Company Overview and Development History - Xidian Pharmaceutical, founded in 1990, transitioned from a small drug trading company to the largest in Jilin Province by 1994 [2][3] - The company went public on the Shenzhen Stock Exchange's Growth Enterprise Market in 2022, with a reported revenue of CNY 256 million in 2024 [2][4] Key Milestones - Significant milestones include the establishment of Xidian Pharmaceutical in 2001, the launch of the "Ruixiangsu" project, and the company's listing in 2022 [3][4] - The company has focused on the research and development of "Ruixiangsu," a key product derived from the Longbai Ruixiang plant, leading to major breakthroughs in synthesis technology [3][4] Market Positioning and Strategy - Xidian Pharmaceutical positions itself in niche markets, focusing on chronic diseases prevalent among the elderly, with a strategy of "one core and two wings" [4][5] - The core product is "Ruixiangsu" capsules, complemented by unique products like "Fufang Tianshu Yao" and "Risperidone" [5][6] Performance and Growth Drivers - In 2024, the company reported a 13.71% increase in revenue, but a decline in net profit due to reduced government subsidies and rising raw material costs [6][7] - The increase in operating costs by CNY 15.69 million in 2024 was primarily due to the surge in traditional Chinese medicine prices [6][7] Future Profit Growth Drivers - Core product expansion and new indications for "Ruixiangsu" are expected to drive future profits [7][8] - The company plans to enhance its product pipeline through increased R&D investment, which rose by 17.52% in 2024 [8][11] Core Products and R&D Innovation - "Yiyuan Sheng" (Fufang Tianshu Yao) generated approximately CNY 112 million in revenue in 2024, accounting for 43.64% of total revenue [9][10] - "Risperidone" saw a significant revenue increase of 38.93%, contributing 40.62% to total revenue [10][11] R&D Focus and Strategy - The company emphasizes innovation through a dual strategy of "independent R&D and joint development," focusing on chronic diseases and blood-related conditions [11][12] - Ongoing research includes expanding the indications for "Ruixiangsu" to include conditions like diabetic complications and viral pneumonia [12][13] Future Strategic Planning - Xidian Pharmaceutical aims to deepen its existing market presence while selectively expanding into new therapeutic areas related to aging [14][15] - The company is transitioning to a dual-driven sales model, combining hospital and retail markets, and enhancing digital marketing efforts [16][17] Investor Relations and Market Concerns - The management views the current product structure as a competitive strength rather than a risk, with plans for diversification and product upgrades [17][18] - A cash dividend of CNY 2.6 per 10 shares is proposed, representing 49.39% of the net profit for 2024 [18][19] Market Valuation and Core Value - The company emphasizes its unique product advantages and strategic positioning in the aging population's healthcare needs [19][20] - Xidian Pharmaceutical holds 29 formulation varieties and 17 raw material drug registrations, establishing a solid foundation for future growth [20]

Core Viewpoint - Jilin Province Xidian Pharmaceutical Sci-Tech Development Co., Ltd. reported a slight decrease in revenue but an increase in net profit, indicating a focus on improving core business profitability and market expansion strategies [7][24]. Financial Performance - The company's operating income for the reporting period was 128,311,809.27 yuan, a decrease of 0.51% compared to the same period last year [7][24]. - Net profit attributable to shareholders was 24,944,585.08 yuan, an increase of 2.02% year-on-year [7][24]. - The net profit after deducting non-recurring gains and losses was 23,386,006.42 yuan, reflecting a growth of 12.26% compared to the previous year [7][24]. - Basic earnings per share increased by 7.77% to 0.3261 yuan [7][24]. Business Overview - The company primarily engages in the research, production, and sales of chemical pharmaceutical raw materials and formulations, focusing on chronic disease treatments prevalent among the elderly, iron supplementation, circulatory disorders, and psychiatric medications [9][11][15]. - The company has developed a strong product pipeline, holding 29 formulation varieties and 16 raw material drug registrations [15]. Market Trends - The pharmaceutical industry is experiencing structural changes, with a significant increase in mergers and acquisitions, driven by technological innovation and globalization [10]. - The demand for pharmaceuticals remains robust due to an aging population and increasing healthcare needs, making the industry less susceptible to economic fluctuations [10]. Product Development - The company is recognized for its core products, including the unique Rhizoma Smilacis capsules and compound ferrous sulfate folic acid tablets, which have received national patents and are positioned as leading treatments in their respective categories [12][15]. - The company is actively expanding the clinical applications of its products, particularly in treating complications related to diabetes and enhancing its market presence in the iron supplement sector [12][15]. Strategic Initiatives - The company has shifted its sales strategy from an agency model to a self-operated model for key products, enhancing its marketing capabilities and establishing a more direct connection with healthcare providers [23]. - The company emphasizes technological advancement and product innovation as core drivers of its development strategy, focusing on the elderly healthcare market and chronic disease treatments [18][23].