Core Viewpoint - The sudden resignation of Xiao Wei as the chairman of Kangyuan Pharmaceutical raises questions about the company's future direction amid declining performance [2][5]. Group 1: Company Leadership Changes - Xiao Wei, the founder and actual controller of Kangyuan Pharmaceutical, has resigned as chairman but will continue to serve as a board member and in other roles [2][5]. - His resignation is attributed to personal reasons, and it is stated that it will not affect the normal operation of the board [5][6]. - Xiao Wei has been a significant figure in the company since its inception, leading its transformation towards modernization and innovation [5][6]. Group 2: Financial Performance - In 2024, Kangyuan Pharmaceutical experienced a significant decline in performance, with revenue dropping by 19.86% to 3.898 billion yuan and net profit decreasing by 15.58% to 392 million yuan [3][8]. - The downward trend continued into the first quarter of 2025, with revenue falling by 35.38% and net profit declining by 38.37% compared to the previous year [3][8]. Group 3: Stock Incentive Plan - Due to unmet performance targets for 2024, Kangyuan Pharmaceutical decided to repurchase and cancel 3.3003 million shares of restricted stock from 155 incentive plan participants [9]. Group 4: Industry Context - There has been a trend of state-owned enterprises acquiring private traditional Chinese medicine companies, with several recent examples [10][11]. - The stock price of Kangyuan Pharmaceutical was reported at 14.73 yuan per share, with a market capitalization of 8.34 billion yuan as of June 20 [13].