On the morning of July 7, 2025, the company convened its 2025 mid-year business performance review meeting at the Liuyang base. Shen Fanshun, the Party Branch Secretary and Chairman, chaired the session and outlined key priorities, with all mid-level and senior management attending.

In the first half of this year, through the collective efforts of all employees, the company achieved a nearly 20% year-on-year growth in sales performance. The production of new traditional Chinese medicine decoction pieces increased by 56% year-on-year, with overall operations showing sustained improvement and stability. Heads of sales, production, R&D, procurement, finance, and human resources conducted gap analysis against annual targets, examined root causes from both internal and external perspectives, and presented measures to address existing issues for the second half of the year.

Regarding the next phase of work, Shen Fanshun emphasized that while recognizing progress, we must also identify shortcomings; while boosting confidence, we must maintain a sense of crisis; while analyzing external factors constraining development, we must also address internal issues affecting performance. For key tasks in the second half of the year, Shen Fanshun outlined four priorities: First, continue strengthening sales team development by advancing frontline operations and enhancing terminal service capabilities. Leverage strengths to create competitive products while addressing weaknesses. Focus on expanding production volumes of food-as-medicine products, intensify investment promotion and new media marketing, establish specialized academic systems, utilize AI technology to improve marketing efficiency, and cultivate competitive advantages. Continue expanding overseas markets including Hong Kong, Macao, and Germany. Second, align with the "two increases and three decreases" targets for the "production capacity year." Through internal reviews and external references, further solidify and optimize production processes to prioritize supply assurance for key markets and product categories. Third, strengthen cost control in procurement and process management. Implement fixed-point procurement for more Chinese herbal medicine varieties, collaborate with manufacturers to secure more medicinal material trading opportunities. Fourth, enhance institutional development and internal management to mitigate risks in accounts receivable and capital security. Accelerate revitalization of idle assets and disposal of non-performing assets. Actively recruit talents for critical positions in production and marketing. All departments must strengthen coordination and ensure implementation to achieve the company's annual operational goals.