Group 1 - The company, Xinghao Pharmaceutical, announced the receipt of a termination notice from the National Medical Products Administration regarding its drug registration application for Oseltamivir Phosphate Oral Disintegrating Tablets [2] - The notice indicates that the company has been granted approval to withdraw its registration application for the mentioned drug [2] - This development may impact the company's product pipeline and future revenue potential in the antiviral segment [2] Group 2 - The withdrawal of the application suggests potential regulatory challenges or strategic shifts within the company [2] - The decision reflects the company's ongoing efforts to align its product offerings with market demands and regulatory requirements [2] - The pharmaceutical industry may see similar trends as companies navigate complex regulatory landscapes [2]

Core Viewpoint - Beijing Xinghao Pharmaceutical Co., Ltd. reported a decline in key financial metrics for the first half of 2025, attributing the decrease in net profit primarily to reduced revenue, increased asset and credit impairment losses, and rising management and R&D expenses [1][2][3]. Financial Performance - As of June 30, 2025, the company achieved approximately 308 million yuan in revenue, with a gross margin of 69%, and a net profit attributable to shareholders of about 41.08 million yuan, reflecting a year-on-year decline of 32.01% in net profit [1][2]. - Revenue decreased by 13.12 million yuan, representing a 4.08% decline compared to the same period last year, largely due to significant price reductions in key products resulting from national procurement policies [1][2]. Impairment and Expenses - The company fully provided for impairment on its long-term equity investment in a subsidiary, resulting in an increase in asset and credit impairment losses [2]. - Management and R&D expenses increased by 9.88% and 5.38% year-on-year, respectively, contributing to the decline in net profit [2]. Product Development and Market Impact - The company withdrew its registration application for the innovative drug Oseltamivir Oral Dispersible Tablets, which is significant for pediatric flu treatment, after investing approximately 26.44 million yuan in its development [3]. - The withdrawal is not expected to have a major impact on current product sales or operations, as the company plans to refine its research and reapply for registration [3][4]. Revenue Breakdown by Product Category - Digestive and metabolic drugs saw a significant revenue increase of 36.69%, attributed to successful procurement bids and expanded hospital coverage [5]. - Other categories, such as neurological drugs and anti-tumor medications, experienced substantial declines in revenue, with decreases of 44.96% and 42.38%, respectively [6].

Group 1: Investor Relations Activity Overview - The investor relations activity was an earnings briefing held on May 27, 2025, at the China Securities Network "Roadshow Center" [4] - Participants included the company's chairman, general manager, and other key executives [4] Group 2: Key Financial Metrics - The company's R&D investment for 2024 is 12.01% of its revenue [5] Group 3: Market Management Strategies - The company plans to enhance its market value management through improved information disclosure and operational efficiency, while considering cash dividends, share buybacks, and mergers as part of its strategy [6] Group 4: International Certifications and Market Expansion - The company has received EMA certification for its "small-volume injection" workshop and FDA certification for "Docetaxel Injection," but currently has no other products submitted for international certification [7] - As of now, the company has not signed any overseas business orders, citing various uncertainties affecting international market expansion [7] Group 5: Product Portfolio and Sales - By the end of 2024, the company holds approximately 100 drug approvals, focusing on gastrointestinal, neurological, oncology, immunomodulatory, and cardiovascular treatments [9] - Top-selling products include compound digestive enzyme capsules, octreotide injections, and mecobalamin tablets [9] Group 6: Production Capacity and Project Updates - The "High-end Drug Formulation Processing Base Project" in Nanjing is under construction and has not yet commenced production [10] - Current production capacity at existing bases in Beijing and Guangdong meets business needs, with ongoing market expansion efforts [10] Group 7: Research and Development Progress - The company is currently in the review stage for its Oseltamivir oral disintegrating tablet, having submitted updated clinical data [11] Group 8: Financial Strategy - The company has no plans for mergers or acquisitions at this time, maintaining a low debt ratio [12]