Report Basic Information - Reported Company: Jilin Aodong [16] - Industry: Chemical Pharmaceuticals [2] - Research Date: July 17, 2025 [16] - Company Representatives: Wang Zhenyu (Director, Deputy General Manager, Secretary of the Board), Zhao Renhe (Director of the Board Office, Securities Affairs Representative) [16] Participating Institutions - "Innovation Sailing, King's Moment - The 20th Pharmaceutical Hundred Listed Companies Exchange Meeting (Beijing Station)" [17] - Guosheng Securities (Representative: Zhang Yu) [17] - Beijing Hongdao (Representative: Tang Yulin) [17] - Yimin Fund (Representative: Gui Guan) [17] - CITIC Securities Asset Management (Representative: Peng Kang) [17] - Ginkgo Capital (Representative: Zhang Haijun) [17] Institution Proportion - Others: 33% [21] - Securities Companies: 17% [21] - Investment Companies: 17% [21] - Fund Management Companies: 17% [21] - Asset Management Companies: 17% [21] Core Business Highlights Business Revenue Structure in 2024 - Total revenue from three major business segments (traditional Chinese medicine, chemical drugs, and chain pharmacy wholesale and retail) reached 2.273761 billion yuan, with traditional Chinese medicine contributing 1.6055413 billion yuan (61.50%), chemical drugs 276.8538 million yuan (10.61%), and chain pharmacy business 391.366 million yuan (14.99%) [22] - Revenue from the health - care business was 212.1299 million yuan, accounting for 8.13% of the total revenue [22] Key Product Analysis - **An Shen Bu Nao Ye**: With a large target audience due to the increasing number of insomnia sufferers, its sales growth is supported by consumer trust in the brand and product efficacy, and the unique geographical advantage of its raw materials. It is mainly sold outside hospitals. The company implements an "An Shen +" combination strategy to drive performance growth [22][23] - **Xue Fu Zhu Yu Kou Fu Ye**: A well - recognized product with multiple honors. Its selection in the national Chinese patent medicine procurement alliance's volume - based procurement in 2024 is expected to expand sales. The company will continue brand building, strengthen cooperation with major pharmaceutical chains, and promote clinical use [24] Project Progress - **Chinese Medicine Formula Granule Project**: As of December 31, 2024, 228.776 million yuan of the raised funds had been used. Multiple workshops passed the GMP compliance inspection on January 23, 2025. The company has obtained 525 "Listing Filing Certificates for Chinese Medicine Formula Granules" and is focusing on market development [25] Investment in GF Securities - As of March 31, 2025, the company and its wholly - owned subsidiaries held 1,529,911,767 shares of GF Securities, accounting for 20.11% of the total shares. In 2024, the company's investment income from GF Securities was 174.94045 million yuan, a 40.69% increase from the previous year [25][26] Dividend Policy - The company has formulated a "Three - Year (2024 - 2026) Shareholder Return Plan", increasing the frequency and optimizing the rhythm of dividends. It has a 17 - year history of cash dividends, with a cumulative cash dividend of 4.505 billion yuan since listing. It aims to enhance the stability and predictability of dividends in the future [26]

Group 1: Company Overview - Jilin Aodong Pharmaceutical Group Co., Ltd. reported a total revenue of 2,273.76 million CNY in 2024, with traditional Chinese medicine contributing 1,605.54 million CNY (61.50%), chemical drugs 276.85 million CNY (10.61%), and retail and wholesale of chain pharmacies 391.37 million CNY (14.99%) [2][3] - The health sector achieved sales of 212.13 million CNY, accounting for 8.13% of total revenue [2][3] Group 2: Key Products and Market Performance - The main product, "Anshen Bnona Liquid," has a broad audience due to increasing insomnia cases, with significant consumer recognition of its efficacy and quality [3] - "Xuefu Zhuyu Oral Liquid," a classic formula, has gained market attention and was selected for centralized procurement, which is expected to enhance its sales scale and market share [4] Group 3: Investment and Financial Performance - As of March 31, 2025, the company holds 1,529,911,767 shares of GF Securities, representing 20.11% of its total share capital [6] - GF Securities reported a net profit of 9,636.83 million CNY in 2024, with the company's investment income from GF Securities reaching 1,749.40 million CNY, a 40.69% increase from the previous year [6] Group 4: Shareholder Returns - The company has implemented cash dividends for 17 consecutive years, totaling 4.505 billion CNY since its listing, and plans to enhance the stability and predictability of future dividends [6]

