Core Viewpoint - Enwei Pharmaceutical reported significant growth in its operating performance for the first half of 2025, driven by the market impact of key products from Henan Xinxin Pharmaceutical, online sales growth, and a substantial reduction in amortization expenses [1][2]. Financial Performance - In the first half of 2025, Enwei Pharmaceutical achieved operating revenue of 449 million yuan, a year-on-year increase of 15.73% - The net profit attributable to shareholders reached 38.34 million yuan, up 113.8% year-on-year - The net profit attributable to shareholders after deducting non-recurring gains and losses was 35.28 million yuan, reflecting a year-on-year growth of 132.47% [1]. Product Development and Market Position - Enwei Pharmaceutical's gynecological products generated operating revenue of 208 million yuan, marking an 11.73% increase year-on-year - The core product "Jie'er Yin Wash" continues to hold the top market share in the gynecological traditional Chinese medicine sector in urban retail pharmacies [2]. - The company has acquired production licenses for 125 varieties through its participation in the bankruptcy reorganization of Henan Xinxin Pharmaceutical, significantly enriching its product pipeline [2]. Strategic Plans - The company aims to develop 8 to 10 products with over 100 million yuan in sales over the next three years to ensure sustainable long-term growth - Enwei Pharmaceutical is actively promoting this cultivation plan by mobilizing resources to accelerate product development [2]. - For the second half of 2025, the company plans to focus on daily operations, marketing efforts, and the revival of key products from Henan Xinxin Pharmaceutical, with a goal of launching around 20 key products by year-end [3].

Core Insights - Enwei Pharmaceutical reported a significant increase in revenue and net profit for the first half of the year, with total revenue reaching 449 million yuan, a year-on-year increase of 15.73%, and net profit attributable to shareholders reaching 38.34 million yuan, a substantial growth of 113.8% [1][2] Group 1: Financial Performance - The company's revenue from its main product, "Jieryin Wash," continues to dominate the gynecological traditional Chinese medicine market, maintaining the largest market share since 2025, indicating strong brand recognition and influence [1] - Despite facing significant cost pressures, the gross margin for the gynecological segment remained high at 58.31%, with double-digit revenue growth year-on-year, showcasing strong pricing power and market control [1] Group 2: Business Expansion and R&D - Other business segments showed remarkable growth, with revenue increasing by 48.78% and a gross margin of 45.69%, becoming a new driving force for the company's overall growth [2] - The company maintains a high level of investment in R&D, focusing on the consistency evaluation of related drugs and advancing products towards high quality and standards, enhancing market recognition [2] - Enwei Pharmaceutical currently holds 21 exclusive products, demonstrating strong product differentiation capabilities [2] Group 3: Future Outlook - The company is poised to benefit from the high-quality development policies in the traditional Chinese medicine industry and the growing demand driven by the "Healthy China" initiative, presenting new development opportunities [2]

Fundraising Overview - The company raised a total of RMB 522.69 million through the issuance of 17,540,000 shares at a price of RMB 29.80 per share, with a net amount of RMB 442.95 million after deducting issuance costs [2][3] - Prior to the funds being in place, the company had already invested RMB 156.71 million from self-raised funds into projects and paid RMB 20.53 million in issuance costs [3] - As of December 31, 2023, the company had accumulated interest income and cash management product returns of RMB 5.48 million, with a total of RMB 169.18 million remaining in the fundraising account [4] Fund Utilization - In the reporting period, the company invested RMB 47.08 million in fundraising projects and permanently supplemented working capital with RMB 11.37 million [5] - By December 31, 2024, the total direct investment in fundraising projects reached RMB 66.09 million, with RMB 156.71 million used to replace self-raised funds [5][6] - The company has established a management system for fundraising, ensuring funds are stored in dedicated accounts and used according to strict approval procedures [6][28] Internal Control Evaluation - The company conducted an internal control evaluation as of December 31, 2024, concluding that there were no significant defects in financial reporting controls [13][41] - The internal control framework includes governance structures, risk assessment, and control activities across various operational areas, ensuring compliance with relevant laws and regulations [14][24][28] - The company has established a robust internal audit function to monitor compliance and effectiveness of internal controls [36] Profit Distribution Proposal - The board of directors approved a profit distribution proposal for 2024, recommending a cash dividend of RMB 1.80 per share, totaling approximately RMB 18.19 million [53][55] - The proposal is in line with the company's profit distribution policy and aims to provide reasonable returns to shareholders while ensuring the company's sustainable development [55][57] - The company has maintained a strong cash dividend history, exceeding the average net profit over the past three years [56]