Group 1 - The company will hold a semi-annual performance and cash dividend presentation on September 26, 2025, from 13:00 to 14:30 [1][2] - The presentation will be conducted via video live streaming and online interaction, allowing investors to engage with the company [2][3] - Key personnel attending the presentation include the Chairman, General Manager, Secretary of the Board, Chief Financial Officer, Head of Internal Audit, and an Independent Director [2] Group 2 - Investors can submit questions for the presentation from September 19 to September 25, 2025, through the designated website or company email [1][3] - The company will address commonly asked questions during the presentation, ensuring transparency and engagement with investors [2][3] - After the presentation, investors can access the main content and details of the event on the Shanghai Stock Exchange Roadshow Center website [3]

Summary of Key Points Core Viewpoint The report outlines the fundraising activities and the utilization of funds by Shanghai Haoyuan Pharmaceutical Co., Ltd. for the first half of 2025, detailing the amount raised, the allocation of funds, and the management of these funds. Group 1: Fundraising Overview - The company raised a total of RMB 822.35 million through the issuance of convertible bonds, with a maturity of 6 years and a face value of RMB 100 per bond [1][2]. - As of June 30, 2025, the balance in the fundraising account was RMB 420,589,058.15, which includes interest income after deducting fees [1][2]. Group 2: Fund Utilization - The net amount of funds raised was RMB 811,737,609.85, with RMB 311,050,738.57 allocated to investment projects and RMB 86 million used for cash management [1][2]. - The company has not used any idle funds for temporary working capital during the reporting period [2][3]. Group 3: Fund Management - The company established a dedicated account for the management of raised funds, ensuring compliance with regulations and maintaining transparency [1][2]. - A three-party supervision agreement was signed with banks and the sponsor to oversee the management of the funds [1][2]. Group 4: Project Updates - The company has approved the use of raised funds to replace pre-invested self-raised funds amounting to RMB 40,333,017.97 for specific projects [2][3]. - The timeline for certain projects has been extended, with the "High-end Pharmaceutical Intermediates and Raw Materials CDMO Industrialization Project" expected to reach operational status by June 2029 [3][4]. Group 5: Compliance and Reporting - The company has adhered to the regulatory requirements for fundraising and has accurately disclosed the status of fund utilization [3][4]. - No violations in the management of raised funds have been reported, and all disclosures have been made in a timely and accurate manner [3][4].

Core Viewpoint - Shanghai Haoyuan Chemexpress Co., Ltd. has implemented a "Quality Improvement, Efficiency Enhancement, and Return to Shareholders" action plan, focusing on enhancing operational efficiency and market competitiveness while ensuring shareholder returns through strategic initiatives and financial performance improvements [1][2]. Group 1: Business Focus and Strategy - The company is transitioning from a "business investment phase" to a "strategic harvest phase," accelerating its globalization process and expanding overseas revenue, which reached 560 million yuan, a year-on-year increase of 24.20% [2][3]. - The company has established an integrated service platform covering the entire pharmaceutical development lifecycle, from starting materials to intermediates, APIs, and formulations, enhancing its ability to support drug development [6][11]. - The company emphasizes high-value custom synthesis services in its life sciences reagent business, leveraging technical advantages to build differentiated competitive barriers in niche markets [3][11]. Group 2: Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.311 billion yuan, a year-on-year increase of 24.20%, and a net profit attributable to shareholders of 152 million yuan, up 115.55% [2][3]. - The company reported an EBITDA of 260 million yuan, reflecting a 39.67% increase compared to the previous year [2]. Group 3: Research and Development - The company maintains a strong focus on R&D, with a research expense ratio exceeding 10% over the past three years, and has applied for a total of 426 patents, with 197 currently valid [11][12]. - The company is committed to integrating green chemistry principles into its drug development and production processes, enhancing efficiency and reducing costs through innovative technologies [12][22]. Group 4: Governance and Compliance - The company has streamlined its governance structure by reducing the board from nine to seven members, enhancing the professionalism and strategic alignment of its governance [14][15]. - The company has implemented a comprehensive upgrade of its governance systems to comply with new regulations, ensuring effective risk management and operational efficiency [16][17]. Group 5: Shareholder Returns and ESG Commitment - The company adheres to a dual-frequency dividend mechanism, optimizing shareholder returns in line with its three-year dividend plan, with cash dividends increasing compared to the previous year [19][21]. - The company actively promotes ESG principles, establishing a three-tier ESG management framework and releasing its second ESG report, showcasing its commitment to sustainable development [22].

