Core Viewpoint - Zhenbaodao is accelerating the improvement of its traditional Chinese medicine industry chain layout through the acquisition of a 49% stake in Guizhou Shennong Valley, which will become a wholly-owned subsidiary of its subsidiary Bozhou Trading Center [1] Group 1: Acquisition Details - The acquisition amount is 490 million yuan, which includes the investment principal and interest from the fund during the investment period [1] - Guizhou Shennong Valley was established in August 2023 with a registered capital of 1 billion yuan [1] - As of March 31, 2025, Guizhou Shennong Valley has total assets of 1.062 billion yuan and net assets of 998 million yuan [1] Group 2: Financial Performance - In 2024, Zhenbaodao achieved revenue of 2.704 billion yuan, a year-on-year decrease of 13.84%, marking the lowest record in five years [2] - In the first quarter of 2025, the company reported a revenue decline of 58.03% to 469 million yuan and a net profit decline of 74.33% to 75.3 million yuan [2] - The decline in revenue and profit is attributed to the postponement of the third batch of national Chinese medicine procurement [2] Group 3: Product Development - On the same day as the acquisition announcement, Zhenbaodao received approval for clinical trials of its Fufang Qinlan Oral Liquid for children aged 4-12 [3] - The pediatric medication sector is experiencing significant policy benefits, and Fufang Qinlan Oral Liquid is positioned as a core product in Zhenbaodao's "anti-viral Chinese medicine matrix" [3] - The company’s total assets reached approximately 12.713 billion yuan by the end of 2024, with a year-on-year growth of 1.98% [3]

Core Viewpoint - The 90th National Pharmaceutical Trade Fair showcased Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd., highlighting its brand, high-value product matrix, and ecological win-win philosophy [3][4] Group 1: Product Showcase - Zhenbaodao Pharmaceutical exhibited high-quality product lines focusing on cardiovascular, respiratory, and anti-infection treatment areas, including key products like Injection Blood Setong 100mg and Xuechuang Capsule [3] - The company has developed a dual-driven system of "Traditional Chinese Medicine + Chemical Medicine," featuring products such as Compound Qilan Oral Liquid and Injection Ammonium Bromide [3] Group 2: Marketing Strategy - The company emphasized its 2025 "Guangshen Tuo" marketing strategy, which segments regional markets based on product attributes and promotes a model of "recruiting merchants, finding merchants, and servicing merchants" to enhance terminal coverage and sales efficiency [4] - Zhenbaodao Pharmaceutical established a three-tier academic promotion system, integrating medical, market, and data teams to monitor industry trends and provide precise marketing strategies [4] Group 3: Collaborative Ecosystem - The participation in the trade fair demonstrated the company's competitive product pipeline and industrial layout, aiming to build a comprehensive ecosystem of strategic collaboration, resource sharing, and value co-creation [4] - The company plans to continue driving innovation and collaboration, positioning itself to lead the pharmaceutical industry towards higher value creation [4]

Core Insights - The company reported a revenue of 2.704 billion yuan and a net profit of 438 million yuan for the year 2024, with a basic earnings per share of 0.47 yuan [1] - For the first quarter of 2025, the company achieved a revenue of 469 million yuan and a net profit of approximately 75.3 million yuan, with a basic earnings per share of 0.08 yuan [1] Group 1: Business Overview - The company is a comprehensive high-end pharmaceutical enterprise involved in drug research and innovation, intelligent manufacturing, multi-channel marketing, pharmaceutical commerce, and traditional Chinese medicine [1] - The company has established a marketing network covering over 30 provinces in China, creating a mature and complete marketing management service system [2] Group 2: Production and Product Portfolio - The company has production bases in Harbin, Hulin, and Jixi, with 21 production workshops and 43 production lines [2] - It holds 170 production licenses for a total of 138 varieties, with 86 varieties included in the 2024 National Medical Insurance Drug List [2] - The product matrix includes major categories such as cardiovascular, antiviral, respiratory, and pediatric medicines, with a focus on traditional Chinese medicine [2] Group 3: Research and Development - The company is actively engaged in the research and development of innovative traditional Chinese medicines and generic drugs, with ongoing projects in clinical trials and quality standard enhancements [3] - The company has completed preclinical research for a class 1 innovative traditional Chinese medicine and is conducting mechanism studies and phase II clinical trials [3] - The company has also made progress in the development of chemical drugs, with multiple projects receiving production approvals and registrations [3] Group 4: Strategic Development - The company is focused on integrating industry resources and exploring acquisition opportunities that align with its production, technology, and sales capabilities [3] - It has completed acquisitions of 23 products, enhancing its product pipeline and market competitiveness [3] - The company aims to strengthen its brand influence and industry position in the traditional Chinese medicine sector while expanding its chemical and biological drug businesses [4]