Core Insights - The collaboration between Jianmin Group's Longmu Bone Strengthening Granules and the third season of "Happy Journey" has won the "2025 Integrated Marketing Gold Case" award, highlighting the successful transformation from content to brand [2] Group 1: Marketing Achievements - Longmu Bone Strengthening Granules has been the exclusive title sponsor of "Happy Journey," which has connected with 33 cities over three seasons, hosting 34 outdoor concerts and generating over 567 trending topics, with a total online view count exceeding 6 billion [4] - The program has achieved nearly 300 trending topics online, with 22 on Weibo's main trending list and a total reading volume of 1.1 billion for the main topics CCTV Happy Journey and Happy Journey; Douyin has seen 119 trending topics with a total view count of 1.71 billion for related discussions [4] Group 2: Brand Engagement - In the third season, the brand established a deep emotional connection with users through the character "Longmu Xiaokong," which appeared as a guest and an honorary badge during the program [6] - The program incorporated interactive tasks that effectively transformed brand presentation into opportunities for audience emotional engagement, such as challenges in the dinosaur park where guests sang the brand's theme song to unlock experiences [8] Group 3: Brand Value Enhancement - The collaboration has elevated Longmu Bone Strengthening Granules from a health product to a cultural participant, integrating the brand into narratives of cultural confidence and heritage through a musical journey across 30 cities [10] - The "2025 Integrated Marketing Gold Case" award not only recognizes past achievements but also guides future directions, with Jianmin Group planning to continue focusing on children's health by developing higher quality products and delivering health care concepts to more families through diverse and warm communication methods [12]

Economic Overview - Dalian's GDP for the first three quarters reached 724.82 billion yuan, with a year-on-year growth of 6.0%, matching the growth rate of the first half of the year and exceeding the national average by 0.8 percentage points [1][2] - The primary industry added value was 37.03 billion yuan (up 4.2%), the secondary industry added value was 257.55 billion yuan (up 8.0%), and the tertiary industry added value was 430.24 billion yuan (up 4.9%) [1] Industrial Performance - Dalian's industrial output value for large-scale enterprises grew by 12.8% year-on-year, which is 10.6 percentage points higher than the provincial average [2][3] - The petrochemical industry saw an increase of 8.9%, while the equipment manufacturing sector grew by 17.5%, with notable growth in the railway and shipbuilding sectors (up 64.5%) and the automotive industry (up 26.3%) [3] Strategic Initiatives - Dalian aims to transform its traditional industries, which account for over 80% of its manufacturing sector, by promoting high-end development, as outlined in the "Green Petrochemical Cluster Cultivation and Enhancement Action Plan (2025-2027)" [2][3] - The city has set a target to reach a GDP of 951.69 billion yuan by 2024, positioning itself as a leading city in Northeast China's economic landscape [1][2]

Economic Overview - Dalian's GDP for the first three quarters reached 724.82 billion yuan, with a year-on-year growth of 6.0%, matching the growth rate of the first half of the year and exceeding the national average by 0.8 percentage points [1][2] - The primary industry added value was 37.03 billion yuan (up 4.2%), the secondary industry 257.55 billion yuan (up 8.0%), and the tertiary industry 430.24 billion yuan (up 4.9%) [1] Industrial Performance - Dalian's industrial output value for large-scale enterprises grew by 12.8% year-on-year, an increase of 0.3 percentage points compared to the first half of the year, and outperformed the provincial average by 10.6 percentage points [2][3] - The petrochemical industry saw an increase of 8.9%, while the equipment manufacturing sector grew by 17.5%, with notable growth in the railway and shipbuilding industries at 64.5% and the automotive industry at 26.3% [3] Strategic Initiatives - Dalian has launched initiatives to upgrade traditional industries, including the "Green Petrochemical Cluster Cultivation and Enhancement Action Plan (2025-2027)" aimed at elevating the city's petrochemical sector to a world-class level [2] - The city aims to establish a world-class base for green shipbuilding and marine engineering by 2027, targeting an industry scale exceeding 100 billion yuan [2] Future Outlook - Dalian is positioned to achieve its annual GDP growth target of over 5.5%, supported by strong industrial performance and strategic initiatives [2][3] - The city is on track to reach a GDP of 951.69 billion yuan in 2024, nearing the trillion-yuan milestone [1]