Group 1 - The company announced a change in registered capital and amendments to its Articles of Association, which will be submitted for shareholder approval [1][4] - As of August 27, 2025, the company’s registered capital increased by 10,479.00 CNY due to the conversion of "Haoyuan Convertible Bonds" into 10,479 shares [1] - The company completed the registration procedures for the first vesting period of the 2022 restricted stock incentive plan, resulting in an increase of 648,570 shares and registered capital by 648,570.00 CNY [2] - The company reduced its total share capital by 47,725 shares and registered capital by 47,725.00 CNY due to the cancellation of compensation shares related to performance commitments [3] - The company completed the registration for the second vesting period of the 2023 restricted stock incentive plan, increasing total share capital by 527,660 shares and registered capital by 527,660.00 CNY [4] - The total share capital changed from 210,959,781 shares to 212,098,765 shares, and registered capital changed from 210,959,781.00 CNY to 212,098,765.00 CNY [4] Group 2 - The company plans to amend its Articles of Association to reflect changes in registered capital and total share capital, in accordance with relevant laws and regulations [4] - The specific amendments to the Articles of Association include updates to the registered capital and total share capital clauses [4]

Group 1 - The core viewpoint of the article is that Pacific Securities has issued a buy rating for Haoyuan Pharmaceutical (688131.SH) based on its strong business growth and expanding product range [1] Group 2 - Front-end business is experiencing rapid growth with a continuous expansion of product varieties [1] - Back-end business shows steady growth with a significant increase in orders on hand [1]

Investment Rating - The report maintains a "Buy" rating for Haoyuan Pharmaceutical (688131) with a target price based on the last closing price of 60.23 [1][4]. Core Insights - Haoyuan Pharmaceutical's Q2 revenue exceeded expectations, with a strong profit growth. The company achieved a revenue of 1.311 billion yuan in H1 2025, representing a year-on-year increase of 24.20%, and a net profit of 152 million yuan, up 115.55% year-on-year [4][5]. - The growth in revenue and profit is attributed to the rapid expansion of the high-margin life science reagent business and effective internal management and cost control [5][6]. - The front-end business generated 904 million yuan in revenue in H1 2025, a 29.2% increase year-on-year, with a gross margin of 63.0%, up 3.5 percentage points [5][6]. Revenue and Profit Forecast - The company forecasts revenues of 2.848 billion yuan, 3.598 billion yuan, and 4.564 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 25.47%, 26.33%, and 26.84% [6][7]. - The net profit is expected to reach 308 million yuan, 399 million yuan, and 517 million yuan for the same years, with growth rates of 52.65%, 29.56%, and 29.75% [6][7]. Business Segments Performance - The front-end business's revenue accounted for a significant portion of total revenue, with 9.04 billion yuan in H1 2025, while the back-end business generated 399 million yuan, reflecting a 13.6% year-on-year increase [5][6]. - The back-end business has a robust order backlog exceeding 590 million yuan, a 40.1% increase year-on-year, indicating strong future growth potential [6].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a strong performance relative to the benchmark index [14]. Core Views - The company has demonstrated sustained high growth in performance, with a significant increase in both revenue and net profit in the first half of 2025 [1]. - The front-end business (life science reagents) is a key driver of growth, showing a revenue increase of 29.2% year-on-year, while the back-end business (API and intermediates, formulations) also contributed positively with a 13.6% increase [2][3]. - The company is actively developing an AI drug discovery platform, which is expected to enhance efficiency and success rates in drug development [6]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 1.311 billion yuan, a year-on-year increase of 24.2%, and a net profit of 152 million yuan, up 115.55% [1]. - The overall gross margin for H1 2025 was 49.07%, an increase of 3.7 percentage points compared to the previous year [2]. Front-End Business - The front-end business generated 904 million yuan in revenue in H1 2025, with a gross margin of 63.0%, reflecting a 3.5 percentage point increase year-on-year [3]. - The company has a robust product pipeline with approximately 147,000 life science reagents in reserve, enhancing its market position [3]. Back-End Business - The back-end business reported a revenue of 399 million yuan in H1 2025, with a gross margin of 17.8% [4]. - The company has a strong order backlog exceeding 590 million yuan, indicating significant growth potential [5]. AI Drug Discovery Platform - The company is integrating AI technology into drug development, aiming to create a leading AI drug discovery platform that enhances the drug screening process [6]. - The initiative includes collaborations in academia and industry to develop a comprehensive drug discovery system [6]. Financial Projections - The company is projected to achieve revenues of 2.753 billion yuan, 3.345 billion yuan, and 4.021 billion yuan for the years 2025, 2026, and 2027, respectively [8]. - The expected diluted EPS for 2025, 2026, and 2027 are 1.41 yuan, 1.81 yuan, and 2.24 yuan, respectively [8].

