Group 1 - The company reported a revenue of 232 million yuan for the first half of 2025, representing a year-on-year increase of 5.56% [1] - The net loss for the company was 54.08 million yuan, compared to a net loss of 101 million yuan in the same period last year [1] - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [1]

Section I Important Notes, Table of Contents, and Definitions This section provides crucial disclaimers, lists reference documents, and defines key terms used throughout the report for clarity [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisory board, and senior management guarantee the report's accuracy, while financial officers confirm the financial statements' integrity, with no major risks or dividend plans - The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, and bear legal responsibility[4](index=4&type=chunk) - The company's responsible person Hong Jiangyou, chief financial officer Li Jing, and head of accounting department Li Jing declare that the financial report in this semi-annual report is true, accurate, and complete[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) [List of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists the company's semi-annual report reference documents, including original financial reports and public disclosures, available at the company's securities department - Reference documents include the original financial report text signed and sealed by the legal representative, chief financial officer, and head of the accounting department[9](index=9&type=chunk) - Reference documents also include the original 2025 semi-annual report text signed by the legal representative[10](index=10&type=chunk) - All reference documents are available at the company's securities department[13](index=13&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, covering company names, institutions, regulations, subsidiaries, reporting periods, and industry-specific terminology - "Honz Pharmaceutical" refers to Honz Pharmaceutical Co., Ltd[15](index=15&type=chunk) - "Reporting Period" refers to the first half of 2025[15](index=15&type=chunk) - "OTC" refers to over-the-counter drugs, which consumers can self-diagnose and use without a doctor's prescription, being safe and effective[15](index=15&type=chunk) Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Honz Pharmaceutical Co., Ltd., stock code 300086, is listed on the Shenzhen Stock Exchange, with Hong Jiangyou as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Honz Pharmaceutical | | Stock Code | 300086 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Honz Pharmaceutical Co., Ltd. | | Legal Representative | Hong Jiangyou | [II. Contact Person and Information](index=6&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) The company's board secretary is Lin Dexin, and the securities affairs representative is Lu Fangmei, with contact details remaining unchanged during the reporting period Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Lin Dexin | No. 6 Yaogu Third Road, Yaogu Industrial Park, Haikou National High-tech Industrial Development Zone | 0898-66812876 | 0898-66812876 | honz168@honz.com.cn | | Securities Affairs Representative | Lu Fangmei | No. 6 Yaogu Third Road, Yaogu Industrial Park, Haikou National High-tech Industrial Development Zone | 0898-66812876 | 0898-66812876 | honz168@honz.com.cn | [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's registered address, office address, website, email, information disclosure, and registration changes remained consistent with the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period, as detailed in the 2024 annual report[19](index=19&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period, as detailed in the 2024 annual report[20](index=20&type=chunk) - The company's registration status remained unchanged during the reporting period, as detailed in the 2024 annual report[21](index=21&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&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) During the reporting period, the company's operating revenue increased by 5.56%, net profit attributable to shareholders narrowed losses by 46.38%, and net cash flow from operating activities surged by 4473.93% Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 232,448,515.10 | 220,198,812.69 | 5.56% | | Net Profit Attributable to Shareholders of Listed Company | -54,081,719.36 | -100,863,188.44 | 46.38% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -56,007,110.23 | -105,036,622.12 | 46.68% | | Net Cash Flow from Operating Activities | 66,352,495.76 | -1,516,998.04 | 4,473.93% | | Basic Earnings Per Share (yuan/share) | -0.1188 | -0.2241 | 46.99% | | Diluted Earnings Per Share (yuan/share) | -0.1188 | -0.2241 | 46.99% | | Weighted Average Return on Net Assets | -4.86% | -7.79% | 2.93% | | Indicator | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | % Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 1,904,813,492.17 | 1,975,850,549.69 | -3.60% | | Net Assets Attributable to Shareholders of Listed Company | 1,085,827,134.57 | 1,139,922,413.01 | -4.75% | [V. Differences in Accounting Data Under Domestic and International Accounting Standards](index=7&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 reported no differences in net profit and net assets between financial statements prepared under international/overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements prepared under international accounting standards and Chinese accounting standards during the reporting period[23](index=23&type=chunk) - The company reported no differences in net profit and net assets between financial statements prepared under overseas accounting standards and Chinese accounting standards during the reporting period[24](index=24&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=7&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%87%91%E9%A2%9D) Non-recurring gains and losses totaled 1,925,390.87 yuan, primarily from non-current asset disposals, government grants, and other non-operating income/expenses, while certain recurring government subsidies were excluded Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets (including the reversal of impairment provisions already made) | 448,388.77 | | | Government grants recognized in current profit or loss (excluding those closely related

