Core Viewpoint - Wohuah Pharmaceutical reported strong financial results for 2025, with revenue of 817 million yuan, a year-on-year increase of 6.96%, and a net profit of 95.72 million yuan, a significant increase of 162.93% [1][2]. However, the company is entering a "no actual controller" era due to a divorce-related equity dispute involving its major shareholder [3]. Financial Performance - The company achieved a revenue of 817 million yuan in 2025, reflecting a growth of 6.96% year-on-year [1]. - The net profit reached 95.72 million yuan, marking a substantial increase of 162.93% compared to the previous year [1]. - The basic earnings per share were reported at 0.17 yuan, with a cash dividend of 1.46 yuan per 10 shares [1]. - The company's non-recurring net profit increased by 168.20% [1]. Product and Market Strategy - Wohuah Pharmaceutical has four major proprietary products that serve as its core revenue drivers, generating 569 million yuan in revenue, a growth of 12.31% year-on-year, with a gross margin of 83.43% [2]. - The company is transitioning its marketing strategy to enhance sales, focusing on both hospital and outpatient markets, establishing a "hospital + outpatient" collaborative development model [2]. - The revenue from the outpatient market, including e-commerce and OTC sales, reached approximately 103 million yuan, accounting for 12.6% of total revenue, with e-commerce sales increasing by 113% year-on-year [2]. Governance Changes - Wohuah Pharmaceutical has entered a "no actual controller" status due to a court ruling that split the equity of its controlling shareholder, Beijing Zhongzheng Wanrong Investment Group, between the former couple Zhao Bingxian and Lu Juan [3]. - The company has implemented significant reforms in its governance structure since July 2020, establishing a "board-centered" governance model that empowers the board with the highest decision-making and supervisory authority [4]. - The board has adapted to the new governance landscape, ensuring rapid response and decision-making to external market challenges, maintaining stability despite the lack of a controlling shareholder [4].

Core Viewpoint - Wohuah Pharmaceutical (002107.SZ) has become the first listed company in the A-share market to release its 2025 annual report, indicating the start of the annual performance reporting period for the market. This reflects the company's strong governance, internal control quality, and commitment to transparent information disclosure, showcasing management's confidence in operational quality and financial health [2] Financial Performance - In 2025, Wohuah Pharmaceutical achieved total operating revenue of 817 million yuan, a steady increase of 6.96% year-on-year. The net profit attributable to shareholders reached 95.7153 million yuan, a significant increase of 162.93%, marking the highest growth rate in nearly a decade. Notably, the net profit growth rate significantly outpaced revenue growth, indicating a structural improvement in profitability and quality of growth [2][3] Strategic Initiatives - The company has consistently adhered to a strategy of maintaining a strong exclusive product line. In response to deepening industry policies and increasing market competition, Wohuah Pharmaceutical has built competitive barriers through its exclusive products, including Wohuah® Xinkeshu tablets and other key products, enhancing market competitiveness [3] - The net profit growth exceeding revenue growth is attributed to the premium capability of high-value product combinations and refined cost control, demonstrating the resilience of the product line across policy cycles [3] Cash Flow and Financial Health - During the reporting period, the net cash flow from operating activities increased by 40.45%, and the asset-liability structure remained highly stable with zero interest-bearing debt. This reflects the company's excellent financial health and strong internal cash generation capability, providing a solid foundation for sustainable operations and strategic initiatives [3] Dividend Policy - The board of directors approved a cash dividend plan, proposing a distribution of 1.46 yuan (tax included) for every 10 shares. This move demonstrates management's confidence in the company's future profitability and cash position, as well as a commitment to shareholder returns under a "zero interest-bearing debt" operational model [4] Future Outlook - Looking ahead to 2026, Wohuah Pharmaceutical plans to deepen its focus on traditional Chinese medicine, emphasizing the clinical value and market synergy of its exclusive product line. The company aims to respond prudently to ongoing procurement policies and actively expand its outpatient market while enhancing research and access strategies [4]