Core Viewpoint - Haizheng Pharmaceutical reported a significant financial turnaround in 2024, achieving a record net profit of 601 million yuan, driven by increased sales in both formulation products and active pharmaceutical ingredients, alongside improved management efficiency [1][2]. Financial Performance - The company achieved an operating revenue of 9.787 billion yuan in 2024, with a net profit attributable to shareholders reaching 601 million yuan, marking a return to profitability [1]. - The net cash flow from operating activities increased by 40.72% to 2.115 billion yuan, while the debt-to-asset ratio decreased by 12% to 46.29% [2]. Shareholder Returns - Haizheng Pharmaceutical plans to distribute a cash dividend of 2.10 yuan per 10 shares (tax included) and has repurchased shares worth approximately 96.4589 million yuan, totaling 342 million yuan in cash returns, which is 56.87% of the net profit attributable to shareholders [1]. Business Development - The company focused on key product sales, with the sales volume of its main product, Saismei, reaching 6.2569 million boxes, a 31% increase year-on-year [2]. - The active pharmaceutical ingredient business showed robust growth, with significant revenue increases from products like Invermectin and Orlistat [2]. Animal Health Sector - The animal health business expanded, launching four new significant products, including the cloud vaccine and the pet vaccine, with nine products achieving sales over 10 million yuan [2]. - The company reported that its pet deworming product, Haile Miao, has consistently exceeded 100 million yuan in annual sales [2]. E-commerce Growth - In 2024, the company's e-commerce business saw significant upgrades, with key pharmaceutical products experiencing substantial growth through online channels, and the pet business surpassing 100 million yuan in sales, achieving an 11-fold increase over five years [3]. Innovation and R&D - Haizheng Pharmaceutical emphasized innovation and R&D, restructuring resources to enhance research efficiency, particularly in cardiovascular and metabolic treatment areas [4]. - The company established a new drug research center in Shanghai and formed strategic partnerships with leading research institutions, resulting in 62 patent applications and 30 granted patents in 2024 [4]. Production and Quality - The company made significant advancements in its industrial system, completing ten technology transfers and successfully passing FDA audits at its three major production bases [5]. - Haizheng Pharmaceutical received several accolades, including recognition as a "National Champion Enterprise" and "National Excellent Intelligent Factory" [5]. Future Outlook - Looking ahead to 2025, Haizheng Pharmaceutical aims to focus on strengthening its core business while exploring new growth areas, positioning itself for significant development and transformation [5].

Core Viewpoint - Haizheng Pharmaceutical reported a revenue decline of 5.65% in 2024, while achieving a net profit of 601 million yuan, indicating a mixed performance with concerns over market competitiveness [1][4][5]. Revenue Decline: Core Business Struggles - The company's revenue for 2024 was 9.787 billion yuan, marking a second consecutive year of decline, highlighting weak growth in core business areas despite efforts in traditional pharmaceutical sectors [4]. - In the pharmaceutical formulation sector, Haizheng ranked 26th among Chinese pharmaceutical companies according to IQVIA, but this did not translate into significant revenue growth [4]. - The e-commerce segment saw substantial growth in key products like Yisuo Jia and Mei Man, yet overall contributions to revenue remained limited [4]. - New product launches in the export formulation business had minimal impact on overall revenue due to small initial profit margins [4]. Net Profit Growth: Reliance on Non-Recurring Gains - The net profit of 601 million yuan represented a turnaround from losses, with a non-recurring profit of 423 million yuan indicating reliance on short-term measures rather than sustainable growth [5][6]. - Profit growth was attributed to improved resource allocation and management efficiency, but these effects are more short-term in nature [5]. Emerging Business: Slow Development, Untapped Potential - Haizheng's expansion into emerging sectors like health, medical aesthetics, and synthetic biology has been slow, with limited immediate revenue impact [7]. - The company has developed over ten products in areas such as orthopedic calcium supplements and liver protection, but their market performance remains to be validated [7]. - In the medical aesthetics sector, while strategic planning is in place, only two products have been initiated, and twelve are in preliminary research, indicating a need for time to assess market viability [7].