Core Insights - The company, Yabao Chemical, reported a total revenue of 662 million yuan for the first half of 2025, representing a year-on-year increase of 12.31% [1] - The net profit attributable to shareholders was -8.67 million yuan, showing an improvement of 83.33% compared to the previous year [1] - The gross margin increased by 13.31% to 19.26%, while the net margin improved significantly by 76.35% to -2.03% [1] Financial Performance - Total revenue for 2024 was 589 million yuan, which increased to 662 million yuan in 2025, marking a 12.31% growth [1] - The net profit attributable to shareholders improved from -52.01 million yuan in 2024 to -8.67 million yuan in 2025, an increase of 83.33% [1] - The company’s gross margin rose from 17.00% to 19.26%, while the net margin improved from -8.58% to -2.03% [1] - Total expenses (selling, administrative, and financial) amounted to 82.37 million yuan, accounting for 12.45% of revenue, a decrease of 32.78% year-on-year [1] Cash Flow and Debt Situation - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 26.79% and the average operating cash flow over the last three years to current liabilities ratio at 6.47% [4] - The interest-bearing debt ratio has reached 30.88%, and the ratio of interest-bearing debt to the average operating cash flow over the last three years is 14.82% [4] Business Operations - Yabao Chemical's pharmaceutical business focuses on CDMO services, covering pharmaceutical intermediates and active pharmaceutical ingredients [5] - The company operates multiple production bases, including Taicang, Malta, and Shangyu, with a total capacity of 60 tons/year for the active pharmaceutical ingredient Levetiracetam at the Taicang base [5] - The company has over 100 acres of chemical land reserved at the Lanzhou and Shangyu bases for future capacity expansion and plans to develop intelligent and green factories [5]

金融界8月18日消息，有投资者在互动平台向雅本化学提问：董秘好，根据公司发布的与恒瑞医药合作 协议内容，是否可以理解，雅本公司实际上具备创新药的研发、工艺优化、中间体及原材料的配备技术 呢？ 公司回答表示：尊敬的投资者，您好！公司聚焦创新医药中间体、原料药业务，致力于帮助客户实现缩 短研发周期、降低生产成本的目标，提供药物中间体、原料药从实验室走向商业化生产的便利条件。凭 借专业的化学合成能力与化学工程实力，以及成熟的模块化研发生产以及快速转化量产的能力，公司能 够配合客户产品全生命周期中各个时期对成本、规模的要求；公司聚焦连续流工艺优化、生物酶催化等 关键技术领域，具备突破高危工艺安全瓶颈的经验，更有能力通过生产效率的提升与成本结构的优化， 推动绿色技术与医药CDMO业务深度融合，为公司医药业务发展构筑核心优势。同时，公司太仓基地与 马耳他基地已建立起契合高端原料药CDMO业务的质量体系。其中，太仓基地作为公司国内唯一具备原 料药生产能力的重要基地，依托符合GMP标准的产线优势，将聚焦医药大客户原料药核心需求进行深 入合作；马耳他基地取得FDA认证及CEP资质，具备符合欧盟GMP标准的中间体、API及制剂生 ...

