Group 1: Company Overview - Xizang Qizheng Tibetan Medicine Co., Ltd. is a leading enterprise in the Tibetan medicine sector, focusing on the research, production, and sales of innovative Tibetan medicines, with 25 exclusive varieties and 141 drug approval numbers covering various medical fields [2][3]. - Tibetan medicine has a history of over 3,800 years, integrating elements from Indian, Arabic, Chinese, and Bon medicine, and is recognized for its comprehensive medical system and unique treatment methods [3][4]. Group 2: Product and Market Strategy - The company emphasizes patient care by providing a diverse product line, including 60 OTC varieties and 3 state-secret technology products, targeting multiple therapeutic areas such as orthopedics, neurology, and pediatrics [3][4]. - The market for external pain relief patches is expected to grow significantly due to aging populations and the increasing prevalence of chronic diseases, with the company confident in expanding its main product, the pain relief patch [5][6]. Group 3: Innovation and Development - The company is committed to modernizing Tibetan medicine through technological innovation, including the establishment of an intelligent manufacturing system and the integration of traditional medicine with modern technology [4][5]. - As of the end of 2024, the company holds 141 drug approval numbers and 156 patent technologies, including 129 invention patents, showcasing its commitment to research and development [4][5]. Group 4: Marketing and Sales Strategy - The company is enhancing its marketing capabilities across various channels, including hospitals, retail, and e-commerce, to strengthen its brand presence and expand market reach [6][7]. - A focus on academic and brand marketing is aimed at increasing the influence of the "Qizheng" brand and achieving comprehensive growth across all product lines [6][7]. Group 5: Future Development Goals - The company's mission is to promote health wisdom and create life value, with strategic goals to become the leader in external pain relief and the Tibetan medicine market [5][6]. - The employee stock ownership plan is designed to align with revenue growth and net profit targets, reflecting the company's commitment to sustainable development [6][7].

Core Viewpoint - The company, Tibet Lizhongyuan Biotechnology Co., Ltd., is modernizing traditional Tibetan medicine through advanced technology and global perspectives, as part of Kunming Pharmaceutical Group's strategic layout [1] Group 1: Technological Empowerment - The company has established a leading Tibetan medicine research and development center in Lhasa Economic and Technological Development Zone, utilizing cutting-edge technologies such as supercritical extraction and nano-formulations to uncover the active ingredients of high-altitude medicinal materials like Rhodiola and Cordyceps [2] - The traditional Tibetan medicine preparation process "Zuo Tai" has been standardized, leading to the development of products targeting bone and joint diseases and immune regulation, revitalizing ancient Tibetan medicine [2] - The proprietary "Tibetan Medicine Compound Intelligent Matching System" has been patented, integrating the wisdom of the "Four Medical Classics" with digital technology [2] Group 2: Quality Assurance and Market Expansion - The company emphasizes quality as its lifeline, adhering to the principle of "origin is the way," establishing GAP-certified planting bases at altitudes above 4,000 meters to control the quality of medicinal materials from the source [3] - Through the "Tibetan Medicine + Health" strategy, the company has launched lightweight products such as health teas and medicinal skincare products, successfully entering the young consumer market [3] - As of 2024, the core product "Snow Domain Bone Treasure" series has achieved a market share of 12% in the national orthopedic medication market, becoming one of the top three recommended products by doctors, showcasing the company's strong market influence and consumer trust [3]

Group 1: Financial Performance - In 2024, the company achieved a net profit of 425.81 million yuan, an increase of 15.09% compared to the previous year [4] - Revenue growth in Q1 2025 was 10.39%, but net profit decreased by 22.35% due to a decline in non-recurring gains [4] - The total cash dividend for 2024 is expected to be 318 million yuan, accounting for 54.66% of the net profit attributable to shareholders [6] Group 2: Product and Market Strategy - In 2024, revenue from patch products reached 1.65 billion yuan, accounting for over 70% of total revenue [2] - The company plans to expand its product matrix by developing new products in the external pain relief market, including ointments with a sales scale of 311 million yuan [2] - The company is focusing on digital marketing and channel optimization to enhance brand presence and reach target customers [3] Group 3: Research and Development - R&D expenses are only 1/16 of sales expenses, prompting the need for increased investment in innovation to enhance long-term competitiveness [3] - The company is pursuing a "modernization of Tibetan medicine" strategy, focusing on unmet clinical needs and leveraging traditional Tibetan medicine [3] - Collaboration with domestic and international research institutions is ongoing to explore new technologies and improve product development efficiency [3] Group 4: Marketing and Sales Channels - The company emphasizes precision marketing and indirect sales to reduce customer acquisition costs and improve marketing efficiency [3] - Digital channels are identified as the fastest-growing and most efficient segment, positively impacting revenue and gross margin [4] - The company is enhancing its brand through sponsorships and social media campaigns targeting basketball enthusiasts [5] Group 5: Industry Outlook - The Chinese medicine industry is expected to grow due to government support and increasing health awareness among the aging population [7] - The market for external patches is anticipated to expand, driven by rising demand for traditional medicine [7] - Companies with strong R&D capabilities and brand barriers are likely to lead the market in the future [7]