Corporate Governance - The company held two shareholder meetings in 2024, reviewing 16 agenda items, all of which were approved [2] - The company continuously improved its governance system, optimizing 26 governance rules to ensure scientific decision-making and operational compliance [2] Information Disclosure and Investor Protection - The company strictly adhered to relevant regulations for information disclosure, ensuring timely and accurate reporting of significant operational information [3] - Various communication channels were established with investors, including a hotline, dedicated email, and investor interaction platforms [3] Strategic Planning for 2025 - The company aims to implement its "One Elderly, One Child, One Woman" strategy, focusing on traditional Chinese medicine, chemical and biological preparations, and health products [4][5] - The strategy emphasizes enhancing product offerings in the elderly care, chronic disease, and women's health sectors [4][5] Organizational Structure and Marketing Strategy - The company plans to optimize its marketing organization, aligning market and sales systems to enhance user engagement [7] - A user-centered approach will be adopted, focusing on efficient service delivery and brand recognition [7] Production and Quality Assurance - The company will implement the "Ten Steps to Quality Medicine" to ensure product quality and efficacy [8] - Emphasis will be placed on lean and flexible production methods to enhance efficiency while maintaining high standards [8] Research and Development Strategy - The company will continue its "Buy, Improve, Collaborate, Research, and Substitute" strategy to enhance its R&D pipeline [9] - Focus will be on advancing in-progress products and exploring external expansion opportunities in core areas [9] Digital Transformation - The company is committed to advancing its digital transformation, creating a user-centered digital marketing ecosystem [10] - Integration of information technology and AI will be prioritized to enhance operational efficiency and management quality [10] Financial Overview - As of December 31, 2024, the company reported total assets of 582,587.60 million, with liabilities of 123,587.68 million and equity of 458,999.92 million [13] - The total revenue for 2024 was 337,704.77 million, with a net profit of 50,273.15 million [13]

Core Viewpoint - In 2024, the company focused on maintaining shareholder interests and adhering to regulatory standards, emphasizing sustainable development and operational efficiency in the pharmaceutical industry [1][2]. Group 1: 2024 Annual Performance - The company reported total assets of 582,587.60 million yuan and net assets attributable to shareholders of 437,913.87 million yuan by the end of 2024 [2]. - The company achieved operating revenue of 337,704.77 million yuan and a net profit attributable to shareholders of 49,204.54 million yuan in 2024 [2][3]. Group 2: Operational Measures - The management team optimized organizational strategies to drive long-term stable growth, focusing on structural adjustments and dynamic strategy changes [3]. - The company implemented a marketing model centered on "brand pull, prescription lead, OTC push, and guerrilla tactics," emphasizing product quality and academic support [3][4]. Group 3: Brand and Marketing Strategy - The company adopted a dual-brand strategy with "Kuwaihua" and "Xiaokuwaihua," enhancing brand recognition through quality products and innovative marketing [6][7]. - The marketing strategy focused on specific demographics, particularly the elderly, children, and women, to drive product sales and brand loyalty [6][25]. Group 4: Digital Transformation - The company is actively embracing digital transformation, establishing a digital supply chain platform and enhancing operational efficiency through data sharing [8][9]. - A strategic vision for digital operations was outlined, aiming to integrate various business functions into a cohesive digital platform [8]. Group 5: Research and Development - The company emphasized a multi-faceted R&D approach, focusing on acquiring and developing competitive products in pediatric, adult digestive, and gynecological treatments [10][12]. - Ongoing projects include nearly forty chemical drug varieties and several traditional Chinese medicine projects, with some already in production and registration stages [12]. Group 6: Compliance and Governance - The company strengthened its compliance framework, enhancing its audit and oversight systems to ensure regulatory adherence and protect shareholder interests [16][17]. - The board of directors was restructured, ensuring a diverse skill set and compliance with legal requirements [20][21]. Group 7: Profit Distribution - The company proposed a cash dividend of 5 yuan per 10 shares, totaling 292 million yuan, which represents 59.34% of the net profit attributable to shareholders for 2024 [52][53].