Core Viewpoint - Sichuan Jinshi Asia Pharmaceutical Co., Ltd. (referred to as "Jinshi Asia Pharmaceutical" or "the company") reported a decline in both revenue and net profit for the fiscal year 2024 and the first quarter of 2025, primarily due to intensified competition in the cold medicine market and changes in medical policies [1][2]. Financial Performance - In 2024, the company achieved total revenue of 1.102 billion yuan, a year-on-year decrease of 8.84%, and a net profit of 91.76 million yuan, down 27.29% [1]. - For the first quarter of 2025, revenue was 291 million yuan, reflecting a 19.65% decline year-on-year, while net profit was 62.85 million yuan, a decrease of 30.02% [1][2]. Market Dynamics - The cold medicine market has become increasingly competitive, with a diverse range of products including traditional cold medicines, Chinese herbal medicines, and imported antiviral drugs, which has intensified market competition [1][2]. - The shift in patient treatment preferences towards hospital care during the 2024 flu season has led to a significant reduction in retail sales of cold medicines [2]. Business Structure - The company's reliance on the cold medicine category has exacerbated revenue volatility, as its core product line, the "Kuaike" cold medicine series, has seen a decline in demand following a period of heightened consumption [2]. - Despite attempts to diversify into health products and prescription drugs, these new business segments have not yet contributed significantly to overall revenue [2]. Product Concentration - Jinshi Asia Pharmaceutical's main business includes the research, production, and sales of over 90 drug production approvals and 7 health food production approvals, with the Kuaike cold medicine series being a major revenue source [3]. - The concentration of leading products in specific market segments provides a competitive advantage, but any adverse changes in raw material prices or market conditions could significantly impact the company's performance [3].

Core Viewpoint - The company, China National Pharmaceutical Group (Sinopharm), reported its first decline in both revenue and net profit since its listing in Hong Kong 15 years ago, with a significant drop in net profit exceeding 20% in 2024 due to a slowdown in its high-margin medical device distribution business [1] Financial Performance - In 2024, the total revenue was approximately 458.45 billion, a decrease from 596.57 billion in 2023, marking a decline of about 2.5% [2] - The gross profit for 2024 was 44.26 billion, down from 48.51 billion in 2023, indicating a decrease of approximately 8.5% [2] - The operating profit fell to 16.19 billion from 20.21 billion, a decline of about 20% [2] - The net profit attributable to the parent company was 7.05 billion, down from 9.05 billion, reflecting a decrease of approximately 22% [3] Business Segment Analysis - The pharmaceutical distribution segment generated revenue of approximately 444.37 billion, accounting for about 73.16% of total revenue, with growth driven by an increase in procurement variety [3] - The medical device distribution segment saw revenue of approximately 117.91 billion, a year-on-year decline of 9.44%, primarily due to changes in end-user demand and a decrease in sales of high-margin device categories [3] - The retail segment achieved revenue of 35.98 billion, a slight increase of 0.82%, but the operating profit margin decreased by 2.31 percentage points to 0.90% [4] Subsidiary Performance - Sinopharm's subsidiary, Sinopharm Holding GuoDa Drugstores, experienced a revenue decline of about 8%, while its net profit dropped by 110.36% [4] - Sinopharm's other subsidiary, Sinopharm Weiye, reported a revenue decrease of 7.75% and a net profit decline of 60.88%, with a significant drop in cash flow from operating activities by 285.26% [5]