Group 1: Company Performance and Market Strategy - The overall business operation in Q4 is stable, with sales proceeding as planned amidst steady market demand [2][3] - The company is implementing multi-faceted measures to address the impact of the centralized procurement of Loxoprofen Sodium Gel, focusing on expanding the outpatient market and enhancing brand development [2][3] - The company has a professional OTC team of over 200 people to drive online and offline channel development, effectively broadening market coverage [7] Group 2: Innovation and R&D Focus - The company is fully transitioning to focus on innovative drug development, with a core emphasis on chemical and traditional Chinese medicine innovations [4] - In 2025, the estimated R&D expenditure is projected to be between 250 million to 300 million CNY [6] - The company is pursuing a dual approach of independent R&D and project acquisition to enhance its innovation pipeline [4] Group 3: Product Launch and Sales Expectations - The Ketoprofen Gel was approved for market entry in 2023 and is optimistic about its market prospects as it is the first generic product listed in the national medical insurance directory [5] - The company is intensifying resource allocation towards the outpatient market and strengthening internal sales team assessments to boost sales performance [5][7] Group 4: Market Challenges and Strategic Adjustments - The company acknowledges pressure on achieving annual targets due to market challenges but is committed to promoting new products and enhancing market penetration [7] - Strategies include optimizing product positioning and increasing brand influence to expand market share [7]

Group 1: Strategic Focus and Innovation - The company is fully transforming to focus on innovative drug research and development, with a core direction in chemical and traditional Chinese medicine innovation [2] - Key therapeutic areas include pain management, focusing on peptide and small molecule drugs, and oncology, with a focus on PDC drug development [2] - The company employs a dual approach of independent research and project acquisition to build core technological barriers and accelerate innovation results [3] Group 2: Product Launch and Market Expectations - The ketoprofen gel patch was approved for market launch in 2023 and has entered the national medical insurance directory, being the first generic product in the market [4] - The company has optimistic market expectations for the ketoprofen gel patch and has developed new sales strategies focusing on external markets [4] Group 3: Research and Development Investment - The estimated R&D expenditure for 2025 is projected to be between 250 million and 300 million yuan [5] Group 4: Employee Incentives and Governance - The company is implementing a share repurchase plan to support future equity incentive plans, aiming to enhance governance and align interests among stakeholders [6] Group 5: New Product Highlights - The newly introduced innovative drug JIJ02 gel has broad-spectrum antibacterial properties, low cost, and is expected to have significant market competitiveness [7][8] - JIJ02 gel is anticipated to complete Phase I clinical trials by mid-next year and will initiate Phase II trials thereafter [8] Group 6: Pricing and Procurement - The company is currently in the bidding phase for the 11th batch of national drug procurement, with submission of application materials and public pricing information due by October 21 [8]

Core Viewpoint - Tianfeng Securities report indicates that JiuDian Pharmaceutical achieved a net profit attributable to shareholders of 291 million yuan in the first half of 2025, representing a year-on-year increase of 2.57% [1] - The company is expected to benefit from the increasing demand for transdermal drug delivery and the aging population, which will support its external preparation segment [1] Financial Performance - In the second quarter of 2025, JiuDian Pharmaceutical reported a net profit of 166 million yuan, reflecting a year-on-year growth of 4.54% [1] - The performance growth in the first half of the year met expectations [1] Product Development - As of the first half of 2025, the company holds seven registered external preparation drug certificates and has over 20 external preparation products in development [1] - Key products include Loxoprofen Sodium Gel Patches, Ketoprofen Gel Patches, Anti-inflammatory Pain Relief Plasters, Lidocaine and Prilocaine Cream, and Clotrimazole Vaginal Tablets [1] Strategic Focus - The company is focusing on the innovation of chemical and traditional Chinese medicine drugs, with a core development direction in chemical drug innovation [1] - The primary research areas include pain management (focusing on peptide and small molecule drugs) and oncology (with a focus on PDC drug development) [1] Market Outlook - With the gradual launch of new products and external environmental drivers, the company is expected to maintain sustainable growth in its external preparation segment [1] - Based on changes in the competitive landscape for Loxoprofen Sodium Gel Patches, the profit forecast has been adjusted while maintaining a "Buy" rating [1]

