TMSP(SH:600671) Zheng Quan Zhi Xing·2025-05-16 10:31Core Viewpoint - The company, Hangzhou Tianmu Mountain Pharmaceutical Co., Ltd., reported significant growth in its health product business, with a revenue increase of 321.62% year-on-year, driven by new product launches and a high gross margin of 74.25% [1][2]. Health Product Business - The health product business generated revenue of 68 million yuan in 2024, contributing to a total annual revenue of 217 million yuan [1]. - The main products include iron skin maple fruit, Zhen Ting prepared wine, and white flower snake grass water, with the latter showing a gross margin of 54.71% [10][11]. - The company has established a strong customer base, primarily in Qingdao, with significant sales to local construction companies [12][13]. Supplier and Customer Transactions - The top ten suppliers for the health product business had a total transaction amount of 26.90 million yuan, with no prepayment balances at year-end [4][5]. - The top ten customers contributed to a total transaction amount of 25.72 million yuan, with a significant portion being related to the company's controlling shareholder [5][6]. Gross Margin Comparison - The gross margin for the company's iron skin maple fruit products is 84.55%, which is higher than the industry average of 70.14% [5][6]. - The gross margin for Zhen Ting prepared wine is 66.88%, which is lower than the industry average of 74.23% but higher than some competitors [8][9]. Sales Channel Development - The company has developed a robust sales network, focusing on direct sales and establishing long-term relationships with distributors [12][13]. - The addition of numerous Qingdao construction company clients is justified by the local industry's growth and demand for health products [13][14]. Service Business Growth - The company reported a 285.70% increase in service business revenue, amounting to 42.89 million yuan, primarily from a contract with the Qingdao Health Commission [20]. - The service business has a gross margin of 71.46%, indicating strong profitability [20]. Audit and Compliance - The company has undergone thorough audits regarding its health product business, confirming the accuracy of its financial disclosures and compliance with accounting standards [19][20].