Core Viewpoint - Jianmin Group's 2024 annual report reveals a significant decline in both revenue and net profit, marking the first annual performance drop in six years, despite the strong sales of its flagship product, Longmu Zhuanggu Granules [2][4][6]. Financial Performance - The company achieved operating revenue of 3.505 billion yuan in 2024, a year-on-year decrease of 16.81% from 4.213 billion yuan in 2023 [3]. - The net profit attributable to shareholders was 362 million yuan, down 30.54% from 521 million yuan in the previous year [3][4]. - The cash flow from operating activities was 234 million yuan, a decrease of 12.71% compared to 268 million yuan in 2023 [3][11]. Product Performance - Longmu Zhuanggu Granules, the company's core product, has sold 300 billion bags since its launch over 30 years ago, but its sales volume decreased significantly in 2024 due to inventory reduction efforts [5][6]. - Pediatric product sales volumes fell by 41.67% and 32.44% year-on-year, while gynecological and specialty traditional Chinese medicine products also saw declines [6]. Market Position and Competition - Jianmin Group's revenue of 3.505 billion yuan in 2024 is significantly lower compared to leading industry players such as Baiyunshan (749.93 billion yuan) and Huaren Sanjiu (276.17 billion yuan) [9]. - The company faces increasing competition from other brands offering similar pediatric products, despite having a unique formula and production process for Longmu Zhuanggu Granules [7]. Strategic Initiatives - The company plans to utilize up to 1.4 billion yuan of idle funds for cash management through low-risk financial products, aiming to enhance returns without affecting daily operations [4]. - Jianmin Group is undergoing a marketing system reform and enhancing digital capabilities to address declining sales and improve inventory management [6][12]. R&D and Future Outlook - The company invested 97.16 million yuan in R&D in 2024, accounting for 2.77% of revenue, which is relatively low compared to industry peers [11]. - Despite the challenges, Jianmin Group emphasizes R&D innovation as a core driver for future growth, focusing on developing new pediatric generic and modified drugs [11][12].