Core Viewpoint - Zhejiang Zhenyuan Co., Ltd. reported a significant decline in revenue for the first half of 2025, with total revenue of approximately 1.28 billion yuan, a decrease of 34.49% compared to the same period last year, primarily due to the exclusion of its subsidiary Zhenyuan Medicine from the consolidated financial statements following a capital increase and share expansion [15][21]. Company Overview - Zhejiang Zhenyuan Co., Ltd. operates in the pharmaceutical industry, focusing on pharmaceutical distribution and manufacturing, including traditional Chinese medicine processing and health products [5][8]. - The company has established a strong brand presence, with its flagship store "Zhenyuan Hall" recognized as a time-honored brand in China, contributing to its competitive advantage in the market [20]. Financial Performance - The company reported a net profit attributable to shareholders of approximately 56.26 million yuan, an increase of 29.27% year-on-year, while the net profit after deducting non-recurring gains and losses was about 30.12 million yuan, a decrease of 20.32% [15][21]. - The total assets of the company at the end of the reporting period were approximately 2.96 billion yuan, down 13.55% from the previous year [15]. Business Segments - The pharmaceutical distribution segment includes wholesale and retail operations, with Zhenyuan Medicine successfully attracting strategic investment from China Resources Pharmaceutical Group, enhancing its market competitiveness [8][16]. - The retail segment, led by Zhenyuan Medicine Chain Co., Ltd., has been recognized as a top 100 pharmaceutical chain enterprise in China, with a focus on integrating online and offline services [9][10]. Industry Trends - The pharmaceutical industry is undergoing structural changes, with a shift from price reduction to ensuring supply and quality, driven by national policies aimed at improving healthcare services [6][7]. - The integration of digital tools and online services in the pharmaceutical retail sector is becoming a mainstream trend, enhancing operational efficiency and customer service [6][12]. Research and Development - Zhenyuan Pharmaceutical has a strong focus on R&D, with multiple certifications and patents, and is recognized as a national high-tech enterprise [14][21]. - The company is actively involved in the development of synthetic biology technologies and has established collaborations with leading research institutions to enhance its product offerings [14][21].

Group 1 - The company plans to issue A-shares to specific investors, pending approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission (CSRC) [2][3][4] - The final issuance price will be no less than 85% of the average trading price of the company's shares over the 20 trading days prior to the pricing date [3][4][5] - The total number of shares to be issued will not exceed 25% of the company's total share capital, amounting to a maximum of 83,530,821 shares [5][6] Group 2 - The funds raised will be allocated to specific projects, including the construction of a production base for amino acids and an enhancement project for raw materials [6][7] - The company may adjust the investment priorities and amounts based on the actual net amount raised and project urgency if the net proceeds are less than planned [6][7] - The company has committed to using the raised funds in compliance with relevant regulations and will replace any pre-invested funds once the raised funds are available [6][7] Group 3 - The company operates in the pharmaceutical industry, which is subject to strict regulatory oversight from various government bodies, including the National Medical Products Administration and the National Healthcare Security Administration [19][20] - The pharmaceutical industry is characterized by significant competition and regulatory challenges, including drug approval processes and pricing regulations [19][20][21] - The company’s business encompasses pharmaceutical distribution, manufacturing, and health services, with a focus on both commercial and industrial sectors [19][20]