Group 1: Company Overview - Beijing Zhongguancun Science and Technology Development (Holding) Co., Ltd. (referred to as "Zhongguancun") held an investor relations activity on September 15, where executives discussed the company's main business development and market trends with over ten institutional investors [1] - Zhongguancun's subsidiary, Duoduo Pharmaceutical Co., Ltd., won a centralized procurement bid for its Siberian Ginseng Injection, effective until December 31, 2027 [1] Group 2: Sales Performance and Market Strategy - The management indicated that sales revenue for Siberian Ginseng Injection is expected to grow by 38% year-on-year in the first half of 2025, although significant volume increases have not yet materialized due to delays in the procurement execution period [1] - The management expressed optimism that the product could achieve the goal of "volume through price" as the procurement process deepens and hospital development progresses [2] Group 3: Product Development - Zhongguancun's subsidiary, Beijing Huasu Pharmaceutical Co., Ltd., is developing two differentiated products for treating Attention Deficit Hyperactivity Disorder (ADHD), including a chewable sustained-release tablet and an oral sustained-release suspension [2] - These products are designed to improve medication adherence among children, particularly those with swallowing difficulties, offering more flexible dosing options compared to traditional sustained-release tablets [2] Group 4: New Market Ventures - Zhongguancun has made significant strides in the green building materials sector, successfully winning a bid for a wind power mixed tower project, marking its entry into the wind power market [3] - The company aims to establish a green production system focused on low energy consumption, low emissions, and high performance [4]

Sales Performance - The sales revenue of Schisandra Injection in the first half of 2025 increased by 38% year-on-year, while the gross margin rose by 18% compared to the previous year [3] - Despite the increase in revenue, the medical sales volume did not see a significant rise due to delays in the centralized procurement process [3] - Future prospects indicate that products with centralized procurement status may achieve the expected "price for volume" effect as hospital development progresses [3] Accounts Receivable and Cash Flow - Accounts receivable increased by 7.06% from the beginning of the year, which is within the normal fluctuation range for the company [4] - Operating cash flow declined primarily due to a 1.28% decrease in cash received from sales and a 4.18% increase in cash paid for purchases [4] - The structure of sales collection improved, with cash payments accounting for 60.57%, bank acceptance bills at 37.88%, and commercial acceptance bills at only 1.55% [4] Green Building Materials - The subsidiary, Zhongshi New Materials, has obtained green building material certification and aims to create a low-energy, low-emission, high-performance production system [5] - Key plans include the use of recycled aggregates and green additives, low-carbon production processes, and the development of green products [5] - The company successfully entered the wind power concrete tower market, marking a significant breakthrough in the new energy sector [5] Elderly Care Business - The company is implementing measures to control or reduce losses in its elderly care business by optimizing management and resources [6] - The elderly care segment has been restructured into three business units to enhance management efficiency [6] - Focus on improving service quality and occupancy rates through dedicated management teams and enhanced service protocols [6] Debt Restructuring - The controlling shareholder, Gome Holdings, is actively communicating with creditors to address significant debt pressures and liquidity risks [7] - Proposed strategies include debt restructuring, asset disposal, and increasing collateral to mitigate risks associated with share pledges [7] - Continuous communication with creditors is aimed at reaching a consensus on debt resolution solutions [7] Corporate Governance - The company maintains independence from its controlling shareholder, with no non-operating fund occupation or illegal guarantees affecting its interests [8] - The relationship with the controlling shareholder has not materially impacted the company's daily operations, ensuring healthy business development [8]

Group 1: Company Strategy and Resource Allocation - The company focuses on the pharmaceutical health sector and plans to divest non-pharmaceutical assets to optimize its resource allocation over the next 3 to 5 years [2] - The company will carefully consider market trends and the status of existing assets before making decisions on asset optimization [2] Group 2: Product Performance and Market Trends - The core product, Benidipine Hydrochloride Tablets (trademark: Yuanzhi®), saw a nearly 29% increase in revenue in 2024 compared to the previous year [2] - The market share of Yuanzhi reached 55.57% in 2024, driven by an aging population and increasing hypertension cases [3] Group 3: Sales and Marketing Strategies - The company implemented a "three-full strategy" to expand its market presence and mitigate the impact of potential centralized procurement [2] - Sales expenses increased to 44.22% in Q1 2025 from 35.75% in 2024, attributed to heightened marketing efforts to ensure strong performance [7] Group 4: Future Growth and Product Development - The company anticipates a sales revenue increase of over 100% for Oxycodone Injection in 2025, supported by expanding usage in various medical fields [5] - The company is developing new products, including Methylphenidate Hydrochloride sustained-release tablets, with significant market potential in ADHD treatment [6] Group 5: Financial Projections - The company projects a revenue of 2.943 billion yuan and a net profit of 89 million yuan for 2025 [10] - In Q1 2025, the company achieved a revenue of 616 million yuan, a 1.63% increase year-on-year, and a net profit of 15.76 million yuan, up 35.47% from the previous year [10] Group 6: Digital Transformation and E-commerce - The company is advancing digital initiatives, including the establishment of digital workshops and exploring online sales channels [7] - The health product segment is focusing on expanding its product range and enhancing e-commerce operations to meet diverse consumer needs [8]

Product Overview - The company focuses on key narcotic products, including the oxycodone series and the new drug dihydroetorphine sublingual tablets, with a comprehensive product cluster in the analgesic field [3] - The core products include oxycodone raw materials and formulations, as well as tramadol series products from subsidiary companies [3] Sales Growth and Market Potential - The sales revenue of oxycodone injection is expected to exceed 100% growth in 2025, driven by increasing market demand in various medical fields [4] - The domestic sales of oxycodone products reached CNY 1.907 billion in 2024, with the company aiming to capture a significant market share [5] R&D Progress and Future Plans - The company is developing methylphenidate products, with the chewable tablets and oral suspension currently in the development stage [6] - A collaboration with a military research institute aims to enhance the R&D capabilities for methylphenidate products [6] - The market for methylphenidate is promising, with a projected sales revenue of CNY 526 million in 2024 [7] Strategic Product Pipeline - The company is expanding its narcotic product line, with several products in different stages of development, including oxycodone sustained-release tablets [8] - The strategic layout includes a focus on chronic disease management, narcotic specialties, and mental health products [9] Market Trends and Challenges - The demand for antihypertensive drugs is expected to grow due to an aging population and younger patients with hypertension [10] - The potential for the company's flagship product, Yuanzhi, to be included in national drug procurement policies is acknowledged, with strategies in place to mitigate impacts [10]