Shanghai Pharmaceuticals Holding Co., Ltd. stated in response to investor inquiries that the company is consistently dedicated to optimizing its business structure, improving profitability, and ensuring high-quality development. For existing operations, the focus is on enhancing quality and efficiency, optimizing the cost structure, and maintaining gross profit levels. Concurrently, the company aims to solidify its advantages in innovative businesses and explore a second growth curve to build new growth engines.

Regarding cash flow management, Shanghai Pharmaceuticals places significant emphasis on cash flow security, adhering to prudent and stable financial control principles. The company strengthens its financial safety net through measures such as accounts receivable management, strict control over capital expenditures, and optimization of working capital turnover to ensure sustained and healthy operations.