Group 1 - The company reported a revenue of 1.457 billion yuan for the first half of 2025, representing a year-on-year decrease of 3.30% [1] - The net profit attributable to shareholders of the listed company was 7.9313 million yuan, down 74.13% year-on-year [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -8.1764 million yuan [1] - The basic earnings per share were 0.0077 yuan [1]

Group 1 - The company, Zhendong Pharmaceutical, announced on August 24 that its sixth board meeting was held on August 22, 2025, where it reviewed the proposal for cash management using its own funds [1] - For the year 2024, Zhendong Pharmaceutical's revenue composition is as follows: 77.86% from pharmaceutical production and sales, 21.34% from medicinal herb planting, and 0.79% from other businesses [1] - As of the report date, Zhendong Pharmaceutical has a market capitalization of 8.4 billion yuan [1]

证券代码：300158 证券简称：振东制药 公告编号：2025-047 山西振东制药股份有限公司 关于股东股份解押的公告 本公司及董事会全体成员保证信息披露内容的真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 山西振东制药股份有限公司（以下简称"公司"或"本公司"）于 近日接到控股股东山西振东健康产业集团有限公司（以下简称"振 东集团"）通知，获悉其所持有的本公司部分股份解除质押，具体 事项如下： 一、股东股份解押基本情况 | 股东名称 | 是否为控 | 本次解押数量 | 占其所 持股份 | 占公司 | 起始日 | 解除日期 | 质权人 | | --- | --- | --- | --- | --- | --- | --- | --- | | | 股股东 | （股） | 比例 | 总股本 比例 | | | | | 振东集团 | 是 | 6,300,000 | 2.08% | 0.63% | 2024.09.26 | 2025.08.21 | 中国农业银行股份有限 公司长治上党支行 | | 振东集团 | 是 | 3,350,000 | 1.11% | 0.33% | 2024.03.11 | 2025 ...

山西振东制药股份有限公司 | 资金占用 | | 占用方与上市公 | 上市公司核算的 | 年期初 2025 | 年 月 2025 1-6 | 年 2025 1-6 | 年 月 2025 6 | 占用形成原 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 方类别 | 资金占用方名称 | 司的关联关系 | 会计科目 | 占用资金余 | 占用累计发生 | 月偿还累计 | 30日占用资 | 因 | 占用性质 | | | | | | 额 | 金额 | 发生额 | 金余额 | | | | 控股股东、 | | | | | | | | | | | 实际控制 | | | | | | | | | | | 人及其附 | | | | | | | | | | | 属企业 | | | | | | | | | | | 小计 | —— | —— | —— | | | | | —— | —— | | | 山西振东安装装饰工程有限公司 | 同一实际控制 | 其他会计科目 | 224.43 | 11.51 | 27.30 | 208.64 | 工程款 | 经营性 ...

证券代码：300158 证券简称：振东制药 公告编号：2025-046 山西振东制药股份有限公司 关于公司及其子公司使用自有资金进行现金管理的公告 本公司及监事会全体成员保证信息披露内容的真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 山西振东制药股份有限公司（以下简称"公司"或"振东制药"）于 2025 年 8 月 22 日召开了第六届董事会第四次会议及第六届监事会第 四次会议，审议通过了《关于公司及其子公司使用自有资金进行现金 管理的议案》。同意在确保不影响公司正常经营以及保证流动性和资 金安全的前提下，公司使用自有资金不超过人民币 10 亿元进行现金 管理，并授权管理层在上述额度内负责办理实施，授权期限自公司第 六届董事会第四次会议审议通过之日起一年。相关情况公告如下： 一、使用自有资金进行现金管理的基本情况 （一）投资目的 为了进一步提高资金使用效率，在确保不影响公司正常经营以及 保证流动性和资金安全的前提下，公司及其子公司使用自有资金进行 现金管理。 （二）投资品种 公司在保证资金安全的前提下充分利用自有闲置资金，合理布局 资产，创造更多收益，拟使用闲置自有资金购买投资品种包括商业银 行、 ...

证券代码：300158 证券简称：振东制药 公告编号：2025-041 2025 年 8 月 25 日 山西振东制药股份有限公司2025年半年度报告及摘要于2025年 8 月 25 日在中国证监会指定的创业板信息披露网站巨潮资讯网 （http://www.cninfo.com.cn）上披露，请投资者注意查阅。 特此公告。 山西振东制药股份有限公司董事会 山西振东制药股份有限公司 2025 年半年度报告披露提示性公告 | 本公司及董事会全体成员保证信息披露内容的真实、准确、完整， | | --- | | 没有虚假记载、误导性陈述或重大遗漏。 | ...

1、会议以3票赞成，0票弃权，0票反对的表决结果，审议通过了 《<2025年半年度报告>及其摘要》。 证券代码：300158 证券简称：振东制药 公告编号：2025-045 山西振东制药股份有限公司 第六届监事会第四次会议决议公告 本公司及监事会全体成员保证信息披露内容的真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 一、监事会会议召开情况 山西振东制药股份有限公司（以下简称"公司"）第六届监事会第 四次会议于 2025 年 8 月 22 日上午 10:00 通过现场及通讯表决方式召 开，会议通知于 2025 年 8 月 12 日以电话、邮件等方式通知全体监事。 本次会议应出席监事 3 人，实际出席监事 3 人，会议由监事会主席雷 振宏先生主持。会议符合《公司法》和《公司章程》的有关规定。 二、监事会会议审议情况 了《关于公司及其子公司使用自有资金进行现金管理的议案》。 经审核，监事会认为：公司在保证资金安全的前提下充分利用自 有闲置资金，合理布局资产，创造更多收益，拟使用闲置自有资金购 买投资品种包括商业银行、证券公司、信托公司、资产管理公司等金 融机构发布的安全性高、流动性好、稳健型的中、低风险 ...

证券代码：300158 证券简称：振东制药 公告编号：2025-044 山西振东制药股份有限公司 第六届董事会第四次会议决议公告 本议案已由董事会审计委员会审议并通过。 2、会议以9票同意、0票反对、0票弃权，审议通过了《关于公司 及其子公司使用自有资金进行现金管理的议案》。 本着股东利益最大化原则，为提高资金的使用效率，在确保不影 响公司正常经营以及保证流动性和资金安全的前提下，公司董事会同 意公司及公司子公司使用额度不超过人民币 10 亿元的自有资金进行 现金管理，并授权管理层在上述额度内负责办理实施，授权期限自公 司第六届董事会第四次会议审议通过之日起一年。 《关于公司及其子公司使用自有资金进行现金管理的公告》内容 详见中国证监会创业板指定信息披露网站。 本公司及董事会全体成员保证信息披露内容的真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 一、董事会会议召开情况 山西振东制药股份有限公司（以下简称"公司"）第六届董事会第 四次会议于 2025 年 8 月 22 日上午 9:00 在公司会议室通过现场及通 讯表决方式召开，会议通知于 2025 年 8 月 12 日以电话、邮件等方式 通知全体董 ...

