Core Viewpoint - The recent annual report of Kew Flower Pharmaceutical (葵花药业) for 2024 indicates a revenue of 3.377 billion yuan and a net profit of 492 million yuan, reflecting the company's resilience amid industry challenges such as medical insurance cost control and large-scale drug procurement [1][2]. Financial Performance - In Q1 2024, Kew Flower achieved total revenue of 663 million yuan and a net profit attributable to shareholders of 57.11 million yuan [1]. - The company's contract liabilities increased significantly from less than 100 million yuan in Q3 to 284 million yuan in Q4, indicating potential future revenue and profit growth [2]. - Despite a year-on-year decline in Q1 2025 revenue, there was a notable 62% quarter-on-quarter growth, suggesting a positive trend in business recovery [2]. Dividend Policy - Kew Flower plans to distribute a cash dividend of 5 yuan per 10 shares, totaling approximately 292 million yuan, which represents 59.34% of the net profit attributable to shareholders [3]. - The company has a history of high dividend payouts, having distributed a total of 4.045 billion yuan since its listing, reflecting strong profit quality and management confidence in sustainable growth [3]. Brand Strategy - Kew Flower operates under two main brands: "Kew Flower" for adult medications and "Little Kew Flower" for children's medications, with the latter covering over 60 types of pediatric drugs and maintaining a leading market position [4][5]. - The "Little Kew Flower" brand has achieved a market share of 73% in its category, showcasing its competitive strength [4]. Marketing and Distribution - The company is enhancing its marketing channels and operational efficiency through digital transformation, including the establishment of self-operated B2B and B2C platforms [6]. - Kew Flower's sales expenses decreased by 68.46% to 431 million yuan in 2024, demonstrating significant cost reduction efforts [6]. - Collaborations with local pharmacies have resulted in substantial sales growth, with O2O channels experiencing increases of 35.4% and 38.8% [7]. Future Outlook - Kew Flower's strategic focus on brand empowerment and flow-driven models is expected to provide sustainable growth momentum, even in a challenging industry environment [7]. - The company aims to leverage its strong product portfolio to stabilize performance and deliver long-term returns to investors [7].