Group 1 - The company conducted a specific investor research activity on September 12, 2025, with representatives from Yige Private Equity Fund and Yongxing Securities [1] - The expected price drop for the Loxoprofen Sodium Gel Patch in the upcoming collective procurement is currently unestimated due to the absence of formal rules for the 11th batch [1] - The company plans to invest between 250 million to 300 million yuan in R&D for the year 2025, with projected revenue growth of 10-20% and net profit growth of 10-20% year-on-year [1] Group 2 - The company aims to achieve its annual targets by focusing on promoting new products, enhancing market education, and optimizing product positioning [1] - The JIJ02 gel is expected to complete Phase I clinical trials in the first half of next year and initiate Phase II trials [1] - The company holds an optimistic view on the market prospects for the anti-inflammatory pain relief patch, anticipating increased demand due to the aging population and the growing chronic pain patient demographic [1] Group 3 - The Loxoprofen Sodium Gel Patch and Ketoprofen Gel Patch are both external non-steroidal anti-inflammatory drugs, but they differ in active ingredients and mechanisms of action [1] - The Loxoprofen Sodium Gel Patch has a higher drug loading capacity and broader indications, while the Ketoprofen Gel Patch offers better drug permeability and a more comprehensive mechanism of action [1]

Group 1: Company Overview and Financial Projections - The company, Hunan Jiutian Pharmaceutical Co., Ltd., is involved in the integrated development of formulations, raw materials, and pharmaceutical excipients [1] - R&D expenses for 2025 are projected to be between CNY 250 million and CNY 300 million [2] - Expected revenue growth for 2025 is projected at 10-20%, with non-recurring net profit also expected to grow by 10-20% [2] Group 2: Market Strategy and Product Development - The company plans to enhance market penetration of new products through market education and optimized product positioning [3] - There will be a focus on promoting the OTC channel and expanding the product matrix to boost sales of the anti-inflammatory plaster [5][6] - The JIJ02 gel is expected to complete Phase I clinical trials in the first half of next year and initiate Phase II trials [4] Group 3: Product Comparison and Market Outlook - The difference between Loxoprofen Sodium Gel and Ketoprofen Gel lies in their active ingredients and mechanisms of action, with Loxoprofen being more suitable for a wider range of conditions [6] - The aging population is expected to increase the demand for transdermal drug delivery products, positively impacting market growth [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth, with a 10.67% year-on-year increase in revenue for the first half of 2025, reaching 1.512 billion yuan, and a net profit of 291 million yuan, up 2.57% year-on-year [5] - The company is actively enhancing its innovation pipeline, including the acquisition of the antibacterial peptide new drug JIJ02 gel for 90 million yuan, which is currently in clinical phase I and aims to treat common acne [6] - The company is undergoing a product structure adjustment, leading to revised profit forecasts for 2025-2027, with expected net profits of 570 million, 642 million, and 731 million yuan respectively [5] Financial Summary - For the first half of 2025, the gross margin was 74.58%, an increase of 1.44 percentage points, while the net margin was 19.27%, a decrease of 1.53 percentage points [5] - The company’s revenue from drug formulations in the first half of 2025 was 1.247 billion yuan, reflecting a 14.86% increase, with strong sales of products like Loxoprofen sodium gel patches [5] - The projected earnings per share (EPS) for 2025-2027 are 1.14, 1.28, and 1.46 yuan per share, with corresponding price-to-earnings (P/E) ratios of 16.2, 14.4, and 12.6 times [5][8]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.512 billion yuan, a year-on-year increase of 10.67% [2] - Net profit attributable to shareholders was 291 million yuan, up 2.57% year-on-year [2] - Deducting non-recurring gains and losses, the net profit was 283 million yuan, reflecting a growth of 10.74% [2] Business Segments - The external preparation segment generated sales of 836 million yuan, a growth of 16.96%, driven by the increasing volume of Loxoprofen Sodium Gel and Ketoprofen Gel [3] - The oral preparation segment reported sales of 411 million yuan, a year-on-year increase of 10.80%, primarily due to the rapid growth of Dapagliflozin tablets [3] - The raw materials and plant extracts segment achieved sales of 255 million yuan, remaining stable compared to the previous year [3] Innovation and R&D - The newly introduced innovative drug JIJ02 Gel has broad-spectrum antibacterial properties and low resistance potential, expected to enhance treatment efficacy [4] - The company is focusing on innovative drug development in both chemical and traditional medicine, with a particular emphasis on pain and oncology [4] - R&D expenses for 2025 are projected to be between 250 million and 300 million yuan, with revenue growth expected to be between 10-20% [4] Market Strategy - The company plans to enhance the market presence of its products through strategic acquisitions and the introduction of quality products [8] - The sales strategy for Loxoprofen Sodium Gel is being adjusted to increase resources for the external market and strengthen internal sales team assessments [6] - The company is actively pursuing overseas patent applications for JIJ02 Gel, which has been fully transferred without retained backend shares [8] Future Outlook - The company anticipates the approval of several new products in 2025, including Indomethacin Gel and Fluorobufen Gel [7] - The market expansion for the anti-inflammatory pain relief patch is progressing as planned, with expectations for increased sales over time [4]

