Summary of 康辰药业 Conference Call Company Overview - **Company**: 康辰药业 (Kangchen Pharmaceutical) - **Industry**: Pharmaceutical Key Points Marketing Model Transformation - 康辰药业 is transitioning from an alliance model to a self-operated model, starting in Q2 2024, with 60% of the market already completed. This transformation initially impacted revenue but is expected to stabilize by Q4 2024, with a target self-operated ratio of 70%-80% by 2025 [2][3][6]. Financial Performance - In Q1 2025, 康辰药业 reported year-on-year revenue and profit growth, maintaining sales levels consistent with Q4 2024, averaging over 1 million units sold monthly. The company anticipates stable sales for the entire year [3][6]. R&D Progress - **Innovative Drug KC1,036**: - Currently in late-stage clinical trials for esophageal squamous cell carcinoma with approximately 180 patients enrolled. Data for thymic tumors is expected in 2025, and esophageal cancer data may be available for submission by the end of 2026 [2][4][10]. - **Innovative Drug KC1,086**: - Targeting breast cancer, IND application submitted, with data expected in H1 2026 and Phase II trials to start in H2 2026. The drug has a shorter half-life than similar products from Pfizer, potentially enhancing efficacy [2][5][12]. - **Innovative Traditional Chinese Medicine 5,301**: - Expected to submit NDA by July 2025 and potentially receive approval by Q3 2026. This product targets chronic pain post-gynecological inflammation, with a projected peak sales of at least 500 million [2][17]. Sales and Revenue Goals - **苏灵 Product**: - Aims for over 20% sales growth in 2025, with revenue growth not less than 10%. The goal is to develop it into a billion-level product within five years [2][7][6]. Market Challenges - **密盖息 Product**: - Facing price reduction pressures from centralized procurement, with an expected price drop of 10%-20%. The company aims to maintain sales levels in 2025 and return to growth in 2026 [2][8][18]. Strategic Initiatives - 康辰药业 is focusing on expanding its self-operated model to enhance market penetration and hospital admissions, while also promoting nasal spray products [6][19]. Future Directions - The company plans to continue its focus on small molecule drugs while exploring collaborations in other therapeutic areas. The R&D system has been restructured to enhance efficiency and output [15][21]. Acquisition Strategy - 康辰药业 is actively seeking to acquire new products while navigating challenges posed by centralized procurement and local pricing pressures. The company aims to leverage its self-operated model to maximize market potential [19][20]. Overall Outlook - 康辰药业 is positioned to capitalize on its marketing transformation and R&D advancements, with a focus on maintaining stable sales and exploring new market opportunities while managing the challenges of the pharmaceutical landscape [21].

Core Points - The company is preparing for the 2024 Annual General Meeting (AGM) scheduled for June 20, 2025, to discuss various proposals including the annual financial report and related transactions [3][4][28] - The company emphasizes the importance of maintaining shareholder rights and orderly conduct during the AGM, with specific guidelines for participation and voting [2][4][5] Group 1: Meeting Procedures - The AGM will be chaired by the company's board chairman, and a secretary will be appointed to manage the meeting procedures [3][4] - Shareholders are required to register their attendance to participate in voting and discussions, with specific rules regarding the validity of votes [2][5] - Legal representatives will be present to witness the meeting and provide legal opinions on the proceedings [2][5] Group 2: Proposals for Discussion - The agenda includes the review of the 2024 Board of Directors' work report, which outlines the company's strategic adjustments and innovations [4][5] - The company plans to discuss the 2024 financial statements, which have been audited and received a standard unqualified opinion from the auditing firm [28] - Proposals will also cover the annual profit distribution plan and the expected amounts for related party transactions for 2024 [20][28] Group 3: Corporate Governance - The company has established a governance structure that includes a board of directors, supervisory board, and various committees to ensure compliance and effective decision-making [6][9] - The board has been active in reviewing and approving significant operational and financial decisions, with a focus on risk management and compliance [7][9] - The company has implemented a comprehensive internal control system to monitor and manage risks effectively [7][26] Group 4: Financial Performance - The company reported its financial results for 2023, highlighting compliance with accounting standards and regulations [19][26] - The financial reports indicate a commitment to transparency and accuracy in financial disclosures, with regular audits conducted [14][26] - The company has outlined its plans for future financial management, including the use of raised funds and investment strategies [20][24]