Summary of Dongyao Pharmaceutical Conference Call Company Overview - **Company**: Dongyao Pharmaceutical (renamed to Bioldlink) - **Industry**: Biopharmaceuticals, focusing on CDMO (Contract Development and Manufacturing Organization) services and antibody-drug conjugates (ADC) Key Financial Performance - **Revenue**: 4.89 billion RMB in H1 2025, a decrease of 6% year-on-year [2][11] - **Net Profit**: 4.06 million RMB [3] - **Adjusted EBITDA**: 51.11 million RMB [3] - **Operating Cash Flow**: 34.83 million RMB, an increase of 25% year-on-year [3] - **CDMO Revenue**: 77.3 million RMB, down 32% year-on-year due to market competition and project delays [4][11] - **Core Product Sales**: Bevacizumab (普欣汀) sales at 398 million RMB, a slight decrease of 1% [2][11] Market and Competitive Landscape - **Domestic Competition**: Increased competition in the domestic market for Bevacizumab, leading to a 3.7% decline in sales volume [3][17] - **International Expansion**: Initiated registration applications in 35 countries, with 26 accepted; received marketing approvals in Nigeria and Pakistan [2][3] - **Customer Base**: Serves 85 clients, with 18% from overseas and Hong Kong/Macau [5] CDMO Business Insights - **Project Growth**: Significant increase in early-stage projects, with a total of 169 projects, 67% of which are ADC projects [5][11] - **Client Retention**: Customer repurchase rate at 73% [5][6] - **Future Outlook**: Anticipates growth in H2 2025 and 2026 due to increased orders and technological advancements [4][11] Technological Advancements - **Desec Link Technology**: Developed a targeted conjugation technology platform, delivering 86 molecules [6] - **Cell Line Development**: Capable of achieving antibody expression levels of 5 to 12 grams per liter [6][8] - **ADC Development**: Rapid development cycle for antibodies and ADCs, with R&D applications submitted within 10 to 11 months [9] Production Capabilities - **Manufacturing Lines**: Four commercial production lines covering all stages from antibody raw materials to formulations, including toxic and non-toxic conjugation facilities [10][21] - **Capacity Planning**: Plans for flexible capacity adjustments without large-scale capital investments [24] Strategic Direction - **Focus on International Markets**: Plans to increase overseas business share, with approximately 200 million RMB in unfulfilled orders [7][14] - **Product Diversification**: Aims to expand molecular types, including bispecific antibodies and ADCs [7][18] - **Quality and Compliance**: Commitment to obtaining international GMP certifications to enhance global market presence [13][18] Future Financial Expectations - **Revenue Growth**: Anticipates significant improvement in H2 2025 and continued growth in 2026, supported by new orders from multinational corporations [27] - **Profitability Focus**: Emphasis on maintaining cash flow stability and enhancing profitability through innovation and strategic partnerships [18][27] Conclusion - **Overall Outlook**: Dongyao Pharmaceutical is positioned for growth despite current challenges, with a strong focus on international expansion, technological innovation, and maintaining competitive advantages in the biopharmaceutical industry [19][28]