Section I Important Notice, Table of Contents, and Definitions This section covers important notices, the report's table of contents, and definitions of key terms to ensure accurate understanding [Important Notice](index=3&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness, disclaiming future performance commitments - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility[6](index=6&type=chunk) - Company负责人 Li Kun, Chief Accountant Zhan Jianyong, and Head of Accounting Department Zhan Jianyong declare that the financial report in this semi-annual report is true, accurate, and complete[6](index=6&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[7](index=7&type=chunk)[8](index=8&type=chunk) [Table of Contents](index=4&type=section&id=Table%20of%20Contents) The report's clear table of contents covers key sections like company profile, management discussion, corporate governance, and financial reports, providing a comprehensive information index - The report's table of contents includes Important Notice, Company Profile and Key Financial Indicators, Management Discussion and Analysis, Corporate Governance, Environment and Society, Significant Matters, Changes in Shares and Shareholder Information, Bond-Related Information, and Financial Report[10](index=10&type=chunk) [Definitions](index=6&type=section&id=Definitions) This section defines common terms used in the report, including company abbreviations, major subsidiary names, and regulatory bodies, ensuring accurate understanding - This section defines key terms used in the report, including abbreviations for the company, subsidiaries (e.g., Taisheng Pharmaceutical, Anxin Pharmaceutical, Wuhetang Pharmaceutical), and regulatory bodies (SZSE, FDA, CSRC)[17](index=17&type=chunk) Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key accounting data and financial performance [I. Company Profile](index=7&type=section&id=I.%20Company%20Profile) Shanxi Zhendong Pharmaceutical Co., Ltd. (stock code: 300158) is listed on the Shenzhen Stock Exchange, with Li Kun as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Zhendong Pharmaceutical | | Stock Code | 300158 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Shanxi Zhendong Pharmaceutical Co., Ltd. | | Legal Representative | Li Kun | [II. Contact Person and Information](index=7&type=section&id=II.%20Contact%20Person%20and%20Information) The company's Board Secretary is Wang Zheyu, with contact details including address, phone, fax, and email provided at Zhendong Science Park in Changzhi City Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wang Zheyu | Zhendong Science Park, Guangming South Road, Shangdang District, Changzhi City, Shanxi Province | 0355-8096012 | 0355-8096018 | zqb@zdjt.com | [III. Other Information](index=7&type=section&id=III.%20Other%20Information) During the reporting period, there were no changes in the company's contact information, information disclosure, or registration details, as further detailed in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[21](index=21&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period[22](index=22&type=chunk) - The company's registration status remained unchanged during the reporting period[23](index=23&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This period saw a **3.30% revenue decrease**, a significant **74.13% drop in net profit** attributable to shareholders, and a **1,177.57% decline in net operating cash flow**, mainly due to the payment of the Landi compensation Key Accounting Data and Financial Indicators (Current Period vs Prior Period) | Indicator | Current Period (million RMB) | Prior Period (million RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,456.94 | 1,506.60 | -3.30% | | Net Profit Attributable to Shareholders of Listed Company | 7.93 | 30.66 | -74.13% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | -8.18 | -30.76 | 73.42% | | Net Cash Flow from Operating Activities | -402.94 | -31.54 | -1,177.57% | | Basic Earnings Per Share (RMB/share) | 0.0077 | 0.0298 | -74.16% | | Diluted Earnings Per Share (RMB/share) | 0.0077 | 0.0298 | -74.16% | | Weighted Average Return on Net Assets | 0.21% | 0.59% | -0.38% | | **End of Current Period vs End of Prior Year** | | | | | Total Assets | 4,498.81 | 4,982.72 | -9.71% | | Net Assets Attributable to Shareholders of Listed Company | 3,656.20 | 3,697.63 | -1.12% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - During the reporting period, the company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[26](index=26&type=chunk) - During the reporting period, the company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[27](index=27&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Non-recurring gains and losses totaled **RMB 16.11 million** this period, primarily from government subsidies, fair value changes in financial assets, and wealth management income, after tax and minority interest adjustments Non-Recurring Gains and Losses and Amounts | Item | Amount (million RMB) | Explanation | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 0.03 | Mainly gains/losses from disposal of Renhe Pharmaceutical assets | | Government Subsidies Included in Current Period's Profit and Loss | 17.56 | Mainly government subsidies for Zhendong Pharmaceutical, Anxin Pharmaceutical, Taisheng Pharmaceutical, etc. | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets | 1.33 | Mainly fair value changes of financial assets for Zhendong Shengming and Zhendong Shenghong | | Other Non-Operating Income and Expenses | -5.65 | Mainly company's external donation expenses | | Other Profit and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | 6.52 | Mainly wealth management income for Zhendong Shengming and Zhendong Shenghong, etc. | | Less: Income Tax Impact | 3.07 | | | Minority Interest Impact (After Tax) | 0.61 | | | Total | 16.11 | | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's main business operations, core competencies, financial performance, investment activities, and risk factors [I. Main Business Activities During the Reporting Period](index=10&type=section&id=I.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company's core business involves R&D, production, and sales of generic and innovative drugs across various therapeutic areas, alongside a full traditional Chinese medicine (TCM) industry chain - The company's main business involves the R&D, production, and sales of generic and innovative drugs for oncology, dermatology, digestion, urology, cardiovascular, and cerebrovascular conditions, as well as the entire traditional Chinese medicinal materials industry chain[38](index=38&type=chunk) - During the reporting period, the company owned **11 exclusive products or dosage forms**, with a total of **589 approvals**, **441 varieties**, and **13 dosage forms**[38](index=38&type=chunk) - Among these, **250 varieties** were included in the 2024 National Medical Insurance Catalog, with medical insurance products accounting for **56.69%**[38](index=38&type=chunk) [(I) Industry Development Overview](index=10&type=section&id=%28I%29%20Industry%20Development%20Overview) The pharmaceutical industry, a strategic sector, is shifting from "scale expansion" to "value creation," driven by health demands, aging populations, and supportive policies for innovation and TCM - The pharmaceutical industry is a vital component of the national economy, driven by increasing health demands and an aging population, with a positive long-term development trend[33](index=33&type=chunk) - Policy support for the innovative drug industry has significantly strengthened, with the 2025 Government Work Report again mentioning 'innovative drugs,' and **43 innovative drugs approved in the first half of the year**, a **59% year-on-year increase**[34](index=34&type=chunk) - Policies in the generic drug sector (e.g., volume-based procurement) have been adjusted, optimizing price difference calculation rules to prevent irrational competition and direct resources towards high-quality generic drugs[35](index=35&type=chunk) - The hair medical industry market is rapidly developing, with China's hair loss population exceeding **250 million**, growing at **15%-18% annually**, and the anti-hair loss drug market is projected to reach **RMB 10.1 billion by 2027**[36](index=36&type=chunk) - The traditional Chinese medicine sector has received multiple policy supports, with **14 new TCM drugs approved for market in the first half of 2025**, exceeding the total approvals for the entire year of 2024[37](index=37&type=chunk) [(III) Main Products and Their Uses](index=11&type=section&id=%28III%29%20Main%20Products%20and%20Their%20Uses) The company's main products include both traditional Chinese and chemical medicines, such as anti-tumor drugs (Compound Kushen Injection, Sheng Bai Granules, Xihuang Pills), dermatological drugs (Minoxidil Tincture), and cardiovascular drugs (Shuxuening Injection), serving diverse therapeutic needs Main Products and Their Uses | Type | Product Series | Main Product | Functions/Indications | | :--- | :--- | :--- | :--- | | Traditional Chinese Medicine | Anti-tumor Drug | Compound Kushen Injection | Clearing heat and dampness, cooling blood and detoxifying, dispersing stagnation and relieving pain. Used for cancer pain and bleeding. | | Chemical Medicine | Dermatological Drug | Minoxidil Tincture | Used for the treatment of male pattern hair loss and alopecia areata. | | Traditional Chinese Medicine | Anti-tumor Drug | Sheng Bai Granules | Warming kidney and strengthening spleen, tonifying qi and blood. Used for leukopenia caused by cancer radiotherapy and chemotherapy, belonging to spleen-kidney yang deficiency and qi-blood insufficiency syndrome. | | Traditional Chinese Medicine | Cardiovascular and Cerebrovascular Drug | Shuxuening Injection | Dilating blood vessels, improving microcirculation. Used for ischemic cardiovascular and cerebrovascular diseases, coronary heart disease, angina pectoris, cerebral embolism, cerebral vasospasm, etc. | | Traditional Chinese Medicine | Anti-tumor Drug | Xihuang Pills | Clearing heat and detoxifying, reducing swelling and dispersing stagnation. Used for carbuncles, scrofula, phlegmon, and cancer caused by heat-toxin accumulation. | | Traditional Chinese Medicine | Hemostatic Drug | Du Yi Wei Granules | Promoting blood circulation and relieving pain, resolving stasis and stopping bleeding. Used for postoperative pain and bleeding after various surgeries, traumatic fractures, sprains, rheumatic arthralgia, as well as metrorrhagia, dysmenorrhea, gingival swelling and bleeding, etc. | | Chemical Medicine | Digestive System Drug | Compound Pancreatin Powder | Used for infantile indigestion and nutritional disorders, etc. | | Traditional Chinese Medicine | Digestive System Drug | Da Shan Zha Wan | Appetizing and aiding digestion. Used for loss of appetite, indigestion, and abdominal distension caused by food stagnation. | [(IV) Business Model](index=11&type=section&id=%28IV%29%20Business%20Model) The company employs a specialized promotion sales model across four channels, combines independent and collaborative R&D, implements a "production-by-sales" manufacturing approach, and utilizes an industrialized model for traditional Chinese medicinal material cultivation - The company adopts a specialized promotion sales model, establishing branches covering **23 provinces, 5 autonomous regions, and 4 municipalities nationwide**, and utilizing a CRM system to enhance customer management efficiency[42](index=42&type=chunk) - Prescription drug sales primarily use a clinical self-operated model, covering **81% of prefecture-level cities, 87% of county-level cities, and over 20,000 medical terminals nationwide**[43](index=43&type=chunk) - The R&D model combines 'independent and collaborative research,' with three major R&D centers: Shanghai New Drug Creation Center, Beijing Pharmaceutical Research Institute, and Changzhi Technology Center, collaborating with domestic and international scientific research institutions[47](index=47&type=chunk) - Production operates on a 'production-by-sales' model, where the marketing center formulates sales plans, and production enterprises develop production and procurement plans based on these, implementing strict quality control[48](index=48&type=chunk) - Traditional Chinese medicinal material cultivation innovatively promotes an industrialized model of 'government guidance + enterprise services + cooperative management + farmer participation,' building a modern warehousing system and establishing a TCM seed and seedling company[50](index=50&type=chunk) [(V) Performance Drivers](index=13&type=section&id=%28V%29%20Performance%20Drivers) In the first half of 2025, the company's net profit attributable to shareholders, excluding non-recurring gains and losses, saw a **73.42% reduction in loss**, driven by strong growth in core products, new product launches, asset optimization, and stringent cost control - In the first half of 2025, the company achieved operating revenue of **RMB 1,456.94 million**, a **3.30% year-on-year decrease**; net profit attributable to shareholders of the listed company was **RMB 7.93 million**, a **74.13% year-on-year decrease**[51](index=51&type=chunk) - Net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was **-RMB 8.18 million**, representing a **73.42% reduction in loss year-on-year**[51](index=51&type=chunk) - The reduction in loss was primarily due to the sustained strong growth of core products such as Dafexin Minoxidil Tincture and Xihuang Pills, with steady sales volume increases[51](index=51&type=chunk) - New products, Hair Growth Tablets and Sheng Bai Granules, were launched in 2024; Hair Growth Tablets form a synergistic treatment plan with Dafexin Minoxidil Tincture, and Sheng Bai Granules have been listed in **28 provinces**[51](index=51&type=chunk) - The company continues to optimize its asset structure, closing loss-making enterprises and scaling back low-margin businesses, while strictly implementing cost control and expense optimization[51](index=51&type=chunk) [(VII) Bidding Results of Drugs Produced and Sold by the Company in National and Provincial Centralized Volume-Based Procurement During the Reporting Period](index=13&type=section&id=%28VII%29%20Bidding%20Results%20of%20Drugs%20Produced%20and%20Sold%20by%20the%20Company%20in%20National%20and%20Provincial%20Centralized%20Volume-Based%20Procurement%20During%20the%20Reporting%20Period) During the reporting period, several of the company's drugs secured bids in national and provincial centralized procurement, including Metformin Hydrochloride Tablets and Cinnarizine Tablets, which are expected to expand market access National/Provincial Centralized Volume-Based Procurement Bidding Status | No. | National/Provincial Bidding Status | Drug Name | Selected Specification | Winning Bid Price | Total Actual Procurement Volume by Medical Institutions (10,000 units) | Impact on the Company | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | National Third Batch Centralized Procurement Alliance for Traditional Chinese Medicine | Dengzhanhuasu Dispersible Tablets | 0.15g (containing 20mg Dengzhanhuasu) * 24 tablets/box | RMB 15 | 21.26 | | | 2 | National Third Batch Centralized Procurement Alliance for Traditional Chinese Medicine | Du Yi Wei Granules | 1g * 12 sachets/box | RMB 24.5 | 13.11 | | | 3 | National Centralized Procurement Alliance for Traditional Chinese Medicine (First Batch Expansion and Continuation) | Shuxuening | 5ml * 1 vial/vial | RMB 3.33 | 227.80 | | | 4 | Guangdong Alliance Centralized Volume-Based Procurement for Apixaban Tablets and Other Drugs | Metformin Hydrochloride Tablets | 250mg * 90 tablets/box | RMB 7.83 | 0.02 | Conducive to further market expansion and new sales channels | | 5 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Cinnarizine Tablets | 5mg * 14 tablets/box | RMB 17.23 | 0.02 | Conducive to further market expansion and new sales channels | | 6 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Cinnarizine Tablets | 5mg * 28 tablets/box | RMB 33.6 | 3.14 | Conducive to further market expansion and new sales channels | | 7 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Benzoxacillin Sodium for Injection | 0.5g * 1 vial/vial | RMB 10.1 | 24.73 | | | 8 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Colloidal Bismuth Pectin Capsules | 50mg * 30 capsules/box | RMB 7.45 | 555.55 | | | 9 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Colloidal Bismuth Pectin Capsules | 100mg * 36 capsules/box | RMB 15.1 | 169.75 | | | 10 | Jiangsu Province Fifth Round Centralized Volume-Based Procurement for Drugs | Cefathiamidine for Injection | 0.5g * 1 vial/vial | RMB 7 | 1.55 | | [(VIII) Product Registration and Application Status During the Reporting Period](index=14&type=section&id=%28VIII%29%20Product%20Registration%20and%20Application%20Status%20During%20the%20Reporting%20Period) During the reporting period, **16 products** were in the registration and application phase, with several already approved for production or clinical trials, and others under CDE review Registration and Application Stage Product Status | No. | Drug Name | Registration Category | Indications | Registration Stage | Progress | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Minoxidil | / | / | API Registration | Approved for Production | | 2 | Trimebutine Maleate Tablets | H3 | Improvement of gastrointestinal motility disorders, irritable bowel syndrome | Marketing Authorization Application | Approved for Production | | 3 | Xinglou Chengqi Granules | Z1.1 | Acute ischemic stroke | Clinical Trial Application | Approved for Clinical Trial | | 4 | Abiraterone Acetate | / | / | API Registration | Approved for Production | | 5 | Enzalutamide Soft Capsules | H4 | Non-metastatic castration-resistant prostate cancer with high metastatic risk | Marketing Authorization Application | Approved for Production | | 6 | Epinephrine Hydrochloride Injection | H3 | Anaphylactic shock, cardiac arrest cardiopulmonary resuscitation and other emergency medications | Marketing Authorization Application | Approved for Production | | 7 | Relugolix Tablets | H3 | Advanced prostate cancer | Clinical Trial Application | Approved for Clinical Trial | | 8 | Compound Sodium Sulfate Tablets | H3 | Bowel cleansing before colonoscopy in adult patients | Clinical Trial Application | Approved for Clinical Trial | | 9 | Norepinephrine Bitartrate | / | / | API Registration | Under CDE Review | | 10 | Norepinephrine Bitartrate Injection | H3 | Hypotension caused by acute myocardial infarction, extracorporeal circulation, etc. | Marketing Authorization Application | Under CDE Review | | 11 | Pazopanib Hydrochloride | / | / | API Registration | Under CDE Review | | 12 | Crisaborole | / | / | API Registration | Under CDE Review | | 13 | Cabozantinib Malate | / | / | API Registration | Under CDE Review | | 14 | Relugolix | / | / | API Registration | Under CDE Review | | 15 | Anhydrous Magnesium Sulfate | / | / | API Registration | Under CDE Review | | 16 | Selenium Disulfide | / | / | API Registration | Under CDE Review | [II. Analysis of Core Competencies](index=15&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies are built on its product portfolio, R&D capabilities, comprehensive marketing network, stringent quality management, skilled talent pool, and unique corporate culture - Compound Kushen Injection is Zhendong Pharmaceutical's exclusive patented product, serving clinical patients for **30 years**, included in over **ten national authoritative guidelines and expert consensuses**, and ranked first in usage for **three consecutive years**[56](index=56&type=chunk) - Minoxidil Tincture is the only topical chemical drug recommended by the 'Chinese Guidelines for the Treatment of Androgenetic Alopecia' for hair loss, with a market share of **43% in the first half of 2025**, pioneering the concept of gender-specific treatment[56](index=56&type=chunk) - The company possesses four major R&D platforms: Shanghai New Drug Creation Center, Beijing Pharmaceutical Research Institute, Changzhi Technology Center, and Zhendong China-Australia Molecular Traditional Chinese Medicine Research Center, collaborating with top domestic and international institutions to comprehensively advance the internationalization of traditional Chinese medicine[61](index=61&type=chunk)[62](index=62&type=chunk) - The company has established four marketing centers: Clinical, OTC, Primary Care, and E-commerce, building a high-quality, omni-channel development system, with **33% of the clinical center's self-operated team comprising traditional Chinese medicine professionals**[63](index=63&type=chunk) - Adhering to the quality philosophy of 'meticulous in every detail, precise in every drop,' the company has established a comprehensive quality management system, using US FDA and EU certifications as benchmarks to strengthen quality risk control[67](index=67&type=chunk) - The company has built a continuously optimized talent system, with a stable management team and the introduction of hundreds of pharmaceutical R&D and management professionals, enhancing employee expertise through diversified training models[68](index=68&type=chunk) - With 'Prospering with the People, Flourishing with the Family, Strengthening with the Nation' as its core values, the company has built a 'three-in-one' cultural system, reinforcing cultural identity and employee quality through various initiatives[69](index=69&type=chunk)[105](index=105&type=chunk) [III. Analysis of Main Business](index=18&type=section&id=III.%20Analysis%20of%20Main%20Business) This period saw a **3.30% decrease in operating revenue** but a **6.39% decrease in operating costs**, leading to improved gross margin; however, management expenses rose, and financial expenses significantly increased due to reduced interest income Key Financial Data Year-on-Year Changes | Indicator | Current Period (million RMB) | Prior Period (million RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,456.94 | 1,506.60 | -3.30% | | | Operating Cost | 711.76 | 760.36 | -6.39% | | | Selling Expenses | 517.27 | 536.74 | -3.63% | | | Administrative Expenses | 136.84 | 113.34 | 20.73% | | | Financial Expenses | 0.01 | -1.21 | 100.48% | Due to decrease in interest income | | Income Tax Expense | 14.41 | 12.66 | 13.82% | | | R&D Investment | 91.69 | 101.49 | -9.65% | | | Net Cash Flow from Operating Activities | -402.94 | -31.54 | -1,177.57% | Due to payment of Landi compensation | | Net Cash Flow from Investing Activities | 345.11 | -144.62 | 338.63% | Due to decrease in cash paid for investments | | Net Cash Flow from Financing Activities | -71.17 | -145.57 | 51.11% | Due to decrease in funds for loan repayment and share repurchase | | Net Increase in Cash and Cash Equivalents | -129.00 | -321.73 | 59.90% | | Products or Services Accounting for Over 10% | By Product or Service | Operating Revenue (million RMB) | Operating Cost (million RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Traditional Chinese Medicine | 798.63 | 385.89 | 51.68% | -3.91% | -10.43% | 3.52% | | Chemical Medicine | 627.92 | 312.41 | 50.25% | -4.45% | 0.63% | -2.51% | [IV. Analysis of Non-Core Business](index=19&type=section&id=IV.