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]