Group 1 - The 91st National Pharmaceutical Trade Fair was held in Nanjing from November 19-21, covering over 170,000 square meters with more than 8,200 exhibition booths and over 4,000 domestic and international companies participating [1] - The event featured over 70 forums and activities, with more than 550 industry experts and scholars discussing hot topics and future trends in the pharmaceutical industry [1] - Hunan Hansen Pharmaceutical Co., Ltd., a leading company in Hunan's pharmaceutical sector, showcased its products at the Hunan exhibition area, aiming to promote high-quality development in the industry [1] Group 2 - During the Nanjing Pharmaceutical Trade Fair, Hansen Pharmaceutical's core product, Hansen Si Mo Tang Oral Liquid, was awarded a spot on the "2024-2025 Annual Family Essential Medicine Brand" list due to its excellent efficacy and market reputation [2] - Hansen Pharmaceutical adheres to the corporate value of "treating consumers well and continuously providing good products," aiming to contribute more to the health of the Chinese population [2] - The Si Mo Tang Oral Liquid is a compound traditional Chinese medicine for gastrointestinal motility, included in the national medical insurance catalog and recognized as a protected traditional Chinese medicine product [2]

Core Insights - The company achieved a total revenue of 1.004 billion yuan in 2024, marking a year-on-year growth of 5.12% [1][4] - Net profit attributable to shareholders was 220 million yuan, with a year-on-year increase of 7.43%, but the growth rate significantly slowed compared to 2023 [1][4] - The growth rate of non-recurring net profit dropped from 22.97% in 2023 to 2.89% in 2024, indicating a weakening in the company's profitability excluding non-recurring items [1][4] Revenue and Profit Performance - The company's total revenue surpassed 1 billion yuan for the first time, driven by the sustained promotion of core products and optimization of sales channels [4] - However, the slowdown in net profit growth raises concerns, with a decline from 22.31% in 2023 to 7.43% in 2024 [4] - Rolling quarter-on-quarter data shows total revenue grew by 4.05%, while net profit and non-recurring net profit experienced negative growth of -2.56% and -6.14%, respectively [4] Core Product Performance - Core products such as Si Mo Tang oral liquid and Suo Quan capsules performed well in the market, with Si Mo Tang being a unique product under the national medical insurance directory [4] - The company secured selection in multiple centralized procurement projects, reinforcing its market position [4] - Other products like Suo Quan capsules and Tian Ma Xing Nao capsules have also entered various county-level medical community directories, indicating successful market penetration [4] Market Challenges - The company faces significant market pressure due to deepening medical insurance reforms and the expansion of centralized procurement, which may lead to price reductions and profit margin compression [5] - Ongoing medical anti-corruption efforts impose higher compliance requirements on the company's marketing strategies, making it crucial to maintain competitiveness while adhering to regulations [5] R&D Investment Trends - R&D investment decreased to 39.32 million yuan in 2024, a decline of 7.28% year-on-year, with R&D expenditure accounting for 3.91% of total revenue, down 0.53 percentage points from 2023 [6] - The reduction in R&D spending could hinder the launch of new products and upgrades of existing ones, potentially weakening market competitiveness [6] - Despite some achievements in R&D, such as obtaining registration certificates for certain products, the overall decline in investment raises concerns about future growth [6] Overall Assessment - The company maintained revenue and net profit growth in 2024, but the slowdown in growth rates and decline in R&D investment highlight challenges in adapting to market competition and policy changes [6] - Future strategies should focus on enhancing core product competitiveness, increasing R&D investment, and optimizing cost structures for sustainable development [6]