Core Viewpoint - The claim that only 2% of approved drugs are covered by medical insurance is misleading, as it conflates different statistical measures and misrepresents the actual coverage of the medical insurance drug list [1][2]. Summary by Sections Statistical Discrepancies - The National Medical Insurance Bureau clarified that the comparison between the number of approved drugs (over 150,000) and the number of drugs in the medical insurance directory (3,159) is erroneous due to differing statistical bases [1][3]. - The medical insurance directory counts drugs by their active ingredients (generic names), while the drug approval statistics count each unique product by its approval number, leading to a significant difference in numbers [2][3]. Drug Approval and Coverage - As of the end of 2024, there are over 150,000 drug approval numbers in China, with more than 110,000 having sales records. The medical insurance directory's 3,159 drugs correspond to over 70,000 approval numbers, representing approximately 63% of the market [3][6]. - The medical insurance drug list has been adjusted over the past seven years, adding 835 drugs and removing 438, ensuring that it covers the majority of clinically necessary medications, especially for major diseases like cancer [4][5]. Policy and Drug Selection - The selection of drugs for the medical insurance directory is based on the principle of meeting basic medical needs while considering clinical necessity and economic factors. Certain categories, such as health supplements and preventive vaccines, are excluded from coverage [5][6]. - The quality and structure of drugs in the medical insurance directory have improved over time, with a focus on optimizing the coverage rather than merely increasing the percentage of drugs listed [6].

Core Viewpoint - The recent claim that only 3,159 out of over 150,000 approved drugs are included in the national medical insurance directory, representing only 2%, is misleading and based on different statistical standards [1][2]. Group 1: Drug Approval and Insurance Coverage - The National Medical Insurance Bureau clarified that the comparison of the number of approved drugs and those in the insurance directory is flawed due to differing statistical criteria [1][3]. - The number of drugs in the insurance directory (3,159) is based on active ingredients, while the total approved drugs (over 150,000) includes multiple brand names and approval numbers for the same drug [2][3]. - When standardized, the number of approval numbers for the drugs in the insurance directory exceeds 70,000, accounting for approximately 63% of the drugs with sales records in the market [3][6]. Group 2: Drug Directory Adjustments and Clinical Relevance - The National Medical Insurance Bureau has adjusted the drug directory for seven consecutive years, adding 835 drugs and removing 438 that are ineffective or outdated [4][5]. - The current directory includes essential drugs for major diseases, with a focus on maintaining a balance between clinical necessity and economic feasibility [5][6]. - The quality and structure of the drugs in the insurance directory have improved significantly, with a more reasonable cost level and enhanced coverage [6]. Group 3: Policy Implications and Future Considerations - The insurance policy aims to provide basic drug coverage while considering the financial capacity of the insurance fund and the overall social burden [6]. - The focus is on optimizing the structure of the drug directory rather than merely increasing the percentage of covered drugs, emphasizing the importance of addressing significant health needs, especially for chronic diseases [6].

Core Insights - Green Leaf Pharmaceutical (02186) experienced a stock price increase of over 5%, reaching HKD 3.52 with a trading volume of HKD 93.39 million following the release of its interim results [1] Financial Performance - For the six months ending June 30, 2025, the company reported revenue of RMB 3.181 billion, a year-on-year increase of 3.46% [1] - The profit attributable to the parent company was RMB 313 million, reflecting a year-on-year decrease of 19.33% [1] - Earnings per share stood at 8.32 cents [1] Market Segmentation - In the Chinese market, the company holds a competitive position in four major therapeutic areas: oncology, central nervous system, cardiovascular, and metabolism [1] - The main product portfolio in China includes six oncology drugs, five central nervous system drugs, three cardiovascular drugs, and two metabolism drugs [1] Revenue Breakdown by Therapeutic Area - Revenue from the oncology segment increased by 13.5%, reaching RMB 1.295 billion [2] - Revenue from the central nervous system segment grew by 5.4%, totaling RMB 868 million [2] - Revenue from the cardiovascular segment decreased by 9.2%, amounting to RMB 693 million [2] - Revenue from the metabolism segment declined by 7.9%, totaling RMB 180 million [2]

Core Viewpoint - Green Leaf Pharmaceutical (02186) experienced a stock price increase of over 5% following the release of its interim results for the six months ending June 30, 2025, with a reported revenue of RMB 3.181 billion, reflecting a year-on-year increase of 3.46% [1][2] Financial Performance - The company reported a profit attributable to shareholders of RMB 313 million, a decrease of 19.33% year-on-year [1] - Earnings per share were reported at 8.32 cents [1] Revenue Breakdown by Therapeutic Area - Revenue in the oncology treatment sector increased by 13.5%, reaching RMB 1.295 billion [2] - Revenue in the central nervous system treatment sector grew by 5.4%, totaling RMB 868 million [2] - Revenue in the cardiovascular treatment sector decreased by 9.2%, amounting to RMB 693 million [2] - Revenue in the metabolic treatment sector declined by 7.9%, reaching RMB 180 million [2] Product Portfolio - The company's main products in China include six oncology drugs, five central nervous system drugs, three cardiovascular drugs, and two metabolic drugs [1] - Internationally, the company focuses on central nervous system treatments, offering various formulations and delivery methods [1]

Core Viewpoint - Green Leaf Pharmaceutical (02186) reported a revenue of 6.061 billion RMB for the fiscal year ending December 31, 2024, reflecting a year-on-year decrease of 1.33% and a net profit attributable to shareholders of 472 million RMB, down 11.4% from the previous year [1][2] Group 1: Financial Performance - The company's revenue for the reporting period was 6.061 billion RMB, a decrease of 1.33% year-on-year [1] - Net profit attributable to shareholders was 472 million RMB, representing a decline of 11.4% year-on-year [1] - Basic earnings per share were reported at 12.54 cents [1] Group 2: Market Position and Product Portfolio - The company holds a competitive position in four major therapeutic areas in the Chinese market: oncology, central nervous system, cardiovascular, and metabolism [1] - According to IQVIA, oncology, metabolism, central nervous system, and cardiovascular drugs accounted for the first, second, fourth, and fifth largest drug markets in China, respectively [1] - The main product portfolio in China includes six oncology drugs, five central nervous system drugs, three cardiovascular drugs, and one metabolism drug [1] Group 3: Sales Performance by Therapeutic Area - Sales in the central nervous system therapeutic area decreased by 4.8%, totaling 1.613 billion RMB [2] - Sales in the oncology therapeutic area decreased by 1.8%, amounting to 2.085 billion RMB [2] - Sales in the cardiovascular therapeutic area decreased by 1.6%, reaching 1.660 billion RMB [2] - Sales in the metabolism therapeutic area saw a decline of 13.7%, totaling 389 million RMB [2] Group 4: Competitive Advantage - The company's 17 major products have established a strong competitive advantage in global high-prevalence disease areas, with market share expected to grow steadily or maintain current levels [2]