Core Viewpoint - Jiuzhitang's net profit in Q2 2025 dropped over 50% year-on-year, despite the stock price increasing by over 50% this year, indicating a potential disconnect between performance and market perception [1][2]. Financial Performance - Jiuzhitang reported a total revenue of 1.27 billion yuan in H1 2025, a decrease of 24.71% compared to the same period last year [4]. - The net profit for H1 2025 was 144 million yuan, down 29.71% year-on-year, with Q2 net profit at 27.23 million yuan, reflecting a significant decline of 54.58% [2][4]. - Revenue from the three main product categories (OTC, prescription drugs, and health products) all experienced declines, with OTC revenue falling by 36.05% to 583 million yuan [2][4]. Product Category Performance - The revenue breakdown for H1 2025 showed: - OTC products: 583 million yuan, down 36.05% from the previous year [4]. - Prescription drugs: 636 million yuan, down 10.67% [4]. - Health products: 11.59 million yuan, down 20.88% [4]. - The decline in OTC sales is attributed to increased competition from online sales and lower prices at hospitals, making it less attractive for consumers [4]. Shareholder Activity - Notable investor Chen Shihui exited Jiuzhitang's top ten shareholders after a series of strategic buy and sell actions, capitalizing on the stock's price fluctuations [5][7]. - Chen's investment strategy involved buying shares during a downturn when Jiuzhitang was under ST (special treatment) status, indicating a high-risk opportunity [7]. Corporate Changes - In early 2025, Jiuzhitang's original controlling shareholder transferred 53.5 million shares to Heilongjiang Chenneng Investment, making it the new controlling shareholder with a 24.04% stake [8]. - The company has rectified its internal control deficiencies, leading to the removal of risk warnings as of May 7, 2025 [8].