Core Viewpoint - Kelun Pharmaceutical (002422) announced on September 1 that the market and production capacity of traditional antibiotic fermentation in China remain stable, with no significant new capacity expected in the short term due to national policies against overcapacity and internal competition [1] Group 1: Domestic Market Dynamics - The market structure and production capacity of traditional antibiotics in China are overall stable [1] - Under the backdrop of national policies aimed at reducing overcapacity, significant new production capacity for the three major antibiotic intermediates is unlikely to emerge in the short term [1] Group 2: International Competition - In India, the PLI (Production-Linked Incentive) scheme has led to increased production capacity in the penicillin sector, but Chinese companies still hold a significant cost advantage and influence in the penicillin fermentation field [1] - Chinese companies are accelerating direct exports to international markets, indicating a shift towards global competition in the penicillin industry between China and India [1] - China is expected to maintain a dominant position in the global competition due to its technological and cost advantages [1]