Financial Performance - Company reported a total revenue of 1.512 billion yuan for the first half of 2025, representing a year-on-year increase of 10.67% [1] - Net profit attributable to shareholders reached 291 million yuan, up 2.57% year-on-year [1] - Gross margin improved to 74.58%, an increase of 1.97% compared to the previous year [1] - Net margin decreased to 19.27%, down 7.32% year-on-year [1] - Total expenses (selling, administrative, and financial) amounted to 670 million yuan, accounting for 44.29% of revenue, an increase of 1.71% year-on-year [1] Cash Flow and Financial Ratios - Operating cash flow per share decreased to 0.55 yuan, down 35.8% year-on-year [1] - The company’s return on invested capital (ROIC) was 20.24%, indicating strong capital returns [2] - Historical median ROIC since listing is 17.42%, with the lowest recorded ROIC in 2019 at 6.92% [2] Market Position and Strategy - Company is actively responding to market competition for its product, Loxoprofen Sodium Gel Patch, which has 11 competitors [3] - The company has established a comprehensive sales channel, particularly in the outpatient market, which is a new growth driver [3] - Continuous investment in research and development is emphasized to expand the product line and maintain industry leadership [3]

Group 1 - The company, Jiutian Pharmaceutical, stated that its current R&D progress is in line with expectations [1] - The company aims to continuously develop the "JiuYue" patch brand, leveraging first-mover advantage, channel advantage, and cost advantage [1] - The company is committed to deepening its influence in the transdermal drug delivery field and further solidifying its leading position in the industry [1]

Group 1: Market Competition and Product Strategy - The company acknowledges 11 competitors for the Loxoprofen Sodium Gel Patch, including its subsidiary, and plans to actively respond to competition by leveraging its complete industrial chain to control costs and ensure product quality [2] - The company has established a comprehensive channel coverage system, particularly in the outpatient market, which has become a new growth engine, with plans to increase investment for greater market share [2] - The company aims to enhance its "Jiuyue" brand through first-mover advantages, channel advantages, and cost advantages to solidify its leading position in the transdermal drug delivery field [2] Group 2: Financial Performance and Projections - For 2025, the company expects a revenue growth of 10-20% year-on-year, with a similar increase in net profit excluding non-recurring items, subject to market conditions and other uncertainties [3] - The company emphasizes the importance of risk awareness among investors regarding its operational plans and sales forecasts [3] Group 3: Strategic Initiatives for Growth - To achieve its annual goals, the company will focus on promoting new products, enhancing market penetration through education and product positioning, and increasing efforts in the outpatient market [4] - The company plans to deepen its presence in chain pharmacies and community clinics to tap into the growth potential of the outpatient market [4] - Brand building will be accelerated to enhance the recognition of core brands like "Jiuyue," driving market share expansion [4] Group 4: Product Sales Characteristics - The company reports that its product sales do not exhibit significant seasonality or cyclicality [5] Group 5: Innovation and Development - The company is developing a Class 1 innovative drug, the Pepper Seven Pain Relief Gel Patch, and has entered into a technology transfer agreement for antibacterial and anti-inflammatory peptides to support innovative drug development [6] - The company is actively recruiting talent for innovative drug research and development to strengthen its future capabilities [6] Group 6: Market Outlook for Specific Products - The sales channels for the anti-inflammatory pain relief patch will primarily focus on OTC channels, with strategies to enhance sales through resource sharing and product matrix expansion [7] - The company holds an optimistic view on the market prospects for the anti-inflammatory pain relief patch, anticipating growth in the chronic pain patient population due to societal aging, which will further drive demand for transdermal products [7]

Group 1: Company Strategy and Market Position - The company plans to actively respond to the impact of competitor product approvals by leveraging its complete industrial chain to control costs and ensure product quality [2] - A full-channel coverage system has been established, particularly in the outpatient market, which has become a new growth engine for performance [2] - Continuous high investment in R&D is maintained to innovate and expand the product line, with a focus on strengthening the "JiuYue" brand in the transdermal drug delivery sector [2] Group 2: Product Development and Market Expansion - The company is currently in the reporting phase for the procurement of the Loxoprofen Sodium Gel Patch in the Guangdong Alliance, with procurement documents not yet officially released [3] - Plans to enhance sales strategies for the Loxoprofen Sodium Gel Patch include increasing resource allocation to the outpatient market to boost market influence [4] - As of December 31, 2024, over 2,000 hospitals have been developed for the Ketoprofen Gel Patch, including more than 1,000 tier 2 and tier 3 hospitals [5] Group 3: Consumer Demographics and Product Approval - The primary consumer demographics for the Loxoprofen Sodium Gel Patch in retail pharmacies include patients with osteoarthritis, muscle pain, injuries, elderly individuals, laborers, and athletes [6] - The company anticipates that the Fluorobiprofen Gel Patch will be approved by the end of this year [7] Group 4: Share Buyback Progress - The company conducted its first share buyback on March 13, 2025, through centralized bidding, with details available in the recent announcement on the Giant Tide Information Network [8]

Market Overview - The transdermal patch industry is experiencing rapid growth due to factors such as an aging population facing chronic pain issues like arthritis and muscle pain, which increases market demand for patch products [2][3] - Public awareness of scientific medication and health management is rising, leading to a preference for convenient and safe external medications like transdermal patches [2][3] Company Advantages - The company benefits from a complete industrial chain, allowing for in-house production of active pharmaceutical ingredients and key excipients, ensuring product quality while controlling costs [3][8] - A comprehensive sales channel system has been established, particularly in the outpatient market, which is a new growth engine for performance [3] - Continuous high investment in R&D enables the company to innovate and expand its product line, enhancing its competitive edge [3][8] Product Strategy - The company is optimistic about the market prospects for its anti-inflammatory and analgesic patches, focusing on OTC channels and leveraging shared sales resources to boost sales [4] - The sales team consists of over 400 personnel, enhancing the company's market reach [5] Marketing and Promotion - Multi-channel collaboration strategies are employed for OTC promotion, integrating online and offline channels, including partnerships with pharmacies and e-commerce platforms [6][10] - The company emphasizes patient education and conducts health seminars to enhance consumer experience and trust [7] Future Directions - The company plans to focus on three key areas: expanding sales channels, particularly in outpatient markets, enhancing brand influence, and increasing R&D efforts for new product development [12][13] - Continuous optimization of production processes and cost control mechanisms will be prioritized to ensure efficient operations and good returns for shareholders [13] M&A Strategy - The company will consider various directions for mergers and acquisitions, focusing on targets that align with its strategic development, enhance market competitiveness, and enrich its product pipeline [11]