Core Viewpoint - Jiangzhong Pharmaceutical Co., Ltd. reported a decrease in revenue and a profit increase in its 2025 semi-annual report, highlighting strategic adjustments and business performance across its OTC, health consumer products, and prescription drug segments [1][8]. Financial Summary - Total assets increased to approximately 6.64 billion RMB, a 1.96% increase from the previous year [2]. - Operating revenue for the period was approximately 2.14 billion RMB, a decrease of 5.79% compared to the previous year [2]. - Total profit reached approximately 703.24 million RMB, reflecting a 12.01% increase year-on-year [2]. Business Segment Performance OTC Business - The OTC segment generated revenue of 1.55 billion RMB, a decline of 10.14% year-on-year, attributed to changes in terminal demand [8][9]. - The company focused on strengthening its brand presence and expanding product categories, particularly in gastrointestinal and throat health products [8]. Health Consumer Products - Revenue from health consumer products reached approximately 228 million RMB, marking a 17.35% increase year-on-year [9]. - The company emphasized self-research and development, enhancing its e-commerce capabilities and exploring new sales models [9]. Prescription Drug Business - The prescription drug segment achieved revenue of approximately 360 million RMB, a 7.44% increase year-on-year [10]. - The company adapted to industry policy changes and focused on academic marketing and compliance in both hospital and outpatient markets [10]. Strategic Initiatives - The company is committed to innovation and brand-driven growth, focusing on high-quality development and expanding its product matrix [11][13]. - Ongoing investments in R&D led to the authorization of 11 patents in traditional Chinese medicine [11][14]. - The company aims to enhance digital transformation across its operations, improving marketing and R&D efficiency [12][14]. Future Plans - The company plans to strengthen its core product categories and explore external mergers and acquisitions to enhance its market position [13][14]. - Emphasis will be placed on developing innovative products and optimizing production processes to improve efficiency and sustainability [14].

Core Insights - Jiangzhong Pharmaceutical achieved a revenue of 4.435 billion yuan in 2024, a year-on-year decrease of 2.59%, while the net profit attributable to shareholders was 788 million yuan, an increase of 9.67% [1] - The OTC segment showed strong demand with a revenue of 3.266 billion yuan, reflecting a year-on-year growth of 7.07% [1] OTC Segment Performance - Key products in the gastrointestinal field, such as the core product "Gastrointestinal Digestive Tablets," saw a double-digit revenue growth, with sales reaching 169 million boxes, up by 10.91% year-on-year [1] - In the throat and cough segment, core products like "Compound Fresh Bamboo Liquid" and "Compound Grass Coral Tablets" contributed to double-digit growth, with sales of "Compound Grass Coral Tablets" reaching 37 million boxes, up by 4.05% year-on-year [1] - The nutritional supplement segment saw a revenue of over 200 million yuan, with sales of "Multivitamin Tablets" at 12 million boxes, down by 10.30% year-on-year [1] Health Business and Prescription Drug Segment - The health segment reported a revenue of 345 million yuan, a significant year-on-year decline of 47.30%, attributed to intensified industry competition and restructuring efforts [2] - The prescription drug segment generated a revenue of 793 million yuan, down by 3.50% year-on-year, with the decline narrowing due to the consolidation of traditional Chinese medicine pieces [2] Profitability and Cost Management - The company's gross margin was 63.52%, a decrease of 0.51 percentage points year-on-year, with the OTC segment having the highest gross margin at 72.74% [3] - The sales expense ratio improved to 33.70%, down by 2.33 percentage points year-on-year, while the net profit margin increased to 17.77%, up by 1.99 percentage points year-on-year [3] Dividend Policy and Future Outlook - The company announced a cash dividend of 7 yuan per 10 shares, resulting in a cash dividend ratio of 55.86%, with an overall annual dividend ratio reaching 95.77% [3] - The company aims for double-digit growth in revenue and profit by 2025, supported by a dual-driven strategy of "internal growth + external expansion" [3][4]