Core Viewpoint - Koyuan Pharmaceutical is actively enhancing its market position through strategic acquisitions and international expansion efforts, aiming to build a competitive healthcare platform and increase profitability for shareholders [2][3][4]. Group 1: Stock Performance and Investor Engagement - On May 19, Koyuan Pharmaceutical's stock rose by 5.63%, closing at 32.62 CNY per share, with a trading volume of 5,707,140 shares and a turnover of 184,453,540 CNY, indicating high market activity [1]. - The company participated in an investor reception event organized by the Shandong Securities Regulatory Bureau, discussing its 2024 performance, governance, development strategy, and sustainability with investors [1]. Group 2: Acquisition of Hongjitang - Koyuan Pharmaceutical announced the acquisition of 99.42% of Hongjitang, aiming to integrate high-quality traditional Chinese medicine assets and create a competitive healthcare platform [2]. - The acquisition is expected to enhance the company's net profit attributable to shareholders, thereby maximizing shareholder value [2]. - Hongjitang, established in 1907 and recognized as a "Chinese Time-honored Brand," holds 150 drug licenses and has leading market shares in key products like Ejiao and Angong Niuhuang Wan [2]. Group 3: Global Expansion and Product Development - Koyuan Pharmaceutical focuses on the research, production, and sales of chemical raw materials and formulations, striving to become a leading domestic and internationally competitive pharmaceutical manufacturer [3]. - The company invested 37.63 million CNY in R&D in 2024, accounting for 8.12% of its revenue, with a 24.56% year-on-year increase in R&D personnel [3]. - The product portfolio includes various categories such as antidiabetic, anesthetic, cardiovascular, and psychiatric drugs, with all products certified by national GMP and several international regulatory bodies [3]. Group 4: International Market Development - Koyuan Pharmaceutical showcased its key products and solutions at two major international exhibitions, CPhI Japan and in-cosmetics Global in the Netherlands, to enhance global visibility and foster international collaborations [4]. - The company has made significant strides in its internationalization strategy, establishing a comprehensive marketing network across Europe, the Americas, and Asia-Pacific, and enhancing its core competitiveness and global influence [4].

Group 1: Company Development Strategy - The company focuses on transforming and upgrading its development strategy, enhancing core competitiveness through quality, brand, variety, specifications, and dosage forms [1] - Continuous investment in R&D, with a total of CNY 234 million invested over the past three years, aiming to enrich the product matrix and enhance sustainable development capabilities [3] - The company has developed a comprehensive product line including 109 varieties and 223 specifications of drugs, as well as 37 Class II and 37 Class I medical devices [3] Group 2: Financial Performance and Shareholder Value - The company plans to consider share repurchase based on market conditions, financial status, and development strategy, ensuring compliance with disclosure obligations [1][5] - The management is committed to improving operational quality and investment value to enhance shareholder returns [5] - The company achieved profitability in Q1 2025, indicating a positive outlook for future development [12] Group 3: Debt Management and Risk Control - The company has established a debt resolution framework with China National Pharmaceutical Group, allowing for debt repayment through equity and asset compensation [8][12] - Continuous strengthening of internal controls and audit mechanisms to mitigate historical risks and enhance compliance [8][13] - The company is actively pursuing legal measures to recover debts and ensure the execution quality of debt resolution plans [9][11] Group 4: Innovation and Product Development - The company emphasizes the integration of raw materials, formulations, medical devices, and health products to create a comprehensive pharmaceutical ecosystem [6] - It aims to enhance product lifecycle and maintain competitive advantages in the chemical drug sector through consistent evaluation and innovation [6] - The company has obtained a total of 545 authorized patents, reflecting its commitment to innovation [3]

Financial Performance - The net profit attributable to shareholders for 2024 was a loss of ¥1,368,478,968.49 [3] - In Q1 2025, the net profit attributable to shareholders was ¥16,028,449.64 [3] - The overall revenue for the pharmaceutical manufacturing industry in 2024 was ¥25,298.50 billion, remaining stable compared to 2023, while the total profit decreased by 1.1% [13] Market Strategy - The company aims to maintain a high market share in peritoneal dialysis solutions by actively participating in national and local procurement initiatives [1] - The company plans to enhance customer management and service levels, leveraging the advantages of winning procurement bids to deepen sales channels [2] - The target for the medical device and packaging sector in 2025 is to achieve full coverage of key drug-related medical devices and a self-sufficiency rate of over 90% for packaging [4] Product Development - The company is expanding its health product lines, including beverages, cosmetics, and health drinks, with a focus on brand and channel development [5][6] - Six new raw materials and formulations were approved in 2024, contributing to the expectation of revenue growth [6] - The company has 20 products and 23 specifications that have passed or are deemed to have passed consistency evaluations, enhancing competitiveness in key therapeutic areas [7] Sales Model - In 2024, direct sales accounted for 39.47% and distribution sales accounted for 60.53% of total sales [7] Challenges and Future Outlook - The significant decline in Q1 2025 performance was attributed to the implementation of national drug price governance and participation in procurement, leading to lower sales prices [9][11] - The company is optimistic about future profitability, focusing on core business areas and improving product structure and management efficiency [11] - Despite current challenges, the long-term growth logic of the pharmaceutical industry remains intact, driven by factors such as aging population and increased health awareness [13] Social Responsibility - The company emphasizes environmental protection and sustainable development, having successfully passed re-certification for environmental and occupational health safety management systems in 2024 [8]