Core Viewpoint - Yiling Pharmaceutical reported strong financial performance in the first half of 2025, with significant growth in revenue and net profit, driven by effective cost control and cash flow management [1] Financial Performance - The company achieved operating revenue of 4.04 billion yuan and a net profit attributable to shareholders of 669 million yuan, representing year-on-year growth of 26.03% [1] - The non-recurring net profit was 641 million yuan, with a year-on-year increase of 27.08% [1] - Operating costs decreased by 23.76%, and selling expenses fell by 15.28% [1] - Net cash flow from operating activities surged by 214.97% to 832 million yuan, with cash and cash equivalents at 1.003 billion yuan and a debt-to-asset ratio of 21.81% [1] Business Segments - The proprietary Chinese medicine segment remains the main revenue source, contributing 1.963 billion yuan from cardiovascular products, accounting for 48.6% of total revenue with a gross margin of 65.54% [3] - The company has 17 proprietary Chinese medicines, with 11 included in the 2024 National Medical Insurance Directory and 5 in the National Essential Drug List, covering eight major systems [3] - The chemical medicine segment is accelerating international expansion, with 4 innovative drug candidates in clinical stages and 15 ANDA products approved by the FDA [3][4] Research and Development - The company invests heavily in R&D, with an expenditure of 399 million yuan, representing 9.87% of revenue, and holds 870 valid patents, including 511 invention patents [6] - The establishment of a multi-level academic society system supports the research and promotion of the company's products, enhancing their market value [6]

Core Insights - The company reported strong financial performance for the first half of 2025, with operating revenue of 4.04 billion yuan and a net profit of 669 million yuan, reflecting year-on-year growth of 26.03% [1] - The company's R&D investment reached 399 million yuan, accounting for 9.87% of operating revenue, significantly higher than the industry average, indicating a strong commitment to innovation [2] - The company has a robust pipeline of new drugs, having received approvals for five proprietary traditional Chinese medicines over the past five years, with a focus on various disease areas [2][7] - The company’s core products maintain a leading market position, with significant penetration in the public medical institutions market, particularly in the cold medicine segment [8] - The company is well-positioned to benefit from favorable policies supporting the traditional Chinese medicine industry, with strong cash flow and a solid pipeline supporting future growth [9] Financial Performance - The company achieved operating revenue of 4.04 billion yuan and a net profit of 669 million yuan, with a year-on-year growth of 26.03% [1] - The net cash flow from operating activities was 832 million yuan, showing a remarkable year-on-year increase of 214.97% [1] R&D Investment - The company invested 399 million yuan in R&D in the first half of 2025, representing 9.87% of its operating revenue, which is significantly above the industry average [2] - Cumulatively, the company has invested over 5 billion yuan in R&D since 2019, translating into tangible innovation results [2] Product Pipeline - The company has a diverse pipeline with several new drugs at various stages of development, including proprietary traditional Chinese medicines and chemical drugs [6][7] - Notable products include the proprietary traditional Chinese medicines for chronic cholecystitis and rheumatoid arthritis, which are in the registration phase [4][6] Market Position - The company holds 17 proprietary traditional Chinese medicine products, with 11 included in the national basic medical insurance directory, enhancing product penetration [8] - The company’s cold medicine products, particularly Lianhua Qingwen capsules and granules, lead the market with a 20.74% share [8] Industry Outlook - The company is expected to benefit from national policies promoting the development of traditional Chinese medicine, positioning it well for future growth [9] - The combination of strong cash flow, a rich pipeline, and solid market presence lays a foundation for continued performance in the second half of the year [9]

打造"中国药"全球流通新标杆 在推动创新药全球拓展方面，以岭药业采取了"学术交流+循证研究"双轮驱动的战略。以岭药业广泛开 展国际合作与交流，与英国卡迪夫大学、荷兰莱顿大学、美国哈佛大学医学心脏研究中心等国际顶尖科 研机构合作，取得了一系列重大科研成果，并在国际期刊上发表SCI文章逾300篇。 更为重要的是，围绕以岭药业通络系列药物所开展的循证研究成果，相继发表于《美国医学会杂志.内 科学》《欧洲心脏病学杂志》等国际权威期刊。这些成果不仅为中医药拓展国际市场奠定了坚实的理论 基础，也提升了中医药在全球医学领域的认可度和影响力，让世界更好地了解和认可中医药的价值。 作为中医药创新领域的领军企业，以岭药业（002603）始终将科技创新视为发展的核心竞争力，持续加 大研发投入，推动中医药创新成果加速转化，并致力于打造"中国药"全球流通的新标杆。 科研成果渐入收获期 以岭药业作为国内创新中药领域的头部企业，始终将科技创新置于企业发展的核心地位，视其为关键竞 争力所在。在研发投入上，公司始终保持持续增长的态势。数据显示，2019—2023年总研发投入接近40 亿元，2024年研发投入超过9亿元，占营业收入比重为13.9 ...

Core Viewpoint - The company reported a net profit loss of approximately 724.52 million yuan for the year 2024, with no cash dividends or stock bonuses proposed for shareholders [33][87]. Company Overview - The company specializes in the research, production, and sales of patented innovative traditional Chinese medicine, while also expanding into biopharmaceuticals and the health industry [4][5]. - The company has developed a unique research model for innovative traditional Chinese medicine, focusing on major diseases and leveraging its strong scientific research capabilities [5][6]. Business Segments Traditional Chinese Medicine - The company holds 17 patented traditional Chinese medicines, covering eight major clinical disease systems, with leading positions in cardiovascular and respiratory disease treatments [5][19]. - Key products include Tongxinluo capsules, which treat coronary heart disease and cerebral infarction, and have received multiple national science and technology awards [8]. Biopharmaceuticals - The company has established a comprehensive development strategy for biopharmaceuticals, including international registration and global sales [6]. - It has received approvals for 13 ANDA products in the U.S. market and has submitted registration applications in 53 countries [6][20]. Health Industry - The company is actively developing health products based on traditional Chinese health theories, integrating modern technology [7]. - It has launched a series of health products aimed at various health needs, including heart health and anti-aging [7]. Financial Performance - The company achieved a total revenue of approximately 6.51 billion yuan in 2024, with a significant net loss [33]. - The proposed profit distribution plan for 2024 includes no cash dividends or stock bonuses, reflecting the company's current financial situation [87]. Market Position - The company ranks 7th among traditional Chinese medicine companies in China and 30th in the broader pharmaceutical industry [17]. - Despite a declining trend in the market for traditional Chinese medicine for cardiovascular diseases, the company has maintained a growing market share in oral formulations [19]. Product Performance - The market share of key products such as Tongxinluo capsules has increased from 13.64% in 2015 to 17.69% in the first half of 2024 [19]. - The company’s diabetes medication, Jinlida granules, saw its market share rise from 4.42% in 2015 to 16.20% in the first half of 2024 [20].