ZHEJIANG ZHENYUAN(SZ:000705) Bei Ke Cai Jing·2025-10-22 14:01Core Viewpoint - Zhejiang Zhenyuan Co., Ltd. has announced the termination of its plan to issue shares to specific investors, citing a continuous decline in revenue and a strategic shift towards synthetic biology projects [1][4]. Group 1: Financial Performance - The company's revenue has been on a downward trend, with reported figures of 4.145 billion, 4.106 billion, 3.741 billion, and 1.283 billion yuan for the years 2022 to 2025 (first half), reflecting year-on-year changes of -14.77%, -0.94%, -8.91%, and -34.49% respectively [6]. - The net profit attributable to shareholders has also fluctuated, with figures of 77.91 million, 81.64 million, 34.73 million, and 56.26 million yuan for the same periods, showing year-on-year changes of 0.79%, 4.79%, -57.46%, and 29.27% respectively [6]. - The company has acknowledged that its revenue and net profit growth rates are below industry averages due to increased competition and regulatory changes in the pharmaceutical sector [6]. Group 2: Strategic Initiatives - Zhejiang Zhenyuan is focusing on the synthetic biology sector, planning to establish a production base for various synthetic biological products, including 2,400 tons of histidine and 1,000 tons each of L-DOPA and tyrosine [7]. - The company has undertaken structural optimization through acquisitions and strategic investments, including the integration of its pharmaceutical wholesale business and the introduction of China Resources Pharmaceutical Group as a strategic investor [8]. Group 3: Fundraising and Project Development - The company initially planned to raise 3 billion yuan through a private placement to fund its synthetic biology projects but later decided to utilize its own and self-raised funds for project implementation after terminating the fundraising plan [1][4]. - The total investment for the synthetic biology projects is estimated at 1.068 billion yuan, with the company planning to use up to 495 million yuan from the fundraising efforts, which accounts for approximately 46.34% of the total investment [2].