Core Viewpoint - The "COVID-19 dividend" has led to unconventional growth and subsequent decline in the global in vitro diagnostics (IVD) industry, with Wanfu Bio's recent performance reflecting the cyclical fluctuations and structural changes within the sector [2]. Financial Performance - In the first half of 2025, Wanfu Bio reported revenue of 1.246 billion yuan, a year-on-year decrease of 20.92%, and a net profit attributable to shareholders of 189 million yuan, down 46.82%, marking the worst performance in three years [2][5]. - The company's revenue peaked during the COVID-19 pandemic, reaching 5.681 billion yuan in 2022, but fell to 2.765 billion yuan in 2023, a decline of over 50% [4][5]. - The infectious disease testing revenue dropped by 21.14% to 379 million yuan in the first half of 2025, with COVID-related product sales nearly zero [5]. Business Segments - The chronic disease management segment, a key revenue driver, faced a 26.06% decline in revenue due to centralized procurement policies, with gross margin dropping from 61.9% in 2024 to 58.7% in 2025 [5]. - The company has initiated the "COVID-19 and Influenza A/B triple test" registration, expected to be certified by September 2025, but short-term demand gaps remain [5][8]. R&D Strategy - Wanfu Bio has increased R&D investment by 18.3% to 206 million yuan, accounting for 16.5% of revenue, as a strategy to navigate industry pressures [2][7]. - The company is focusing on high-barrier fields such as chemiluminescence, molecular diagnostics, and AI-assisted diagnostics, aiming to build a technological moat [7][8]. - New products, including the LA-6000 laboratory automation line and various immunoassay analyzers, have been developed, but market entry for key products may take 3-5 years [7][9]. Operational Challenges - The company faces dual pressures: extended hospital payment cycles have worsened cash flow, with accounts receivable turnover days increasing from 220 days in 2020 to 286 days [6]. - Sales expenses rose to 319 million yuan, slightly increasing the sales expense ratio, which, combined with higher R&D costs, has pressured short-term profit margins [6][7]. Market Outlook - The IVD industry is transitioning from a "channel-driven" to a "technology-driven" model, with centralized procurement likely to eliminate companies lacking competitive barriers [7][9]. - The second half of 2025 is seen as a critical validation period for Wanfu Bio, with the success of new product launches and market penetration being pivotal for future performance [9].