Core Viewpoint - Zhejiang Haizheng Pharmaceutical Co., Ltd. held its sixth meeting of the tenth board of directors on August 22, 2025, where several key resolutions were passed, including asset impairment provisions, correction of prior accounting errors, and governance structure adjustments [1][2][3]. Group 1: Financial Decisions - The board approved the proposal for asset impairment provisions with unanimous support [1]. - A resolution was passed to correct prior accounting errors, also receiving unanimous approval [2]. - The half-year report for 2025 was reviewed and approved by the board [2]. Group 2: Governance Changes - The company decided to abolish the supervisory board and amend its articles of association to enhance governance structure, with the audit committee taking over relevant responsibilities [2][3]. - The proposal to establish, amend, and abolish certain corporate governance systems was approved, aimed at improving operational standards [4]. Group 3: Strategic Initiatives - The company plans to publicly transfer 100% equity of its wholly-owned subsidiary, Zhejiang Pharmaceutical Industry Co., Ltd., with an estimated value of 392.23 million yuan and a proposed minimum transfer price of 430 million yuan [4][5]. - A resolution was passed to establish a wholly-owned subsidiary in Brazil, with an investment of 5 million Brazilian Reais, to support international expansion [5][6]. Group 4: Social Responsibility - The company and its subsidiaries will donate medicines valued at approximately 2.14 million yuan to the Xinjiang Red Cross Foundation, reflecting its commitment to social responsibility [6]. Group 5: Upcoming Events - The company has scheduled its first extraordinary general meeting of 2025 for September 10, 2025, to discuss the resolutions passed [7].

Core Viewpoint - Haizheng Pharmaceutical (600267) aims to adopt a differentiated strategy focusing on solidifying its industrial foundation, with emphasis on synthetic biology and high-end manufacturing [1] Group 1: Company Overview - Established in 1956, Haizheng Pharmaceutical started with raw materials and has evolved into a comprehensive pharmaceutical enterprise covering the entire value chain from research and production to sales [1] - The company operates a significant production base in Fuyang, Zhejiang, which spans over 1,500 acres and includes various subsidiaries [1] Group 2: Raw Material Business - The raw material segment is a traditional focus for Haizheng, leveraging technological and production scale advantages [2] - The company has developed over a hundred raw material drug varieties, utilizing a fermentation semi-synthesis technology platform [2] - Haizheng is expanding into the health sector, particularly in medical aesthetics and industrial raw materials, to enhance its sales capabilities [2] Group 3: Production Capabilities - Haizheng has established three major production bases in Taizhou, Fuyang, and Nantong, with a complete production line layout [2] - The Fuyang base features 17 independent production lines and adheres to a production philosophy of "pipeline, closed, continuous, and automated" [2] - The base has successfully secured CMO orders from international giants like Merck and continues to advance new product registrations [2] Group 4: Pharmaceutical Formulation Business - Haizheng has achieved a leading position in exporting injectable drugs to the U.S. market, maintaining high GMP standards [3] - The formulation business is primarily managed by its subsidiary, Hanhui Pharmaceutical, which has developed a unique quality management model [3] - Hanhui has successfully completed technology transfers for several original research products, addressing domestic supply shortages [3] Group 5: Animal Health Sector - The animal health segment is a key area of focus, with Haizheng leveraging its bases to create a diverse product matrix for livestock and pets [3] - Haizheng Animal Health has obtained multiple certifications and has several products with significant sales, including a record-breaking domestic deworming drug [3] - The company has a production capacity of 3,000 acres, allowing for strategic positioning in human and animal pharmaceuticals, both domestically and internationally [3]