Core Insights - The company reported a revenue of 41.188 billion yuan for the first half of 2025, representing a year-on-year growth of 3.54% [1] - The net profit attributable to shareholders was approximately 282 million yuan, with a year-on-year increase of 18.56% [1] - The basic earnings per share reached 0.16 yuan, reflecting a growth of 14.29% year-on-year [1] Business Overview - The company is a national wholesale enterprise for narcotic drugs and Class I psychotropic drugs, and it operates in the pharmaceutical and medical device sectors [1] - The main business segments include pharmaceutical commercial operations, covering drug sales, medical devices, traditional Chinese medicine, health products, and supply chain services [1] - The company has expanded its market presence, achieving coverage in all 31 provinces and 164 prefecture-level cities in China [1] Pharmaceutical Wholesale Business - The pharmaceutical wholesale segment generated revenue of 39.052 billion yuan, accounting for over 95% of total revenue, serving more than 8,000 medical institutions [2] - The company is enhancing its "pharmaceutical + internet" strategy, with the online platform "Zhongyao Cloud Business" achieving a transaction volume of approximately 1 billion yuan, a year-on-year increase of 72% [2] Retail Business - The retail segment achieved revenue of 1.947 billion yuan, with brands like "Heping Pharmacy" covering over 850 stores across 22 provinces [2] - The company has opened 616 stores offering outpatient coordination services, improving patient access to medication and health management [2] Product and Service Diversification - The company operates over 280,000 product specifications, with pharmaceutical revenue reaching 33.668 billion yuan and traditional Chinese medicine revenue at 7.210 billion yuan [2] - The company has established standardized planting bases for traditional Chinese medicine and enhanced production capabilities through modern workshops and AI technology [2] Medical Device and Specialty Drugs - The medical device segment generated revenue of 6.884 billion yuan, with 41 SPD projects implemented to improve hospital supply chain management [3] - Revenue from narcotic drugs and Class I psychotropic drugs was 1.736 billion yuan, ensuring stable supply and efficient distribution [3] Innovation and Development - The company is focusing on high-end generic drugs, specialty traditional Chinese medicine, and innovative drug development [3] - Four products, including Mirabegron sustained-release tablets, were approved during the reporting period, with three already in commercial production [3]

Group 1: Investor Relations Activity Overview - The investor relations activity took place from June 12 to June 13, 2025, at the Westin Hotel in Beijing [4] - Attendees included major securities firms and funds such as Shenwan Hongyuan, Huano Investment, and CITIC Securities [4] - Company representatives included the Vice General Manager, Board Secretary, and Financial Officer, Mr. Wang Qibing [4] Group 2: Research and Development Budget - The estimated R&D budget for 2025 is CNY 163 million, with CNY 85 million allocated for innovative drugs and CNY 78 million for generic drugs [6] - The R&D focus will be on chronic disease treatments related to metabolic disorders, including diabetes and hypertension [6] Group 3: Drug Approval and Development - As of 2025, the company has obtained 4 drug registration certificates, including drugs like Sacubitril/Valsartan and Dapagliflozin [7] - Innovative drug DYX116 is in Phase I clinical trials, with expectations to complete by the end of 2025 [7] - DYX216, another innovative drug for resistant hypertension, has identified potential preclinical candidates [7] Group 4: Performance and Growth Factors - The company maintains steady growth due to strong marketing strategies and sales performance [8] - Sales of products like "Furuitong" and "Bokaiqing" continue to grow, contributing to overall performance [8] - Improved product gross margin due to increased production and reduced raw material costs [8] - Enhanced internal management and cost control measures have improved overall profitability [8]