2025 Annual Board of Directors Work Report
2025 marks the concluding year of the company's "14th Five-Year Plan" strategic initiative and a crucial year for the transition to the "15th Five-Year Plan." It was also a year of forging ahead, tempering our original aspirations amidst the tides of the era and writing a new chapter in overcoming challenges. This year, industry policies tightened, centralized procurement expanded and intensified pressure, and market competition became increasingly fierce. Facing a complex and changing external environment, the Board of Directors consistently adhered to its core responsibilities of "setting strategy, making decisions, and preventing risks." We responded to the changing landscape with strategic resolve, broke through challenges with innovation, and led all employees to face difficulties head-on and proactively adapt. We deepened reform and innovation, optimized governance structures, strengthened risk control, and successfully achieved the core objectives of the "14th Five-Year Plan," delivering a report card of counter-trend growth and high-quality development.
In 2025, the company achieved operating revenue of 1.392 billion yuan, a year-on-year increase of 4.2%; total profit of 456 million yuan, a year-on-year increase of 111%; and net profit attributable to shareholders of 416 million yuan, a year-on-year increase of 126%. Throughout the year, operating performance grew against the trend, profitability significantly improved, core business competitiveness was continuously strengthened, and the results of strategic transformation were further consolidated.
I. Work Review During the "14th Five-Year Plan" Period
Looking back at the five-year journey of the "14th Five-Year Plan," the company has consistently adhered to the "Healthy China" strategic direction, upheld the mission of a state-owned enterprise, and deeply cultivated its core pharmaceutical business. Guided by strategy, driven by innovation, powered by reform, and supported by talent, we have coordinated industrial operations and capital management to gradually build a new pattern of industrial development. Over the past five years, we have successfully achieved a profound transformation from "scale growth" to "quality improvement" and a leap from "deep industry cultivation" to "ecosystem co-construction."
We achieved a critical breakthrough from "imitation" to "innovation," successfully completing all strategic planning targets and tasks.
During the "14th Five-Year Plan" period, the company's total assets and net assets achieved steady growth, and state-owned assets were continuously preserved and appreciated. Particularly noteworthy is that against the backdrop of overall pressure on operating revenue, the company's profitability significantly improved. R&D investment intensity consistently remained above 8%. Over five years, we obtained 41 product approvals, four times the number obtained during the "13th Five-Year Plan" period. We strategically acquired Jiangxi Qingchun Kanyuan, successfully strengthening the traditional Chinese medicine business segment and extending the industrial chain. We established three industrial funds, continuously enhancing our capital management capabilities. Market capitalization grew by 50.34%, significantly increasing recognition in the capital market. Through practical work and dedication, the company has written a new chapter in empowering people's livelihood and industrial development, laying a solid foundation for the start of the "15th Five-Year Plan."
II. 2025 Work Review
(I) Consolidating Strategic Closure, Building a New Industrial Development Pattern
Precise Policy Implementation to Ensure Stable Closure. The Board of Directors closely monitored changes in industry policies and market trends, systematically analyzed the internal and external development environment, and accurately grasped opportunities for industrial transformation. Centered on the dual-driven strategy of "industrial operations + capital management," we detailed key tasks for the closing phase and established a strategic execution tracking and evaluation mechanism to ensure the complete achievement of all "14th Five-Year Plan" targets. We organized multiple strategic seminars, high-level interviews, and strategic decoding sessions, and high-qualityly completed the outline of the "15th Five-Year Plan" strategy, clarifying the direction and path for future development.