Core Viewpoint - Haizheng Pharmaceutical (600267.SH) is demonstrating strong confidence in its long-term development through its fourth share repurchase plan, aiming to buy back shares worth 50 million to 100 million yuan at a price not exceeding 13 yuan per share [1][3] Financial Performance - In Q1 2025, the company reported revenue of 2.632 billion yuan, a year-on-year decrease of 3.48%, and a net profit attributable to shareholders of 194 million yuan, down 21.85% year-on-year. However, the non-recurring net profit increased by 36.94% to 182 million yuan, marking a historical high for the quarter [1][2] - For the full year 2024, the company recorded revenue of 9.787 billion yuan, a decline of 5.56%, but achieved a net profit of 601 million yuan, turning from loss to profit. The non-recurring net profit was 423 million yuan, showing significant growth [2] Business Transformation - The company is transitioning from a traditional pharmaceutical enterprise to an innovation-driven company by optimizing its business structure, enhancing R&D, and advancing internationalization strategies, particularly in synthetic biology and high-end formulations [1][2] Global Expansion Strategy - Haizheng Pharmaceutical is accelerating its global market integration strategy, focusing on regions such as Brazil, the Middle East and North Africa, and the Commonwealth of Independent States and Eastern Europe, while also preparing for markets in Japan and Southeast Asia [4] - The company exports raw materials to over 70 countries and regions, serving more than 400 overseas clients, including major global pharmaceutical companies [4] R&D and Innovation - R&D is a core competitive advantage for the company, with cumulative R&D expenses of 1.953 billion yuan over five years from 2020 to 2024 [4][5] - The company has established a new Shanghai Innovation Drug Research Center and formed strategic partnerships with top research institutions to enhance its R&D capabilities [5]

Core Viewpoint - Haizheng Pharmaceutical reported a significant financial turnaround in 2024, achieving a record net profit of 601 million yuan, driven by increased sales in both formulation products and active pharmaceutical ingredients, alongside improved management efficiency [1][2]. Financial Performance - The company achieved an operating revenue of 9.787 billion yuan in 2024, with a net profit attributable to shareholders reaching 601 million yuan, marking a return to profitability [1]. - The net cash flow from operating activities increased by 40.72% to 2.115 billion yuan, while the debt-to-asset ratio decreased by 12% to 46.29% [2]. Shareholder Returns - Haizheng Pharmaceutical plans to distribute a cash dividend of 2.10 yuan per 10 shares (tax included) and has repurchased shares worth approximately 96.4589 million yuan, totaling 342 million yuan in cash returns, which is 56.87% of the net profit attributable to shareholders [1]. Business Development - The company focused on key product sales, with the sales volume of its main product, Saismei, reaching 6.2569 million boxes, a 31% increase year-on-year [2]. - The active pharmaceutical ingredient business showed robust growth, with significant revenue increases from products like Invermectin and Orlistat [2]. Animal Health Sector - The animal health business expanded, launching four new significant products, including the cloud vaccine and the pet vaccine, with nine products achieving sales over 10 million yuan [2]. - The company reported that its pet deworming product, Haile Miao, has consistently exceeded 100 million yuan in annual sales [2]. E-commerce Growth - In 2024, the company's e-commerce business saw significant upgrades, with key pharmaceutical products experiencing substantial growth through online channels, and the pet business surpassing 100 million yuan in sales, achieving an 11-fold increase over five years [3]. Innovation and R&D - Haizheng Pharmaceutical emphasized innovation and R&D, restructuring resources to enhance research efficiency, particularly in cardiovascular and metabolic treatment areas [4]. - The company established a new drug research center in Shanghai and formed strategic partnerships with leading research institutions, resulting in 62 patent applications and 30 granted patents in 2024 [4]. Production and Quality - The company made significant advancements in its industrial system, completing ten technology transfers and successfully passing FDA audits at its three major production bases [5]. - Haizheng Pharmaceutical received several accolades, including recognition as a "National Champion Enterprise" and "National Excellent Intelligent Factory" [5]. Future Outlook - Looking ahead to 2025, Haizheng Pharmaceutical aims to focus on strengthening its core business while exploring new growth areas, positioning itself for significant development and transformation [5].