Core Viewpoint - The chairman of Kelun Pharmaceutical, Liu Gexin, has become a spokesperson for the company's products, showcasing his physique in a recent advertisement, which has garnered significant attention on social media [4][5]. Financial Performance - In 2024, Kelun Pharmaceutical achieved a revenue of 21.812 billion yuan, representing a year-on-year growth of 1.67%, and a net profit of 2.936 billion yuan, up 19.53%, both hitting historical highs [1][7]. - From 2021 to 2023, the company's revenue grew from 17.277 billion yuan to 21.454 billion yuan, with respective year-on-year growth rates of 4.94%, 9.46%, and 12.69% [7]. - The sales expenses for Kelun Pharmaceutical have decreased for three consecutive years, from 4.728 billion yuan in 2022 to 3.493 billion yuan in 2024, with changes of -5.86%, -5.89%, and -21.51% respectively [1][10]. Research and Development - Kelun Pharmaceutical has invested nearly 14.5 billion yuan in R&D since 2013, with R&D expenses increasing from 1.795 billion yuan in 2022 to 2.171 billion yuan in 2024, reflecting growth rates of 3.37%, 8.27%, and 11.68% [2][8]. - The company has a diverse product portfolio, with 684 varieties and 1,073 specifications of pharmaceutical products, including 143 varieties of infusion products [9]. Market Position and Strategy - Kelun Pharmaceutical is recognized as one of the largest pharmaceutical enterprises in China, with a comprehensive industry system spanning R&D, manufacturing, and distribution [3]. - The company is focusing on optimizing its infusion product structure and expanding its market coverage, benefiting from national drug procurement policies [8][10]. - Analysts express optimism about Kelun Pharmaceutical's innovative drug business contributing significant revenue in 2025, despite short-term pressures on its infusion business [11]. Dividend Policy - For the fiscal year 2024, Kelun Pharmaceutical plans to distribute a total dividend of 1.214 billion yuan, which accounts for 41.34% of its net profit [10].

Group 1: Business Segments Overview - The company expects stable performance in the infusion segment for 2025 compared to 2024, with growth anticipated in parenteral nutrition and powder-liquid dual-chamber bag products [2] - The company aims to expand its market share in specialty drugs, particularly in antibiotics, with effective market access achieved in 2024 [1] - The company plans to focus on expanding its diabetes medication portfolio, with products like Ertugliflozin and Sitagliptin expected to drive growth in the next 2-3 years [1] Group 2: International Expansion Strategy - The company is initiating its overseas strategy by targeting the preventive medicine sector in Singapore, with plans to expand into Southeast Asia [1] - Ongoing discussions with major pharmaceutical companies in the Middle East are part of the company's international market exploration [1] Group 3: Innovation Pipeline and Commercialization - The company has several important meetings planned for the second half of the year to discuss its innovation pipeline, particularly focusing on TROP2-ADC and other ADC products [3] - Three products across five indications have been approved since November last year, with a strong focus on major cancer types such as breast cancer and lung cancer [4] Group 4: Market Challenges and Responses - The tenth batch of centralized procurement has significantly impacted the company's potassium chloride injection segment, affecting both unit prices and market share [5] - The company plans to compensate for the decline in potassium chloride sales by increasing the volume of other plastic injection products [5] Group 5: Financial Performance and Cost Management - The gross margin for the infusion segment has slightly decreased in recent years, with the company implementing cost-reduction measures through new high-speed production lines [9] - The overall gross margin for Chuan Ning Bio is projected to be around 36% in 2024, reflecting a 4% increase compared to the previous year [9] - The company has seen a steady decline in sales expense ratios due to effective marketing management reforms [9] Group 6: Raw Material and Export Considerations - The company is currently exempt from U.S. tariffs on antibiotic intermediates, with most overseas sales directed to India [12] - Should tariffs be imposed, the company is prepared to take proactive measures to minimize the impact [12]