Core Points - The Ministry of Industry and Information Technology announced the seventh batch of national industrial heritage sites, with 32 entities listed, including one from Jiangsu province [1] - The announcement emphasizes the importance of protecting and utilizing industrial heritage for educational and tourism purposes [9] Summary by Category Industrial Heritage Sites - The "Yixing Qianshu Long Kiln" in Jiangsu is recognized, featuring core items such as various traditional pottery tools and artifacts from different historical periods [8] - Three sites from Beijing are included: the Rocket Assembly Plant, the Erqi Locomotive Assembly Plant, and the historical buildings and equipment of the Jing-Zhang Railway, with notable structures preserved [8] - The Baiyin Company Industrial Heritage Group in Gansu is listed, with key items including the open-pit mine site and various industrial machinery [8] - The Jian Nan Chun Tian Yi Old Wine Workshop in Sichuan is recognized, showcasing traditional brewing techniques and historical accolades [8] Government Initiatives - The Ministry calls for local industrial and information departments to enhance the systematic protection of industrial heritage, ensuring resource allocation and supervision [9] - There is a push for the revitalization of industrial heritage through new models and industries, including educational and tourism initiatives [9]

Core Points - The Ministry of Industry and Information Technology announced the seventh batch of national industrial heritage sites and the third batch of sites that passed re-evaluation, including 32 new sites and 50 re-evaluated sites [1][4]. Group 1: New National Industrial Heritage Sites - The seventh batch includes significant projects such as Shoushan Substation, Fengman Hydropower Station, Jingpo Lake Power Plant, Qinshan Nuclear Power Station, and Chongqing Power Plant [1][4]. Group 2: Re-evaluated National Industrial Heritage Sites - The third batch of re-evaluated sites includes major projects like Dagang Oilfield Port No. 5 Well, Kailuan Zhao Gezhuang Mine, Shigejie Coal Mine, Fushun West Open-pit Mine, Dongwo Hydropower Station, and the Controlled Nuclear Fusion Experimental Site [1][4]. Group 3: Implementation and Promotion - The Ministry emphasized the need for comprehensive protection and utilization of industrial heritage, encouraging new models such as "industrial heritage +" for education, tourism, and industrial restructuring [5][4].

Core Viewpoint - The recent financial report of Jianmin Group shows a decline in revenue and net profit for the first half of 2025, indicating challenges in the pharmaceutical market and increased operational costs [1][3]. Financial Performance - Total revenue for the first half of 2025 was 1.805 billion yuan, a decrease of 10.2% year-on-year [1]. - Net profit attributable to shareholders was 221 million yuan, down 7.83% year-on-year [1]. - In Q2 2025, total revenue was 913 million yuan, a decline of 12.21% year-on-year, with net profit of 110 million yuan, down 21.01% year-on-year [1]. - The gross margin improved to 59.44%, an increase of 38.26% year-on-year, while the net margin was 12.32%, up 2.73% year-on-year [1]. - The total of selling, administrative, and financial expenses reached 869 million yuan, accounting for 48.17% of total revenue, an increase of 34.66% year-on-year [1]. Key Financial Ratios - Earnings per share (EPS) decreased to 1.46 yuan, down 6.41% year-on-year [1]. - The company's net asset per share increased to 16.41 yuan, up 9.12% year-on-year [1]. - Operating cash flow per share remained stable at 0.36 yuan, with a slight increase of 0.84% year-on-year [1]. Changes in Financial Items - Accounts receivable decreased by 14.4% to 907 million yuan, while cash and cash equivalents fell by 8.36% to 171 million yuan [3]. - Short-term borrowings decreased significantly by 60.96% due to repayments by commercial subsidiaries [3]. - The company experienced a substantial increase in financial expenses, up 351.65%, attributed to changes in accounting for discounted bills [3]. Business Model and Strategy - The company relies heavily on marketing-driven performance, with a return on invested capital (ROIC) of 15.14% for the previous year, indicating strong capital returns [4]. - The company is focusing on optimizing its marketing assessment system and enhancing digital capabilities to improve sales performance [7]. Market Outlook - Analysts expect the company's performance in 2025 to reach 448 million yuan, with an average EPS forecast of 2.92 yuan [5]. - The company has seen a positive trend in sales of certain products, such as Longmu Bone Strengthening Granules and Jianpi Shengxue Granules, despite market challenges [7].