%20Analysis%20of%20Non-Core%20Business) Non-core business significantly impacted total profit this period, with investment income and fair value changes contributing positively, while asset impairment (inventory write-downs) had a substantial negative effect Non-Core Business Analysis | Item | Amount (million RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 6.52 | 31.18% | Mainly wealth management income | No | | Gains and Losses from Fair Value Changes | 1.33 | 6.35% | Fair value changes of trading financial assets in current period | Varies with operating conditions | | Asset Impairment | -8.95 | -42.79% | Inventory write-down recognized in current period | Varies with operating conditions | | Non-Operating Income | 1.07 | 5.10% | Mainly compensation for damaged drugs | No | | Non-Operating Expenses | 6.70 | 32.02% | Mainly tax late payment fees | No | | Other Income | 32.25 | 154.25% | Government subsidies and tax refunds | No | | Credit Impairment Loss | -1.79 | -8.56% | Bad debt provision for accounts receivable and other receivables | Varies with operating conditions | | Gains from Asset Disposal | 0.00 | 0.02% | | No | [V. Analysis of Assets and Liabilities](index=19&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets decreased by **9.71%** this period, with a notable **5.85% increase in accounts receivable** proportion, while short-term borrowings were eliminated and long-term payables significantly reduced Significant Changes in Asset Composition (End of Period vs End of Prior Year) | Item | Amount at End of Current Period (million RMB) | Proportion of Total Assets | Amount at End of Prior Year (million RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 439.20 | 9.76% | 584.59 | 11.73% | -1.97% | | Accounts Receivable | 732.57 | 16.28% | 519.55 | 10.43% | 5.85% | | Inventories | 637.35 | 14.17% | 775.98 | 15.57% | -1.40% | | Fixed Assets | 890.75 | 19.80% | 924.47 | 18.55% | 1.25% | | Construction in Progress | 144.85 | 3.22% | 119.40 | 2.40% | 0.82% | | Short-term Borrowings | 0.00 | 0.00% | 38.11 | 0.76% | -0.76% | | Contract Liabilities | 64.74 | 1.44% | 51.42 | 1.03% | 0.41% | | Long-term Payables | 0.23 | 0.01% | 27.72 | 0.56% | -0.55% | Asset Rights Restricted as of the End of the Reporting Period | Item | June 30, 2025 (million RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (Other Cash and Bank Balances) | 10.18 | Guarantee | Bills Payable Margin | | Fixed Assets | 165.52 | Mortgage | Mortgage loan (release of mortgage not yet processed) | | Intangible Assets | 62.61 | Mortgage | Mortgage loan (release of mortgage not yet processed) | | Total | 238.32 | | | [VI. Analysis of Investment Status](index=20&type=section&id=VI.%20Analysis%20of%20Investment%20Status) The company engaged in wealth management with **RMB 1,444.24 million** in the period, with **RMB 482 million** outstanding, but **RMB 247.24 million** in trust product principal and **RMB 16.21 million** in interest are overdue, leading to an impairment provision of **RMB 142.61 million** Entrusted Wealth Management Overview During the Reporting Period | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (million RMB) | Unmatured Balance (million RMB) | Overdue Unrecovered Amount (million RMB) | Impairment Provision for Overdue Unrecovered Wealth Management (million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 977.00 | 407.00 | 0.00 | 0.00 | | Brokerage Wealth Management Products | Own Funds | 215.00 | 75.00 | 0.00 | 0.00 | | Trust Wealth Management Products | Own Funds | 247.24 | 0.00 | 263.46 | 142.61 | | Other Categories | Own Funds | 5.00 | 0.00 | 0.00 | 0.00 | | Total | | 1,444.24 | 482.00 | 263.46 | 142.61 | - The company's sub-subsidiary, Jinggangshan Zhendong Shengming Investment Co., Ltd., purchased trust plan products totaling **RMB 250 million**; as of June 30, 2025, **RMB 263.46 million** (including principal of **RMB 247.24 million** and interest of **RMB 16.21 million**) remains overdue and unrecovered, with an impairment provision of **RMB 142.61 million**[90](index=90&type=chunk) - The company had no derivative investments or entrusted loans during the reporting period[91](index=91&type=chunk)[92](index=92&type=chunk) [VII. Significant Asset and Equity Sales](index=23&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets during the reporting period[93](index=93&type=chunk) - The company did not sell significant equity during the reporting period[94](index=94&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=23&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's major subsidiaries include Hainan Zhendong Health Technology and Shanxi Zhendong Anxin Biopharmaceutical, with the latter reporting the highest net profit, while Hainan Zhendong Health Technology and Beijing Zhendong Guangming Pharmaceutical Research Institute reported net losses Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (million RMB) | Total Assets (million RMB) | Net Assets (million RMB) | Operating Revenue (million RMB) | Operating Profit (million RMB) | Net Profit (million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Zhendong Health Technology Co., Ltd. | Subsidiary | Pharmaceutical wholesale, retail; food operations; cosmetics retail, etc. | 10.00 | 139.33 | -100.84 | 492.93 | -27.08 | -34.03 | | Hainan Zhendong Biotechnology Co., Ltd. | Subsidiary | Pharmaceutical wholesale, retail; food sales; medical device operations, etc. | 10.00 | 262.75 | 11.69 | 192.60 | 10.28 | 8.76 | | Shanxi Zhendong Taisheng Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production: APIs, injections, tablets, granules, etc. | 395.00 | 686.06 | 553.90 | 102.84 | 0.67 | -0.73 | | Shanxi Zhendong Anxin Biopharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production: APIs, injections, tablets, capsules, etc. | 170.00 | 722.90 | 349.48 | 138.99 | 40.66 | 37.35 | | Shanxi Zhendong Wuhetang Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production: tablets, capsules, granules, pills, etc. | 15.00 | 240.57 | -9.81 | 44.54 | 6.62 | 6.59 | | Beijing Zhendong Guangming Pharmaceutical Research Institute Co., Ltd. | Subsidiary | Technology development, transfer, services, consulting, testing; sales of cosmetics, daily necessities | 20.00 | 24.60 | -233.86 | 16.83 | -37.56 | -37.39 | | Shanxi Zhendong Daodi Medicinal Materials Development Co., Ltd. | Subsidiary | Pharmaceutical production, wholesale, retail; traditional Chinese medicinal material cultivation, acquisition, production, distribution, etc. | 137.50 | 1,008.22 | -238.41 | 312.00 | -20.31 | -20.24 | | Shanxi Zhendong Daodi Lianqiao Development Co., Ltd. | Subsidiary | Traditional Chinese medicinal material cultivation, acquisition, production, sales; production and sales of traditional Chinese medicine decoction pieces, etc. | 200.00 | 268.30 | 58.65 | 132.43 | -7.34 | -7.37 | | Shanxi Zhendong Pharmaceutical Trade Co., Ltd. | Subsidiary | Medical device sales; warehousing services; transportation agency; information consulting services, etc. | 50.00 | 97.52 | -174.03 | -1.10 | -3.46 | -3.49 | | Jinggangshan Zhendong Shengming Investment Co., Ltd. | Subsidiary | Project investment and management using company's own funds | 50.00 | 415.32 | -141.07 | 0.00 | -11.50 | -11.40 | | Yichun Zhendong Kanglang Pharmaceutical Co., Ltd. | Subsidiary | Wholesale of traditional Chinese patent medicines, chemical preparations, chemical APIs, antibiotics, biochemical drugs, etc. | 10.00 | 139.30 | 34.08 | 140.30 | 3.83 | 1.71 | - During the reporting period, the company established a new subsidiary, Shanxi Zhendong Pharmacy Co., Ltd., which has no significant impact on overall production, operations, and performance[100](index=100&type=chunk) [IX. Structured Entities Controlled by the Company](index=26&type=section&id=IX.%20Structured%20Entities%20Controlled%20by%20the%20Company) During the reporting period, the company did not control any structured entities - The company had no structured entities under its control during the reporting period[101](index=101&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=27&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from industry policies, R&D, quality control, human resources, and market competition, which it addresses through policy monitoring, production optimization, R&D innovation, quality management, cultural advantages, and talent incentives - The company faces risks from changes in industry policies and will respond by monitoring policies, optimizing production lines, reducing costs, and creating new growth points[102](index=102&type=chunk) - New drug R&D is characterized by high investment, high risk, and long cycles; the company will respond by strengthening industry-academia-research cooperation, improving risk management mechanisms, and balancing innovative and generic drug R&D[103](index=103&type=chunk) - The company faces quality control risks and will respond by strengthening the 'Quality Management Center' function, improving quality testing and monitoring, enhancing internal and external communication, perfecting the pharmacovigilance system, and reinforcing employee quality awareness[104](index=104&type=chunk) - The company faces human resource risks and will respond by leveraging its corporate culture advantages, systematic training, public welfare activities, establishing role models, and