Core Viewpoint - Zhendong Pharmaceutical has reported a decline in both revenue and net profit for the first half of 2025, continuing a trend of losses for three consecutive years, raising concerns about how the company will reverse its performance downturn [1][2]. Financial Performance - In the first half of 2025, Zhendong Pharmaceutical achieved revenue of approximately 1.457 billion yuan, a year-on-year decrease of 3.3% [1]. - The net profit attributable to shareholders was about 7.93 million yuan, down 74.13% year-on-year [1]. - The company has reported cumulative losses since 2022, with revenues of 3.729 billion yuan in 2022, 3.626 billion yuan in 2023, and 2.971 billion yuan in 2024, reflecting declines of 26.80%, 2.75%, and 18.06% respectively [2]. Key Products and Market Position - Zhendong Pharmaceutical's main business includes the research, production, and sales of generic and innovative drugs, particularly in oncology, dermatology, and urology [1]. - The company's core products include the proprietary Fufang Kucan Injection and Dafeixin Minoxidil Lotion, with the latter being a key focus for the company in the hair loss treatment market [3]. - Dafeixin Minoxidil Lotion holds a market share of 43% in the retail market for hair growth products as of the first half of 2025, down from 47.3% in 2024 [3]. Legal and Financial Challenges - The company faced significant financial strain due to a 500 million yuan arbitration payment related to a dispute with Beijing Landi Pharmaceutical Co., which was fully paid in July 2025 [4][5]. - The net cash flow from operating activities was approximately -403 million yuan, primarily due to the arbitration payment [4]. Future Outlook and Strategic Measures - Zhendong Pharmaceutical is focusing on optimizing its asset structure, shutting down loss-making businesses, and implementing strict cost control measures to reduce losses [1]. - The company has plans to launch new products, including hair growth tablets and white granules, in 2024 [1].

Core Viewpoint - Liu Jun is set to become the new actual controller of Jiai Technology (300309) through a share subscription, as the company faces significant operational challenges and consecutive losses since 2019 [1][5]. Group 1: Share Subscription Details - Jiai Technology plans to issue up to 265.8 million shares, aiming to raise approximately 548 million yuan, which will be used to supplement working capital and repay bank loans [2]. - The subscription includes 210.3 million shares from Gu Xu Industrial and 55.5 million shares from Yao Qing, the chairman and general manager of Jiai Technology [2]. - Gu Xu Industrial, established in May 2021 with a registered capital of 50 million yuan, is backed by Liu Jun, who is the actual controller [2][3]. Group 2: Historical Context and Performance - Liu Jun's intention to take control dates back to May 2020, when a share transfer agreement was signed for 174.2 million shares, representing 19.66% of the total share capital [3]. - The share transfer was later revised, reducing the number of shares to approximately 133 million, or 15% of the total [3]. - Following the completion of the current issuance, Gu Xu Industrial will hold 18.26% and Kun Zhan Industrial will hold 11.54%, with Liu Jun controlling a total voting power of 29.8% [3]. Group 3: Financial Performance Challenges - Jiai Technology has faced declining performance since 2019, with a reported revenue of approximately 1.182 billion yuan in 2019, a 37.03% increase year-on-year, but a net loss of about 1.191 billion yuan, a staggering 713.09% decline [5]. - In 2020, the company reported revenue of approximately 192 million yuan, an 83.76% decrease year-on-year, with a net loss of about 574 million yuan [5]. - The first quarter of this year also showed a net loss of approximately 94.9 million yuan, indicating ongoing financial struggles [6].