Core Insights - Jiangzhong Pharmaceutical achieved a revenue of 4.435 billion yuan in 2024, a year-on-year decrease of 2.59%, while the net profit attributable to shareholders was 788 million yuan, an increase of 9.67% [1] - The OTC segment showed strong demand with a revenue of 3.266 billion yuan, reflecting a year-on-year growth of 7.07% [1] OTC Segment Performance - Key products in the gastrointestinal field, such as the core product "Gastrointestinal Digestive Tablets," saw a double-digit revenue growth, with sales reaching 169 million boxes, up by 10.91% year-on-year [1] - In the throat and cough segment, core products like "Compound Fresh Bamboo Liquid" and "Compound Grass Coral Tablets" contributed to double-digit growth, with sales of "Compound Grass Coral Tablets" reaching 37 million boxes, up by 4.05% year-on-year [1] - The nutritional supplement segment saw a revenue of over 200 million yuan, with sales of "Multivitamin Tablets" at 12 million boxes, down by 10.30% year-on-year [1] Health Business and Prescription Drug Segment - The health segment reported a revenue of 345 million yuan, a significant year-on-year decline of 47.30%, attributed to intensified industry competition and restructuring efforts [2] - The prescription drug segment generated a revenue of 793 million yuan, down by 3.50% year-on-year, with the decline narrowing due to the consolidation of traditional Chinese medicine pieces [2] Profitability and Cost Management - The company's gross margin was 63.52%, a decrease of 0.51 percentage points year-on-year, with the OTC segment having the highest gross margin at 72.74% [3] - The sales expense ratio improved to 33.70%, down by 2.33 percentage points year-on-year, while the net profit margin increased to 17.77%, up by 1.99 percentage points year-on-year [3] Dividend Policy and Future Outlook - The company announced a cash dividend of 7 yuan per 10 shares, resulting in a cash dividend ratio of 55.86%, with an overall annual dividend ratio reaching 95.77% [3] - The company aims for double-digit growth in revenue and profit by 2025, supported by a dual-driven strategy of "internal growth + external expansion" [3][4]

Summary of the Conference Call for Jiangzhong Pharmaceutical Company Overview - Jiangzhong Pharmaceutical is a leading Chinese OTC (over-the-counter) pharmaceutical company, known for its well-established brands such as "Jiangzhong" and "Chuyuan" [10][24]. Key Financial Performance - **2024 Revenue**: 4.44 billion RMB, a decrease of 2.6% year-on-year [1] - **Net Profit**: 790 million RMB, an increase of 9.7% year-on-year, aligning with previous forecasts [1] - **Q4 2024 Revenue**: 1.31 billion RMB, a decrease of 0.8% year-on-year [1] - **Q4 2024 Net Profit**: 140 million RMB, an increase of 11% year-on-year [1] - **Dividend**: Total cash dividend of 750 million RMB, resulting in a 96% payout ratio and a 5.4% dividend yield [1] Business Segment Performance - **OTC Business**: Revenue increased by 7% year-on-year, impacted by a high base in the first half of the year [2] - **Prescription Drugs**: Revenue decreased by 3.5% year-on-year, affected by centralized procurement policies [2] - **Health Products**: Revenue saw a significant decline of 47.3% year-on-year due to business restructuring [2] - **Gross Margin**: Overall gross margin decreased by 0.06 percentage points to 64.0% [2] - **OTC/Health Products Gross Margin**: Increased by 1 percentage point to 72.7% and 0.6 percentage points to 37.7%, respectively [2] - **Prescription Drugs Gross Margin**: Decreased by 17.5 percentage points to 39.3% [2] - **Expenses**: Sales expenses decreased by 8.9%, while management expenses increased by 3.6% [2] Future Outlook - The company will hold a live earnings release conference on March 21 in Nanchang [3]. Valuation and Investment Rating - **Target Price**: 31.00 RMB, maintaining a "Buy" rating based on the SOTP (Sum of the Parts) valuation method [4][11]. - **Current Stock Price**: 21.93 RMB as of March 19, 2025 [5][24]. - **Market Capitalization**: 13.8 billion RMB (approximately 1.91 billion USD) [5]. Risk Factors - Key risks include: - Underperformance in OTC product sales [11] - Slower-than-expected progress in mergers and acquisitions [11] - Growth and margin improvements in the health business post-restructuring may not meet expectations [11] - Price volatility of key raw materials, particularly Taizishen [11] Additional Insights - The company has a projected stock price increase of 41.4% and a forecasted dividend yield of 3.9%, leading to an expected total return of 45.2% [9]. - The stock is rated as "Buy" with a significant upside potential compared to the market return expectations [19]. This summary encapsulates the essential financial metrics, business performance, future outlook, and investment considerations for Jiangzhong Pharmaceutical as discussed in the conference call.