Group 1: Report Overview - The report is about a research on Jianmin Group in the traditional Chinese medicine industry, with a research date of July 1, 2025 [1][2] Group 2: Research Basic Information - The research object is Jianmin Group, belonging to the traditional Chinese medicine industry, and the reception time was on July 1, 2025. The company's reception personnel included the company's director and president Wang Jun, board secretary Zhou Jie, securities affairs representative Cao Hong, and securities affairs assistant Wang Miao [17] Group 3: Detailed Research Institutions - The research institution is Liuhe Investment, a fund management company [20] Group 4: Main Content Product Sales - In 2025, the company optimized its marketing assessment system, advancing from "net sales assessment" to "net sales + profit". It overcame factors like consumption decline and reduced pharmacy foot - traffic in Q1 and achieved growth in pharmaceutical industry sales revenue. Longmu Zhuanggu Granules saw increased sales revenue and improved sales structure, while Biantong Capsules and Jianpi Shengxue Granules maintained good momentum. Hospital - line product sales were stable, and new product sales grew [22] Emerging Business - The company's traditional Chinese medicine diagnosis and treatment and big - health business are emerging. The traditional Chinese medicine diagnosis and treatment business developed healthily, with one new clinic opened in H1 and a total of four clinics in operation in Hanyang, Hankou, Wuchang, and Optics Valley. The big - health business focused on children's healthy growth, increasing core variety cultivation and differentiated product development [23] Innovative Traditional Chinese Medicine Sales - Since 2021, the company has successively obtained approvals for three innovative drugs. In 2025, it accelerated the commercialization of new products like Xiao'er Zibei Xuanfei Syrup and Qirui Weishu Capsules, with smooth market development. Xiao'er Niuhuang Tuire Plaster was newly approved, and its listing preparations are on schedule and will participate in this year's medical insurance negotiation. The company also increased R & D investment, advanced new drug projects, and optimized its product pipeline [24][25] Future Development Plan - The company will continue to focus on the core business of traditional Chinese patent medicine manufacturing, accelerate the incubation of emerging businesses, and achieve the "1 + N" strategic goal. Specific strategic measures are detailed in the company's "2024 Annual Report" and "June 2025 Investor Relations Activity Record" [26] Advertising and Marketing - As an OTC brand pharmaceutical company, it will strengthen brand power, create "Longmu" children's medicine brand and "Jianmin" chronic disease/family - essential medicine brand. It uses multiple advertising channels such as long - form videos, short - form videos, variety shows, CCTV, and elevator media, with advertising volume similar to last year [27] Marketing System Reform - In 2024, the company carried out a comprehensive marketing system reform. In 2025, it added profit contribution assessment on the basis of net sales assessment. It optimized the organizational structure, promoted digital construction, and reduced terminal inventory. As of the end of 2024, the channel inventory of Longmu Zhuanggu Granules on the OTC line and major products on the prescription line had basically returned to a reasonable level [28] Impact of Chinese Herbal Medicine Price - The overall decline in Chinese herbal medicine prices is beneficial for the company's cost reduction and profit improvement. The company's manufacturing center uses multiple procurement models and strengthens cooperation with upstream suppliers to ensure stable raw material supply [29][30]

Investment Rating - The industry investment rating is "Outperform the Market" [1][50]. Core Insights - Eli Lilly's first oral small molecule GLP-1 drug, Orforglipron, has successfully completed Phase 3 clinical trials, which is expected to change the landscape of weight loss medications [3][4]. - The ACHIEVE-1 trial showed that Orforglipron significantly reduced HbA1c levels by 1.3% to 1.6% from a baseline of 8.0% after 40 weeks, with over 65% of patients achieving HbA1c levels ≤6.5% [3][4]. - Patients receiving the highest dose of Orforglipron lost an average of 7.3 kg, indicating potential for further weight loss [4]. - Eli Lilly plans to submit a global application for Orforglipron for weight management by the end of this year and for type 2 diabetes treatment in 2026 [4][5]. Summary by Sections Industry Overview - The successful Phase 3 trial of Orforglipron positions it as a potential second oral GLP-1 drug in the U.S., following Novo Nordisk's Rybelsus [5]. Investment Strategy - Focus on "innovation," "overseas expansion," "equipment upgrades," and "consumer recovery" as key investment themes [7]. - Recommended companies include innovative drug developers and those with strong overseas market potential [7]. Key Companies to Watch - **Nocera Health**: Expected to achieve over 1 billion yuan in revenue from its core product, with a projected 49% year-on-year growth [8]. - **Sihuan Pharmaceutical**: Strong fundamentals with a stable growth outlook, particularly in the ADC market [11]. - **China Biopharmaceutical**: Rapid revenue growth with a focus on innovative products [13]. - **Aier Eye Hospital**: Benefiting from increasing demand in ophthalmology and ongoing overseas expansion [22]. Market Performance - The pharmaceutical sector saw a decline of 0.36% last week, while the broader market index rose by 0.59% [25][36].

