Core Viewpoint - The company held an online roadshow on September 10, 2025, to engage with investors regarding its traditional Chinese medicine (TCM) formula granules, innovative drug research and development, and various business segments [1] Business Growth and Strategic Layout - The company completed the construction of an intelligent production line for TCM formula granules by the end of 2024, establishing a business development center and a professional team, with 310 varieties developed and registered for market in 18 provinces, indicating the business is in its early stages and expanding from Shaanxi province [1] Innovative Drug Research and Development - In the first half of 2025, the company accelerated its innovative drug research, with the modified TCM new drug PL-JT004 entering the CDE clinical acceptance stage, and chemical generic drugs PL-JT001 completing BE testing and awaiting production reporting [2] - The company aims to cultivate major products through a gradient pipeline layout, with various innovative drugs progressing through preclinical and Phase II work [2] Business Segment Development - Revenue from TCM decoction pieces increased by 380.89% year-on-year in the first half of 2025, with its revenue share rising from 5.62% to 21.42%, although the gross margin fell by 8.46% to 3.49% [2] - The health products and daily chemicals segment saw a revenue increase of 47.49%, but its revenue share remains low at 0.14%, indicating rapid growth but small scale [2] - The chemical drug layout focuses on the fields of "rheumatism and bone diseases, chronic pain," targeting generic drugs with proven efficacy, expired patents, and significant market potential [2] Market Expansion and Management - The company employs a "professional academic promotion model" for grassroots markets, covering over 5,000 medical institutions, 30,000 retail pharmacies, and 20,000 grassroots medical units [3] - The company is enhancing its digital marketing capabilities through a self-developed intelligent marketing platform and partnerships with major e-commerce platforms [3] - Operating cash flow decreased by 43.66% year-on-year due to increased inventory procurement, while accounts receivable grew due to the low gross margin of TCM decoction pieces [3] - The company is addressing the risk of rising raw material prices by forming a procurement team and leveraging local TCM resources to establish a full industry chain [3]

Group 1: Market Position and Product Overview - The main product, Panlong Seven Tablets, holds a market share of 8.05% in the traditional Chinese medicine market for musculoskeletal diseases in urban and county public hospitals as of H1 2024 [3] - Panlong Seven Tablets is a unique patented product, classified as a Class A drug under medical insurance, and recognized as a brand product in Shaanxi Province [4] - The product has been included in eight national clinical guidelines and four expert consensus documents, highlighting its clinical efficacy and safety [4][8] Group 2: Future Development Strategies - The company aims to implement a "one body, two wings, three depths" development strategy, focusing on chronic orthopedic diseases and enhancing brand integration [3] - Plans to establish over 20 standardized planting bases to ensure the authenticity and traceability of raw materials [6] - The company targets to increase the number of registered traditional Chinese medicine formula granules to over 400 by leveraging technological innovation [6] Group 3: Clinical Research and Product Efficacy - Panlong Seven Tablets is widely used for conditions such as rheumatoid arthritis and knee osteoarthritis, demonstrating significant therapeutic effects [4] - The company emphasizes the importance of evidence-based medicine and has initiated multiple high-quality clinical research projects [4] - The product's clinical value is supported by its inclusion in national guidelines and textbooks, reinforcing its market position [4][8] Group 4: Risk Management and Competitive Advantage - The company maintains a strategic reserve of core medicinal materials to mitigate the impact of raw material price fluctuations [6][8] - The stable pricing system of Panlong Seven Tablets is attributed to its unique market position and comprehensive supply chain management [8] - Future strategies include enhancing product research and development, expanding into underdeveloped markets, and accelerating the launch of potential high-revenue products [8]