团股份有限公司 董事会 申请人：哈尔滨葵花药业有限公司 结论：根据《中华人民共和国行政许可法》第三十二条的规定，经审查，决定予以受理。 产品功能：有助于调节肠道菌群、有助于润肠通便。 二、风险提示 上述产品在收到国家市场监督管理总局注册申请受理后，将转入国家市场监督管理总局保健食品审评机 构进行审评审批，鉴于产品审评周期长、环节多，期间受不确定性因素影响，具体完成时间、审批结果 ...

（文章来源：证券日报） 证券日报网讯 8月21日晚间，葵花药业发布公告称，公司全资子公司哈尔滨葵花药业有限公司于近日收 到国家市场监督管理总局下发的关于"小葵花牌多种益生菌粉"注册申请的《受理通知书》。 ...

人民财讯8月21日电，葵花药业（002737）8月21日晚间公告，公司全资子公司哈尔滨葵花药业有限公司 于近日收到国家市场监督管理总局下发的关于"小葵花牌多种益生菌粉"注册申请的《受理通知书》。该 产品有助于调节肠道菌群、有助于润肠通便。 ...

证券代码：002737 证券简称：葵花药业 公告编号：2025-052 葵花药业集团股份有限公司 关于收到小葵花牌多种益生菌粉 注册申请受理通知书的公告 申请事项：国产保健食品新产品注册 申请人：哈尔滨葵花药业有限公司 结论：根据《中华人民共和国行政许可法》第三十二条的规定，经审查，决 定予以受理。 产品功能：有助于调节肠道菌群、有助于润肠通便。 二、风险提示 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记 载、误导性陈述或重大遗漏。 葵花药业集团股份有限公司（以下简称"公司"或"本公司"）全资子公司 哈尔滨葵花药业有限公司于近日收到国家市场监督管理总局下发的关于"小葵花 牌多种益生菌粉"注册申请的《受理通知书》，现将有关情况公告如下： 一、产品的基本情况 产品名称：小葵花牌多种益生菌粉 受理号：国食健申 G20250134 务。 三、备查文件 上述产品在收到国家市场监督管理总局注册申请受理后，将转入国家市场监 督管理总局保健食品审评机构进行审评审批，鉴于产品审评周期长、环节多，期 间受不确定性因素影响，具体完成时间、审批结果存在不确定性。提醒广大投资 者审慎决策，注意投资风险。 公司将 ...

葵花药业公告，全资子公司哈尔滨葵花药业有限公司于近日收到国家市场监督管理总局下发的关于"小 葵花牌多种益生菌粉"注册申请的《受理通知书》。该产品功能包括有助于调节肠道菌群和润肠通便。 目前，产品已获得受理，将进入审评审批阶段。投资者需注意投资风险。公司将积极推进新产品注册工 作并持续关注审批情况，及时履行信息披露义务。 ...

Group 1 - The core viewpoint of the article highlights the decline in the production of traditional Chinese medicine (TCM) in China, with a projected decrease in output and significant year-on-year reductions [1][3] - According to data from the National Bureau of Statistics, the production of TCM in China is expected to be 156,000 tons by June 2025, representing a year-on-year decrease of 6.6% [1] - In the first half of 2025, the cumulative production of TCM in China reached 875,000 tons, showing a cumulative decline of 13% [1] Group 2 - The article lists several publicly listed companies in the TCM sector, including Yunnan Baiyao, Tongrentang, and others, indicating the key players in the industry [1] - The report referenced is the "2025-2031 China Traditional Chinese Medicine Industry Development Situation Analysis and Industry Prospect Planning Report" published by Zhiyan Consulting, which provides insights into the future of the TCM industry [1][2]

（编辑 任世碧） 证券日报网讯 8月19日晚间，葵花药业发布公告称，公司于2025年4月24日召开第五届董事会第六次会 议，审议通过《关于部分子公司（孙公司）减少注册资本的议案》，决定将全资子公司葵花药业集团重 庆小葵花健康产业发展有限公司（简称"重庆小葵花"）注册资本由人民币5，000万元调减至3，000万 元；决定将控股子公司葵花药业集团北京药物研究院有限公司（简称"北京研究院"）注册资本由人民币 3，000万元调减至1，400万元。重庆小葵花、北京研究院于近日办理完成上述减资程序，并分别取得由 当地市场监督管理部门换发的最新《营业执照》。 ...