Core Viewpoint - Antu Biology (603658) is facing market pressures due to the implementation of centralized procurement and DRG policies, impacting the sales and pricing of its chemical luminescence products while showing potential growth in installed capacity for 2024 [1][6]. Company Performance - As of September 5, 2025, Antu Biology's stock closed at 40.55 yuan, a slight decrease of 0.05% from the previous week, with a total market capitalization of 23.171 billion yuan, ranking 8th in the medical device sector [1]. - The company's chemical luminescence installed capacity is expected to reach a historical high in 2024, contributing to a certain level of sales growth [6]. Market Environment - The implementation of centralized procurement in Anhui and the comprehensive execution of DRG policies are anticipated to exert pressure on the market environment in the second half of the year [1][6]. - The overall testing volume in the market has decreased due to these policies, affecting different testing projects variably, with tumor marker projects being significantly impacted [2][6]. Product Development - The liquid chromatography-tandem mass spectrometry detection system has received certification, with supporting reagents expected to be certified gradually [1][6]. - The sequencing instrument is anticipated to receive certification soon, but its current contribution to performance is limited as it primarily targets the non-clinical market [2][6]. Financial Impact - The company has recognized asset impairment losses primarily due to slow progress in molecular detection instrument projects, reflecting a cautious approach [3][6]. - The biochemical business continues to be affected by price reductions from centralized procurement in Jiangxi, alongside the overall impact of DRG policies, leading to a decline in annual sales [7].

Audit Opinion - The audit report states that the financial statements of Shenzhen Micu Biotechnology Co., Ltd. (referred to as "Micu Bio") fairly reflect its financial position as of December 31, 2024, in accordance with the accounting standards issued by the Ministry of Finance of the People's Republic of China [1][2]. Key Audit Matters - Capitalization of development expenditures amounted to RMB 125,271,997.57 for the year 2024, with a cumulative balance of RMB 152,216,111.48 as of December 31, 2024. The audit identified this as a key audit matter due to significant management judgment involved in determining whether the expenditures meet the capitalization criteria [1][2][3]. - The audit procedures included evaluating internal controls related to the capitalization of development expenditures, obtaining relevant approvals and feasibility reports, and assessing the technical feasibility of the projects [1][2]. Company Overview - Shenzhen Micu Biotechnology Co., Ltd. was established on March 29, 2018, and is primarily engaged in drug technology development, new drug research, and production of pharmaceuticals and health food [5][6]. - The company operates under the accounting standards set by the Ministry of Finance and adheres to the disclosure requirements of the China Securities Regulatory Commission [5][6]. Financial Reporting Basis - The financial statements are prepared on a going concern basis, indicating that the company has the ability to continue its operations for at least 12 months from the reporting date without significant uncertainties [5][6]. Accounting Policies - The company has specific accounting policies for recognizing and measuring bad debt provisions, inventory valuation, and the capitalization of research and development costs, which are tailored to its operational characteristics [6][7]. - The financial statements comply with the requirements of the Ministry of Finance and reflect the company's financial condition and results of operations accurately [6][7]. Financial Instruments - The company classifies its financial assets and liabilities based on their management business model and cash flow characteristics, with initial recognition at fair value [10][11]. - Financial assets are subsequently measured at either amortized cost or fair value, depending on their classification [10][11].