Shaanxi Panlong Pharmaceutical (SZ:002864) Zheng Quan Zhi Xing·2025-08-30 08:02Core Viewpoint - Panlong Pharmaceutical (002864.SZ) reported a strong performance for the first half of 2025, achieving revenue growth and profit increase, driven by its "one body, two wings, three depths" strategy, with significant contributions from its core product, Panlong Seven Tablets, and a remarkable growth in traditional Chinese medicine (TCM) decoction pieces [3][4][5]. Financial Performance - In the first half of 2025, Panlong Pharmaceutical achieved revenue of 574 million yuan, a year-on-year increase of 26.06%, and a net profit attributable to shareholders of 60.14 million yuan, up 0.81% [4]. - The company’s self-produced TCM contributed 319 million yuan in revenue, a growth of 2.29%, accounting for 55.5% of total revenue, with a gross margin of 87.26% [5]. - The TCM decoction pieces saw a staggering revenue increase of 380.89%, reaching 123 million yuan, marking it as the fastest-growing product in the first half of the year [5]. Product and Market Strategy - Panlong Seven Tablets maintained a strong market position with a market share of 7.73% in the TCM market for musculoskeletal diseases [7]. - The company has transformed its marketing system, covering over 5,000 medical institutions and tens of thousands of retail terminals, establishing a dual-driven model of "medical + retail" [5][6]. - The company is embracing the "Internet + medicine" trend, enhancing brand communication through digital platforms, which has significantly increased product search volume [8]. Research and Development - R&D investment reached 15.85 million yuan in the first half of 2025, an increase of 11.18%, focusing on innovative TCM and chemical generic drugs [9]. - The number of registered TCM formula granules increased to 310, indicating a robust pipeline for future growth [9][10]. - The company has established a strong R&D platform, with 79 patents held, including 36 authorized invention patents [10]. Investment and Growth Strategy - Panlong Pharmaceutical is actively engaging in investment activities to support its product development goals, with significant progress in its industrial fund investments [11][12]. - The company is focusing on integrating its core business with investment projects to enhance resource synergy and efficiency [12][13]. - A new TCM innovation drug R&D platform has been established in the Guangdong-Hong Kong-Macao Greater Bay Area, targeting the development of TCM for chronic orthopedic diseases [13].