Core Viewpoint - The company has decided to terminate the research and development project for the smoke mold prick liquid due to various factors including project progress and associated risks, reallocating resources to focus on more advantageous projects in its pipeline [1][3]. Financial Impact - The termination of the smoke mold prick liquid project will reduce the company's total profit for 2025 by 4.7684 million yuan, leading to a decrease in net profit of 3.3379 million yuan after considering corporate income tax [1][3]. - The cumulative development expenditure for the smoke mold prick liquid project amounts to 4.7684 million yuan, which will be fully impaired according to accounting standards [3]. Clinical Trial Insights - The smoke mold prick liquid was intended for skin prick tests to assist in diagnosing type I hypersensitivity diseases caused by smoke mold sensitization [2]. - During the phase I clinical trial, a delayed reaction occurred in 9.1% of participants, characterized by blisters at the prick site, which typically appeared 48 to 72 hours post-test and lasted 5 to 10 days [2]. - The company found it challenging to identify and remove components in the smoke mold prick liquid that could cause delayed reactions, leading to the decision to halt further clinical trials [3]. Company Performance - As of the third quarter of 2025, the company reported a revenue of 855 million yuan, a year-on-year increase of 16.86%, and a net profit attributable to shareholders of 345 million yuan, up 26.67% [3]. - The company has eight approved allergen skin prick liquids for sale, and the termination of the smoke mold prick liquid project will not significantly impact other ongoing projects or overall operations [3]. Market Position - The company's latest stock price is 33.65 yuan, which has doubled since mid-September 2024 but remains significantly lower than its historical high of 96.93 yuan in early 2021, with a current market capitalization of 17.6 billion yuan [4].

Group 1: Company Performance and Sales Strategy - The company experienced a recovery in performance starting from the second half of last year, attributed to the appointment of young sales managers who are taking on more responsibilities in various regions [2] - Adjustments to the sales management structure have led to improved efficiency and a more refined management model [2] - Future sales performance will be disclosed in the company's regular reports [2] Group 2: Research and Development Progress - The subsidiary is currently developing allogeneic mesenchymal stem cell therapies, which are in the preclinical research stage [3] - The main challenge in stem cell drug development is ensuring consistent production quality due to variability in the source, culture medium, and methods used [3] - The company has several products in the clinical trial phase, including "Dust Mite Membrane Agent" and diagnostic patches for dermatitis, with the latter entering Phase I clinical trials in August 2025 [3] Group 3: Product Promotion and Market Strategy - The company has launched eight skin prick test products, shifting their positioning from auxiliary desensitization treatments to allergen screening tools [4] - The National Healthcare Security Administration has issued guidelines that allow for the aggregation of charges for different allergen skin tests, which may affect pricing strategies [4] Group 4: Investment in Research and Development - In the first half of 2025, the company invested approximately 61,682,073.51 yuan in R&D, accounting for 12.74% of its revenue [4] - As of June 2025, the company and its subsidiaries employed over 260 R&D personnel, primarily trained in-house [5]