Group 1 - The special medical food market has significant potential, with Shandong province being an early player and ranking second in the number of production enterprises nationwide [2] - Chenxin Pharmaceutical has been deeply involved in the special medical food sector for nearly 10 years, obtaining five product registration approvals and collaborating with 200-300 hospitals [2][3] - The company has broken the long-standing monopoly of international corporations in the field by securing the first batch of national approvals for liquid full-nutrition special medical food [2][4] Group 2 - The high barriers to entry and strict regulations characterize the special medical food industry, with Chenxin developing a "step sterilization process" to balance sterilization effectiveness and nutrient retention [3][4] - The company has successfully developed a unique oil-water online mixing technology to address challenges in product formulation, ensuring stability and quality [4][7] - Chenxin's liquid special medical food is designed for individuals with restricted eating capabilities and can be administered via nasal feeding [3][4] Group 3 - The company has strengthened its R&D capabilities, with some products being prioritized for expedited review by the National Market Supervision Administration [5][6] - The "Xinsulin special medical use diabetes full-nutrition formula food" is set to enter a fast-track approval process, significantly reducing the approval time from about one year to six months [6] - The R&D for diabetes-specific nutrition has taken nearly two years, highlighting the complexity and challenges in developing liquid formulations compared to powder products [6][7] Group 4 - Chenxin has established a rigorous production system, utilizing automated production lines and a three-stage air filtration system to ensure product quality [3][7] - The company collaborates with various research institutions to enhance its R&D and industrialization capabilities in the special medical food sector [7]

Industry Overview - The special medical food market in China is projected to exceed 30 billion yuan by 2025, with a compound annual growth rate (CAGR) of over 25%, significantly outpacing regular health products [1] - The industry is characterized by high barriers to entry and strict regulations, with liquid special medical foods being a niche segment that has seen technological breakthroughs [2][3] Company Positioning - Chenxin Pharmaceutical (603367) has been deeply involved in the special medical food sector for nearly a decade, obtaining five product approvals and collaborating with around 200 hospitals across 29 provinces [1][2] - The company has successfully broken the long-standing monopoly of multinational corporations in the liquid full-nutrition special medical food sector by securing the first batch of national approvals [3] Technological Innovations - Chenxin has developed a "stepwise sterilization process" that balances sterilization effectiveness with nutrient preservation, which is crucial for the production of liquid special medical foods [2][3] - The company has also innovated a water-oil online mixing technology to ensure stability in the product formulation, addressing challenges related to ingredient compatibility [3] Product Development and Market Potential - The "Xinsulin Special Medical Use Diabetes Full-Nutrition Formula Food" is set to be included in the priority review list, marking a significant advancement in the diabetes special medical food sector [4][5] - The liquid special medical food segment has a relatively low number of approved products due to its development challenges, but there remains a significant market gap in areas such as diabetes, tumors, and kidney diseases [4][8] Clinical Relevance - Special medical foods play a crucial role in clinical settings, particularly for patients with specific dietary needs, such as those undergoing surgery or suffering from severe conditions [7] - The potential of special medical foods is increasingly recognized, with the market expected to grow rapidly, despite existing challenges in clinical acceptance and regulatory clarity [8]