building talent incentive mechanisms to attract and retain talent[105](index=105&type=chunk) - The company faces market competition risks and will respond by improving production processes, promoting dosage form integration, strengthening brand building, and expanding diversified sales network channels to consolidate its competitive advantages[106](index=106&type=chunk)[107](index=107&type=chunk) [XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=28&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) On May 20, 2025, the company hosted an online performance briefing for public investors, discussing product R&D, production, sales, and overall operations Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Recipient | Recipient | Main Topics Discussed and Materials Provided | Index of Basic Research Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 20, 2025 | Online Performance Briefing | Online Communication Platform | Other | Public Investors | Product R&D, production, sales, company operations, etc. | See the "Investor Relations Activity Record Form" published by the company on May 21, 2025, on Juchao Information Network | [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=28&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not formulated a market value management system nor disclosed any valuation enhancement plans - The company has not formulated a market value management system[109](index=109&type=chunk) - The company has not disclosed a valuation enhancement plan[109](index=109&type=chunk) [XIII. Implementation of "Quality and Return Dual Enhancement" Action Plan](index=28&type=section&id=XIII.%20Implementation%20of%20%22Quality%20and%20Return%20Dual%20Enhancement%22%20Action%20Plan) The company has not disclosed any announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the 'Quality and Return Dual Enhancement' action plan[109](index=109&type=chunk) Section IV Corporate Governance, Environment, and Society This section details changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management](index=28&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the company's directors, supervisors, or senior management, as detailed in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[110](index=110&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period](index=28&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20the%20Current%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[111](index=111&type=chunk) [III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=III.%20Implementation%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans but implemented an employee stock ownership plan, holding **3.88% of total share capital**, funded by own or self-raised capital, covering directors, supervisors, senior management, and core employees - The company had no equity incentive plans during the reporting period[113](index=113&type=chunk) Employee Stock Ownership Plan Status During the Reporting Period | Total Shares Held (shares) | Proportion of Listed Company's Total Share Capital | Source of Funds for Implementation Plan | Scope of Employees | Number of Employees | Changes | | :--- | :--- | :--- | :--- | :--- | :--- | | 38,967,619 | 3.88% | Own funds or self-raised funds | Company directors, supervisors, senior management, and core employees | 1,194 | During the reporting period, some participants in this employee stock ownership plan resigned, and the management committee has processed their holdings in accordance with the relevant agreements of the stock ownership plan | Shareholdings of Directors, Supervisors, and Senior Management in Employee Stock Ownership Plan During the Reporting Period | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | Proportion of Listed Company's Total Share Capital | | :--- | :--- | :--- | :--- | :--- | | Lei Zhenhong | Chairman of Supervisory Board | 905,869 | 905,869 | 0.09% | | Wang Xufeng | Director, Vice President | 833,720 | 833,720 | 0.08% | | Jin Zhixiang | Supervisor | 320,661 | 320,661 | 0.03% | | You Rongli | Vice President | 80,165 | 80,165 | 0.01% | | Wang Zheyu | Vice President, Board Secretary | 64,132 | 64,132 | 0.01% | | Li Shasha | Supervisor | 32,066 | 32,066 | 0.00% | [IV. Environmental Information Disclosure](index=31&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its three major subsidiaries (Shanxi Zhendong Pharmaceutical, Shanxi Zhendong Anxin Biopharmaceutical, Shanxi Zhendong Taisheng Pharmaceutical) are included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[115](index=115&type=chunk) Enterprises Included in the List of Legally Disclosed Environmental Information | No. | Enterprise Name | Query Index for Legally Disclosed Environmental Information Report | | :--- | :--- | :--- | | 1 | Shanxi Zhendong Pharmaceutical Co., Ltd. | https://sthjt.shanxi.gov.cn/qyhjxxyfpl//DisclosureDetail/1772517044835627012/2024 | | 2 | Shanxi Zhendong Anxin Biopharmaceutical Co., Ltd. | https://sthjt.shanxi.gov.cn/qyhjxxyfpl//DisclosureDetail/1772800631791353857/2024 | | 3 | Shanxi Zhendong Taisheng Pharmaceutical Co., Ltd. | https://sthjt.shanxi.gov.cn/qyhjxxyfpl//DisclosureDetail/5f9afa78d4e11edab8dfa163e6c7818/2024 | [V. Social Responsibility](index=31&type=section&id=V.%20Social%20Responsibility) The company actively fulfills its social responsibilities through long-term charitable initiatives, poverty alleviation efforts, and significant donations during national and local disasters, embodying its core values - Since its inception, Zhendong has bravely undertaken social responsibilities, consistently engaged in public welfare and charity, and established a dedicated 'Poverty Alleviation Office'; its 'Student Aid Day' for impoverished students has been ongoing for **26 years**, 'Winter Aid Day' for critically ill patients, orphans, disabled individuals, elderly living alone, and extremely poor families for **24 years**, and 'Respect for the Elderly Day' for those over 60 for **31 years**[116](index=116&type=chunk) - In 2013, the company invested in establishing a traditional Chinese medicinal material cultivation base in Pingshun County; as of 2024, it has helped **32,000 farming households** in Pingshun County increase their average income by **RMB 18,000**[117](index=117&type=chunk) - The company actively donated during disasters such as the southern snowstorm, Wenchuan earthquake, Yushu earthquake, COVID-19 pandemic, Henan floods, and Shanxi floods, with cumulative donations of epidemic prevention drugs and materials totaling **RMB 124 million** during the pandemic[118](index=118&type=chunk) Section V Significant Matters This section addresses key corporate matters, including commitments, related party transactions, litigation, penalties, and other significant events affecting the company [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=32&type=section&id=I.%20Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Committed%20Parties%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or other committed parties - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or other committed parties as of the end of the reporting period[120](index=120&type=chunk) [II. Non-Operating Occupation of Funds by Controlling Shareholders and Other Related Parties of the Listed Company](index=32&type=section&id=II.%20Non-Operating%20Occupation%20of%20Funds%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20of%20the%20Listed%20Company) During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties of the listed company[121](index=121&type=chunk) [III. Irregular External Guarantees](index=32&type=section&id=III.%20Irregular%20External%20Guarantees) During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[122](index=122&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=32&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report was not audited - The company's semi-annual report was not audited[123](index=123&type=chunk) [V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee Regarding the "Non-Standard Audit Report" for the Current Period](index=32&type=section&id=V.