Core Viewpoint - Zhenghai Biological announced the establishment of an independent sales team focused on the sales of active biological bone products, aiming to enhance market promotion capabilities and increase product awareness and reputation [1] Group 1 - The company is strengthening its sales team's marketing skills and overall quality to tap into the market potential of existing products, thereby continuously stimulating performance vitality [1]

Core Viewpoint - The company, Zhenghai Biological, announced on October 27 that it is steadily advancing its research and development project on "recombinant bioactive protein products" in collaboration with Jiangsu Jicui Research Institute, and will fulfill its information disclosure obligations upon any relevant progress [1] Group 1 - The collaboration with Jiangsu Jicui Research Institute focuses on the development of recombinant bioactive protein products [1] - The project is reported to be progressing steadily [1] - The company commits to timely information disclosure regarding any future developments related to the project [1]

Core Viewpoint - The company, Zhenghai Biological, announced on October 27 that its active biological bone, which contains bone morphogenetic protein (BMP) as a scaffold material, is a crucial component of bone repair materials, demonstrating both efficacy and safety in clinical applications [1] Group 1: Product Efficacy and Safety - Active biological bone effectively combines with the active factor rhBMP-2 and bone filling products, creating a low-dose, high-efficiency bone regeneration system that enhances clinical outcomes while significantly reducing safety risks [1] - The promotion and hospital admission of active biological bone have been progressing smoothly in the first three quarters of this year, with the overall admission pace meeting expectations and positive feedback on product application [1] Group 2: Company Confidence - The company maintains confidence in the continued growth and market penetration of its active biological bone products [1]

Core Insights - Zhenghai Biological announced on October 27 that the Tianjin Procurement Office will issue a notice regarding the centralized maintenance of information for medical consumables related to hard brain (spinal) membrane patches in June 2024 [1] - The company is actively monitoring the developments in centralized procurement policies and is preparing for the upcoming volume-based procurement projects [1] - The company's sales of brain membrane series products have increased due to participation in various provincial and alliance procurement projects, maintaining a stable market share with overall inventory levels remaining reasonable [1]

Core Viewpoint - Zhenghai Bio (300653) announced on October 27 that it will continue its strategy of stable operations and actively returning profits to investors, maintaining annual performance dividends since its listing [1] Group 1 - The company emphasizes its commitment to investor returns based on overall performance [1] - Future plans include developing specific employee incentive schemes in accordance with relevant regulations [1] - The company encourages stakeholders to pay attention to upcoming announcements regarding these incentive plans [1]

Core Viewpoint - Zhenghai Biological (300653) emphasizes that active biological bone remains a crucial component driving the company's revenue growth [1] Group 1 - The company will continue to vigorously promote product development and hospital admissions to enhance market coverage [1] - The company aims to increase the usage penetration rate in benchmark hospitals and improve the development proportion of leading hospitals [1] - The company plans to implement flexible sales policies and establish long-term trust relationships with distributors to collaboratively advance product market promotion and hospital admissions [1]

Core Viewpoint - The current demand for dental implants is weak, with no significant recovery observed in the third quarter, particularly in the private market, which faces cost-cutting pressures and intense competition [1] Company Summary - Zhenghai Biological (300653) announced on October 27 that the dental implant market is currently experiencing low demand, with no notable recovery trends in the third quarter [1] - The company noted that the private market is particularly cold, facing significant pressure to reduce costs at the end-user level, leading to fierce product competition [1] - The company's oral repair membrane products maintain a relatively stable market position, while its bone repair materials have seen an increase in market share [1] - The oral segment remains a key focus for the company, which plans to continue deepening its efforts in this area, accelerate the launch and promotion of new products, and enhance market competitiveness through the synergistic capabilities of its membrane and powder product combinations [1]

Core Viewpoint - Zhenghai Biological (300653) announced on October 27 that the development of its intrauterine repair membrane and breast patch products is progressing smoothly, with plans for product registration and sales strategy based on market conditions [1] Group 1: Product Development - The intrauterine repair membrane product has completed clinical trials and is currently advancing through the product registration process [1] - The breast patch product is in the clinical summary stage [1] Group 2: Sales Strategy - The company will consider the development progress of both products and the market conditions of the corresponding application departments to formulate a sales plan [1] - The aim is to maximize the value of these products in driving revenue growth [1]

