Core Insights - Huaxi Bio reported a revenue of 1.078 billion and a net profit attributable to shareholders of 102 million for Q1 2025, showing an increase of approximately 290 million compared to Q4 2024. Excluding impairment losses, net profit increased by about 180 million compared to Q4 2024 [1] Business Performance - The company's bioactive substances and medical terminal businesses remained stable, with accelerated R&D, registration, and marketization of new raw materials and pipelines [1] - The skin science innovation transformation business, which has a significant revenue share, is undergoing an adjustment period. The decline is attributed not to intensified market competition but to a deviation from the company's core technological advantages in hyaluronic acid and glyco-biology [1][2] Management Changes - The chairman and general manager has begun to directly manage the skin science innovation transformation business, focusing on brand management and implementing technology and brand positioning based on global research advancements [2] - The company has renamed its "personal health consumer products business" to "skin science innovation transformation business" and is restructuring its management and operations team to enhance its competitive edge [2] Strategic Investments - The establishment of a "Frontier Insight Scientific Content Research Center" aims to integrate underlying technological innovations across various business lines to support brand communication [3] - The company is investing in supply chain transformation to enhance production efficiency and has made significant investments in strategic innovation businesses, including regenerative medicine and nutritional science [3] - The overall employee compensation has increased due to the implementation of a new compensation system, reflecting the company's commitment to long-term strategic investments [3]