Core Viewpoint - Panlong Pharmaceutical is actively engaging with institutional investors to showcase its strategic layout, core product competitiveness, and future development plans, focusing on a "one body, two wings, three depths" strategy to strengthen its main business while expanding into new areas like traditional Chinese medicine formula granules and health products [1] Group 1: Growth Drivers - The main product, Panlong Seven Tablets, is a key driver of revenue growth, holding an 8.05% market share in the traditional Chinese medicine market for musculoskeletal and rheumatic diseases in public hospitals as of the first half of 2024, ranking first [2] - The company has developed a diverse product cluster around rheumatology and bone injuries, including Panlong Seven Medicinal Wine and Bone Health Tablets, creating a differentiated competitive advantage [2] - In 2024, the traditional Chinese medicine decoction pieces business achieved a historical breakthrough with a revenue increase of 292.84%, while the formula granules business made significant progress with 211 varieties registered for market entry [2] Group 2: Health Sector Expansion - In the health sector, the company leverages its traditional Chinese medicine advantages to develop "food and medicine homology" products, establishing a comprehensive product system covering treatment, conditioning, and prevention [5] - The company plans to enhance brand influence through online and offline collaboration, scenario-based marketing, and e-commerce partnerships to explore new growth opportunities [5] Group 3: R&D and M&A Strategy - Despite a slight revenue decline of 0.71% in 2024 due to the divestment of low-margin pharmaceutical distribution, the self-produced traditional Chinese medicine revenue grew by 10.2%, highlighting the profitability of the main business [6] - R&D investment increased by 85.31% in 2024, reaching 0.38 billion, with 65 valid patents held, including 31 invention patents [6] - The company is focusing on M&A within the traditional Chinese medicine industry chain, seeking synergistic targets to enhance core competitiveness through a "first participate, then control" model [9] Group 4: Market Recognition and Shareholder Returns - To address investor concerns regarding market capitalization management, the company aims to enhance market recognition through three measures: strengthening main business profitability, maintaining steady growth, and implementing a cash dividend policy with a 2024 payout ratio of 26.42% [9] - The company has established a three-year dividend plan to balance short-term returns with long-term development needs [9]

Core Viewpoint - The company, Panlong Pharmaceutical, has transformed from a near-bankrupt small factory into a nearly 10 billion yuan traditional Chinese medicine listed enterprise over 27 years, focusing on high-quality development and a comprehensive health strategy [1] Group 1: Corporate Governance and Development Strategy - The company integrates party building into its governance structure, with all board members being party committee members, ensuring that the party organization has real power in strategic decision-making [2] - The unique "12345" party building model has led to significant operational improvements, including a 40% efficiency increase in tablet production lines and over 10 million yuan in annual cost savings [2] - The company has achieved a 45.28% growth in main business revenue and a 47.89% increase in net profit over the past five years, with R&D investment consistently exceeding 6% [2] Group 2: Product and Market Development - In 2024, the company's self-produced traditional Chinese medicine generated revenue of 645 million yuan, a year-on-year increase of 10.20%, with its revenue share rising from 59.67% to 66.22% [4] - The company aims to become a leading player in the Chinese herbal formula granules market, targeting over 400 products for production and sales [4] Group 3: Social Responsibility and Community Engagement - The company has implemented a "Five Guarantees Poverty Alleviation Model," resulting in an average annual income increase of 24,000 yuan for 7,520 households [5][6] - Panlong Pharmaceutical has established a 100 million yuan charitable fund and has been recognized as a national green factory, contributing to local economic development and social welfare [6] Group 4: Future Outlook - The company plans to deepen its "one body, two wings, three depths" development strategy by focusing on orthopedic chronic diseases and enhancing its product matrix across various therapeutic areas by 2025 [7]

Group 1: Strategic Development - The company will continue to deepen its "One Body, Two Wings, Three Depths" development strategy, focusing on orthopedic chronic diseases and integrating brand-oriented business models [2] - A "1+N" open R&D system will be accelerated to enhance innovation and optimize the "Six Forces Project" (market, product, innovation, brand, guarantee, and value) [3] Group 2: Financial Performance - In 2024, the company achieved an annual revenue of ¥973,864,163.02, a slight decrease of 0.71% year-on-year, with a net profit of ¥120,271,592.81, an increase of 8.91% [3] - For Q1 2025, the company reported a main revenue of ¥250,212,341.68, a year-on-year increase of 19.08%, and a net profit of ¥31,249,274.14, up by 0.33% [3] Group 3: Product Development and Market Position - The company has completed the construction of an intelligent production line for traditional Chinese medicine formula granules, achieving a breakthrough with 211 varieties registered by the end of 2024 [5] - The leading product, Panlong Qipian, ranked first in market share at 8.05% in the traditional Chinese medicine market for musculoskeletal diseases in urban and county-level public hospitals in H1 2024 [6] Group 4: Marketing and Sales Strategy - The company has established a comprehensive marketing network covering over 4,800 hospitals, 7,000 retail terminals, and 6,000 grassroots medical institutions across 30 provinces [7] - Emphasizing "Internet + Medicine," the company is enhancing digital marketing strategies and collaborating with major e-commerce platforms to improve brand competitiveness [4]

