Group 1: Company Performance - In 2024, the company achieved operating revenue of 27,863.88 million yuan, a decrease of 1,375.83 million yuan, representing a year-on-year decline of 4.71% [5] - The net profit attributable to shareholders was 416.27 million yuan, down 2,933.90 million yuan, a decline of 87.57% year-on-year [5] - The decrease in profit was primarily due to strategic investments in new business segments, which increased operational costs without generating significant revenue [5] Group 2: Digital Marketing and Sales Strategy - The company is enhancing digital marketing through two main approaches: upgrading pharmaceutical innovation and smart manufacturing, and developing a digital retail platform [2] - The company plans to leverage new retail marketing experiences from its subsidiary to boost online sales of OTC drugs via platforms like Douyin [6] - A dual-channel approach is being adopted for medical services, combining online and offline methods to improve service efficiency and product sales [6] Group 3: New Business Development - The company has established the Wan Nian Qing International Medical Port, a comprehensive medical complex in eastern Guangdong, collaborating with leading medical brands [4] - The new business segment is still in the cultivation phase and has not yet generated profit [4] - The company is focusing on integrating online and offline resources to create a seamless service experience [4] Group 4: Market Trends and Competitive Position - The company is responding to the growing demand for traditional Chinese medicine and health products, particularly in the context of an aging population and increasing health awareness [10] - The company aims to differentiate itself by leveraging its long-standing brand heritage and integrating various health services [10] - The overall pharmaceutical industry saw a slight decline in revenue and profit, with the company’s performance aligning with industry trends [10] Group 5: Regulatory and Policy Impact - The company’s product, Can Qi Jiang Tang Pian, has been selected for national centralized procurement, which may reduce its price by approximately 30% but is expected to expand its market reach [9] - The company is committed to complying with national policies aimed at enhancing the quality of traditional Chinese medicine [11]

Core Insights - The article highlights the successful conclusion of the "Compliance New Journey, Building the Future" private meeting hosted by Yue Wannianqing and Guotou Securities, emphasizing the company's commitment to innovation and its leading position in the traditional Chinese medicine sector [1] Company Overview - Yue Wannianqing, with over 130 years of history, originated from the Shantou Pharmaceutical Factory and has established a strong reputation in drug research, production, and sales [2] - The company adheres to the principles of "innovation, excellence, and quality first," and has developed specialized brands in areas such as gallbladder health, diabetes management, and kidney support [2] - The "Wannianqing" brand was recognized as a "Chinese Time-Honored Brand" in February 2024, reflecting its brand value in the traditional Chinese medicine industry [2] Market Trends - The demand for traditional Chinese medicine (TCM) has been increasing, driven by factors such as an aging population, changes in dietary structure, and environmental pollution [2] - There is a notable shift in disease patterns from infectious to chronic non-communicable diseases, with rising incidences of cardiovascular, respiratory, and endocrine diseases, where TCM shows advantages in treatment [2] Product Development - Yue Wannianqing has developed a diverse product portfolio, including 101 products with national drug approval, covering various forms such as tablets, capsules, and injections [3] - The company has 32 original innovative products, 10 exclusive varieties, and 4 unique dosage forms, with 38 products included in the national medical insurance directory [3] - The company has increased its R&D investment, focusing on product innovation and improvement, and its product "Shenqi Jiangtang Pian" has been selected for national centralized procurement [3][4] Strategic Expansion - To explore new growth opportunities, Yue Wannianqing has extended its business into the health industry chain, acquiring 85% of Guangdong Tongren Pharmaceutical Co., now known as Guangdong Wannianqing Pharmaceutical Co., focusing on the production and trade of Chinese medicinal materials [5] - The company has also invested in the establishment of the Wannianqing International Medical Port, a comprehensive healthcare complex in Shantou, which integrates various medical services and aims to meet diverse healthcare needs in the region [6]