Group 1: Company Performance Overview - In the first three quarters of 2025, the company achieved operating revenue of 276 million yuan, a decrease of 5.36% compared to the same period last year [4] - The net profit attributable to shareholders was 67.4 million yuan, down 46.10% year-on-year [4] - The net profit after deducting non-recurring gains and losses reached 59.2 million yuan, a decrease of 45.34% compared to the previous year [4] Group 2: Product Development and Market Strategy - The active biological bone product is a key driver for revenue growth, with ongoing efforts to enhance market coverage and penetration in leading hospitals [5] - The company is actively developing new products, including calcium silicate bio-ceramic bone repair materials, which are in the registration phase [4] - The oral implant market is currently facing weak demand, particularly in the private sector, but the company maintains a stable market position for its oral repair membrane products [5] Group 3: Sales and Marketing Initiatives - The company has established an independent sales team focused on the active biological bone product to enhance market promotion capabilities [7] - Flexible sales policies and long-term relationships with distributors are being pursued to boost product market promotion and hospital admissions [5] - Plans for overseas market expansion are underway, with certain products identified as having export potential [7] Group 4: Research and Development Progress - The company is collaborating with Jiangsu Jicui Future Food Technology Research Institute on the development of recombinant bioactive protein products, with steady progress reported [7] - The research and development of the uterine repair membrane and breast patch products are ongoing, with clinical trials completed for the former [6] Group 5: Investor Relations and Future Outlook - The company has consistently maintained performance dividends since its listing and plans to continue investor return strategies based on overall performance [6] - Employee incentive plans are being developed in accordance with relevant regulations to enhance motivation and performance [6]

Summary of Zhenghai Biological Conference Call Company Overview - **Company**: Zhenghai Biological - **Industry**: Biopharmaceuticals, specifically focusing on bone repair materials and dental products Key Points and Arguments Financial Performance - **Net Profit Decline**: Net profit decreased by 45.34% year-on-year, primarily due to tax policy adjustments (VAT increased from 3% to 13%) and intensified market competition, particularly in the meninges product segment and oral implant sector [2][4][5] - **Revenue Trends**: For the first three quarters of 2025, total revenue was 276 million yuan, a decrease of 5.36% year-on-year. In Q3 alone, revenue was 87.87 million yuan, down approximately 5% year-on-year [3][4] - **Gross Margin**: The overall gross margin was around 85%, showing a recovery compared to the first half of the year due to changes in product mix [3] Product Performance - **Active Biological Bone Products**: Currently in 196 hospitals, with expectations for significant revenue growth due to the inclusion of BMP-2, which enhances bone induction. The company aims to increase market share by expanding hospital admissions and improving penetration in benchmark hospitals [2][6][11] - **Stem Cell Project**: In the process of technology validation, this project is crucial for addressing clinical tissue repair and regeneration issues, indicating strategic importance [7] - **Oral Membrane Products**: The second-generation oral repair membrane is in the early promotion stage, contributing minimally to revenue. The company is focusing on applications in soft tissue defects and avoiding price wars [2][8][10] Market Dynamics - **Market Competition**: The oral implant market is facing challenges due to price governance and a sluggish consumer market, leading to a decline in private institution implant volumes. Some patients are opting for repair treatments instead of implants, impacting the growth of bone powder and membranes [2][13] - **Price Pressure**: The company is experiencing price declines across its products, although it maintains a stable gross margin. Sales and management expenses have increased, putting pressure on net profits [5][16] Regulatory and Development Updates - **Regulatory Approvals**: The company is tracking the procurement policies for artificial bone repair materials and is preparing for the registration of new products like the calcium silicate bone powder, expected to receive certification by the end of this year or early next year [4][20] - **Future Product Launches**: The company anticipates launching the intrauterine repair membrane in 2026 and the breast patch in 2027, with detailed market strategies to be developed closer to launch dates [17] Strategic Outlook - **Acquisition Plans**: The company is open to acquisitions to expand its business pipeline and explore new growth opportunities [29] - **International Expansion**: Zhenghai Biological is exploring overseas business opportunities and has begun preparations for international certifications [28] - **Employee Incentives**: The company has completed share buybacks for employee incentives and plans to implement stock incentive schemes based on future performance [30] Future Market Perspective - **Confidence in Growth**: The company remains optimistic about future development, focusing on core business growth, new product launches, and cost control to achieve good performance returns [31]