Core Viewpoint - Tianjin Hongri Pharmaceutical Co., Ltd. held an investor meeting on September 11, 2025, to discuss its semi-annual performance and governance, engaging with investors on various topics [1] Group 1: R&D and Strategy - Investors inquired about the increase in R&D investment in innovative chemical and biological drugs for the first half of 2025, as well as the company's differentiation strategy regarding PD-1/L1 target research [2] - The company emphasized that R&D innovation is a core strategy, acknowledging the lengthy and uncertain nature of new drug development [2] - There were concerns about the company's dual-driven strategy being mere rhetoric, to which the company responded that it is based on concrete actions and long-term planning [2] Group 2: Business Operations and Management - Investors raised questions about the progress and profitability of the collaboration with Chengdu Medical Investment on the Rongcheng Elderly Care Project, with the company advising to refer to periodic reports for updates [2] - Suggestions were made for the company to adopt promotional strategies for its "Shangyimingjia" internet platform, which the company acknowledged [2] - The management's professional background was questioned due to performance declines post the acquisition by Xingcheng Group, with the company asserting compliance with legal and regulatory standards in management appointments [2] Group 3: Financial Performance and Market Management - The company addressed inquiries regarding sales, management appointments, product sales, and R&D progress, stating that it would evaluate single products for policy support to ensure overall effectiveness [2] - On market capitalization management, the company noted that stock prices are influenced by various factors and has established a market value management system to enhance operational efficiency [2] - The company confirmed no significant changes in revenue contribution from various business segments and has no current acquisition plans [2]

Group 1: Company Performance and Financials - The company's net profit decreased by 46.95% year-on-year, while revenue dropped by 6.72% in the first half of 2025 [18] - The revenue from the traditional Chinese medicine formula granules accounted for 46.15% of the company's total revenue in 2024 [10] - The company has not seen significant changes in the contribution weight of various business segments to revenue [9] Group 2: Research and Development - The company emphasizes that innovation in drug development is a long-term process with inherent uncertainties [59] - The clinical trial for the new drug KB has completed phase IIb, but the timeline for further progress remains unclear [59] - The company is committed to optimizing its R&D processes and enhancing its capabilities in drug development [13] Group 3: Market Strategy and Operations - The company is focusing on core businesses, including finished pharmaceuticals, formula granules, and medical devices [12] - The company has established a digital platform for traditional Chinese medicine services, aiming to enhance patient accessibility [22] - The company is actively exploring supply chain optimization through digital transformation [60] Group 4: Investor Relations and Communication - The management acknowledges the concerns of investors regarding the company's performance and is committed to improving transparency [42] - The company has implemented a market value management system to enhance shareholder returns [30] - The management emphasizes the importance of professional responses to investor inquiries during communication events [28]