Core Viewpoint - Jianmin Group's 2024 annual report reveals a significant decline in both revenue and net profit, marking the first annual performance drop in six years, despite the strong sales of its flagship product, Longmu Zhuanggu Granules [2][4][6]. Financial Performance - The company achieved operating revenue of 3.505 billion yuan in 2024, a year-on-year decrease of 16.81% from 4.213 billion yuan in 2023 [3]. - The net profit attributable to shareholders was 362 million yuan, down 30.54% from 521 million yuan in the previous year [3][4]. - The cash flow from operating activities was 234 million yuan, a decrease of 12.71% compared to 268 million yuan in 2023 [3][11]. Product Performance - Longmu Zhuanggu Granules, the company's core product, has sold 300 billion bags since its launch over 30 years ago, but its sales volume decreased significantly in 2024 due to inventory reduction efforts [5][6]. - Pediatric product sales volumes fell by 41.67% and 32.44% year-on-year, while gynecological and specialty traditional Chinese medicine products also saw declines [6]. Market Position and Competition - Jianmin Group's revenue of 3.505 billion yuan in 2024 is significantly lower compared to leading industry players such as Baiyunshan (749.93 billion yuan) and Huaren Sanjiu (276.17 billion yuan) [9]. - The company faces increasing competition from other brands offering similar pediatric products, despite having a unique formula and production process for Longmu Zhuanggu Granules [7]. Strategic Initiatives - The company plans to utilize up to 1.4 billion yuan of idle funds for cash management through low-risk financial products, aiming to enhance returns without affecting daily operations [4]. - Jianmin Group is undergoing a marketing system reform and enhancing digital capabilities to address declining sales and improve inventory management [6][12]. R&D and Future Outlook - The company invested 97.16 million yuan in R&D in 2024, accounting for 2.77% of revenue, which is relatively low compared to industry peers [11]. - Despite the challenges, Jianmin Group emphasizes R&D innovation as a core driver for future growth, focusing on developing new pediatric generic and modified drugs [11][12].

Core Views - The report maintains a positive outlook on the biopharmaceutical industry, expecting it to outperform the market due to minimal impact from recent U.S. tariff policies on drug sectors [4][5] - The report emphasizes continued optimism for innovative drugs and sectors related to consumer recovery, highlighting the resilience of the pharmaceutical sector amidst tariff changes [4][5] Industry Insights - The recent U.S. tariff policy has a limited effect on the pharmaceutical sector, with most drugs, including various chemical drugs, vaccines, and biological products, exempt from tariffs. Raw materials like vitamins and amino acids are also on the exemption list [4][27] - The report suggests that the innovative drug sector has shown significant growth, providing a selection of quality stocks based on criteria such as strong fundamentals, potential in research pipelines, and favorable cash positions [4][5] Investment Strategy - The report recommends focusing on four main themes: "Innovation," "Going Global," "Equipment Upgrades," and "Consumer Recovery" [5] - **Innovation**: Invest in globally competitive innovative drugs and promising categories, with specific companies highlighted such as BeiGene and East China Pharmaceutical [5] - **Going Global**: Identify opportunities in overseas markets, with companies like Mindray Medical and Sinocare suggested for investment [5] - **Equipment Upgrades**: Expect support for medical equipment updates from government policies, with companies like Mindray Medical and United Imaging Healthcare recommended [5] - **Consumer Recovery**: Anticipate a rebound in sectors like ophthalmology and aesthetic medicine, with companies like Prue Eye Hospital and Tongce Medical highlighted [5] Key Companies to Watch - **Nocare Biopharma**: Expected to achieve revenue of 1.009 billion in 2024, with a 49% year-on-year growth in sales of its core product, Oubatinib [6] - **Sihuan Pharmaceutical**: Strong fundamentals with a stable performance, and a promising pipeline with multiple products expected to be approved between 2025 and 2027 [9] - **East China Pharmaceutical**: Anticipated growth driven by the commercialization of domestic nuclear medicine products and a robust R&D pipeline [10] - **China Biopharmaceutical**: Rapid revenue growth with an increasing proportion of innovative products, indicating potential for accelerated profit growth [11] - **Aier Eye Hospital**: Benefiting from growing demand in ophthalmology and favorable policies for private specialty hospitals, with significant expansion plans [21]