Group 1: Shuoshi Biotech - Shuoshi Biotech reported a significant decline in net profit for the first half of 2025, with a net profit of 3.99 million yuan, down 86.35% year-on-year [1] - The company’s non-recurring net profit was -28.05 million yuan, a staggering decrease of 1219.78% year-on-year [1] - Eight senior executives voluntarily reduced their salaries by 5% to 50% to demonstrate solidarity during challenging times, indicating a need for innovation and market expansion to find new profit growth points [1] Group 2: BeiGene - BeiGene announced that the European Commission has approved its PD-1 monoclonal antibody, Tislelizumab, for use in neoadjuvant therapy for adult patients with resectable non-small cell lung cancer (NSCLC) at high risk of recurrence [2] - This approval marks a significant step for the internationalization of domestic PD-1 therapies, benefiting patients in Europe [2] Group 3: Shenzhou Cell - Shenzhou Cell reported a revenue of 972 million yuan for the first half of 2025, a decrease of 25.5% year-on-year, with a net profit of -33.77 million yuan, down 126.87% [3] - The second quarter saw a revenue of 452 million yuan, a decline of 34.66% year-on-year, and a net profit of -97.54 million yuan, down 289.37% [3] - Despite the revenue and profit decline, the company is actively advancing its R&D pipeline and exploring international markets [3] Group 4: Sali Medical - Sali Medical reported a revenue of approximately 584 million yuan for the first half of 2025, a decrease of 40.2% year-on-year, with a net loss of approximately 56.12 million yuan [4] - The company’s revenue and gross profit declined due to the transfer of some subsidiaries and challenges in its transformation, compounded by slow accounts receivable collection and difficulties in business renewals [4] - The company needs to accelerate its transformation efforts to improve performance [4]

Core Viewpoint - The management team of Shuoshi Biotechnology (SH688399) voluntarily decided to reduce their salaries to support the company's operational cost optimization and enhance management efficiency in response to the challenging global economic environment and industry conditions [1][3]. Salary Reduction Details - The honorary chairman, Fang Yongsheng, and the chairman and general manager, Wang Guoqiang, will have their annual salaries reduced by 50% starting from August 15, 2025 [2]. - Other executives, including Liu Zhonghua and Hu Tongyuan, will see a 40% salary reduction, while the financial director, Meng Yuanyuan, and employee supervisors will have reductions of 10% and 5%, respectively [2]. Company Performance and Financials - In 2023, Shuoshi Biotechnology reported a significant loss, with a net profit of -374 million yuan, a decrease of 120.45% year-on-year [6]. - The company's revenue for the first half of 2025 was 176 million yuan, down 1.05% year-on-year, with a net profit of 3.99 million yuan, reflecting an 86.35% decline compared to the previous year [6]. - The decline in profitability is attributed to price pressures from national procurement in the in vitro diagnostics industry and changes in tax rates affecting gross margins [6]. Cost Management and Operational Efficiency - The company is committed to ongoing cost reduction and efficiency improvement measures, alongside expanding market reach to enhance operational efficiency and competitiveness [3]. - Sales, management, and R&D expenses have all decreased, with sales expenses at 64.25 million yuan (down 1.94%), management expenses at 31.68 million yuan (down 21.02%), and R&D expenses at 40.64 million yuan (down 13.11%) [6]. R&D Investment - R&D investment accounted for 23.15% of the company's revenue, which is a decrease of 3.21 percentage points year-on-year [7].

Core Viewpoint - Shuoshi Biotechnology (688399) reported a significant decline in performance despite reaching a new high in stock price for the year, with a revenue drop of 1.05% and a net profit decrease of 86.35% in the first half of 2025 [1][2]. Group 1: Financial Performance - The company achieved approximately 176 million yuan in revenue for the first half of 2025, down from the previous year [1]. - The net profit attributable to shareholders was about 3.99 million yuan, a decline of 86.35% year-on-year [1]. - The company has experienced net profit losses for two consecutive years, with revenues of approximately 403 million yuan and 350 million yuan for 2023 and 2024, respectively, and corresponding net profits of -374 million yuan and -2 million yuan [3]. Group 2: Business Composition - The testing reagent business remains the primary revenue source, generating 151 million yuan in the first half of 2025, accounting for 85.89% of total revenue, which is a decrease from 90.25% in the same period last year [2]. - The gross margin for the testing reagent business fell to 68.36% from 75.16% year-on-year [2]. Group 3: Research and Development - Research and development (R&D) investment decreased to 40.64 million yuan, a reduction of 13.11% compared to the previous year [2]. - The proportion of R&D investment relative to revenue declined from 26.36% to 23.15% year-on-year [2]. - The number of R&D personnel also decreased from 144 to 128 [2]. Group 4: Strategic Initiatives - Despite the performance decline, the company plans to distribute cash dividends of 34 yuan per 10 shares, totaling 285 million yuan [3]. - To support its international development strategy, the company intends to invest 3 million USD in establishing a subsidiary in Brazil through its wholly-owned subsidiary in Hong Kong [3].

Core Viewpoint - The company Shuoshi Biological (688399) reported a significant decline in performance for the first half of 2025, despite reaching a new high in stock price earlier in the year [1][2]. Financial Performance - The company achieved operating revenue of approximately 176 million yuan, a year-on-year decrease of 1.05% [2]. - The net profit attributable to shareholders was about 3.99 million yuan, down 86.35% compared to the previous year [2]. - The total profit for the period was approximately 7 million yuan, reflecting a decline of 78.37% [2]. - The net cash flow from operating activities was negative, amounting to -575.64 thousand yuan, a decrease of 100.77% [2]. - The company's net assets at the end of the reporting period were approximately 3.25 billion yuan, a slight increase of 0.13% from the previous year [2]. Business Overview - Shuoshi Biological focuses on the research, production, and sales of in vitro diagnostic reagents and related testing instruments, expanding into in vitro testing services [1]. - The company has over 700 products used in various fields, including infectious disease prevention, clinical testing, and population screening [1]. - The in vitro diagnostic reagent business accounted for 85.89% of total revenue in the first half of 2025, down from 90.25% in the same period last year [3]. Industry Context - The in vitro diagnostic industry is experiencing intense competition, with companies increasing R&D investments to develop more efficient and accurate diagnostic products [3]. - Despite existing barriers to entry, the industry's high profit margins and growth potential are attracting more capital, which may intensify competition [3]. R&D and Future Plans - R&D investment decreased by 13.11% year-on-year, amounting to approximately 40.64 million yuan, with the proportion of R&D spending relative to revenue dropping from 26.36% to 23.15% [4]. - The number of R&D personnel also declined from 144 to 128 [4]. - The company plans to distribute a cash dividend of 34 yuan per 10 shares, totaling approximately 285 million yuan [4]. - To support international development, the company intends to invest 3 million USD in establishing a subsidiary in Brazil [4].

Core Points - The company Shuoshi Bio (688399) reported a revenue of 176 million yuan for the first half of 2025, representing a year-on-year decrease of 1.05% [2] - The net profit attributable to the company was 3.99 million yuan, down 86.35% compared to the same period last year [2] Financial Performance - The decline in net profit is primarily attributed to the pressure on product prices due to the deep implementation of centralized procurement in the in vitro diagnostic industry across the country [2] - An adjustment in the value-added tax rate for self-produced testing reagents to 13% contributed to the decrease in gross margin [2] - There was a reduction in the reversal of impairment provisions for receivables and a decrease in government subsidies during the reporting period [2]