Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.075 billion CNY, a year-on-year decrease of 15.94% [2] - Net profit attributable to shareholders was 34 million CNY, down 83.12% year-on-year, while net profit excluding non-recurring items was 63 million CNY, a decrease of 68.24% [2] - The decline in revenue was primarily due to a reduction in agency product sales and increased competition in the domestic in vitro diagnostic market [2][4] Revenue Breakdown - Agency product sales revenue was approximately 200 million CNY, with an expected total for the year between 400-500 million CNY, projected to stabilize around 300 million CNY [10] - Self-owned product sales revenue was 872 million CNY, a decrease of 60 million CNY, representing a decline of 6.49% [2] - Self-owned instrument sales revenue reached 107 million CNY, a year-on-year increase of 44.48%, while self-owned reagent sales revenue was 765 million CNY, down 10.86% [6] Industry Analysis - The industry is experiencing intensified competition due to policy changes, shifting from an incremental market to a stock market [5] - The average ex-factory prices of biochemical, immunological, and clinical testing reagents have decreased due to increased competition [6] - The overall testing volume for biochemical tests decreased by 2%, while immunological tests increased by approximately 10% [10] Strategic Focus - The company is prioritizing the development of smart laboratories, which are expected to help hospitals reduce costs and improve efficiency [11] - A total of 16 smart laboratories have been signed, with 7 delivered, indicating a strong market acceptance [9] - The company aims to enhance its market share through existing products while focusing on long-term development strategies [9] Future Outlook - The current policy environment is expected to exert pressure on performance in the short term, but the company is adapting its strategy to focus on smart laboratory solutions [15] - The impact of collection policies on the sales of biochemical reagents is anticipated to stabilize over the next two years [10] - The company is well-positioned to leverage its capabilities in smart laboratory solutions, which are recognized by secondary and tertiary hospitals [13]