Investment Rating - The investment rating for Jiangzhong Pharmaceutical (600750.SH) is "Buy" (maintained) [1] Core Views - The company is expected to achieve steady revenue and profit growth in 2024, with a projected revenue of 4.435 billion yuan (down 2.59% year-on-year) and a net profit of 788 million yuan (up 9.67% year-on-year) [4] - The report highlights the company's strong brand advantages in the gastrointestinal and intestinal medication sectors, which are expected to drive long-term growth potential [4] - The earnings forecast for 2025-2027 has been maintained, with net profits projected at 891 million yuan, 1.008 billion yuan, and 1.131 billion yuan respectively [4] Financial Performance Summary - In 2024, the company achieved a gross margin of 63.52% (down 1.79 percentage points) and a net margin of 19.40% (up 1.94 percentage points) [4] - The sales expense ratio decreased to 33.70% (down 3.38 percentage points), while the management expense ratio increased to 5.16% (up 0.37 percentage points) [4] - The company’s non-prescription drug business generated revenue of 3.266 billion yuan (up 7.07%) with a gross margin of 72.74% (up 1.04 percentage points) [5] - The prescription drug segment reported revenue of 793 million yuan (down 3.50%) with a gross margin of 39.30% (down 17.54 percentage points) [5] Business Segment Insights - The non-prescription drug segment continues to show robust growth, particularly in core products like Jianwei Xiaoshi Pian, which achieved double-digit growth [6] - The company is optimizing its brand positioning in health consumer products and focusing on self-developed products to drive future growth [6] - The prescription drug segment is targeting specific demographics and therapeutic areas, including elderly care, women's health, and gastrointestinal treatments [6] Financial Projections - Revenue is projected to increase to 4.820 billion yuan in 2025, with a year-on-year growth of 8.7% [8] - The earnings per share (EPS) is expected to rise from 1.25 yuan in 2024 to 1.42 yuan in 2025, and further to 1.80 yuan by 2027 [8] - The price-to-earnings (P/E) ratio is projected to decrease from 17.5 in 2024 to 12.2 by 2027 [8]

Investment Rating - The industry investment rating is "Positive," indicating an expected overall return exceeding 5% above the CSI 300 index within the next six months [11]. Core Insights - AstraZeneca's Imfinzi has received EU approval for treating adult patients with limited-stage small cell lung cancer (LS-SCLC) who have not progressed after platinum-based chemotherapy [6]. - The pharmaceutical sector's performance on March 18, 2025, showed a slight increase of 0.02%, underperforming the CSI 300 index by 0.04 percentage points, ranking 9th among 31 sub-industries [5]. - Notable stock performances included Aipeng Medical (+15.88%), Innovation Medical (+10.03%), and Xingqi Eye Medicine (+7.17%), while Oriental Ocean (-9.22%), Anbiping (-5.73%), and Shuangcheng Pharmaceutical (-4.34%) faced declines [5]. Sub-industry Ratings - Chemical Pharmaceuticals: No rating - Traditional Chinese Medicine: No rating - Biopharmaceutical II: Neutral - Other Pharmaceutical Industries: Neutral [3]. Company Performance - China National Pharmaceutical Group reported a revenue of 50.597 billion, a year-on-year increase of 1.81%, with a net profit of 2 billion, down 6.80% [6]. - Jiangzhong Pharmaceutical achieved a revenue of 4.435 billion, a year-on-year decrease of 2.59%, with a net profit of 788 million, up 9.67% [7]. - China Resources Double Crane reported a revenue of 11.212 billion, a year-on-year decrease of 0.87%, with a net profit of 1.628 billion, down 2.55% [7]. - Fosun Pharma's subsidiary received orphan drug designation from the FDA for HLX22, a new targeted monoclonal antibody for gastric cancer treatment [7].

