Core Viewpoint - Wohu Pharmaceutical (002107.SZ) has reported its 2025 annual performance, marking the beginning of the annual report period for A-share market, with significant growth in both revenue and net profit [1][3]. Financial Performance - In 2025, Wohu Pharmaceutical achieved total revenue of 817 million yuan, a steady increase of 6.96% year-on-year [3]. - The net profit attributable to shareholders reached 95.7153 million yuan, a substantial increase of 162.93%, marking the highest growth rate in nearly a decade [3]. - The growth rate of net profit significantly outpaced that of revenue, indicating a structural improvement in profitability and quality of growth [3]. Competitive Positioning - The company has established a competitive barrier through its unique products, including Wohu® Xinkeshu tablets and other proprietary medical insurance products, which enhance market competitiveness [3]. - The core product, Wohu® Xinkeshu tablets, has improved market penetration and brand recognition through participation in national procurement and evidence-based research [3]. - The structural improvement in profitability is attributed to the premium capability of high-value product combinations and refined cost control [3]. Cash Flow and Financial Health - The net cash flow from operating activities increased by 40.45% year-on-year, indicating strong cash generation [3]. - The company maintains a robust asset-liability structure with zero interest-bearing debt [3]. Dividend Policy - The board has approved a cash dividend of 1.46 yuan per 10 shares (tax included), reflecting management's confidence in the company's future profitability and cash position [4]. - This decision underscores the company's commitment to shareholder returns and its prudent financial strategy [4]. Strategic Outlook - For 2026, Wohu Pharmaceutical plans to focus on its proprietary Chinese medicine business, emphasizing the clinical value and market synergy of its unique product lines [4]. - The company aims to respond effectively to ongoing procurement policies and actively expand its outpatient market [4]. - Wohu will continue to enhance its R&D and market access strategies, aiming for operational efficiency through meticulous management practices [4].