Group 1: Company Strategy and Market Positioning - The company is committed to the development of the out-of-hospital market and the pharmaceutical internet industry, focusing on a full-channel supply chain and driven by digital innovation technology [2][4] - As of the first half of 2025, the company has established a comprehensive SBbC ecosystem covering R&D, production, commerce, retail, and end-user channels, positioning itself as a leading enterprise in the health technology sector [4][5] Group 2: Investment Directions and Collaborations - The company has set up the Jian Su Yi Gou Fund in collaboration with professional investment institutions and state-owned platforms, aiming to identify quality enterprises and projects related to its main business [5] - Future investments will focus on acquiring quality products' pricing power through equity investments in traditional Chinese medicine and innovative pharmaceutical sales channels, including internet retail and smart drug storage [5] Group 3: TOC Business Development - The company has established Sichuan Yao Yi Gou Technology Group Co., Ltd. to enhance investments in internet pharmaceutical retail and offline channels [6] - In the first half of 2025, the company's subsidiary Chongqing Yao Da Mai generated revenue of 150 million CNY, achieving 77.73% of its total revenue for 2024, while its partner company Yu Xin Zhong Yi achieved significant recognition and revenue growth [7]

Core Viewpoint - The company reported a revenue of 2.157 billion yuan for the first half of 2025, which aligns with market expectations despite slight fluctuations compared to the previous year, indicating a solid foundation for long-term growth through structural optimization and innovation breakthroughs in its core business [1] Group 1: Business Strategy - The company is restructuring the industry value chain through a three-dimensional strategy of "upstream product control, midstream empowerment, and downstream terminal capture" leveraging over 20 years of experience in the outpatient market [2] - The company is building a moat around scarce resources by utilizing the MAH model, exclusive agency for ethnic and traditional Chinese medicines, and investments in medical devices, thereby securing pricing power for core products [3] Group 2: Digital Transformation - The establishment of a wholly-owned subsidiary, Shutan Artificial Intelligence, marks a significant breakthrough in the company's digital ecosystem and big data strategy, enhancing operational efficiency across various business systems [4] - The company has provided financing services to over 5,100 small and micro clients, with accounts receivable turnover days reduced from 68 to 52 days, leading to a 25%-30% increase in procurement [4] Group 3: Market Reach - The company achieved 150 million yuan in revenue from Chongqing Yaoda Mai in the first half of 2025, representing 77.73% of the total revenue for 2024, with its "Viagra" series products ranking first in the e-commerce prescription drug category [5] - The company operates 451 chain pharmacies, including 1,474 franchise stores, and has implemented O2O smart drug warehouses in Chengdu, achieving a 67% increase in O2O order volume [5] Group 4: Ecosystem and Capital Empowerment - The company has injected new vitality into its ecosystem through dual-driven strategies of industrial funds and data asset operations, completing investments in five pharmaceutical varieties and three equity projects [6] - The company has accumulated 134.1TB of data resources, with over 20 data products listed on the Shanghai Data Exchange, positioning itself advantageously in the data circulation sector [6] Group 5: Long-term Value Proposition - Despite a temporary adjustment in net profit, the company's forward-looking investments in MAH reserves, digital system development, and C-end ecosystem construction are expected to create significant barriers in the pharmaceutical internet industry [8] - The company's comprehensive supply chain and digital technology-driven model has transitioned it from traditional pharmaceutical distribution to a leader in the technology-driven health industry, with a robust ecosystem closing in on completion [8]