Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Insights - The company is expected to achieve a revenue of 2.131 billion yuan in the first half of 2025, representing a year-on-year growth of 4.32%, with a net profit of 365 million yuan, up 6.10% year-on-year [1]. - The approval of two hypertension drugs, Xinchaotuo/S086 and Fuli'an/SAL0108, is anticipated to significantly contribute to the company's revenue growth [2]. - The company has established a differentiated product portfolio in the hypertension field, addressing various patient needs with multiple formulations [2]. - The new diabetes drug, Xinlitin, is expected to gain market share due to its inclusion in the national medical insurance directory [2]. - The company is enhancing its sales network and academic coverage to strengthen its brand influence in chronic disease management [3]. Financial Performance - The company reported a revenue of 1.069 billion yuan in Q2 2025, a year-on-year increase of 12.30%, with a net profit of 165 million yuan, up 14.55% year-on-year [1]. - The projected revenues for 2025-2027 are 4.427 billion, 5.422 billion, and 6.270 billion yuan, respectively, with net profits of 688 million, 816 million, and 933 million yuan [6][13]. Pipeline and R&D - The company has a robust pipeline with several projects in progress, including the applications for the drugs Ennadustat and SAL056, which are currently under review [4]. - The clinical trials for the chronic heart failure drug JK07 have shown promising mid-term data, indicating good safety and efficacy [4]. - Additional projects in early clinical stages include SAL0140 and JK06, with expectations for further advancements in the cardiovascular and metabolic fields [5].

Financial Performance - In 2024, the company reported a revenue of 3.377 billion yuan, a year-on-year decrease of 40.76% [2] - The net profit attributable to shareholders was 492 million yuan, down 56.03% year-on-year [2] - The net profit after deducting non-recurring items was 345 million yuan, a decline of 65.65% year-on-year [2] - Basic earnings per share were 0.84 yuan, with a weighted average return on equity of 10.76% [2] Expense Structure - Total operating expenses for 2024 amounted to 955 million yuan, a reduction of 981 million yuan year-on-year, resulting in an expense ratio of 28.28% [5] - Sales expenses significantly decreased by 68.46% due to channel adjustments, while R&D expenses slightly decreased by 3.51% [5] - Financial expenses increased by 27.73% year-on-year [5] Business Segmentation - Revenue from traditional Chinese medicine was 2.463 billion yuan, down 40.55%, accounting for 72.96% of total revenue [5] - The core product, liver-protecting tablets, achieved sales exceeding 1 billion yuan, but respiratory products saw a significant decline in sales due to high base effects and reduced demand [5] - Revenue from chemical drugs was 712 million yuan, a decrease of 47%, representing 21% of total revenue [5] Product Development - The company has over 60 children's products covering cold, digestive, and respiratory fields, with nearly 30 products achieving sales over 10 million yuan [5] - Adult medications focus on cardiovascular and rheumatic diseases, maintaining a leading market share for liver-protecting tablets [5] - Ten chemical drugs and three traditional Chinese medicine products are in the pilot testing stage, with some products already accepted for review [5] R&D Investment - R&D investment for 2024 was 124 million yuan, accounting for 3.68% of revenue, with a continued focus on the "buy, modify, connect, research, and substitute" strategy, particularly in children's and chronic disease medications [5] Dividend Distribution - The company plans to distribute a cash dividend of 5 yuan per 10 shares (including tax) for 2024 [6]