Group 1: R&D Strategy and Product Layout - The company focuses on innovative management in the field of orthopedic chronic diseases, establishing a dual-driven R&D system of "independent innovation + industrial collaboration" [2] - Key areas of R&D include traditional Chinese medicine innovative drugs, hospital preparations, and Chinese medicine formula granules, alongside chemical generic drugs [2] - The company aims to form a differentiated product matrix and strengthen industrial collaboration through a dual layout of industry funds [2] Group 2: Cost Advantages and Supply Chain - The company has established significant industrial chain synergy in the Chinese medicine formula granules sector, leading to unique cost competitiveness [3] - It is actively promoting deep integration of the raw material supply system through scale procurement and vertical integration [3] - The company is constructing a complete industrial chain closed loop from raw material planting, production processing to terminal sales, maximizing efficiency across all stages [3] Group 3: Marketing and Product Development - The company emphasizes innovation in the health industry and is actively implementing scenario-based marketing strategies to enhance brand influence and product competitiveness [3] - Multiple new products have been independently developed in the health supplement sector, with some entering the production preparation stage [3] - The company is exploring diversified marketing models to improve product visibility and brand impact, targeting specific consumer groups [3]

Core Points - Panlong Pharmaceutical (002864) has successfully passed the rigorous evaluation by the China National Accreditation Service for Conformity Assessment (CNAS) and obtained the laboratory accreditation certificate, effective from June 9, 2025, to June 8, 2031, marking a new benchmark for high-quality development in the traditional Chinese medicine industry [2][3] - The CNAS accreditation signifies that the company's quality control system meets the highest international standards, allowing for mutual recognition of testing data across over 100 economies globally, enhancing the legal authority and international credibility of its testing results [2][3] Company Upgrades - The accreditation will drive upgrades in three key areas: - Research and Development: Accelerating the validation of the effectiveness of new traditional Chinese medicines through a high-standard testing platform [3] - Production: Ensuring a lean production process that guarantees a comprehensive traceability system from raw materials to finished products [3] - Market: Strengthening customer trust and providing international recognition to the "Panlong" brand [3] Strategic Validation - The CNAS recognition is seen as validation of the company's strategy to build its brand on quality, with plans to integrate modern testing technologies with traditional Chinese medicine wisdom, ensuring that every medicinal material and product meets global standards [3]

一、证书内容 获得机构名称：陕西盘龙药业集团股份有限公司检验检测中心 证券代码：002864 证券简称：盘龙药业 公告编号：2025-028 陕西盘龙药业集团股份有限公司 关于获得中国合格评定国家认可委员会（CNAS）实验室认 可证书的自愿性信息披露公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 陕西盘龙药业集团股份有限公司（以下简称"公司"）于近日获得中国合格 评定国家认可委员会（英文名称为"China National Accreditation Service for Conformity Assessment"，以下简称"CNAS"）实验室认可证书，现将相 关事宜公告如下： 司检测中心的管理水平和检测能力获得国家及国际的认可，具备了按照国家标准 开展检测的能力，对保障公司产品质量、强化公司产品研发能力、增强客户对公 司的认同感及信任感具有促进作用，将进一步提升公司的综合竞争力，推动公司 实现可持续的高质量发展。 注册号：CNAS L23337 生效日期：2025 年 6 月 9 日 截止日期：2031 年 6 月 8 日 证书主要内容：陕西盘龙药 ...

Core Viewpoint - The company, Panlong Pharmaceutical (002864), has recently obtained the CNAS laboratory accreditation certificate, enhancing its competitive edge and supporting sustainable high-quality development [1] Group 1: Accreditation Details - The certificate registration number is CNAS L23337, effective from June 9, 2025, to June 8, 2031 [1] - The testing and inspection center complies with ISO/IEC 17025:2017, which outlines general requirements for the competence of testing and calibration laboratories [1] - CNAS is a member of the International Laboratory Accreditation Cooperation (ILAC) and the Asia-Pacific Accreditation Cooperation (APAC) mutual recognition agreements [1] Group 2: Implications for the Company - The accreditation signifies national and international recognition of the company's management level and testing capabilities [1] - The company is now equipped to conduct testing according to national standards, which will further enhance its overall competitiveness [1] - This development is expected to drive the company towards sustainable high-quality growth [1]

