Core Insights - Sichuan Jinshi Yao Pharmaceutical Co., Ltd. has made significant progress in its strategic layout in the dermatological drug sector by launching the first commercialized dexamethasone ointment in China under its children's drug brand "Xiaokuai Ke" in collaboration with the innovative dermatological drug brand "Shushining" [1] - The dexamethasone ointment adheres to the principle of "simplicity equals safety," containing only the active ingredient dexamethasone and the base white vaseline, eliminating potential allergens such as preservatives, emulsifiers, and fragrances, addressing the core pain points of pediatric medication safety [1] Market Opportunity - At present, atopic dermatitis (AD) has become a core challenge in health management for Chinese families, with a patient base of 70.7 million in 2022, nearly half of whom are children and adolescents [2] - The market for AD is projected to grow at a compound annual growth rate (CAGR) of 18.6%, expected to exceed 30.5 billion yuan by 2030, with the children's segment anticipated to surpass 4.5 billion yuan [3] Product Innovation - The dexamethasone ointment is the only approved formulation of its kind in China, featuring an oil-based matrix that enhances penetration and reduces stickiness compared to traditional creams and ointments, significantly improving barrier repair efficiency [5] - The product's formulation, which includes only dexamethasone and white vaseline, minimizes skin irritation and damage, aligning with the WHO's recommendations for pediatric use of topical corticosteroids [4][5] Strategic Positioning - The launch of the dexamethasone ointment represents a strategic move for Jinshi Yao, enhancing its product matrix in the children's dermatological drug market and solidifying its brand position in the pediatric pharmaceutical sector [6][8] - The company has established six core health product lines, with the dexamethasone ointment serving as the first specialized pediatric dermatological drug, contributing to a comprehensive health ecosystem that addresses various life stages and health management needs [7][8] Long-term Vision - Jinshi Yao aims to build a sustainable health ecosystem, with the launch of the dexamethasone ointment being a critical piece of its dermatological strategy, reflecting a commitment to long-term growth and investment value [6][9] - The company's mission to "provide good medicine and serve society" aligns with national health strategies, particularly in safeguarding children's health, thereby enhancing its social responsibility and market position [10][11]

Group 1 - The company approved a related party transaction involving a product promotion agreement between its wholly-owned subsidiary Zhejiang Kuaike Pharmaceutical Co., Ltd. and its associate Hangzhou Lingye Pharmaceutical Co., Ltd. The transaction amount is expected to be no more than RMB 15 million (including tax) [1][2][6] - The promotion period for the product, dexamethasone ointment, is from the effective date of the agreement until December 31, 2026 [1][4] - The company holds a 32.4304% stake in Lingye Pharmaceutical, which is considered a related party due to the involvement of the company's chairman and president in its management [2][4] Group 2 - The product involved in the agreement is dexamethasone ointment, which is a corticosteroid used for treating various skin conditions. It has been clinically validated for efficacy and safety [4][6] - The transaction pricing is based on market rates and is deemed fair and reasonable, ensuring no harm to the interests of the company's shareholders, particularly minority shareholders [5][7] - The independent directors of the company have reviewed and approved the transaction, confirming compliance with relevant laws and regulations, and asserting that it will not adversely affect the company's financial status or operational results [7]

Core Viewpoint - The company has signed a product promotion entrustment agreement for the drug Dinoprostone Ointment with its associate company, aiming to leverage both parties' strengths in products and channels, with no adverse impact on the company's future financial status and operating results [1] Group 1 - The agreement involves a transaction amount not exceeding 15 million yuan [1] - The promotion period is from the effective date of the agreement until December 31, 2026 [1] - The company holds a 32.43% stake in the associate company, Hangzhou Lingye Pharmaceutical [1] Group 2 - Zhejiang Kuaike Pharmaceutical will be responsible for the exclusive promotion of the product in national retail channels [1] - The transaction has been approved by the company's board of directors, with related directors abstaining from voting [1] - The agreement is expected to utilize the advantages of both parties effectively [1]