CR Sanjiu(SZ:000999)2024-07-30 03:05Group 1: Market Trends and Strategies - The company anticipates a long-term upward trend in traditional Chinese medicine prices due to rising labor costs and scarcity of resources, necessitating appropriate procurement strategies and increased research in planting technology [1] - The company has successfully promoted the "999 Huaju 03" variety of wild chrysanthemum, achieving industry-leading levels through over a decade of research and development [2] - The company continuously monitors market trends and develops procurement strategies based on specific product conditions [2] Group 2: Online Business Development - The company's online B2C and O2O business now accounts for over 10% of total sales, with B2C making up approximately 5% [2] - The digital marketing strategy is divided into three phases: solidification, quick wins, and breakthroughs [2] Group 3: Business Performance and Inventory - The overall business performance is positive, with a good order situation for cold medicine in Q1 and relatively low channel inventory levels [2] - The company aims to maintain its leading position in the CHC sector, which has been a core business area, while also focusing on prescription drugs and national medicines [2] Group 4: Future Growth and R&D Directions - The company plans to anchor its strategy on the aging economy, focusing on the "777" brand and the "Kunzhong Medicine 1381" platform for premium national medicines [3] - Future R&D efforts will align with the company's strategic goals, emphasizing preventive, therapeutic, and rehabilitative products in the CHC sector [4] Group 5: Financial Management and Cost Control - The sales expense ratio has significantly decreased from around 40% in 2017 to 28% in 2023, with a target to keep it below 30% moving forward [4] - The company will enhance budget management and monitor the efficiency of sales expense investments [4] Group 6: Production Capacity and Supply Chain - The company faces production pressure in the cold medicine category but expects relief as the new manufacturing center in Hunan begins to ramp up production by the end of 2023 [4]