Core Viewpoint - Panlong Pharmaceutical has been recognized for its excellence in investor relations management, winning the "Outstanding Investor Relations Management Team Award" at the 16th Tianma Awards, reflecting the capital market's high regard for the company's governance structure and investor relations efforts [1][5] Financial Performance - In 2024, Panlong Pharmaceutical achieved a profit of 137 million yuan, representing a year-on-year increase of 5.96%, with net profit attributable to shareholders reaching 120 million yuan, up 8.91% [3] - The company continued its growth momentum into the first quarter of 2025, with operating revenue increasing by 19.08% year-on-year and profit rising by 18.14%, showcasing operational stability [3] - Over the past eight years since its listing, Panlong Pharmaceutical has maintained continuous profit growth, which is fundamental to building long-term investor trust [3] Product and R&D Strategy - The company focuses on the "rheumatism and bone disease, chronic pain" sector, employing a research and development strategy that combines market orientation with innovation [4] - Panlong Pharmaceutical is developing new products such as PLJT-001, PLJT-002, PLJT-003, and PLJT-004, and is enhancing its product pipeline through a "1+N" large R&D system [4] - The establishment of a new drug R&D platform in the Guangdong-Hong Kong-Macao Greater Bay Area and partnerships with top universities and research institutions have significantly strengthened the company's innovation capabilities [4] Investor Relations Management - The award for "Outstanding Investor Relations Management Team" underscores the company's commitment to building long-term, stable, and trustworthy relationships with investors [5] - Since its listing in 2017, Panlong Pharmaceutical has distributed a total of 133 million yuan in cash dividends, reflecting its governance philosophy that prioritizes shareholder interests [5] - The company has actively engaged in investor communication through multiple performance briefings and annual shareholder meetings, while also expanding online communication channels to ensure timely responses to investor concerns [5]

Investment Rating - The report provides a positive investment rating for Panlong Pharmaceutical, indicating strong growth potential and competitive advantages in the market [1]. Core Insights - Panlong Pharmaceutical is a leading enterprise in the field of traditional Chinese medicine, focusing on the production and sales of proprietary Chinese medicines, including its flagship product, Panlong Seven Tablets, which holds a unique market position and has shown significant sales growth [2][3]. - The company is expanding its product line with the introduction of formula granules, which are expected to drive a second growth curve, targeting the increasing demand in grassroots medical markets [3][67]. Company Overview - Panlong Pharmaceutical, established in 1997 and listed on the Shenzhen Stock Exchange in 2017, operates a comprehensive business model that includes standardized planting of medicinal materials, production, research and development, sales, and logistics [12]. - The company has a robust product portfolio covering 12 functional categories with over 100 specifications, primarily focusing on rheumatology and orthopedics [13][27]. Industry Situation - The traditional Chinese medicine industry is experiencing steady growth, with the market for Chinese patent medicines projected to increase significantly due to supportive government policies and rising health awareness among the aging population [49][61]. - The market for formula granules is witnessing explosive growth, with a compound annual growth rate (CAGR) of approximately 48% from 2020 to 2024, driven by policy incentives and increasing clinical acceptance [55][59]. Growth Highlights - The flagship product, Panlong Seven Tablets, has a market share of 8.05% in the traditional Chinese medicine market for musculoskeletal diseases, with sales increasing from 155 million yuan in 2015 to 410 million yuan in 2023, reflecting a compound annual growth rate of 12.93% [2][67]. - The company aims to expand its formula granule offerings from 211 to over 400 varieties, leveraging intelligent production lines and benefiting from provincial standard recognition policies [3][73]. Financial Performance - The company has demonstrated consistent revenue growth, achieving 974 million yuan in revenue in 2024, with a net profit growth rate of approximately 11.0% from 2020 to 2024 [31][42]. - The financial structure is robust, with a cash ratio exceeding 50% of total assets, indicating strong cash flow and financial stability [42].

Group 1: Financial Performance - The company's revenue from traditional Chinese medicine (TCM) decoction pieces increased by 292.84% year-on-year, but the gross margin was not disclosed [1] - The net profit attributable to the parent company for the current period was 120.27 million yuan, an increase of 983.94 thousand yuan year-on-year, with a net profit margin of 12.35%, up by 1.09% [3] - The company's R&D expenses accounted for 5.82% of the revenue from self-produced TCM, with a year-on-year increase of 85.31% [3] Group 2: Strategic Development - The company has adopted a "one body, two wings, three depths" development strategy, focusing on core business and technological innovation to enhance operational efficiency and profitability [2] - Future plans include expanding market share of core products and increasing the scale of TCM decoction pieces through various channels [5] - The company aims to strengthen its market position by enhancing product awareness and optimizing marketing networks in grassroots markets [8] Group 3: Market Position and Competition - The leading product, Panlong Qipian, holds the first market share in the TCM market for musculoskeletal diseases, with a market share of 8.05% [4] - The company is recognized for its unique patented products and has received multiple awards, enhancing its competitive edge in the market [4] - The company plans to deepen evidence-based research on Panlong Qipian and adjust market strategies to adapt to changing market conditions [4] Group 4: Future Outlook - The TCM industry is expected to experience significant growth driven by national policies, increasing demand, and international market expansion [7] - The company is committed to leveraging opportunities from the "Belt and Road" initiative to promote TCM products internationally [6] - The target market for musculoskeletal and chronic disease treatments is projected to grow steadily due to an aging population and rising health awareness [7]