Investment Rating - The industry investment rating is "Positive," indicating an expected overall return exceeding 5% above the CSI 300 index within the next six months [11]. Core Insights - AstraZeneca's Imfinzi has received EU approval for treating adult patients with limited-stage small cell lung cancer (LS-SCLC) who have not progressed after platinum-based chemotherapy [6]. - The pharmaceutical sector's performance on March 18, 2025, showed a slight increase of +0.02%, underperforming the CSI 300 index by 0.04 percentage points, ranking 9th among 31 sub-industries [5]. - Notable stock performances included Aipeng Medical (+15.88%), Innovation Medical (+10.03%), and Xingqi Eye Medicine (+7.17%), while Oriental Ocean (-9.22%), Anbiping (-5.73%), and Shuangcheng Pharmaceutical (-4.34%) faced declines [5]. Sub-industry Ratings - Chemical Pharmaceuticals: No rating - Traditional Chinese Medicine: No rating - Biopharmaceutical II: Neutral - Other Pharmaceutical Industries: Neutral [3]. Company Performance - China National Pharmaceutical Group reported a revenue of 50.597 billion, a year-on-year increase of 1.81%, with a net profit of 2 billion, down 6.80% [6]. - Jiangzhong Pharmaceutical achieved a revenue of 4.435 billion, a year-on-year decrease of 2.59%, with a net profit of 788 million, up 9.67% [7]. - China Resources Double Crane reported a revenue of 11.212 billion, a year-on-year decrease of 0.87%, with a net profit of 1.628 billion, down 2.55% [7].

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company achieved a revenue of 4.435 billion RMB in 2024, a decrease of 3% year-on-year, while the net profit attributable to shareholders increased by 10% year-on-year to 788 million RMB, indicating that the performance met expectations [1] - The OTC segment showed resilience with a revenue of 3.27 billion RMB in 2024, reflecting a 7% year-on-year growth, driven by strong performance in specific products [2] - The company plans to distribute a cash dividend of 755 million RMB, representing 95.77% of the net profit attributable to shareholders for 2024, highlighting its commitment to shareholder returns [3] - The company has raised its operational targets for 2025, indicating confidence in achieving a compound annual growth rate of at least 12% for net profit from 2025 to 2027 [4] - The target price for the company is set at 28.53 RMB, based on a 20x PE ratio for 2025, reflecting a positive outlook for future earnings growth [5] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4.435 billion RMB, with a net profit of 788 million RMB, and a non-recurring net profit of 749 million RMB, showing a year-on-year increase of 10% and 6% respectively [1] - The fourth quarter of 2024 saw a revenue of 1.464 billion RMB, marking a 17% year-on-year increase, and a net profit of 154 million RMB, up 30% year-on-year [1] Segment Analysis - The OTC segment's revenue for 2024 was 3.27 billion RMB, growing by 7% year-on-year, with significant contributions from gastrointestinal products and other key items [2] - The health consumer products segment faced a decline of 47% year-on-year, attributed to increased competition and restructuring efforts, but is expected to recover significantly in 2025 [2] - The prescription drug segment reported a revenue of 790 million RMB, down 3% year-on-year, but is anticipated to stabilize and grow in the medium to long term [2] Dividend Policy - The company plans to maintain a high dividend payout, with a cash dividend of 755 million RMB for 2024, reflecting a strong commitment to returning value to shareholders [3] Future Outlook - The company has set ambitious targets for 2025-2027, including a minimum return on capital of 15.42% and a compound annual growth rate for net profit of at least 12% [4] - The earnings forecast for 2025-2027 predicts net profits of 897 million RMB, 1.015 billion RMB, and 1.145 billion RMB respectively, indicating a growth trajectory of 14%, 13%, and 13% year-on-year [5]

关 于 江中药业股份有限公司 国浩律师（上海）事务所 2021 年限制性股票激励计划 回购注销部分限制性股票事宜 的 法律意见书 上海市静安区山西北路 99 号苏河湾中心 25-28 楼 邮编：200085 25-28/F, Suhe Centre, 99 North Shanxi Road, Jing'an District, Shanghai, China 电话/Tel: +86 21 52341668 传真/Fax: +86 21 52341670 网址/Website: http://www.grandall.com.cn 2025 年 3 月 | 释 义 | | | 2 | | --- | --- | --- | --- | | 第一节 | | 律师声明事项 | 5 | | 第二节 | 正文 | | 6 | | | | 一、本次回购注销的批准与授权 | 6 | | | | 二、本次回购注销的主要内容 | 10 | | 三、结论意见 | | | 12 | 国浩律师（上海）事务所 法律意见书 释 义 以下词语如无特殊说明，在本文中具有如下含义： | 江中药业、本公司、公司 | 指 | 江中药业股份有限公 ...

