Core Viewpoint - The company held its 2024 annual performance briefing on May 16, 2025, to discuss financial status, market expansion, development strategy, and corporate governance with investors [1] Group 1: Company Performance - In 2024, the company achieved an operating income of 3.215 billion yuan and a net profit attributable to shareholders of 133 million yuan, representing a year-on-year growth of 14.01% [2] Group 2: Strategic Focus - The company will continue to adhere to an integrated development strategy for raw materials and formulations, focusing on high-quality development, steady progress, and operational efficiency [2][4] - The company aims to enhance its product pipeline, accelerate diversified and differentiated product development, and optimize its research-production-sales management model [2][5] Group 3: Market Expansion - The company is strengthening its presence in both domestic and international markets by optimizing marketing models and enhancing terminal development and academic promotion [4] - The overseas performance is driven by maintaining market share through key partnerships and flexible pricing strategies, as well as deepening engagement in emerging markets [2][4] Group 4: Management and Governance - The company emphasizes internal management improvements, focusing on energy conservation, efficiency enhancement, and lean management to drive cost reduction and efficiency [4] - The company is committed to protecting investor rights and has increased its cash dividend ratio to over 80% for both 2023 and 2024 profit distribution plans [2]

Company Overview - Changchun High-Tech Industry (Group) Co., Ltd. is a publicly listed company established in accordance with the Company Law and Securities Law of the People's Republic of China [2][3] - The company was approved for its initial public offering of 19 million shares in December 1996 and is listed on the Shenzhen Stock Exchange [2][3] Corporate Structure - The registered capital of the company is RMB 407,937,529 [3] - The company is structured as a long-term existing joint-stock company with a legal representative being the chairman [3][4] - The company has established a Party Committee and a Disciplinary Inspection Committee to ensure political leadership and compliance with regulations [5][6] Governance and Responsibilities - The company’s governance structure includes a board of directors, supervisory board, and senior management, with specific roles and responsibilities outlined in the articles of association [4][6] - The Party Committee is responsible for political construction, ensuring alignment with the central government's policies, and overseeing major company decisions [6][9] - The Disciplinary Inspection Committee is tasked with maintaining party discipline and overseeing anti-corruption efforts within the company [7][8] Business Objectives and Scope - The company aims to develop a diversified business model focusing on biopharmaceuticals and related industries, with real estate as a supplementary sector [11] - The operational scope includes the development, production, and sales of high-tech products, new drug development, and various consulting services [11] Shareholder Rights and Responsibilities - Shareholders have rights to dividends, voting, and participation in company decisions, with obligations to comply with laws and regulations [17][18] - The company maintains a shareholder registry to ensure transparency and accountability in shareholder rights [17] Share Issuance and Capital Management - The company has a total of 68.64 million ordinary shares, with specific ownership distribution among founders, public investors, and employees [13][30] - The company can increase capital through various methods, including issuing new shares and distributing stock dividends, subject to shareholder approval [33][34] Meeting Regulations - The company holds annual and extraordinary shareholder meetings, with specific procedures for notification, proposal submission, and voting [56][60] - Shareholder meetings are conducted in compliance with legal requirements, ensuring all shareholders can participate and voice their opinions [60][61]

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical industry [1] Core Insights - The pharmaceutical industry is experiencing continuous differentiation, with innovative drugs, raw materials, and CXO services performing well [3][4] - In 2024, 453 pharmaceutical companies achieved revenue of 2.46 trillion yuan, a year-on-year decline of 0.55%, and a net profit of 148.65 billion yuan, down 8.8% [3][71] - The first quarter of 2025 saw revenues of 601.7 billion yuan, a year-on-year decrease of 5.3%, and a net profit of 50.5 billion yuan, down 6.4% [3][71] Summary by Sections Innovative Drugs - In 2024, innovative drug companies generated revenue of 47.53 billion yuan, a year-on-year increase of 68.4, indicating strong momentum [3] - Domestic biotech companies are transitioning from R&D to commercialization, leading to significant revenue growth [3] Chemical Drugs - Chemical drug companies achieved revenue of 399.64 billion yuan in 2024, a year-on-year increase of 0.73%, with net profit rising by 13.25% [3] - The first quarter of 2025 saw revenues of 98.12 billion yuan, a year-on-year decline of 4.47% [3] Medical Devices - In 2024, the medical device sector generated revenue of 221.51 billion yuan, a year-on-year increase of 1.32%, but net profit fell by 13.22% [3] - The first quarter of 2025 reported revenues of 51.7 billion yuan, down 4.89% year-on-year [3] Biological Products - Blood products in 2024 generated revenue of 24.18 billion yuan, down 1.4%, while net profit increased by 14.47% [3] - Vaccine companies faced significant declines, with revenues dropping 45.3% in 2024 [3] Traditional Chinese Medicine - Traditional Chinese medicine saw revenues of 343.75 billion yuan in 2024, a decline of 4.1%, with net profit down 18.8% [3] Raw Materials - The raw materials sector achieved revenue of 122.58 billion yuan in 2024, a year-on-year increase of 7.9%, with net profit rising by 38.33% [3] Pharmaceutical Commerce - In 2024, pharmaceutical commerce companies generated revenue of 1.02531 trillion yuan, a year-on-year increase of 0.8%, but net profit fell by 13% [6] Medical Services - Medical service companies reported revenue of 77.66 billion yuan in 2024, down 2.0%, with net profit declining by 39.5% [6] CXO & Research Services - The CXO and research services sector generated revenue of 96.62 billion yuan in 2024, a year-on-year decrease of 3.92%, with net profit down 25.6% [6]

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]