Core Insights - The company, Suzhou Baolidi Materials Technology Co., Ltd., hosted a specific investor research activity on November 20, 2025, attended by five institutions, discussing performance growth, debt levels, new product development, and overseas operations [1][2]. Group 1: Performance Growth - The company's performance growth in the first three quarters is attributed to both external industry benefits and internal optimization efforts. The Chinese color masterbatch market is experiencing steady growth due to ongoing industry expansion, national policy support, and increased environmental awareness among the public [3]. - Internally, the company has enhanced automation and AI applications to control costs and optimize product structure, while also increasing R&D investment to maintain competitive advantages [3]. Group 2: Debt Levels - The company reported a low debt-to-asset ratio, indicating a stable debt level with manageable liquidity risks. The substantial cash reserves provide a solid financial foundation for ongoing operations and future development [4]. Group 3: New Product Development - The company focuses its new product development on three main directions: functionalization, greening, and diversification. It has successfully expanded product applications into new areas such as film and plastics while maintaining its traditional strengths [5]. Group 4: Overseas Operations - The company's Turkish factory, established in partnership with Ibrahim Halil Kara, is producing color masterbatch products primarily for the local carpet and fiber industries. Sales and profits from the Turkish operations are stable and slightly increasing, with efforts underway to build a local team to explore regional market potential [6].

Core Viewpoint - Real Bio Technology Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange, facing significant financial challenges due to declining revenues and high losses, primarily linked to its dependence on a single product, Azvudine [1][3][6]. Financial Performance - The company reported a cumulative loss of 989 million RMB over two and a half years, with net losses of 784 million RMB in 2023, 40 million RMB in 2024, and 165 million RMB in the first half of 2025 [4][6]. - Revenue peaked at over 1 billion RMB in 2022 but plummeted to 344 million RMB in 2023 and is projected to drop to 238 million RMB in 2024, with a staggering 91.65% decline in the first half of 2025, resulting in only 16.53 million RMB [2][3][4]. Product and Market Dependency - Azvudine is the only commercialized product, which has faced a significant drop in demand following the termination of its partnership with Fosun Pharma, leading to a highly concentrated customer base where 99.6% of revenue came from the top five clients in 2024 [3][4]. - The company is attempting to diversify its product offerings by exploring new indications for Azvudine and developing additional drug candidates, including CL-197 for HIV and other oncology treatments [6][7]. Research and Development Challenges - Despite efforts to expand its R&D pipeline, the company has seen a 36.8% decrease in R&D spending from 2.38 billion RMB in 2023 to 1.51 billion RMB in 2024, which raises concerns about its ability to innovate and generate future revenue [6][7]. - The current R&D projects are primarily in early clinical stages, which may not yield immediate financial returns, complicating the company's transition from a single-product focus to a diversified pharmaceutical entity [6][7]. Financial Obligations and Pressure - Real Bio is under pressure from a total of 713 million RMB in financing agreements with redemption clauses, which could force the company to buy back preferred shares at a 10% annual interest rate if certain conditions are met [1][7]. - As of mid-2025, the company had only 50.05 million RMB in cash, while administrative and R&D expenses approached 100 million RMB, indicating a significant cash flow issue [7].

Group 1 - The company reported a strong performance in the first half of 2025, achieving operating revenue of 1.429 billion yuan, a year-on-year increase of 3.37%, and a net profit attributable to shareholders of 630 million yuan, a remarkable growth of 120.35% [1] - Jiangsu Zhengdan Chemical Industry Co., Ltd. specializes in fine chemicals and environmentally friendly new materials, with core products including TMA, TOTM, VT, and others, which are essential materials in various high-value applications [1] - The company has a strong focus on research and development, continuously increasing its R&D investment to accumulate technological potential [2] Group 2 - The company's proprietary technology for producing TMA through a continuous method has been recognized as a core highlight, ensuring stable product quality and yield, and has won the 25th China Patent Excellence Award [2] - Zhengdan's R&D strategy is diversified, reducing reliance on a single product while capturing growth opportunities in various high-value fine chemical sectors [2] - New products have been successfully scaled up and recognized by leading downstream companies, enhancing the company's product line and driving high-quality innovation [3] Group 3 - The company is committed to optimizing existing processes for energy conservation and emission reduction while developing new products and technologies for sustainable growth [3] - With deep technical accumulation in fine chemicals and ongoing R&D investments, the company is poised for breakthroughs in high-value sectors like environmentally friendly materials [3] - The company aims to solidify its technological advantages and capture growth opportunities in the industry upgrade wave, contributing to the chemical industry's transition towards high quality and sustainability [3]