Core Viewpoint - Hubei Hendi Pharmaceutical Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, primarily due to decreased sales of its main product, ibuprofen [1][3]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 235 million yuan, a year-on-year decrease of 2.93% [1]. - The net profit attributable to shareholders was 18.55 million yuan, down 72.92% year-on-year [1]. - For the full year of 2024, revenue was 446 million yuan, a decline of 32.75%, and net profit was 91.55 million yuan, down 48.02% [3]. Group 2: Product and Market Challenges - The decline in revenue is attributed to reduced sales of ibuprofen, intensified international market competition, and low pricing [3][4]. - Ibuprofen has historically contributed approximately 80% of the company's total revenue, making it critical to the company's performance [4]. Group 3: Research and Development - The company's R&D expenses have been decreasing, with 32.94 million yuan in 2024 and 15.88 million yuan in the first half of 2025, representing declines of 37.59% and 17.72% respectively [4]. - The reduction in R&D investment may impact future product innovation and market competitiveness [4]. Group 4: Strategic Adjustments - In response to performance pressures, the company is adjusting its fundraising projects, reducing the planned production capacity of raw materials from 1200 tons to 700 tons [5][6]. - The company plans to invest 332 million yuan in a high-end pharmaceutical formulation internationalization project, using both raised and self-owned funds [6]. - The decision to terminate the 5000-ton ibuprofen raw material project was based on market saturation and low pricing in the global market [6][7].