2024年堪称康芝药业近8年来的业绩低谷。全年实现营业收入4.73亿元，同比下降36.07%，这一数据不仅低于 2023年，甚至不及2017年的水平。盈利端表现更为惨淡，归母净利润同比大幅下降1975.20%，扣非归母净利润也 同比下降1671.71%，亏损幅度均远超营收降幅。 分产品来看，儿童药、成人药、母婴健康用品构成了康芝药业的主要收入来源，三者合计占营业收入的93%。但 在2024年，这三大核心产品线均出现明显下滑。其中，贡献了66.69%营收的儿童药，收入同比下滑35.25%，不过 毛利率相对稳定；成人药收入同比下滑44.08%，同时毛利率下滑17.05%，营收与盈利双承压；母婴健康用品收入 同比下滑30.37%，毛利率也下滑6.71%，同样面临不小的经营压力。 近期，国内基孔肯雅热确诊病例上升，多地倡议集中灭蚊，资本市场"驱蚊概念"持续走强。 7月24日早盘康芝药业（300086）直冲涨停，收盘价7.56元，涨幅达20%。最近一周更是持续上涨，今年以来康芝 药业已经2次登上龙虎榜，最近一次登上龙虎榜为7月25日。 作为海南本地药企，其股价异动还与海南自由贸易港概念热潮、国家生育补贴政策落地相关。然 ...

Core Viewpoint - The recent rise in confirmed cases of chikungunya fever in China has led to a surge in the "mosquito control concept" in the capital market, benefiting companies like Kangzhi Pharmaceutical, despite the company facing significant operational challenges [2][3]. Financial Performance - Kangzhi Pharmaceutical has experienced significant volatility in its financial performance, alternating between profits and losses. In 2021, the company reported a net profit of 0.11 billion yuan, which plummeted to a loss of 1.88 billion yuan in 2022. A brief recovery in 2023 saw a profit of 0.12 billion yuan, but 2024 marked a new low with a net loss of 2.16 billion yuan [3][4]. - The company's total revenue for 2024 was 4.73 billion yuan, a decrease of 36.07% year-on-year, which is lower than both 2023 and even 2017 levels. The net profit margin saw a drastic decline of 1975.20% year-on-year [3][4]. Revenue Breakdown - The main revenue sources for Kangzhi Pharmaceutical include children's medicine, adult medicine, and maternal and infant health products, which together account for 93% of total revenue. In 2024, all three product lines experienced significant declines, with children's medicine revenue down 35.25%, adult medicine down 44.08%, and maternal and infant health products down 30.37% [4][6]. Cost Management Issues - The company attributed its revenue decline to inventory destocking in cold and respiratory products and a drop in terminal sales. Despite a significant revenue drop, sales expenses increased by 23.39% to 2.63 billion yuan, constituting 55.56% of total revenue. Management expenses also reached 1.17 billion yuan, nearly a quarter of total revenue, exacerbating profitability pressures [6][7]. Management Compensation Concerns - In 2024, the average salary for employees at Kangzhi Pharmaceutical decreased by 6.01% to 120,472.51 yuan, while management compensation increased by 7.96% to 4.0888 million yuan. This disparity has raised concerns about the fairness of the compensation structure during a period of losses [7][8]. Future Outlook - In early 2025, Kangzhi Pharmaceutical showed signs of a short-term recovery, with Q1 revenue of 1.12 billion yuan, a year-on-year increase of 7.33%. However, this improvement was primarily due to a 44.63% reduction in sales expenses rather than organic growth in core business operations [10]. - The company reported asset impairment losses of 59.5275 million yuan in 2024, significantly impacting profitability. The ongoing losses from subsidiaries and the potential for further asset impairments due to delayed asset repurchase agreements pose additional risks to financial stability [11][12][13].

