Shaanxi Panlong Pharmaceutical (SZ:002864) Quan Jing Wang·2025-05-16 12:43Core Viewpoint - The company, Panlong Pharmaceutical, has demonstrated steady growth in its operations and profitability in 2024, with significant advancements in its product offerings and market position in the field of rheumatology and bone injuries [1][4][12]. Group 1: Company Performance - In 2024, Panlong Pharmaceutical achieved a revenue of 974 million yuan, remaining stable compared to the previous year, with a 10.20% year-on-year growth in self-produced traditional Chinese medicine (TCM) business [4][5]. - The company reported a net profit of 120 million yuan in 2024, marking an 8.91% increase year-on-year, continuing its profit growth for eight consecutive years since its listing [5][8]. - The gross profit margin for the company improved to 60.82%, an increase of nearly 2.9 percentage points from the previous year [5]. Group 2: Product Development and Market Position - The flagship product, Panlong Seven, holds the largest market share in the TCM market for musculoskeletal and rheumatic diseases, with a market share of 8.05% [3][4]. - The company has expanded its product matrix, achieving a three-digit growth rate in its subsidiary, Panlong Plant Medicine, and has registered 211 varieties of formula granules, marking a significant breakthrough [1][4]. Group 3: Innovation and R&D - In 2024, the company increased its R&D investment to 37.54 million yuan, representing an 85.31% increase from 2023, which is 5.05% of its self-produced TCM revenue [9][10]. - The company has established multiple research platforms and is actively developing innovative TCM products, with a focus on high-quality manufacturing and digital transformation [9][10]. Group 4: Marketing and Distribution - Panlong Pharmaceutical has built a comprehensive marketing network across 30 provinces in China, collaborating with over 630 pharmaceutical companies to distribute its products to more than 4,800 hospitals and 7,000 pharmacies [11]. - The company is also embracing e-commerce by launching official flagship stores on platforms like Tmall and JD, enhancing its market reach [11]. Group 5: Industry Outlook - The TCM industry is experiencing a golden period driven by policy, demand, and technology, with Panlong Pharmaceutical positioned to benefit from these trends [12][13]. - The company's strategic vision focuses on becoming a leader in rheumatology and pain management, aiming for high-quality development and increased operational efficiency [13].