Group 1 - The company conducted a telephone survey with institutional investors on January 22, 2026, discussing key issues such as drug development, subsidiary operations, health product channels, and dividend policies [1] - The company is making steady progress in clinical research for key drug products, including studies on diabetes foot, bone pain, and other areas, which will lay the foundation for expanding application scenarios [2] - The company plans to continue promoting existing product development while selectively extending external projects to complete its product matrix [2] Group 2 - The provincial pharmaceutical company will implement a "double rise and double drop" strategy, focusing on stabilizing existing hospital and distribution market shares while expanding non-drug businesses and new specialty pharmacies to cultivate new growth points [3] - The company aims to enhance operational efficiency by optimizing supply chain management and improving accounts receivable and inventory structures [3] Group 3 - In the health product sector, the company achieved significant breakthroughs in online channels in 2025, with a notable increase in product awareness and sales through strategic partnerships with e-commerce platforms [4] - The company’s toothpaste maintained the top market share in the domestic channel in the first half of 2025, and its anti-hair loss shampoo ranked first on Tmall during the "618" shopping festival [4] Group 4 - The company announced a high dividend policy for 2024, with a total cash dividend of approximately 4.279 billion yuan, representing 90.09% of the net profit attributable to shareholders [5] - For the first half of 2025, the company plans to distribute a cash dividend of 1.818 billion yuan, which is 50.05% of the net profit for that period [5] Group 5 - The strategic layout of the company in drug research, subsidiary operations, channel expansion, and shareholder returns is becoming clearer, with ongoing product development and supply chain optimization expected to strengthen its industry position [6] - The high dividend policy reflects the company's commitment to long-term returns for investors [6]

Group 1: Product Development and Clinical Research - The pharmaceutical division is focusing on the secondary development of key products, including clinical studies on Yunnan Baiyao (powder and capsules) for diabetic foot and bone pain, and Gongxue Ning capsules for treating abnormal uterine bleeding [2][3] - Recent clinical research results show Gongxue Ning capsules effectively reduce post-abortion vaginal bleeding and complications, with good overall safety [3] - The Qi Xue Kang oral solution is undergoing multi-center clinical studies for hypertension, with the first patient enrolled successfully [3] Group 2: Business Strategy and Market Expansion - The provincial pharmaceutical company aims to enhance market share in existing hospitals and distribution channels through a "double rise and double drop" strategy, focusing on non-drug businesses and new specialty pharmacies [4] - Efforts will be made to optimize supply chain management and improve accounts receivable and inventory structure, aiming for a patient-centered healthcare ecosystem [4] Group 3: Online Sales Performance - The pharmaceutical division's O2O sales increased by over 20% in the first half of 2025, with significant online marketing efforts boosting product awareness and sales [6] - During the 2025 "618" shopping festival, Yunnan Baiyao toothpaste ranked first in the domestic market share across all channels [6] Group 4: Dividend Distribution - For the 2024 fiscal year, the company plans to distribute a cash dividend of 11.85 CNY per 10 shares, totaling approximately 2.16 billion CNY, which represents 90.09% of the net profit attributable to shareholders [7][8] - In the first half of 2025, a cash dividend of 10.19 CNY per 10 shares will be distributed, amounting to 1.82 billion CNY, with special dividends accounting for 50.05% of the net profit for that period [8]

Financial Performance - In the first half of 2025, the company's revenue reached 3,010.46 million CNY, with a net profit attributable to shareholders of 42.9 million CNY, and a net cash flow from operating activities of 1,788.09 million CNY, achieving a year-on-year growth of 364.33% [2][4] - The overall gross margin for the first half of 2025 increased to 39.93%, up by 5.32% compared to the same period last year [3][7] Sales Channels and Market Strategy - The company maintained over 60% sales from commercial chains, approximately 20% from medical channels, and around 20% from online and other channels, with overall sales performance remaining stable compared to the previous year [4] - The company is leveraging e-commerce platforms like JD and Tmall to enhance market share and develop potential markets [4] Product Development and Innovation - The company is focusing on the secondary development of four unique products, including the Ren Shen Gu Ben Wan and Fu Fang Huang Qi Jian Pi Oral Liquid, aiming to enhance their market competitiveness through technological upgrades [6] - Major products with strong sales in the first half of 2025 include Liu Wei Di Huang Wan, Er Chen Wan, and An Gong Niu Huang Wan, with plans to continue promoting these key products [5] International Expansion - The company has exported products to 32 countries and regions, including the USA, Canada, and Australia, and has achieved significant international certifications, including TGA and PIC/S [8] - Future plans include increasing international market share through brand collaboration and channel sharing [8] Cost Management and Future Planning - The decrease in sales expenses is attributed to a decline in revenue and effective cost control measures implemented by the company [8] - The company is actively developing its "14th Five-Year Plan," focusing on marketing breakthroughs, brand building, and innovation in research and development [8]