[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Part%20I%20Important%20Notice,%20Table%20of%20Contents,%20and%20Definitions) [Important Notice](index=2&type=section&id=Important%20Notice) The board and management guarantee report accuracy, noting risks from brand concentration, drug quality, policy, and market competition, with no semi-annual dividend or capital reserve conversion plans - The company's board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness[4](index=4&type=chunk) - The company faces risks from concentrated brand operations, drug quality, policy changes, and intensified market competition[4](index=4&type=chunk) - The company plans no semi-annual cash dividends, bonus shares, or capital reserve conversions[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report is clearly structured into eight main chapters, facilitating comprehensive investor understanding of the company - The report is clearly structured into eight main chapters, facilitating comprehensive investor understanding of the company[7](index=7&type=chunk) [List of Documents for Reference](index=4&type=section&id=List%20of%20Documents%20for%20Reference) Documents for reference include signed financial statements, publicly disclosed originals, and other relevant files, all available at the company's securities department - Documents for reference include signed financial statements, publicly disclosed originals, and announcement drafts[9](index=9&type=chunk) - All documents for reference are kept at the company's securities department[10](index=10&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key entities, regulatory bodies, reporting period, and pharmaceutical terms (e.g., OTC, DTP, B2C) for accurate report understanding - Key entities like the company, controlling shareholder, and subsidiaries are clearly defined[11](index=11&type=chunk) - Key pharmaceutical terms (e.g., prescription drugs, OTX, OTC, 'Two-Invoice System', DTP, B2C) are explained for accurate report understanding[11](index=11&type=chunk) - The reporting period is January-June 2025; the prior year period is January-June 2024[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Part%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=6&type=section&id=Company%20Profile) Qingdao Baiyang Pharmaceutical Co., Ltd. is listed on Shenzhen Stock Exchange (301015), with Fu Gang as legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Baiyang Pharmaceutical | | Stock Code | 301015 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Qingdao Baiyang Pharmaceutical Co., Ltd. | | Legal Representative | Fu Gang | [Contact Person and Information](index=6&type=section&id=Contact%20Person%20and%20Information) Board Secretary Li Zhen and Securities Rep Liu Nina share contact info: Building 1, No. 88 Tongbai Road, Qingdao, Phone 0532-66756688, Email byyy@baheal.com Contact Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Zhen | Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province | 0532-66756688 | byyy@baheal.com | | Securities Affairs Representative | Liu Nina | Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province | 0532-66756688 | byyy@baheal.com | [Other Information](index=6&type=section&id=Other%20Information) Company's registered address, office address, website, email, disclosure locations, and registration status remained unchanged - Company contact, disclosure, and registration details remained unchanged during the reporting period[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue decreased 6.02% to **3.751 billion yuan**, net profit fell 59.48% to **163 million yuan**, EPS was **0.31 yuan/share** (down 59.74%), total assets rose 0.67%, and net assets decreased 8.63% Key Accounting Data and Financial Indicators (Year-on-year) | Indicator | Current Reporting Period (million yuan) | Prior Year Period (million yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,751.29 | 3,991.56 | -6.02% | | Net Profit Attributable to Shareholders of Listed Company | 163.14 | 402.63 | -59.48% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 177.37 | 370.76 | -52.16% | | Net Cash Flow from Operating Activities | 391.76 | 471.62 | -16.93% | | Basic Earnings Per Share (yuan/share) | 0.31 | 0.77 | -59.74% | | Diluted Earnings Per Share (yuan/share) | 0.31 | 0.74 | -58.11% | | Weighted Average Return on Net Assets | 7.07% | 13.51% | -6.44% | Asset and Liability Indicators (Period-end) | Indicator | End of Current Reporting Period (million yuan) | End of Prior Year (million yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 7,159.89 | 7,112.58 | 0.67% | | Net Assets Attributable to Shareholders of Listed Company | 2,169.93 | 2,374.91 | -8.63% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) No accounting data differences existed under domestic and overseas accounting standards during the reporting period - No accounting data differences existed under domestic and overseas accounting standards during the reporting period[19](index=19&type=chunk)[20](index=20&type=chunk) [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were **-14.24 million yuan**, mainly from asset disposal, government grants, financial asset fair value changes, capital occupation fees, and non-operating items Non-recurring Gains and Losses and Amounts | Item | Amount (million yuan) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 0.62 | | | Government Grants Recognized in Current Profit or Loss | 19.33 | Primarily investment attraction rewards, special funds for social and economic development, and high-quality development policy funds for the biomedical industry | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-financial Enterprises, Excluding Effective Hedging Activities Related to the Company's Normal Operations | -25.27 | Primarily fair value changes in Zhongkang Holdings and Huahao Zhongtian Pharmaceutical shares | | Capital Occupation Fees Received from Non-financial Enterprises Recognized in Current Profit or Loss | 1.12 | | | Other Non-operating Income and Expenses Apart from the Above Items | -5.73 | Primarily donation expenses | | Other Profit and Loss Items Meeting the Definition of Non-recurring Gains and Losses | 0.44 | | | Less: Income Tax Impact | -1.81 | | | Impact on Minority Interests (After Tax) | 6.57 | | | Total | -14.24 | | - The company does not classify non-recurring gains and losses as recurring gains and losses[24](index=24&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Part%20III%20Management%20Discussion%20and%20Analysis) [Main Business Activities During the Reporting Period](index=9&type=section&id=Main%20Business%20Activities%20During%20the%20Reporting%20Period) As an innovative brand commercialization platform, the company focuses on product development, manufacturing, and commercialization of medical innovations, steadily transforming into an innovative pharmaceutical enterprise, with stable brand operations, reduced wholesale, and stable retail business, actively deploying innovative products in oncology and bone health [Industry Overview](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) In H1 2025, China's pharmaceutical industry developed steadily under deepening policies, technological innovation, and capital empowerment, with market size expected to exceed **3.5 trillion yuan** - In H1 2025, NMPA approved 43 innovative drugs, a **59%** year-on-year increase[26](index=26&type=chunk) - China's pharmaceutical market size is expected to exceed **3.5 trillion yuan** in 2025[27](index=27&type=chunk) - The industry is accelerating its transformation from 'imitation' to 'leading' and 'original innovation'[27](index=27&type=chunk) [Company's Strategic Innovation and Upgrading](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%