%20Explanations%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%20Regarding%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[124](index=124&type=chunk) [VI. Explanations by the Board of Directors Regarding the "Non-Standard Audit Report" for the Previous Year](index=32&type=section&id=VI.%20Explanations%20by%20the%20Board%20of%20Directors%20Regarding%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[124](index=124&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=32&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[124](index=124&type=chunk) [VIII. Litigation Matters](index=32&type=section&id=VIII.%20Litigation%20Matters) The company resolved a major contract dispute with Beijing Landi Pharmaceutical Co., Ltd. by paying **RMB 500 million** as per arbitration, and is managing other smaller lawsuits totaling **RMB 141.53 million**, mostly with favorable outcomes Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million RMB) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Execution Status of Litigation (Arbitration) Judgment | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | On September 7, 2024, the company received the "Arbitration Notice for Entrusted Production Contract Dispute Case No. DE20242588" from the China International Economic and Trade Arbitration Commission, regarding Beijing Landi Pharmaceutical Co., Ltd.'s arbitration application concerning a contract dispute with the company | 500.00 | Yes | 1. On January 24, 2025, the company received the "Arbitration Award No. (2025) CIETAC Beijing Arbitration No. 0227" from the Arbitration Tribunal. This award is final. 2. On July 18, 2025, the company paid the final installment of RMB 100 million as required by the "Arbitration Award." By then, the company had fully paid the total amount of RMB 500 million as required by the "Arbitration Award" | According to the arbitration outcome, upon full payment by the company, all disputes between the parties related to the "Drug Entrusted Production Contract" and its supplementary contracts (including all claims and counterclaims under case DE20242588, and any other potential claims or demands) are fully resolved, and all disputes related to the "Equity Sale Agreement" are also fully resolved. Neither party may initiate litigation/arbitration or other claims against the other party for the aforementioned disputes for any reason | The company has fully paid the total amount of RMB 500 million | July 18, 2025 | Juchao Information Network (http://www.cninfo.com.cn) "Announcement on Company's Major Arbitration Matter" (Announcement No.: 2024-077), "Announcement on Progress of Company's Major Arbitration Matter" (Announcement No.: 2025-005), "Announcement on Completion of Company's Major Arbitration Matter" (Announcement No.: 2025-036) | Summary of Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million RMB) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Execution Status of Litigation (Arbitration) Judgment | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of all other lawsuits not meeting the disclosure threshold for significant litigation | 141.53 | No | Among these, cases totaling RMB 46.29 million are awaiting trial, RMB 12.47 million are awaiting judgment, and cases totaling RMB 82.72 million have been judged/arbitrated, with RMB 76.65 million in execution and RMB 6.12 million already executed | Majority won | In execution | | Not applicable | [IX. Penalties and Rectification](index=33&type=section&id=IX.%20Penalties%20and%20Rectification) Shanxi Zhendong Anxin Biopharmaceutical Co., Ltd. was fined **RMB 0.59 million** for producing substandard Honghua Injection; the subsidiary has initiated comprehensive rectification and applied to resume production and sales Penalties and Rectification Status | Name | Type | Reason | Type of Investigation and Penalty | Conclusion (if any) | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi Zhendong Anxin Biopharmaceutical Co., Ltd. | Other | The pyrogen test for batch 20170404 of Honghua Injection produced did not meet specifications | Investigated by competent authority | Anxin Bio was found to have violated Article 49, Paragraph 3, Item (6) of the "Drug Administration Law" for batch 20170404 of Honghua Injection, which prohibits the production and sale of substandard drugs. Therefore, in accordance with the "Drug Administration Law," the Shanxi Provincial Food and Drug Administration ordered Anxin Bio to rectify, confiscated 134,764 vials of recalled substandard Honghua Injection (batch number: 20170404), confiscated illegal gains of RMB 0.12 million, and imposed a fine of RMB 0.47 million (twice the value of the goods, RMB 0.23 million), totaling RMB 0.59 million in confiscation and fines | April 13, 2018 | Juchao Information Network (http://www.cninfo.com.cn) "Shanxi Zhendong Pharmaceutical Co., Ltd. Announcement on Progress of Adverse Reactions in Zhendong Pharmaceutical Products" (Announcement No.: 2018-028) | - Following the incident, Anxin Pharmaceutical established a special team, fully cooperated with inspections, recalled all substandard Honghua Injection, thoroughly investigated the root causes, promptly rectified issues, and improved relevant systems such as 'Honghua Extract Production Process Specification,' 'Honghua Injection Quality Standard,' and 'Refining Post Standard Operating Procedures'[130](index=130&type=chunk) - Application materials have been submitted to the National Medical Products Administration to resume production and sales of Honghua Injection[131](index=131&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=34&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company, its controlling shareholder, and actual controller maintain a good integrity status, with no applicable adverse situations - The company, its controlling shareholder, and actual controller have no inapplicable integrity issues[132](index=132&type=chunk) [XI. Significant Related Party Transactions](index=34&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company engaged in routine related party transactions for goods and services, totaling **RMB 79.75 million** this period, at market prices, but had no related party transactions involving asset/equity acquisition/disposal, joint investments, or financial services Related Party Transactions Related to Daily Operations (Purchase of Goods/Acceptance of Services) | Related Party | Related Party Transaction Content | Transaction Amount (million RMB) | Approved Transaction Limit (million RMB) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Shanxi Zhendong Wuhetang Medical and Elderly Care Co., Ltd. | Food | 7.30 | 30.00 | No | | Shanxi Zhendong Construction Engineering Co., Ltd. | Engineering | 22.80 | 90.00 | No | | Zhendong Group and its subsidiaries | Gasoline, diesel, personal care, food | 10.67 | 28.00 | No | | Beijing Zhendong Health E-commerce Co., Ltd. | Services | 33.76 | 85.00 | No | | Shanxi Ren'ai Angel Public Welfare Foundation | Donation | 2.16 | 4.00 | No | Related Party Transactions Related to Daily Operations (Sale of Goods/Provision of Services) | Related Party | Related Party Transaction Content | Transaction Amount (million RMB) | | :--- | :--- | :--- | | Shanxi Zhendong Wuhetang Medical and Elderly Care Co., Ltd. | Medicinal Materials | 0.07 | | Shanxi Zhendong Health Care Technology Co., Ltd. | Ethanol | 0.47 | | Beijing Zhendong Health E-commerce Co., Ltd. | Traditional Chinese Medicinal Materials | 0.31 | - The company did not engage in related party transactions involving asset or equity acquisition/disposal[135](index=135&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[136](index=136&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[137](index=137&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and related financial companies, or between financial companies controlled by the company and related parties[138](index=138&type=chunk)[139](index=139&type=chunk) [XII. Significant Contracts and Their Performance](index=37&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no significant entrustment, contracting, or leasing arrangements, nor any major guarantees, with routine operating contracts managed for order fulfillment and cash collection - The company had no