Core Viewpoint - The event "Rational Investment Accompanying Me - Entering the Listed Company Jilin Aodong" aims to enhance communication between investors and the company, promoting rational, value, and long-term investment concepts [1] Group 1: Company Overview - Jilin Aodong has been recognized as a leading company in the Chinese pharmaceutical industry, ranking among the top 100 pharmaceutical companies in China for 11 consecutive years and awarded as one of the 500 most valuable brands in China [1][2] - The company has transformed from a state-owned deer farm to a publicly listed pharmaceutical company, expanding its business into various fields including traditional Chinese medicine, chemical drugs, health products, and food [2][3] - Jilin Aodong's product portfolio includes well-known products such as Anshen Bnnao Liquid and Xiaoer Chaigui Fever Oral Liquid, supported by a robust product hierarchy aimed at driving performance growth [2][3] Group 2: Business Strategy and Financial Performance - The company operates with a "pharmaceutical + finance + health" multi-wheel drive strategy, leveraging financial investments to enhance its core pharmaceutical business and extend its reach into biopharmaceuticals and internet healthcare [3] - Jilin Aodong holds 628 production approval numbers, with over 300 for both traditional Chinese medicine and chemical drugs, indicating a strong regulatory compliance and product diversity [3] - The company plans to maintain a stable dividend policy, with potential increases as operational performance improves, and is actively working on enhancing sales in its enzyme product line and chain pharmacy profitability [4] Group 3: Investor Engagement and Future Outlook - The event facilitated direct interaction between investors and the company's management, allowing for discussions on dividend policies, product sales, and profitability of chain pharmacies [4] - The company aims to continue its commitment to innovation and responsibility, striving for a more prosperous future while contributing to the development of the Chinese pharmaceutical industry [5]

Core Viewpoint - Jilin Aodong has established a comprehensive modern enterprise system and implemented a multi-wheel drive strategy of "pharmaceuticals + finance + health" to enhance its competitiveness and market presence [1][6]. Group 1: Company Development - Jilin Aodong started as a state-owned deer farm and evolved through the establishment of a pharmaceutical factory, shareholding reform, and listing on the Shenzhen Stock Exchange, becoming a well-known pharmaceutical enterprise [2][3]. - The company has a strong presence in the Dunhua area, leveraging local natural resources, particularly from Changbai Mountain, to develop its pharmaceutical and health businesses [2][3]. - Jilin Aodong's product portfolio includes over 628 production approval numbers, with more than 300 for both traditional Chinese medicine and chemical drugs [2][3]. Group 2: Strategic Focus - The company aims to enhance its product matrix by focusing on core products and expanding into related industries such as health food and agriculture [4][5]. - Jilin Aodong is committed to increasing R&D investment, particularly in the ginseng industry, with a target to reach a total output value of 800 billion yuan by 2025 and over 1 trillion yuan by 2030 [3][6]. Group 3: Financial Performance - In the first half of the year, Jilin Aodong expects a net profit of 1.236 billion to 1.29 billion yuan, representing a year-on-year growth of 130% to 140% [6]. - The company has made significant investments in various pharmaceutical and financial sectors, including becoming the largest shareholder of GF Securities, which has yielded substantial returns [4][7]. Group 4: Market Expansion - Jilin Aodong's investments in companies like First Pharmaceutical and Nanjing Pharmaceutical have facilitated market penetration in economically developed regions such as the Yangtze River Delta and Pearl River Delta [4][6]. - The company is actively involved in establishing funds for investments in biopharmaceuticals and medical research, enhancing its collaborative efforts in the pharmaceutical industry [7].

Business Performance - In 2024, the company's main business segments generated a total revenue of CNY 2,273.76 million, accounting for 87.10% of total revenue, a decrease of 23.79% year-on-year [1] - The breakdown of revenue by segment is as follows: - Traditional Chinese Medicine (TCM): CNY 1,605.54 million (61.50%) - Chemical drugs: CNY 276.85 million (10.61%) - Chain pharmacy wholesale and retail: CNY 391.37 million (14.99%) - Health business: CNY 212.13 million (8.13%) [1] Product Development - The "Xuefu Zhuyu Oral Liquid" is a key product derived from a classic formula, recognized with multiple awards, including the National Science and Technology Progress Award [1] - In 2024, this product was selected for centralized procurement, which is expected to enhance its market share [2] Cost Control Measures - The company is addressing rising costs of herbal materials through several strategies: - Establishing GAP bases for stable supply of key herbs - Utilizing data analysis for demand forecasting and optimizing procurement [3] - Enhancing supply chain management and internal efficiency to reduce costs [3] Chemical Drug Segment - The chemical drug segment achieved a revenue of CNY 276.85 million in 2024, representing 10.61% of total revenue [4] - Key products include anti-tumor and immune-regulating drugs, with significant sales growth in specific items like injection RNA [4][6] - The company is focusing on deep market penetration and academic promotion to expand its market share [6] Retail and Wholesale Business - The chain pharmacy segment generated CNY 391.37 million in revenue, accounting for 14.99% of total revenue [8] - Membership increased by 18,300, totaling 1,189,000 members, with a net addition of 6 stores [8] - The company is enhancing online sales through major e-commerce platforms and implementing O2O strategies [9] Investment and Shareholder Returns - The company holds 20.05% of Guangfa Securities, its largest investment, enhancing its capital position [10] - A cash dividend of CNY 591 million is planned for 2024, reflecting a commitment to shareholder returns while balancing operational needs [12][13]

