Core Viewpoint - The report highlights a significant decline in the company's financial performance for the first half of 2025, with a notable drop in revenue and net profit compared to the same period in the previous year. The company is focusing on its dual business strategy of "big health + big commerce" while navigating challenges in the pharmaceutical and medical device sectors [1][2]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately 512.88 million yuan, a decrease of 18.06% compared to 625.95 million yuan in the same period last year [2]. - Total profit for the period was approximately 6.40 million yuan, down 58.34% from 15.38 million yuan year-on-year [2]. - The net profit attributable to shareholders was approximately 1.62 million yuan, reflecting an 80.95% decline from 8.51 million yuan in the previous year [2]. - The net cash flow from operating activities was approximately 44.52 million yuan, a decrease of 48.25% compared to 86.02 million yuan last year [2]. Business Segments Pharmaceutical Business - The pharmaceutical sector is experiencing long-term growth driven by factors such as an aging population, advancements in medical technology, and increased health awareness among the public [3]. - The company offers over 90 pharmaceutical products, focusing on areas such as digestive and respiratory systems, with key products including Rabeprazole Sodium Enteric-Coated Tablets and Amoxicillin Capsules [3][4]. Medical Device Business - The medical device sector is positioned as a critical component of the healthcare system, with expectations for market growth due to ongoing reforms in the medical insurance system [4]. - The company specializes in the development and production of absorbable biomedical materials and various medical devices, including absorbable surgical membranes and screws [5][6]. Commercial Operations - The company operates several shopping centers in Wuhan, focusing on retail management and commercial operations, with plans to integrate healthcare-related services into its business model [7][8]. - The commercial sector is adapting to market demands by enhancing customer experiences and diversifying its offerings [7][8]. Exhibition Operations - The exhibition industry is poised for growth, supported by government policies and the hosting of national-level trade shows [8]. - The company is leveraging its resources at the Wuhan International Exhibition Center to enhance its exhibition business, focusing on high-tech industries such as new energy [8][9]. Strategic Initiatives - The company is committed to expanding its pharmaceutical and medical device offerings while enhancing its operational efficiency through cost control and market expansion strategies [10][11]. - The company is also focusing on extending its auxiliary reproductive services and improving customer service quality in its reproductive health facilities [10][11].

Meeting Overview - The company held a performance briefing for the fiscal year 2024 and the first quarter of 2025 on May 12, 2025, from 15:00 to 16:00 [1][2] - The meeting was attended by key executives including the vice chairman and independent directors, facilitating interaction with investors [2] Differentiation Strategy - The company aims to maintain its competitive edge through a diversified product portfolio, including 92 pharmaceutical products across various therapeutic areas [3] - A comprehensive sales system has been established with over 400 sales personnel covering 31 provinces, reaching more than 10,000 hospitals and nearly 300,000 retail pharmacy stores [4] - The company emphasizes a specialized R&D platform to drive innovation, with ongoing clinical studies for its global Class I innovative drug projects [5][10] Medical Device Business - In 2024, the medical device segment generated revenue of approximately 82.57 million yuan, reflecting a year-on-year growth of 14.57% [7] - The product line includes absorbable medical devices, which are gaining traction in various surgical fields, contributing to sustained growth [8] R&D Investment - The total R&D expenditure for 2024 was approximately 4.51 million yuan, focusing on enhancing product lines and ensuring sustainable development [9] Financial Performance - For the first quarter of 2025, the company reported total revenue of approximately 257.42 million yuan, with net profit attributable to shareholders at approximately 2.76 million yuan [11] - The company’s exhibition business generated revenue of approximately 70.25 million yuan in 2024, showing a growth of 3.81% [12] Industry Outlook - The pharmaceutical industry is experiencing diversification and structural changes, presenting both opportunities and challenges for companies [18] - The medical device sector is witnessing accelerated domestic substitution and technological innovation, supported by favorable government policies [18] - The commercial retail sector is becoming increasingly competitive, with brands focusing on professional and differentiated strategies to meet consumer demands [19] - The exhibition industry is expected to continue its rapid growth, leveraging digital platforms and innovative approaches to enhance user experience [19]