HILE(SH:603718) Zheng Quan Zhi Xing·2025-06-27 16:31Core Viewpoint - The report provides a detailed analysis of Shanghai Haili Biotechnology Co., Ltd.'s financial performance, highlighting significant revenue growth and profit fluctuations, as well as the impact of asset restructuring on the company's operational capabilities [1][10]. Financial Performance - In 2024, the company achieved a revenue of 271.04 million yuan, representing a year-on-year increase of 12.59%, while the net profit attributable to shareholders reached 171.18 million yuan, up 172.28% [1]. - The first quarter of 2025 saw a revenue of 61.79 million yuan, a decline of 12.11% year-on-year, with net profits of 10.90 million yuan and 9.20 million yuan before and after deducting non-recurring gains, respectively [1][2]. Business Segmentation - The IVD business is primarily operated by the wholly-owned subsidiary Shanghai Jiemen Biotechnology Co., Ltd., while the oral tissue repair and regeneration materials business is managed by the controlling subsidiary Shaanxi Ruisheng Biotechnology Co., Ltd. [2]. - Key performance indicators for these subsidiaries include revenue, operating costs, net profit, gross margin, and sales expense ratio, with specific figures provided for comparison over two years [3][5]. Asset Restructuring Impact - The company undertook significant asset restructuring, including the sale of a 30% stake in Cayman Pharma and the divestiture of a loss-making subsidiary, Yangling Jinhai, which improved financial metrics and operational efficiency [10][12]. - The sale of Cayman Pharma generated over 100 million yuan in investment returns, enhancing the company's liquidity and financial strength [8][10]. - The divestiture of Yangling Jinhai, which had been in a state of long-term losses, allowed the company to report a net profit of 10.90 million yuan in Q1 2025, marking a turnaround from previous losses [9][10]. Acquisition of Ruisheng Biotechnology - The company acquired a 55% stake in Shaanxi Ruisheng Biotechnology Co., Ltd. in October 2024, which contributed significantly to the net profit, amounting to 20.99 million yuan for the reporting period [13][25]. - Ruisheng's projected revenues for 2024 and 2025 are 270.04 million yuan and 320.00 million yuan, respectively, with gross margins of 90.07% and 87.63% [13][25]. Market Trends and Competitive Landscape - The medical device market is expected to grow significantly, driven by an aging population and increasing healthcare demands, with the global market projected to reach 75.38 billion USD by 2028 [17][20]. - The oral repair materials market is also expanding, with a compound annual growth rate of 30.1% from 2016 to 2019, and expected to maintain a growth rate of 15-20% through 2025 [19][20]. Sales and Revenue Dynamics - Despite a competitive market leading to price reductions, Ruisheng's proactive cost control measures resulted in a net profit of 139.25 million yuan in 2024, despite revenues falling short of projections [24][25]. - The company is focusing on maintaining market share amidst increasing competition, with strategies to optimize its distributor network and enhance operational efficiency [27][30].