江中药业股份有限公司 2024 年度独立董事述职报告 （洪连进） 本人作为江中药业股份有限公司（以下简称"公司"）的独立董 事，在任职期间严格按照《公司法》《证券法》《上市公司独立董事 管理办法》《公司章程》《公司独立董事制度》等相关规定，本着客 观、公正、独立的原则，勤勉尽责、独立履职，积极出席相关会议， 认真审议各项议案，对公司的发展及经营活动进行独立判断，充分 发挥独立董事及各专门委员会委员的作用，切实维护公司和全体股 东的合法权益。现将2024年度本人履行独立董事职责的工作情况汇 报如下： 一、基本情况 （一）个人工作履历、专业背景以及兼职情况 本人洪连进，汉族，1972年出生，大学本科学历。历任劲霸男 装股份有限公司副总裁、北大汇丰商学院特约讲师、深圳清华大学 研究院高级工商管理研修班外聘讲师；现任品牌战略定位独立咨询 专家、中国传媒大学广告学院客座教授。本人自2018年12月起担任 公司独立董事，因连续任职已满六年，已于2024年12月辞去公司独 立董事及董事会专门委员会相关职务。2024年12月23日，江中药业 2024年第三次临时股东大会选举新任独立董事后，本人正式离任。 （二）独立性情况说明 ...

江中药业股份有限公司 2024 年度独立董事述职报告 （谢亨华） 本人作为江中药业股份有限公司（以下简称"公司"）的独立董 事，在任职期间严格按照《公司法》《证券法》《上市公司独立董事 管理办法》《公司章程》《公司独立董事制度》等相关规定，本着客 观、公正、独立的原则，勤勉尽责、独立履职，积极出席相关会议， 认真审议各项议案，对公司的发展及经营活动进行独立判断，充分 发挥独立董事及各专门委员会委员的作用，切实维护公司和全体股 东的合法权益。现将2024年度本人履行独立董事职责的工作情况汇 报如下： 一、基本情况 （一）个人工作履历、专业背景以及兼职情况 谢亨华，汉族，1973年出生，持有中国政法大学经济法学专业 法学博士学位。历任北京光大高登房地产有限公司总经理助理，北 京西单世纪明珠百货有限公司副总经理、总经理，北京市鑫河律师 事务所副主任，江中药业股份有限公司独立董事、中国科学技术法 学会常务理事。现任北京市鑫河律师事务所合伙人、主任。本人自 2024年12月起担任公司独立董事，未担任其他上市公司独立董事。 （二）独立性情况说明 在担任公司独立董事期间，本人未在公司担任除独立董事以外 的任何职务，也未在公 ...

公司代码：600750 公司简称：江中药业 江中药业股份有限公司 2024 年度内部控制评价报告 二. 内部控制评价结论 1. 公司于内部控制评价报告基准日，是否存在财务报告内部控制重大缺陷 □是 √否 2. 财务报告内部控制评价结论 √有效 □无效 根据公司财务报告内部控制重大缺陷的认定情况，于内部控制评价报告基准日，不存在财务报告内 部控制重大缺陷，董事会认为，公司已按照企业内部控制规范体系和相关规定的要求在所有重大方面保 持了有效的财务报告内部控制。 江中药业股份有限公司全体股东： 根据《企业内部控制基本规范》及其配套指引的规定和其他内部控制监管要求（以下简称企业内部 控制规范体系），结合本公司（以下简称公司）内部控制制度和评价办法，在内部控制日常监督和专项 监督的基础上，我们对公司2024年12月31日（内部控制评价报告基准日）的内部控制有效性进行了评价。 一. 重要声明 按照企业内部控制规范体系的规定，建立健全和有效实施内部控制，评价其有效性，并如实披露内 部控制评价报告是公司董事会的责任。监事会对董事会建立和实施内部控制进行监督。经理层负责组织 领导企业内部控制的日常运行。公司董事会、监事会及董事 ...