百洋医药公告，2025年上半年营业收入37.51亿元，同比下降6.02%。净利润1.63亿元，同比下降 59.48%。公司计划不派发现金红利，不送红股，不以公积金转增股本。 ...

Market Overview - The pharmaceutical commercial sector experienced a decline of 2.71% on August 27, with Saily Medical leading the drop [1] - The Shanghai Composite Index closed at 3800.35, down 1.76%, while the Shenzhen Component Index closed at 12295.07, down 1.43% [1] Individual Stock Performance - Saily Medical (603716) closed at 33.15, down 8.93% with a trading volume of 484,700 shares and a transaction value of 1.671 billion [1] - Other notable declines included HeLiang China (603122) down 5.15%, YaoYigou (300937) down 5.10%, and Guofa Shares (600538) down 4.98% [1] - The overall net outflow of main funds from the pharmaceutical commercial sector was 543 million, while retail investors saw a net inflow of 361 million [1] Fund Flow Analysis - Jiuzhoutong (600998) had a main fund net inflow of 11.8 million, accounting for 18.23% of its total [2] - Dacilin (603233) saw a main fund net inflow of 29.97 million, representing 15.70% [2] - The overall trend indicates a mixed sentiment with main funds withdrawing while retail investors are actively buying [2]

Market Overview - The pharmaceutical commercial sector rose by 0.12% on August 26, with Saily Medical leading the gains [1] - The Shanghai Composite Index closed at 3868.38, down by 0.39%, while the Shenzhen Component Index closed at 12473.17, up by 0.26% [1] Stock Performance - Saily Medical (603716) closed at 36.40, up by 4.99% with a trading volume of 707,500 shares and a transaction value of 2.592 billion [1] - Baiyang Pharmaceutical (301015) closed at 25.78, up by 2.14% with a trading volume of 96,000 shares and a transaction value of 247 million [1] - Other notable performers include: - People's Tongtai (600829) at 8.47, up by 1.68% [1] - Luyuan Pharmaceutical (002788) at 8.85, up by 0.91% [1] - Yiyigou (300937) at 30.17, up by 0.90% [1] Capital Flow - The pharmaceutical commercial sector experienced a net outflow of 502 million from institutional investors, while retail investors saw a net inflow of 453 million [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors increased their positions [2] Individual Stock Capital Flow - People's Tongtai (600829) had a net inflow of 24.93 million from institutional investors, but a net outflow of 28.53 million from retail investors [3] - Baiyang Pharmaceutical (301015) saw a net inflow of 16.19 million from institutional investors, with retail investors withdrawing 14.69 million [3] - Other stocks with significant capital movements include: - Swiss Pharmaceutical (002589) with a net inflow of 14.79 million from institutional investors [3] - National Pharmaceutical (600511) with a net inflow of 11.70 million from institutional investors [3]

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Beihai Kangcheng-B (01228), which has surged over 12% recently, bringing its year-to-date increase close to 20 times [1] - As of the report, the stock price reached 2.77 HKD with a trading volume of 50.08 million HKD [1] - On August 13, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares in Beihai Kangcheng [1] Group 2 - The agreement also includes an exclusive commercialization service contract, enhancing strategic collaboration between Beihai Kangcheng and Baiyang Pharmaceutical [1] - Baiyang's subsidiary will gain promotional rights for specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [1] - In 2025, the National Healthcare Security Administration will introduce a "Commercial Insurance Innovative Drug Directory," which has begun the application process as of July 11 [1] Group 3 - Beihai Kangcheng's three products, namely Geruneng (Injectable Vira Glycosidase β), Mairuibai (Chloramphenicol Oral Solution), and Hairuisi (Aidu Sulfate Esterase β Injection), passed the preliminary review on August 12, which is expected to accelerate market access [1] - The preliminary review list is considered significant for Beihai Kangcheng, as inclusion in the commercial insurance innovative drug directory would provide insurance support for the drugs, potentially reducing the economic burden on patients and improving product accessibility [1]

Core Viewpoint - Beihai Kangcheng-B (01228) has seen a significant increase in stock price, rising over 12% recently and nearly 20 times year-to-date, indicating strong market interest and potential growth opportunities for the company [1] Group 1: Stock Performance - As of the latest report, Beihai Kangcheng's stock price is at 2.77 HKD, with a trading volume of 50.08 million HKD [1] - The stock has experienced a year-to-date increase of approximately 1900% [1] Group 2: Strategic Partnerships - On August 13, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares [1] - The partnership includes an exclusive commercialization service agreement, enhancing strategic collaboration between the two companies [1] Group 3: Market Access and Product Approval - Beihai Kangcheng's three products have passed the initial review for the "Commercial Insurance Innovative Drug Directory" set by the National Medical Insurance Administration, which was officially launched on July 11 [1] - The products include Gerunine (Injectable Vira Glycosidase β), Mai Ruibei (Chloramphenicol Oral Solution), and Hai Ruisi (Aidu Sulfate Esterase β Injection), which are expected to accelerate market access [1] - Inclusion in the directory would allow these drugs to receive commercial insurance support, potentially reducing the economic burden on patients and improving product accessibility [1]

Core Viewpoint - Beihai Kangcheng-B (01228) has seen a significant increase in its stock price, rising over 12% recently and nearly 20 times year-to-date, indicating strong market interest and potential growth opportunities [1] Group 1: Stock Performance - As of the latest update, Beihai Kangcheng's stock price is reported at 2.77 HKD, with a trading volume of 50.08 million HKD [1] - The stock has experienced a year-to-date increase of nearly 2000% [1] Group 2: Strategic Partnerships - On August 13, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, with Baiyang investing 100 million HKD in Beihai Kangcheng [1] - The partnership includes a commercial service agreement, allowing Baiyang's subsidiary to promote specific products from Beihai Kangcheng in mainland China, Hong Kong, and Macau [1] Group 3: Regulatory Developments - In 2025, the National Healthcare Security Administration will introduce a "Commercial Insurance Innovative Drug Directory," with application processes starting on July 11 [1] - Three of Beihai Kangcheng's products have passed the initial review as of August 12, which could expedite their market entry [1] - Inclusion in the Commercial Insurance Innovative Drug Directory would provide commercial insurance support for these drugs, potentially reducing the economic burden on patients and increasing product accessibility [1]

