Core Viewpoint - ST Tian Sheng (002872.SZ) announced that its wholly-owned subsidiaries, Hubei Tian Sheng Pharmaceutical Co., Ltd. and Hunan Tian Sheng Pharmaceutical Co., Ltd., participated in the procurement of drugs including Dexamethasone in Guangdong Province, with several products proposed for selection in the upcoming procurement process [1] Group 1: Company Participation - Hubei Tian Sheng and Hunan Tian Sheng participated in the Guangdong Alliance procurement for Dexamethasone and other drugs [1] - The Guangdong Provincial Drug Trading Center published the proposed selection results for the procurement on October 10, 2025 [1] Group 2: Selected Products - Hubei Tian Sheng's products proposed for selection include: - Concentrated Sodium Chloride Injection - Clindamycin Hydrochloride Injection - Glucose Injection - Sodium Chloride Injection [1] - Hunan Tian Sheng's products proposed for selection include: - Cefoperazone Injection - Cefazolin Sodium Injection [1]

Core Viewpoint - ST Tian Sheng's subsidiaries, Hubei Tian Sheng and Hunan Tian Sheng, have participated in the procurement process for various pharmaceutical products, which may enhance their market presence and brand influence [1] Group 1: Procurement Participation - Hubei Tian Sheng and Hunan Tian Sheng are involved in the Guangdong Alliance procurement for drugs including concentrated sodium chloride injection, clindamycin hydrochloride injection, glucose injection, sodium chloride injection, and injectable cefoperazone and cefazolin sodium [1] Group 2: Potential Impact - The selection of these products for procurement is expected to expand the sales range and increase market share [1] - However, it is important to note that the procurement contracts have not yet been signed, leading to uncertainty regarding the subsequent impact on the company [1]

Group 1: Financial Performance - In 2024, the company reported a revenue of 2.971 billion yuan, a decrease of 18.06% year-on-year, and a net loss of 1.329 billion yuan, with a decline of 2920.55% [32] - The net cash flow from operating activities in 2024 was -149.8 million yuan, an improvement of 39.87% compared to -249 million yuan in the previous year [11] - In Q1 2025, the company achieved total revenue of 755 million yuan, a decrease of 3.53% year-on-year, while the net profit attributable to shareholders was 1.1572 million yuan, down 94.99% [14] Group 2: Market Strategy and Product Development - The company plans to enhance its market presence by focusing on product innovation, efficiency improvement, and structural optimization to achieve sustainable development [12] - In 2024, the company launched new products such as hair growth capsules and white blood cell-enhancing granules, with plans for continued expansion in 2025 [12] - The company aims to improve its market share for core products, including the compound Ku Shen injection and Minoxidil lotion, which has a market share of 47.3% [25] Group 3: Response to Industry Challenges - The company is adapting to industry challenges such as centralized procurement and medical insurance cost control by optimizing its product structure and focusing on high-value drugs [10] - The company has implemented measures to improve cash flow, including better management of accounts receivable and reducing long payment terms in wholesale business [11] - The company is continuously monitoring market dynamics and adjusting strategies to ensure stable growth despite external pressures [15] Group 4: R&D and Innovation - In 2024, the company invested 251 million yuan in R&D, a year-on-year increase of 25.27%, focusing on innovative drugs and modern traditional Chinese medicine [18] - The company has established a new drug creation center in Shanghai and initiated clinical research for new anti-tumor drugs [18] - The company is committed to enhancing its R&D capabilities and has made significant progress in various projects, including the registration of traditional Chinese medicine with the FDA [18] Group 5: Corporate Governance and Investor Relations - The company is implementing a share repurchase plan, having repurchased 51.025 million yuan worth of shares by April 30, 2025, which will be included in the cash dividend calculation [4] - The company emphasizes transparency and will disclose any significant developments regarding acquisitions and financial management in accordance with legal requirements [12] - The company acknowledges investor concerns regarding stock performance and is focused on improving operational efficiency and communication with the market [3]

Group 1 - The core viewpoint of the news is that Shanxi Zhendong Pharmaceutical Co., Ltd. reported significant financial growth in 2024, achieving an operating income of 2.971 billion yuan and a turnaround in profit for Q1 2025 with a net profit of 28,960 yuan, marking a year-on-year increase of 103.37% [1] - In 2024, the company's key products, including Yanshu Compound Sophora Injection and Dafeixin Minoxidil Lotion, maintained steady growth, with the former leading in usage among similar drugs for three consecutive years and the latter achieving a market share of 47.3% [1] - The company expanded its product offerings in 2024 with new selections in the centralized procurement process, including Du Yi Wei Granules and Dengzhanhua Dispersible Tablets, which are expected to significantly boost sales in grassroots markets [1] Group 2 - In the innovative drug sector, the company completed the efficacy evaluation of a new skin drug and initiated clinical trials for an innovative traditional Chinese medicine, ZD16, while also starting preclinical research for an anti-tumor new drug [2] - The company is advancing 30 raw material drug projects and 31 formulation projects, including the FDA registration of Yanshu and research on its efficacy for pancreatic cancer [2] - A collaboration was signed with Westlake University and Beijing Natural Intelligence Pharmaceutical Technology Co., Ltd. to modernize the research and development of traditional Chinese medicine using AI technology [2]