Core Viewpoint - Despite facing overall performance pressure in the first half of 2025, Huaxi Biological's strategic adjustments have begun to yield results, indicating a potential turning point in profitability [2][3]. Financial Performance - In the first half of 2025, Huaxi Biological achieved operating revenue of 2.261 billion yuan, with a net profit attributable to shareholders of 221 million yuan, and a net profit excluding non-recurring gains and losses of 174 million yuan. The overall performance did not show growth [2]. - In Q2 2025, the company reported operating revenue of 1.183 billion yuan, a year-on-year decline of 18.44%. However, the net profit attributable to shareholders increased by 20.89% to 119 million yuan, marking the first year-on-year and quarter-on-quarter increase in net profit margin since Q1 2024 [2]. Strategic Transformation - The return of the General Manager to the front line has driven significant changes, shifting the company's strategy from "scale expansion" to a "benefit-oriented development model" centered on scientific research and innovation [3]. - Huaxi Biological aims to continue focusing on technological innovation to expand the application of synthetic biology and optimize its business structure for high-quality development [3]. R&D Investment - R&D expenses increased by 15.25%, focusing on three key areas: synthetic biology technology, industrialization of recombinant collagen, and microecological preparations, with a 30% improvement in strain modification efficiency [4]. - The company is actively developing new bioactive substances using cutting-edge synthetic biology technologies and has initiated 34 skin science innovation R&D projects and 17 nutrition science innovation R&D projects during the reporting period [4]. Industrial Application and Future Growth - Huaxi Biological is applying its leading synthetic biology manufacturing capabilities across three major sectors, establishing a complete R&D chain from basic research to technology transfer and industrial application [6]. - The company has completed process validation for its sterile HA production line and is advancing the national synthetic biology technology innovation center in Tianjin, aiming to overcome the "scaling up" bottleneck in biomanufacturing [6]. - The establishment of Huaxi Tang'an Biotechnology Co., Ltd. is noteworthy, as it utilizes synthetic biology technology for the precise synthesis of heparin polysaccharides, positioning the company to transition the heparin industry from "animal resource dependence" to "green biomanufacturing" [6].