Core Viewpoint - Tonghua Golden Horse (000766) reported a slight increase in revenue and a significant rise in net profit for the first half of 2025, indicating a positive trend in financial performance despite a challenging market environment [1][2]. Financial Performance - The company achieved an operating income of 650 million yuan, a year-on-year increase of 0.12% [1]. - The net profit attributable to shareholders was 16.804 million yuan, reflecting a year-on-year growth of 34.77% [1]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 14.4073 million yuan, showing a substantial increase of 125.07% year-on-year [1]. - Basic earnings per share were reported at 0.02 yuan [1]. Business Operations - Tonghua Golden Horse is engaged in the research, production, and sales of pharmaceutical products, with a business unit cluster that includes its headquarters, Shengtai Biological, Yongkang Pharmaceutical, and Yuanshou Biological [1]. - The company’s product range covers various therapeutic areas, including oncology, microbiology, cardiovascular, detoxification, digestive system, musculoskeletal system, gynecology, and neurology [1]. Research and Development - The company is focused on enhancing professional skills and quality research levels, aiming to improve its technological innovation capabilities and market influence [2]. - A self-developed national class 1.1 new drug, Succinic Dihydroaminoacridine Tablets, has received an acceptance notice from the National Medical Products Administration (NMPA) [2]. - The drug, which has complete independent intellectual property rights, is intended for the treatment of mild to moderate Alzheimer's disease and has completed phase III clinical trials from August 2017 to September 2023 [2]. Regulatory Process - The company is actively working on the new drug's registration application in compliance with NMPA regulations and guidelines [2]. - The approval process for the drug involves several uncertainties, including review timelines and market competition dynamics [2]. - The company is maintaining communication with the NMPA during the review process, which is described as a normal state for new drug evaluations [3].

Core Viewpoint - The production of GV-971 (Mannoheptulose Sodium Capsules), a drug for Alzheimer's disease, has been halted by Green Valley Pharmaceutical, leading to supply shortages and rising prices, raising concerns among patients and families [2][11]. Group 1: Company Situation - Green Valley Pharmaceutical confirmed the closure of offices and production areas related to GV-971 on June 8, 2023, amid severe operational pressures and cash flow issues [2][4]. - The company previously announced on May 19, 2023, that it was aware of the difficulties patients faced in obtaining the drug and was working with authorities to resolve supply issues, but this announcement was deleted shortly after [2][4]. - The drug has faced ongoing academic controversy since its launch in 2019, with questions regarding its mechanism of action and clinical efficacy [4][10]. Group 2: Market Impact - Patients across multiple cities, including Guangzhou, Beijing, and Shanghai, reported difficulties in obtaining GV-971, with prices increasing significantly from around 296 yuan per box (the price when included in medical insurance) to between 500 and 600 yuan, and in some cases, even reaching 5000 yuan [7][11]. - Online platforms have seen a drastic reduction in available stock, with only a few pharmacies listing the drug for sale, often with purchase limits [7][8]. Group 3: Drug Efficacy and Alternatives - The mechanism of GV-971 involves modulating beneficial gut bacteria and related metabolites, which may alleviate neuroinflammation and reduce Alzheimer's-related protein production [9]. - There are currently no other drugs with a similar mechanism approved, but alternative symptomatic treatments are available, including cognitive training and emotional regulation [9][14]. - The drug's conditional approval in 2019 required further clinical trials, which have faced delays, including the suspension of international Phase III trials in 2022 due to various factors [11][12].

Group 1: Xiangyuan Cultural Tourism - Xiangyuan Cultural Tourism has successfully created a "cultural IP + tourism + technology" full industry chain layout through asset restructuring and strategic transformation, promoting deep integration and innovation in the cultural tourism industry [2][11] - The company faced challenges in its animation business from 2019 to 2020, resulting in a 45.02% revenue decline in 2020. However, it leveraged its rich animation IP resources to achieve a strategic transformation and enhance profitability, with 2023 revenue reaching 722 million yuan, a year-on-year increase of 55.81% [2][11] - The company has expanded its tourism assets across regions such as "Daxiangxi," "Dahuangshan," "Dachengyu," and "Danangling," forming a national chain of scenic spots and enhancing brand value through diversified offerings [3][11] Group 2: Lexin Technology - Lexin Technology is a small but robust IoT chip design manufacturer with a stable operating team and a concentrated shareholding structure, which enhances team motivation and operational stability [4][11] - The company has established a competitive advantage by developing low-power, high-performance chips based on the open-source RISC-V architecture, which better meets the needs of AI devices at the edge [4][12] - Lexin's ecosystem includes a rich developer community of over 3 million global developers, supporting mainstream IoT applications and creating a platform effect that drives growth [12] Group 3: Tonghua Jinma - Tonghua Jinma has shifted from relying on mergers and acquisitions to innovation-driven high-quality development, focusing on R&D breakthroughs and asset optimization [17][19] - The company is advancing a new drug for Alzheimer's treatment, with a projected peak sales potential of around 7 billion yuan, addressing a significant market need for new therapies [17][19] - The company has a target market capitalization of 22.2 billion yuan, indicating a potential upside of 26% from its current market value, with a "buy" rating assigned [19] Group 4: China Duty Free Group - China Duty Free Group reported a 16.38% decline in revenue for 2024, with net profit down 36.4%, reflecting challenges in the duty-free market [21] - The company is expanding its city duty-free store projects in response to policy changes, aiming to enhance its market presence [21][24] - Despite the challenges, the company is focusing on digital transformation and member engagement to improve customer experience and retention [24]