Core Viewpoint - Jilin Aodong Pharmaceutical Group Co., Ltd. reported a revenue of 2.611 billion yuan and a net profit of 1.551 billion yuan for 2024, with a debt-to-asset ratio of 11.27%, while actively adapting to changes in the pharmaceutical industry through a multi-driven development model of "pharmaceuticals + finance + health" [2][3] Group 1: Financial Performance - The company achieved a revenue of 2.611 billion yuan and a net profit attributable to shareholders of 1.551 billion yuan in 2024 [2] - The proposed cash dividend for 2024 is 3 yuan per 10 shares, totaling an estimated distribution of 352 million yuan, alongside a mid-year dividend of 239 million yuan, bringing the total cash dividends and share buybacks to 891 million yuan, which is 57.43% of the net profit [7] Group 2: Business Strategy - Jilin Aodong is focusing on building a competitive advantage across the entire pharmaceutical industry chain, including traditional Chinese medicine, chemical drugs, and health products, while enhancing its "pharmaceuticals + finance + health" multi-driven development model [3][4] - The company is implementing a marketing strategy centered on "big product groups + multiple product groups" to cultivate core products and strengthen channel management, aiming for a revenue of 2.274 billion yuan from its pharmaceutical segment [3][4] Group 3: Innovation and R&D - The company has established an innovative R&D system that integrates production, learning, and research, achieving significant results in the field of Chinese medicine formula granules [4][6] - Jilin Aodong is leveraging advanced research technologies and digital production to modernize and automate traditional Chinese medicine manufacturing, while also participating in the establishment of brand demonstration bases for Chinese medicinal materials [6][7]

Core Insights - The company reported a total revenue of 2.61 billion yuan in 2024, a decrease of 24.31% compared to 2023, which had a revenue of 3.45 billion yuan [1] - The pharmaceutical sector remains the main revenue driver, contributing 1.88 billion yuan, accounting for 72.11% of total revenue, despite a 27.83% decline from the previous year [1][3] - The company is focusing on key products in its traditional Chinese medicine segment, which includes core products like Anshen Bnna Liquid and Xiaor Chai Gui Oral Liquid, driving significant revenue [3] Revenue Breakdown by Sector - Pharmaceutical revenue: 1,882,395,047.83 yuan (72.11%), down 27.83% from 2,608,458,378.94 yuan [1] - Chain pharmacy wholesale and retail: 391,365,987.46 yuan (14.99%), up 4.36% from 375,020,113.62 yuan [1] - Other business income: 73,862,569.09 yuan (2.83%), up 62.06% from 45,577,260.70 yuan [1] Product Performance - Traditional Chinese medicine sales: 1,605,541,287.90 yuan (61.50%), down 25.42% from 2,152,662,657.59 yuan [1] - Chemical drugs revenue: 276,853,759.93 yuan (10.61%), down 39.26% from 455,795,721.35 yuan [1] - Health products sales reached 2.12 billion yuan, accounting for 8.13% of total revenue [4] Regional Performance - Northeast region: 968,305,996.09 yuan (37.09%), down 14.76% from 1,135,942,714.05 yuan [1] - North region: 377,546,862.16 yuan (14.46%), up 39.78% from 270,101,901.70 yuan [1] - South region: 330,176,089.26 yuan (12.65%), down 20.40% from 414,786,414.20 yuan [1] Sales Strategy and Growth - The company is enhancing its online sales through platforms like JD, Taobao, and Pinduoduo, while also implementing O2O business models in physical stores [4] - The chain pharmacy segment added 183,000 new members, bringing the total to 1.19 million members [3] - The company closed 11 stores and opened 17 new ones, ending the reporting period with a total of 190 stores [3]