Core Viewpoint - The company achieved significant growth in Q1 2025, with revenue of 289 million yuan, a year-on-year increase of 13.52%, and a net profit attributable to shareholders of 24.21 million yuan, up 9.18%, marking the end of three consecutive quarters of decline [1] Financial Performance - The company reported a net profit of 26.92 million yuan after deducting non-recurring items, reflecting a year-on-year growth of 26.88% [1] - The revenue from the company's main products, including Yuanhu Zhitong Diban and Xuanfei Zhiso Heji, contributed to the stable growth in Q1 [1] Product Development and Market Strategy - The company focuses on its core business and actively develops OTC and untapped markets, which has laid a solid foundation for revenue growth [1] - The core product, Xuanfei Zhiso Heji, has shown strong sales growth, with revenue reaching 840 million yuan in 2024, a 29.76% increase from the previous year [2] - The company is upgrading its production capacity for Xuanfei Zhiso Heji, with a new production line set to be operational in May 2024, enhancing market supply capabilities [2] Innovation and R&D - The company has acquired 70% of the shares in an innovation research institute, which will accelerate the transformation of research results and improve product quality and competitiveness [3] - The company is also developing new products, including a blood dialysis concentrate and a plant-based beverage, while continuing to enhance its main products [3] Future Outlook - The company aims to maintain its focus on core operations and market expansion, with plans to implement various annual work tasks to improve operational efficiency [4]

Core Viewpoint - The company is focused on enhancing its market competitiveness through innovative product development, resource integration, and expansion into the health industry, while also ensuring investor returns through a stable dividend policy. Group 1: Product Competitiveness - The main product, Yuanhu Zhitong Diban, has covered 2,769 grade hospitals, achieving a coverage rate of 19.3%, while Xuanfei Zhiso Heji has covered 2,291 grade hospitals with a coverage rate of 15.3% [3] - Yuanhu Zhitong Diban is recognized for its effectiveness in treating various types of pain and ranked 15th in the "Top 20 Chinese Patent Medicine Brands" for H1 2024 [3] - Xuanfei Zhiso Heji, a national-level new drug, has received multiple awards and was ranked 8th in the "Top 20 Cough and Phlegm Relief Chinese Patent Medicine Brands" for H1 2024 [3] - The protection period for Xuanfei Zhiso Heji has been successfully extended to July 20, 2030, enhancing its market competitiveness [3] Group 2: Resource Integration and R&D Innovation - The company completed the acquisition of 70% of the Gansu Pharmaceutical Group's Innovation Research Institute by March 2025, enhancing its R&D capabilities [4] - This acquisition aligns with national policies aimed at improving traditional Chinese medicine quality and promoting industry development through strategic mergers and resource integration [4] Group 3: Health Industry Expansion - The company is actively expanding into the health industry with products like "7° Feidele" herbal beverage and mint candy, focusing on both online and offline sales channels [5][6] - The "Huangqi Danggui Capsule," made from traditional Chinese medicinal materials, targets individuals exposed to radiation, addressing market demand for health products [6] Group 4: Investor Returns - For the fiscal year 2024, the company plans to distribute a cash dividend of 0.20 yuan per 10 shares, totaling 6.0669 million yuan, which represents 47.02% of the net profit attributable to shareholders [7] Group 5: R&D Focus and Competitive Strength - The company has established a diverse innovation R&D system and is exploring clinical advantages of its main products in various medical fields [8] - New product investments include the clinical trial approval for a new drug and the launch of health products, with both "7° Feidele" and mint candy officially launched [8] Group 6: Future Development Strategy - The company aims to leverage national and provincial policies to enhance its position in the traditional Chinese medicine industry, focusing on R&D, product integration, and international market expansion [9]