entrustment, contracting, or leasing arrangements during the reporting period[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - The company had no significant guarantees during the reporting period[144](index=144&type=chunk) - The company had no other significant contracts during the reporting period[147](index=147&type=chunk) [XIII. Explanation of Other Significant Matters](index=37&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[148](index=148&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=38&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[149](index=149&type=chunk) Section VI Changes in Shares and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and the integrity status of its controlling shareholder and actual controller [I. Changes in Share Capital](index=39&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, restricted shares decreased by **2.17 million**, while unrestricted shares increased by the same amount, with total share capital remaining unchanged, primarily due to the release of restricted shares for departing executives Changes in Share Capital | | Number Before Change (shares) | Proportion Before Change | Increase/Decrease from Other Changes (shares) | Subtotal Increase/Decrease (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,782,593 | 0.28% | -2,165,979 | -2,165,979 | 616,614 | 0.06% | | 3. Other Domestic Shares | 2,782,593 | 0.28% | -2,165,979 | -2,165,979 | 616,614 | 0.06% | | II. Unrestricted Shares | 1,002,537,163 | 99.72% | 2,165,979 | 2,165,979 | 1,004,703,142 | 99.94% | | 1. RMB Ordinary Shares | 1,002,537,163 | 99.72% | 2,165,979 | 2,165,979 | 1,004,703,142 | 99.94% | | III. Total Shares | 1,005,319,756 | 100.00% | 0 | 0 | 1,005,319,756 | 100.00% | - The change in shares was due to the change in restricted shares for senior executives following the resignation of some directors and supervisors during the reporting period[152](index=152&type=chunk) - As of June 30, 2025, the company had cumulatively repurchased **12,916,700 shares** through its dedicated share repurchase account via centralized bidding, accounting for **1.28% of the company's current total share capital**, with a total transaction amount of **RMB 51.03 million**[153](index=153&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Anping | 1,737,204 | 1,737,204 | 0 | 0 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | Jin Zhixiang | 578,964 | 0 | 0 | 578,964 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | Ma Shifeng | 263,925 | 263,925 | 0 | 0 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | Li Zhixu | 126,900 | 126,900 | 0 | 0 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | You Rongli | 37,650 | 0 | 0 | 37,650 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | Zhou Hongjun | 37,950 | 37,950 | 0 | 0 | Senior Executive Restricted Shares | Released on the first trading day of each year, 25% of shares held at the end of the previous year | | Total | 2,782,593 | 2,165,979 | 0 | 616,614 | | | [II. Securities Issuance and Listing](index=41&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[158](index=158&type=chunk) [III. Number of Shareholders and Shareholding Status](index=43&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, the company had **46,135 ordinary shareholders**. The controlling shareholder, Shanxi Zhendong Health Industry Group Co., Ltd., held **30.06%** of shares, with **205.20 million shares pledged** - As of the end of the reporting period, the total number of ordinary shareholders was **46,135**[158](index=158&type=chunk) Shareholdings of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Marking, or Freezing Status (Share Status/Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi Zhendong Health Industry Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 30.06% | 302,230,191 | 0 | 302,230,191 | Pledged 205,204,495 | | Zhongtai Securities Asset Management - Supporting Private Enterprises Development Zhongtai Asset Management No. 1 FOF Collective Asset Management Plan - Securities Industry Supporting Private Enterprises Development Series Zhongtai Asset Management No. 45 Single Asset Management Plan | Other | 4.10% | 41,207,635 | 0 | 41,207,635 | Not applicable 0 | | Shanxi Zhendong Pharmaceutical Co., Ltd. - Third Phase Employee Stock Ownership Plan | Other | 3.88% | 38,967,619 | 0 | 38,967,619 | Not applicable 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.79% | 7,970,417 | 0 | 7,970,417 | Not applicable 0 | | Hu Wenqin | Domestic Natural Person | 0.60% | 6,000,000 | 0 | 6,000,000 | Not applicable 0 | | Liu Yubin | Domestic Natural Person | 0.58% | 5,880,800 | 0 | 5,880,800 | Not applicable 0 | | Liu Zhenwei | Domestic Natural Person | 0.57% | 5,731,500 | 0 | 5,731,500 | Not applicable 0 | | Shang Hu | Domestic Natural Person | 0.38% | 3,813,900 | 0 | 3,813,900 | Not applicable 0 | | Xiang Liqiao | Domestic Natural Person | 0.36% | 3,580,000 | 0 | 3,580,000 | Not applicable 0 | | Shao Xueguang | Domestic Natural Person | 0.32% | 3,174,600 | 0 | 3,174,600 | Not applicable 0 | - Shanxi Zhendong Health Industry Group Co., Ltd. is the controlling shareholder of the company; it is unknown whether other shareholders have related party relationships or are acting in concert[159](index=159&type=chunk) - As of the end of the reporting period, the company's dedicated share repurchase securities account held **12,916,700.00 shares**, representing a shareholding ratio of **1.28%**[159](index=159&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=43&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[161](index=161&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=44&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[162](index=162&type=chunk) - The company's actual controller did not change during the reporting period[162](index=162&type=chunk) [VI. Preferred Share Information](index=45&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[163](index=163&type=chunk) Section VII Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the repor

Market Overview - The hair medical concept sector declined by 1.01% as of the market close on August 22, ranking among the top decliners in concept sectors [1] - Major stocks in the sector that experienced significant declines include Shuiyang Co., Huabang Health, and Baicheng Pharmaceutical, while stocks that saw gains include Zhendong Pharmaceutical, Kangyuan Pharmaceutical, and International Medicine, with increases of 1.33%, 0.69%, and 0.37% respectively [1] Concept Sector Performance - The top-performing concept sectors today include: - China AI 50: +5.31% - National Big Fund Holdings: +5.00% - SMIC Concept: +3.67% - MCU Chips: +3.64% - Automotive Chips: +3.46% [2] - Conversely, the hair medical sector was among the worst performers, alongside soybean and high-pressure oxygen chamber sectors, which saw declines of 0.94% and 0.76% respectively [2] Capital Flow Analysis - The hair medical concept sector experienced a net outflow of 289 million yuan, with 15 stocks seeing net outflows and 10 stocks exceeding 10 million yuan in outflows [2] - The stock with the highest net outflow was Shuiyang Co., with a net outflow of 123.37 million yuan, followed by Kids King, Jiu Zhi Tang, and Kang En Bei with net outflows of 84.69 million yuan, 48.68 million yuan, and 23.36 million yuan respectively [2] - Stocks with the highest net inflows included Kangyuan Pharmaceutical, Zhendong Pharmaceutical, and Xianju Pharmaceutical, with net inflows of 42.76 million yuan, 31.16 million yuan, and 21.98 million yuan respectively [2][3] Individual Stock Performance - Notable declines in the hair medical sector include: - Shuiyang Co.: -4.82% with a turnover rate of 11.16% and a net outflow of 123.37 million yuan - Kids King: -0.16% with a turnover rate of 4.36% and a net outflow of 84.69 million yuan - Jiu Zhi Tang: -1.92% with a turnover rate of 5.92% and a net outflow of 48.68 million yuan [2] - Stocks with positive performance include: - Zhendong Pharmaceutical: +1.33% with a turnover rate of 6.15% and a net inflow of 31.16 million yuan - Kangyuan Pharmaceutical: +0.69% with a turnover rate of 4.39% and a net inflow of 42.76 million yuan [3]