Core Insights - The company reported a revenue of 1.311 billion yuan for the first half of 2025, representing a year-on-year growth of 24.20%, with overseas revenue reaching 560 million yuan, up 39.78% [2] - The net profit attributable to shareholders was 152 million yuan, marking a significant increase of 115.55%, and the gross profit margin improved to 49.1%, up 3.7 percentage points [2] - The company emphasizes a long-term strategy focused on "industrialization, globalization, and branding," aiming to enhance customer value and operational efficiency [2] Business Segments - The company operates in three main business areas: "tool compounds and biochemical reagents," "molecular building blocks," and "active pharmaceutical ingredients (APIs) and intermediates, formulations" [3] - The life sciences reagent segment showed strong growth, achieving revenue of 904 million yuan, a 29.2% increase, with a gross margin of 63% [3] - The company has a substantial inventory of approximately 147,000 types of life science reagents, maintaining a leading position in product variety and diversity [3] CDMO Business - The CDMO (Contract Development and Manufacturing Organization) segment generated revenue of 399 million yuan, reflecting a year-on-year growth of 13.6% [4] - The company has a robust pipeline with 419 generic drug projects and 966 innovative drug projects, primarily in the preclinical and early clinical phases [4] - The company has established a comprehensive platform for ADC (Antibody-Drug Conjugate) development, with a new CDMO facility in Chongqing now operational [5] Global Expansion - The company is accelerating its globalization efforts, with overseas revenue reaching 560 million yuan, accounting for 43.0% of total revenue [6] - The company is actively expanding its market presence in the U.S., Europe, Japan, South Korea, and India, focusing on high-end markets [6] - The company aims to enhance its international brand influence while optimizing resource allocation for operational efficiency [6] AI Integration in Drug Development - The company is leveraging AI technology to enhance drug development efficiency, focusing on small molecule drug research combined with AI [7] - A comprehensive drug screening platform has been developed, integrating various computational drug design algorithms to improve drug discovery success rates [7] - The company is committed to building a robust AI model for drug development, aiming to create a full-chain system from basic research to industrial application [8]

Market Overview - The medical services sector rose by 3.64% on August 29, with the leading stock being Puris [1] - The Shanghai Composite Index closed at 3857.93, up 0.37%, while the Shenzhen Component Index closed at 12696.15, up 0.99% [1] Top Gainers in Medical Services - Zenggansi (301257) closed at 43.54, up 20.01% with a trading volume of 64,900 shares and a turnover of 278 million [1] - Haoyuan Pharmaceutical (688131) closed at 68.48, up 13.70% with a trading volume of 189,200 shares and a turnover of 1.256 billion [1] - Bidai Pharmaceutical (688073) closed at 67.11, up 10.43% with a trading volume of 28,300 shares and a turnover of 182 million [1] - Meidi Xi (688202) closed at 64.21, up 8.96% with a trading volume of 124,400 shares and a turnover of 784 million [1] - WuXi AppTec (603259) closed at 103.30, up 7.95% with a trading volume of 1,016,600 shares and a turnover of 10.18 billion [1] Top Losers in Medical Services - Digital Human (835670) closed at 17.54, down 6.20% with a trading volume of 127,200 shares and a turnover of 227 million [2] - Puri Eye Hospital (301239) closed at 40.78, down 4.63% with a trading volume of 49,600 shares and a turnover of 203 million [2] - Yingkang Life (300143) closed at 10.64, down 3.45% with a trading volume of 230,300 shares and a turnover of 250 million [2] Capital Flow in Medical Services - The medical services sector saw a net inflow of 1.259 billion from institutional investors, while retail investors experienced a net outflow of 446 million [2][3] - Major stocks like WuXi AppTec had a net inflow of 1.269 billion from institutional investors, while it faced a net outflow of 741 million from retail investors [3]

Group 1 - The A-share market saw a significant rise in CRO concept stocks, with notable increases in share prices for several companies [1] - Haoyuan Pharmaceutical experienced a rise of over 15%, while Chengdu XianDao and MeidiXi saw increases of over 11% and 10% respectively [1] - Other companies such as Bid Pharma, Boteng Co., and WuXi AppTec also reported gains exceeding 7% [1] Group 2 - The following table summarizes the performance of key CRO stocks, including their percentage increase, total market capitalization, and year-to-date performance [2] - Haoyuan Pharmaceutical: +15.19%, Market Cap: 14.7 billion, YTD: +95.07% - Chengdu XianDao: +11.02%, Market Cap: 10.7 billion, YTD: +116.70% - MeidiXi: +10.54%, Market Cap: 8.75 billion, YTD: +115.91% - Bid Pharma: +8.39%, Market Cap: 5.99 billion, YTD: +36.61% - Boteng Co.: +7.51%, Market Cap: 13.6 billion, YTD: +58.02% - WuXi AppTec: +7.43%, Market Cap: 303.4 billion, YTD: +90.82% - Sunshine Nuohe: +6.32%, Market Cap: 8.46 billion, YTD: +100.86% - Baicheng Pharmaceutical: +4.97%, Market Cap: 6.29 billion, YTD: +51.90% - Kailai Ying: +4.49%, Market Cap: 39 billion, YTD: +43.98% - NuoSiGe: +4.35%, Market Cap: 5.19 billion, YTD: +7.82% [2]