Core Viewpoint - The recent personnel changes at Pianzaihuang Pharmaceutical Co., Ltd. reflect an effort to improve corporate governance and operational efficiency amidst declining financial performance and market challenges [1][3]. Personnel Changes - Pianzaihuang announced the appointment of He Wei as Vice General Manager and Wei Tengyun as Chief Engineer, both with relevant experience and qualifications [1]. - The company also restructured its Board of Directors' Audit Committee, replacing previous members to ensure effective functioning [1]. - Earlier this year, the company saw the resignation of several executives, including Vice General Managers Chen Honghui and Hong Fei, with Shi Yixiong being appointed as a new Vice General Manager [2]. Financial Performance - In Q1 2025, Pianzaihuang reported a revenue of 3.142 billion yuan, a year-on-year decrease of 0.92%, while net profit increased by 2.59% to 1 billion yuan [3]. - For the full year 2024, the company achieved a revenue of 10.788 billion yuan, a growth of 7.25%, and a net profit of 2.977 billion yuan, up 6.42% [3]. - The revenue growth rate for 2024 was the lowest in a decade, and Q4 2024 marked the worst quarterly performance since 2020, with a revenue drop of 4.92% [3]. Market Dynamics - The company's previous success was largely driven by the high market price of its flagship product, which has seen a significant price drop from 1,600 yuan to as low as 590 yuan, impacting revenue [4]. - The decline in product prices, which fell nearly 40% within a year, is a direct cause of the company's financial struggles [4]. - Rising costs of key raw materials, such as cow bile, are expected to exert further pressure on the company's profitability [4]. - In response to declining performance, Pianzaihuang is exploring diversification into the beauty industry to sustain growth [4].