Core Viewpoint - The recent surge in confirmed cases of Chikungunya fever in China has led to a strong performance in the "mosquito control concept" stocks, particularly benefiting Kangzhi Pharmaceutical, which saw its stock price rise significantly despite facing serious operational challenges [2][3]. Financial Performance - Kangzhi Pharmaceutical has experienced significant volatility in its financial performance, alternating between profits and losses over recent years. In 2021, the company reported a net profit of 0.11 billion yuan, which plummeted to a loss of 1.88 billion yuan in 2022. A brief recovery occurred in 2023 with a profit of 0.12 billion yuan, but it fell back into loss in 2024, reporting a net loss of 2.16 billion yuan [3][4]. - The company's revenue for 2024 was 4.73 billion yuan, a decline of 36.07% year-on-year, marking the lowest revenue level in eight years [3][4]. Revenue Breakdown - The main revenue sources for Kangzhi Pharmaceutical include children's medicine, adult medicine, and maternal and infant health products, which together account for 93% of total revenue. However, all three product lines saw significant declines in 2024, with children's medicine revenue down 35.25%, adult medicine down 44.08%, and maternal and infant health products down 30.37% [4][6]. Cost Management Issues - The company attributed its revenue decline to inventory destocking in cold and respiratory products and a decrease in terminal sales. Despite the revenue drop, sales expenses increased by 23.39% to 2.63 billion yuan, constituting 55.56% of total revenue, indicating a misalignment between aggressive marketing strategies and cost control [6][7]. - Management expenses also remained high at 1.17 billion yuan, nearly a quarter of total revenue, exacerbating the profitability pressure during a challenging financial period [6][7]. Executive Compensation Concerns - In 2024, the average employee salary at Kangzhi Pharmaceutical decreased by 6.01% to 120,472.51 yuan, while management salaries increased, raising concerns about compensation equity during a period of financial loss [7][8]. Asset Impairment and Related Transactions - The company faced significant asset impairment losses of 59.53 million yuan in 2024, which included write-downs on inventory, fixed assets, and goodwill from past acquisitions. This impairment accounted for nearly 30% of the total loss for the year [10][11]. - Kangzhi Pharmaceutical's acquisition of Zhongshan Aihu in 2018 has become a financial burden, with the subsidiary reporting substantial losses and the company potentially facing further impairments if a delayed asset repurchase agreement is not resolved [11][12].

Core Viewpoint - The national childcare subsidy policy will provide an annual subsidy of 3600 yuan per child until the age of three, benefiting over 20 million families each year starting from January 1, 2025 [4][5]. Subsidy Standard - Each child will receive a subsidy of 3600 yuan per year until they turn three years old. For children born before January 1, 2025, who are under three years old, the subsidy will be calculated based on the remaining months [8]. Coverage - The policy applies to all families with children under three years old, regardless of whether they have one, two, or three children, and is uniformly implemented across the country [9]. Application Process - Parents or guardians can apply for the subsidy online through the childcare subsidy information management system or offline, providing necessary documents such as birth certificates and household registration books [10]. Funding Source - The central government will establish a "childcare subsidy fund," providing financial support to eastern, central, and western regions proportionally, with any additional local funding being the responsibility of local governments [11]. Market Impact Analysis - The infant food market is expected to exceed 72 billion yuan, directly benefiting the maternal and infant consumption industry chain [12]. - The childcare industry is projected to reach a scale of 162.1 billion yuan by 2025, with an average annual growth rate of 7.5%, accelerated by the policy [13]. - Demand for children's medical and nutritional health products is anticipated to rise, with the pediatric medication market expected to grow at a rate exceeding 10% annually [14]. Beneficiary Companies - Leading maternal and infant retail companies are expected to benefit directly from increased customer spending and frequency of purchases [15]. - Companies such as Kidswant and Huaiying Room are positioned to gain from the subsidy implementation due to their extensive retail networks and service offerings [16]. - Major players in the infant formula market, like China Feihe and Yili, are likely to see increased demand driven by the subsidy [17][18].