Core Viewpoint - Zhejiang Jiuzhou Pharmaceutical Co., Ltd. reported a revenue increase of 3.86% year-on-year for the first half of 2025, reaching approximately 2.87 billion yuan, with a net profit attributable to shareholders of approximately 525.83 million yuan, reflecting a 10.70% increase compared to the previous year [5][6][18]. Financial Performance - The company achieved total revenue of 2,870,947,333.22 yuan in the first half of 2025, compared to 2,764,279,820.31 yuan in the same period last year, marking a 3.86% increase [3]. - The total profit for the period was 650,314,797.16 yuan, up 17.20% from 554,870,663.04 yuan in the previous year [3]. - The net profit attributable to shareholders was 525,831,348.24 yuan, an increase of 10.70% from 474,988,640.43 yuan [3]. - The net cash flow from operating activities increased significantly by 164.50%, reaching 845,148,144.61 yuan [3]. Business Overview - The company operates as a leading Contract Development and Manufacturing Organization (CDMO), providing comprehensive pharmaceutical development and manufacturing services, including small molecule drugs, peptide drugs, conjugated drugs, and oligonucleotide drugs [4][5]. - The global CDMO market has shown robust growth, with a compound annual growth rate (CAGR) of 39.9% in China from 2018 to 2023, and is projected to reach 208.4 billion yuan by 2028 [4][5]. - The company has established long-term partnerships with well-known pharmaceutical companies, enhancing its reputation as a trusted partner in the global innovative drug development sector [4][5]. Technological Advancements - The company has developed multiple technology platforms, including continuous flow technology, chiral catalysis, fluorine chemistry, and biocatalysis, which are essential for enhancing its R&D capabilities [6][10]. - The company has successfully expanded its peptide and conjugated drug platforms, providing services for complex compound synthesis and meeting international regulatory standards for green production [12][13]. - The company has applied for numerous patents, reflecting its commitment to innovation and maintaining a competitive edge in the pharmaceutical industry [10][12]. Market Position and Strategy - The company has focused on expanding its customer base and deepening relationships with major clients, resulting in a steady increase in project orders and revenue from commercialized projects [5][15]. - The company has been recognized with multiple awards, including being listed among the top 20 CDMO companies in China for 2025, highlighting its industry leadership and commitment to quality [5][15]. - The company is actively participating in international conferences and exhibitions to enhance its brand visibility and expand its market reach [15].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2]. Core Views - The report highlights that the company has transformed into a leading player in the domestic CDMO sector, ranking in the top five of the "Top 20 CDMO Companies in China" for five consecutive years since 2020 [10][12]. - The company aims to expand its CDMO operational projects to 3,000 within 2-3 years, with 10-20 projects entering commercialization annually [10]. - The report emphasizes the company's comprehensive upgrades in both technical investment and manufacturing capabilities, which are expected to drive future growth [80]. Summary by Sections Section 1: Progress in CDMO Sector - The company has accumulated over 20 years of experience and has shifted from a traditional API company to a leading small molecule CDMO provider [10]. - The company has established a solid foundation for CDMO development through its extensive experience in chemical synthesis and production processes [11]. Section 2: R&D Capabilities - The company has significantly increased its R&D investment, expanding its CDMO R&D personnel from over 500 to an expected 1,000 in the next two years [32][41]. - It has established three major R&D centers globally and eight technical platforms to enhance its project acquisition and cost control capabilities [32][42]. Section 3: Manufacturing Advantages - The company maintains a strong manufacturing capability with a total chemical synthesis capacity of 11,000 m³ and a total biological fermentation capacity of 6,570 m³ [63]. - It has received multiple international certifications, including WHO, FDA, and EU EDQM, which enhances its service capabilities for global clients [63]. Section 4: Future Growth Potential - The company has signed confidentiality agreements with 572 domestic and international innovative pharmaceutical companies, indicating strong client engagement [66]. - The report notes that the company has 116 API projects, with 22 already commercialized and 15 in the validation stage, providing a robust growth pipeline [66]. Section 5: Financial Projections - The company is projected to achieve a net profit of 1.0 billion, 1.2 billion, and 1.5 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 17, 14, and 11 [80].

Core Viewpoint - The company reported a steady growth in revenue and net profit for Q1 2025, driven by the increasing orders in its CDMO business and enhanced R&D capabilities [1] Financial Performance - In Q1 2025, the company achieved revenue of 1.49 billion yuan, a year-on-year increase of 0.98% - The net profit attributable to shareholders was 250 million yuan, up 5.68% year-on-year - The non-recurring net profit was 251 million yuan, reflecting a year-on-year growth of 7.17% [1] - The gross margin improved to 37.42%, an increase of 3.38 percentage points year-on-year and 6.84 percentage points quarter-on-quarter - The net profit margin was 16.77%, up 0.77 percentage points year-on-year and 18.93 percentage points quarter-on-quarter - The operating expense ratio was 13.52%, an increase of 1.70 percentage points year-on-year but a decrease of 2.49 percentage points quarter-on-quarter [2] CDMO Business Development - The company is a leading CDMO provider, offering comprehensive services for pharmaceutical companies, biotech firms, and research institutions - It specializes in small molecule drugs, peptide drugs, conjugated drugs, and small nucleic acid drugs - The company has received recognition for its CDMO marketing system project at the 6th National Pharmaceutical Health CIO Conference, winning the "2025 National Pharmaceutical Health Digital Excellence Case" award [3] Investment Outlook - Revenue projections for 2025-2027 are 5.803 billion, 6.151 billion, and 6.315 billion yuan, with growth rates of 12.45%, 6.01%, and 2.65% respectively - Net profit forecasts for the same period are 830 million, 929 million, and 991 million yuan, with growth rates of 36.89%, 11.99%, and 6.60% - Earnings per share (EPS) are expected to be 0.93, 1.04, and 1.11 yuan per share, with a 3-year CAGR of 17.79% - The company maintains a "buy" rating due to its comprehensive CDMO business layout and leading technological strength [4]