On December 30, Gelonghui reported that Youcare Pharmaceutical Group (688658.SH) announced it had noted the letter issued by the National Healthcare Security Administration Office regarding "concerns over individual pharmaceutical companies issuing false invoices and creating 'two price systems'," which has attracted widespread attention in the market. The letter involves the company's product "Ginkgo Leaf Extract Injection," and the company and its Board of Directors immediately organized relevant personnel to investigate the specifics of the matter. The situation is explained as follows:

1. In response to the matters in the letter, the company proactively communicated with the local healthcare security bureau where the incident occurred, applying to optimize and adjust the price of the Ginkgo Leaf Extract Injection and promising to unify the product's national website price from 24.1 yuan per unit and 18.14 yuan per unit (the bidding price in some provinces) to 11.2 yuan per unit. Furthermore, the company will actively participate in the national pharmaceutical centralized procurement work going forward. The company always adheres to national laws and regulations as well as healthcare policies, maintaining a legally compliant operation philosophy, and has not instructed or required dealers to raise the website price or engage in improper marketing practices. In the future, the company will adjust the website price of the Ginkgo Leaf Extract Injection product at the healthcare security bureaus and pharmaceutical procurement institutions in various provinces, autonomous regions, and municipalities directly under the central government, and it is expected the company will face risks such as revenue and gross margin decline. From a long-term perspective, lowering prices is beneficial for improving the accessibility of pharmaceuticals, thereby stimulating an increase in the terminal market demand for medications. The impact of price adjustments on pharmaceutical sales volume is uncertain, and the influence of price changes on the company's performance will ultimately be determined by the periodic reports disclosed by the company.

2. Ginkgo Leaf Extract Injection is primarily used for brain and peripheral blood flow circulation disorders, including acute and chronic brain dysfunction and its sequelae, ear/eye blood flow and nerve disorders, and peripheral circulation disorder diseases. This product can eliminate excessive free radicals in the body, adjust the circulatory system, improve hemodynamics, and protect tissues. Since its launch, the company has adhered to technological innovation and research and development investment, with R&D expenditures of 0.261 billion yuan, 0.452 billion yuan, and 0.436 billion yuan in 2021, 2022, and 2023 respectively, accounting for 5.25%, 9.95%, and 10.38% of revenue. At the same time, the company actively returns to investors, with cumulative cash dividends of 1.092 billion yuan (including tax) from 2020 to 2023.

3. The company will further strengthen management, improve the price management mechanism, and set pharmaceutical prices according to the principles of fairness, reasonableness, honesty, integrity, and correspondence between quality and price, ensuring the sales process is more compliant. The company will continue to increase R&D investment, constantly optimize product structure, and provide patients with more personalized and cost-effective treatment options. In the future, the company will respond with a more proactive attitude to the call of the healthcare security bureau and national departments, actively practice the product philosophy that ‘the quality of pharmaceuticals must be a hundred points; ninety-nine points equals zero,’ and adhere to a patient-centered approach, guided by clinical needs, to meet clinical accessibility and affordability, making greater contributions to industry development and patient life-saving efforts.