Group 1 - The company Jiujian Pharmaceutical has launched its high-end formulation R&D industrial park, which is now in production [1] - The products currently produced include Loxoprofen Sodium Gel Patch, Ketoprofen Gel Patch, Pantoprazole Sodium Enteric-coated Tablets, Dapagliflozin Tablets, and Rosuvastatin Calcium Tablets [1] - The production capacity after launch is sufficient to meet current market demand [1]

Core Viewpoint - The company, Jiutian Pharmaceutical, is actively engaged in the research, development, and sales of pharmaceutical products, with a focus on expanding its product offerings and market presence through innovation and internationalization efforts [1][8]. Group 1: Product Development and Market Strategy - Jiutian Pharmaceutical is currently in the information reporting phase for the 11th batch of centralized procurement for its drug, Loxoprofen Sodium Gel Patch, and cannot estimate the price reduction at this stage [2]. - The company has six external preparations already on the market and expects to gain approval for additional products, including Indomethacin Gel Patch and Flurbiprofen Gel Patch, by 2025, with further products anticipated in 2026 [3]. - The company has developed a new sales strategy for Ketoprofen Gel Patch, which was approved in 2023 and has entered the national medical insurance directory, focusing on increasing resources for the outpatient market and enhancing internal sales team assessments [5]. Group 2: International Expansion and Innovation - Jiutian Pharmaceutical has made progress in exporting its formulations, having developed 46 international clients, with successful exports to Ecuador and preparations for registration in Costa Rica [4]. - The company is also focusing on innovation, with a new product, Pepper Seven Pain Relief Gel Patch, classified as a Class 1 innovative drug, and has entered into a technology transfer agreement for antimicrobial peptides to enhance its drug development capabilities [6]. Group 3: Financial Performance and R&D Investment - In the first quarter of 2025, Jiutian Pharmaceutical reported a main revenue of 696 million yuan, a year-on-year increase of 17.79%, and a net profit of 126 million yuan, reflecting a slight increase of 0.08% [8]. - The company plans to invest 261 million yuan in R&D in 2024, which represents 8.91% of its operating income, and aims to maintain this investment ratio to ensure continuous output and enhance its competitive edge [7]. Group 4: Earnings Forecast - Recent earnings forecasts indicate that Jiutian Pharmaceutical's net profit is expected to reach approximately 677 million yuan in 2025, with projections of 775 million yuan in 2026 and further growth anticipated in 2027 [11].

Group 1: Investor Relations Activity - The investor relations activity involved a meeting with representatives from Taikang Asset and China Post Securities, held on July 30, 2025 [2] - The meeting was led by the Deputy General Manager and Board Secretary, Zeng Lei, along with the Securities Affairs Representative, Gan Rong [2] Group 2: Product Development and Market Strategy - The company is currently in the information reporting stage for the collection of the eleventh batch of the drug Loxoprofen Sodium Gel Patch, with no specific price reduction estimates available yet [2] - The company has six external preparations already on the market and expects to gain approval for additional products, including Indomethacin Gel Patch and Flurbiprofen Gel Patch in 2025, and Ketoprofen Patch and others in 2026 [2][3] - The company has made progress in export development, with 46 clients engaged, including successful exports of Nitazoxanide Tablets to Ecuador and preparations for the registration of Ketoprofen Gel in Costa Rica [4] Group 3: Sales Expectations and Brand Strategy - The Ketoprofen Gel Patch was approved for market entry in 2023 and is included in the national medical insurance directory, with optimistic market prospects and a new sales strategy focusing on outpatient markets [5] - The company aims to strengthen its internal sales team assessments to enhance the "Jiu Yue" brand of patches [5] Group 4: Innovation and R&D Investment - The company is developing a Class 1 innovative drug, Pepper Seven Pain Relief Gel Patch, and has entered into a technology transfer agreement for antibacterial and anti-inflammatory peptides [6] - In 2024, the company plans to invest CNY 261 million in R&D, representing 8.91% of its revenue, with a commitment to maintain this investment ratio for sustained innovation and market competitiveness [7]