Core Insights - The pharmaceutical commercial sector experienced a slight increase of 0.05% on August 22, with Saily Medical leading the gains [1] - The Shanghai Composite Index closed at 3825.76, up 1.45%, while the Shenzhen Component Index closed at 12166.06, up 2.07% [1] Group 1: Stock Performance - Saily Medical (603716) saw a closing price of 31.52, with a significant increase of 10.02% and a trading volume of 614,300 shares, resulting in a transaction value of 1.861 billion yuan [1] - Guofang Co. (600538) closed at 6.55, up 2.18%, with a trading volume of 218,500 shares [1] - Runda Medical (603108) closed at 18.35, up 1.94%, with a trading volume of 303,900 shares [1] - Other notable stocks include Jiuzhoutong (600998) with a slight increase of 0.55% and Yifeng Pharmacy (603939) with a minimal increase of 0.20% [1] Group 2: Capital Flow - The pharmaceutical commercial sector saw a net inflow of 363 million yuan from main funds, while retail investors experienced a net outflow of 114 million yuan [2] - Speculative funds recorded a net outflow of 249 million yuan [2]

Group 1 - Beihai Kangcheng-B (01228) has seen a nearly 17% increase recently, with a year-to-date cumulative increase exceeding 1500% [1] - As of the report, the stock price is at 2.23 HKD, with a trading volume of 41.075 million HKD [1] - Beihai Kangcheng has entered into a share subscription agreement with Baiyang Pharmaceutical (301015), where Baiyang will subscribe for shares worth approximately 100 million HKD at a price of 1.34 HKD per share [1] Group 2 - The two companies have signed an exclusive commercialization service agreement to deepen strategic collaboration, allowing Baiyang's subsidiary to promote specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [1] - On August 12, the National Healthcare Security Administration released the preliminary list of innovative drugs for commercial insurance, with three rare disease products from Beihai Kangcheng passing the review [1] - The approved products include: - Gorynin (injectable velaglucerase beta) for long-term enzyme replacement therapy for patients aged 12 and above with Type I and III Gaucher disease - Mairuibai (oral chloramphenicol) for treating ALGS/PFIC cholestatic pruritus - Haierisi (injectable idursulfase beta) for treating Mucopolysaccharidosis Type II [1]

Core Viewpoint - Beihai Kangcheng-B (01228) has seen a significant increase in its stock price, with a year-to-date rise exceeding 1500% as of the latest report, reflecting strong market interest and investor confidence [1] Group 1: Stock Performance - Beihai Kangcheng-B's stock price rose nearly 17%, reaching HKD 2.23, with a trading volume of HKD 41.075 million [1] - The cumulative increase in stock price for the year has surpassed 1500% [1] Group 2: Strategic Partnerships - Beihai Kangcheng has entered into a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will subscribe for shares valued at approximately HKD 100 million at a price of HKD 1.34 per share [1] - The companies have also signed an exclusive commercialization service agreement, enhancing their strategic collaboration [1] Group 3: Product Development and Regulatory Approval - Three rare disease products from Beihai Kangcheng have passed the preliminary review for the commercial insurance innovative drug directory announced by the National Healthcare Security Administration [1] - The products include: - Goryenin (injectable velaglucerase beta) for long-term enzyme replacement therapy for patients aged 12 and above with Type I and III Gaucher disease, approved for market in May [1] - Mairuibai (oral chloramphenicol) for treating cholestatic pruritus in ALGS/PFIC [1] - Haierisi (injectable idursulfase beta) for treating Mucopolysaccharidosis Type II [1]