Market Performance - The Hainan Free Trade Zone concept index declined by 1.76%, ranking among the top declines in concept sectors as of July 28 [1] - Within the sector, companies such as Caesar Travel, Hainan Development, and Hainan Ruize experienced significant declines, while a few stocks like *ST Yedao, Kangzhi Pharmaceutical, and *ST Shuangcheng saw increases of 4.49%, 4.34%, and 1.56% respectively [1] Capital Flow - The Hainan Free Trade Zone concept saw a net outflow of 724 million yuan from major funds today, with 20 stocks experiencing net outflows, and 5 stocks seeing outflows exceeding 50 million yuan [2] - The stock with the highest net outflow was Caesar Travel, with a net outflow of 188 million yuan, followed by HNA Holding and Hainan Ruize with outflows of 132 million yuan and 75 million yuan respectively [2] Stock Performance - The top stocks with net outflows in the Hainan Free Trade Zone concept included: - Caesar Travel: -7.05% with a turnover rate of 21.89% and a net outflow of 187.57 million yuan - HNA Holding: -3.75% with a turnover rate of 2.54% and a net outflow of 132.31 million yuan - Hainan Ruize: -5.62% with a turnover rate of 13.04% and a net outflow of 75.27 million yuan [3]

Group 1 - The hepatitis concept sector experienced a short-term surge, with Kewah Bio (002022) hitting the daily limit up [1] - Other companies such as Qianyuan Pharmaceutical (300254), Hendi Pharmaceutical (301211), Da'an Gene (002030), Asia-Pacific Pharmaceutical (002370), and Kangzhi Pharmaceutical (300086) also saw significant increases in their stock prices [1]

Market Overview - A-shares experienced a significant rise, with the Shanghai Composite Index closing at 3605.73 points, up 0.65% [1] - The Shenzhen Component Index and the ChiNext Index both increased by over 1%, reaching new highs for the year [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets was 18,742 billion yuan, a decrease of 245 billion yuan from the previous day [1] Hainan Free Trade Zone - The Hainan Free Trade Zone concept saw a strong surge, with the overall sector rising by 9.59% and 29 constituent stocks all increasing, including 21 hitting the daily limit [2] - Key stocks such as Kangzhi Pharmaceutical and Hainan Airport reached their daily limit [2] - The National Development and Reform Commission announced that the full island customs closure for Hainan is set to officially start on December 18, 2025, marking a significant milestone for the free trade port [2][3] Energy Metals and Rare Earths - The energy metals and rare earth sectors led the market, with lithium and rare earth concepts showing significant activity [4] - Lithium stocks like Shengxin Lithium Energy and Tibet Mining saw substantial gains, with lithium futures prices reaching a new high of 77,000 yuan/ton, up over 30% since late June [4][5] - The rare earth sector also performed well, with companies like Longmag Technology and Baotou Steel hitting their daily limit, driven by improving domestic demand and limited supply growth [5] Film and Entertainment Sector - The film and entertainment sector experienced a notable increase, with the overall index rising by 3.06% [6] - Key stocks such as Happiness Blue Ocean and China Film saw significant gains, supported by local government initiatives to distribute movie vouchers [6] - The summer box office for 2025 has already surpassed 4.4 billion yuan, indicating a positive trend for the industry [6][7]

Group 1 - The A-share market in China experienced a slight increase on July 24, with all three major indices closing in the green. The Shanghai Composite Index closed at 3605 points, up 0.65% [1] - The Shenzhen Component Index and the ChiNext Index also saw gains, closing at 11193 points (up 1.21%) and 2345 points (up 1.5%) respectively [1] - The total trading volume in the Shanghai and Shenzhen markets was approximately 184.47 billion RMB, a decrease of about 19.9 billion RMB compared to the previous trading day [1] Group 2 - The Hainan and Hainan Free Trade Zone sectors led the market with significant gains of 9.59% and 9.11% respectively, indicating strong investor interest [1] - Notable stocks such as Kangzhi Pharmaceutical, Shennong Seed Industry, HNA Holding, Hainan Airport, and Hainan Highway reached their daily price limits, with Kangzhi Pharmaceutical and Shennong Seed Industry recording approximately 20% increases [1] - The official announcement of the Hainan Free Trade Port's full island closure operation set for December 18, 2023, is expected to implement more favorable policies, including zero tariffs on goods and relaxed trade management measures [1] Group 3 - Analysts suggest that the full island closure operation is a landmark project for the Hainan Free Trade Port, positioning Hainan to play a more significant role in China's opening-up strategy [2] - Following the closure, sectors such as duty-free shopping, cross-border finance, and international shipping are anticipated to attract more investment opportunities, benefiting related listed companies [2]