Core Viewpoint - The company is undergoing significant marketing organizational changes and adjustments to its sales channels, which have impacted its 2024 financial performance, leading to a substantial decline in net profit and revenue [10][12]. Group 1: Financial Performance - In 2024, the company achieved an operating income of 687.79 million yuan, a year-on-year decrease of 35.55% [10]. - The net profit attributable to shareholders was 20.50 million yuan, down 91.90% year-on-year [10]. - The company has reduced shipments of its core product, Zhi Ke Bao Pian, which has led to a significant drop in sales revenue for this high-margin product [10]. Group 2: Marketing and Sales Strategy - The company is transitioning from a distributor model to a mixed model of self-operated and promotional service providers in its pharmacy sales [10]. - Marketing expenses have increased significantly as the company aims to enhance brand awareness and reputation, resulting in a higher proportion of sales expenses [10]. - The company plans to leverage digital marketing and expand its marketing channels, including social media platforms like Douyin and Xiaohongshu, to improve product visibility [3][10]. Group 3: Product Focus and Development - The company considers Zhi Ke Bao Pian as its core product, with plans to increase its sales to 100 million boxes within 3-5 years post-reform [3]. - The company is also focusing on developing a product cluster around Zhi Ke Bao Pian, which includes other traditional Chinese medicine products [3]. - The company has a production capacity of 1.8 billion pieces for Zhi Ke Bao Pian, with potential to expand to 2.4 billion pieces [3]. Group 4: Governance and Future Plans - The company is committed to improving its corporate governance and is open to external growth opportunities, including mergers and acquisitions, to enhance its competitive edge [5][14]. - The management emphasizes the importance of internal growth while also considering external partnerships to strengthen the company's market position [5][14]. - The company aims to maintain a strong focus on traditional Chinese medicine products, aligning with national policies that support the industry [6][14].

Core Viewpoint - The transformation of agricultural practices in Ruoergai County, Sichuan, led by the local government and supported by the multinational pharmaceutical company, TCM Village, has significantly improved the livelihoods of local farmers through the establishment of a standardized rhubarb production base and the shift from wild harvesting to artificial cultivation [1][3]. Group 1: Agricultural Transformation - The local government initiated an agricultural structure transformation, leveraging ecological advantages and scientific resource planning to develop a high-value rhubarb industry [1]. - The development model "Party + Company + Base + Farmers" has been established, enhancing the local economy by transitioning from single crop planting to a diversified rhubarb industry [1]. - The income for local farmers has increased from 500 yuan per mu to between 1400 and 2000 yuan per mu due to the new cultivation practices [1]. Group 2: TCM Village's Role - TCM Village has been operating in China for over 40 years, collaborating closely with local partners like Ping An Group and Shanghai Pharmaceuticals to support the high-quality development of the traditional Chinese medicine industry [3]. - The company has established partnerships with 9,000 farmers across 15 provinces, assisting in the cultivation of over 100 varieties of medicinal herbs [3]. - TCM Village has invested in the world's largest ginseng cultivation base in Jilin Province, creating over 800 local jobs and contributing billions to the local economy [3]. Group 3: Technical Support and Training - TCM Village provides regular technical guidance and GACP training to farmers, helping them transition from traditional farming methods to modern, skilled agricultural practices [5]. - This initiative has not only improved the quality of medicinal herbs but also cultivated a significant number of professionals in the industry, laying a foundation for the future of traditional Chinese medicine [5]. Group 4: Sustainable Development Initiatives - TCM Village collaborates with local research institutions to promote sustainable industry development, including sharing patented cultivation techniques with Chinese enterprises [7]. - The company works with the Chinese Academy of Traditional Chinese Medicine to address pest and disease challenges in large-scale cultivation [7]. - TCM Village aims to foster long-term development in the industry, emphasizing responsibility and community support through its initiatives [7].