Summary of Conference Call on the Chemical Luminescence Industry Industry Overview - The conference call focused on the chemical luminescence industry, specifically discussing the performance and outlook of Beckman in China for 2024 and 2025 [1][14]. Key Points and Arguments - **Revenue Projections**: Beckman's diagnostic revenue in China is projected to be approximately 7 billion RMB in 2024, with a target to maintain the same level in 2025. However, Q1 revenue, installation volume, and reagent sales were lower than the previous year, indicating growth challenges [1][14]. - **Industry Growth Rate**: The industry experienced a growth rate of -10% in Q1 2025. After accounting for inventory pressure from the Spring Festival, the adjusted growth rate is estimated to be between -8% and -9%. A slight recovery is expected in Q2, with growth projected to improve to -6% to -7% due to better installation and seasonal shipment volumes [1][15][17]. - **Price Adjustments**: The maximum limit price for total bidding projects has decreased by 50%, with hospital admission prices dropping to 410 RMB and average factory prices around 300 RMB. Profit margins for agents are between 30% and 40%, with new projects potentially offering higher margins [1][9][10]. - **Impact of Collection Policies**: The implementation of collection policies has led to a significant decline in testing volumes, with an estimated overall industry testing volume decrease of about 10% [1][19][21]. - **Domestic vs. Foreign Brands**: Domestic brands typically offer higher profit margins to channels compared to foreign brands. For instance, domestic immunology products can achieve a cost ratio of around 20%, while foreign brands can only manage about 31% [1][13]. Additional Important Insights - **Inventory Levels**: There is a high inventory level among agents, with some maintaining stock for six to seven months due to precautionary purchases amid the US-China tariff war [1][6]. - **Future Expectations**: The expectation for a positive growth rate in Q3 is not optimistic, particularly for imported manufacturers like Beckman, as competition in the mid to high-end market remains intense [1][18]. - **Policy Impacts**: Other policies, such as DRG insurance inspection cuts and the separation of technical costs, are expected to significantly impact industry growth. The separation policy may reduce the motivation of inspection departments, leading to internal conflicts within hospitals [1][22][23]. - **Trends in Domestic Equipment**: The increase in domestic equipment installation is attributed to improved performance, cost advantages, and government encouragement for domestic production. This trend is seen as a response to the overall industry evolution rather than solely due to the implementation of collection policies [1][24][25].