Core Viewpoint - The company reported a net profit loss of approximately 724.52 million yuan for the year 2024, with no cash dividends or stock bonuses proposed for shareholders [33][87]. Company Overview - The company specializes in the research, production, and sales of patented innovative traditional Chinese medicine, while also expanding into biopharmaceuticals and the health industry [4][5]. - The company has developed a unique research model for innovative traditional Chinese medicine, focusing on major diseases and leveraging its strong scientific research capabilities [5][6]. Business Segments Traditional Chinese Medicine - The company holds 17 patented traditional Chinese medicines, covering eight major clinical disease systems, with leading positions in cardiovascular and respiratory disease treatments [5][19]. - Key products include Tongxinluo capsules, which treat coronary heart disease and cerebral infarction, and have received multiple national science and technology awards [8]. Biopharmaceuticals - The company has established a comprehensive development strategy for biopharmaceuticals, including international registration and global sales [6]. - It has received approvals for 13 ANDA products in the U.S. market and has submitted registration applications in 53 countries [6][20]. Health Industry - The company is actively developing health products based on traditional Chinese health theories, integrating modern technology [7]. - It has launched a series of health products aimed at various health needs, including heart health and anti-aging [7]. Financial Performance - The company achieved a total revenue of approximately 6.51 billion yuan in 2024, with a significant net loss [33]. - The proposed profit distribution plan for 2024 includes no cash dividends or stock bonuses, reflecting the company's current financial situation [87]. Market Position - The company ranks 7th among traditional Chinese medicine companies in China and 30th in the broader pharmaceutical industry [17]. - Despite a declining trend in the market for traditional Chinese medicine for cardiovascular diseases, the company has maintained a growing market share in oral formulations [19]. Product Performance - The market share of key products such as Tongxinluo capsules has increased from 13.64% in 2015 to 17.69% in the first half of 2024 [19]. - The company’s diabetes medication, Jinlida granules, saw its market share rise from 4.42% in 2015 to 16.20% in the first half of 2024 [20].

Financial Performance - In 2024, the company's operating revenue was 2.441 billion CNY, a year-on-year decrease of 7.06% [1] - Net profit attributable to shareholders was 233 million CNY, an increase of 93.43% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 183 million CNY, up 243.42% year-on-year [1] - Operating cash flow increased by 4.11% to 498 million CNY [1] - The weighted average return on equity rose to 12.89%, an increase of 5.63 percentage points year-on-year [1] Revenue Composition By Industry - Chemical drugs accounted for 2.254 billion CNY, 92.33% of total revenue [2] - Traditional Chinese medicine (mainly An Nao Wan/Pian) generated 182 million CNY, 7.46% [2] - Other industries contributed 502.38 thousand CNY, 0.21% [2] By Product - Vitamin drugs generated 1.125 billion CNY, 46.10% of total revenue [3] - Cardiovascular drugs brought in 670 million CNY, 27.43% [3] - Orthopedic drugs accounted for 272 million CNY, 11.13% [3] - Antitumor drugs generated 129 million CNY, 5.28% [3] - Electrolyte drugs contributed 124 million CNY, 5.09% [3] Future Outlook - The company is optimistic about future growth, with a focus on becoming an international pharmaceutical technology company with strong profitability and innovation capabilities [4] - Management efficiency is improving, with sales expense ratio below 30%, management expense ratio at 5.30%, and financial expense ratio down by 82% [4][7] - Key products expected to drive growth include An Nao Wan/Pian, which saw sales of 182 million CNY in 2024, a growth of over 80% year-on-year [5] - The injection of multiple vitamins (12) is projected to maintain a market share of over 80% and achieve sales exceeding 1.1 billion CNY in 2024 [6][14] Cost Management - The company has successfully reduced sales, management, and financial expenses, with a continued focus on optimizing costs [7] - The financial expense ratio has decreased significantly, indicating effective cost control measures [7] Product Development and Partnerships - The company plans to introduce differentiated products in the short term, focusing on oral products and exclusive traditional Chinese medicine [9] - Collaboration with Daiichi Sankyo has expanded, contributing approximately 240 million CNY, or 10% of total revenue [11] - The company has over 20 projects in the pipeline, primarily focused on generic drugs [12] Shareholder Engagement - In 2024, the company executed a share buyback plan, utilizing approximately 80 million CNY to repurchase over 30 million shares [12] - The asset-liability ratio has decreased to 30%, with limited potential for further reduction in the short term [13]