Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 860 million yuan in H1 2025, representing a year-on-year increase of 42.4%, with a net profit of 390 million yuan, up 26.7% year-on-year [7] - The sales of medical device products remained stable, while functional skincare products saw significant growth, with revenue from medical devices, functional skincare, and raw materials reaching 710 million, 120 million, and 30 million yuan respectively in H1 2025, reflecting year-on-year growth of 33.4%, 152.4%, and 12.4% [7] - The company launched the world's first injectable gel product in April 2025, which is expected to drive domestic growth [7] - Strategic partnerships are being strengthened to accelerate international expansion, with plans to recruit partners in Thailand for medical device distribution [7] - The long-term growth outlook remains positive, with adjusted net profit forecasts for 2025-2027 being 1.04 billion, 1.46 billion, and 1.86 billion yuan respectively [7] Financial Summary - Total revenue is projected to reach 2.10 billion yuan in 2025, with a year-on-year growth rate of 45.81% [1] - The company's net profit is expected to grow to 1.04 billion yuan in 2025, reflecting a growth rate of 42.09% [1] - The latest diluted EPS is forecasted to be 9.04 yuan per share in 2025, with a P/E ratio of 35.39 [1]

Group 1: Investor Relations Activities - The company participated in the "2025 Online Collective Reception Day for Investors" on May 20, 2025, from 14:00 to 17:00 [3] - The event was held online in collaboration with the Shanxi Securities Regulatory Bureau and other organizations [3] - Attendees included investors participating through the online platform [3] Group 2: Company Overview and Leadership - The company is represented by key personnel including Chairwoman Yang Xia and Vice General Manager Tang Menghua [4] - The financial director is Xue Fangqin, who also participated in the investor relations activities [4] Group 3: Product Development and Market Expansion - The company utilizes advanced technologies for the production of humanized collagen, including structural biology and synthetic biology [5] - Collaboration with L'Oréal Group has generated revenue from raw material products, with a focus on expanding into Southeast Asian markets [6] Group 4: Policy Impact and Strategic Adaptation - Recent policy adjustments in the biopharmaceutical industry have created development opportunities for the company [7] - The company has enhanced communication with government departments to stay updated on policy changes [7] - Increased R&D investment and marketing efforts have been implemented to improve product quality and brand recognition [7] Group 5: Financial Performance - In 2024, the company achieved a net cash flow from operating activities of 767 million yuan, a year-on-year increase of 159.55% [8] - The increase in cash flow is attributed to higher sales revenue and net profit, along with improved cash collection practices [8] - Cost control measures have been adopted to ensure stable and sufficient cash flow [8]