Core Viewpoint - Yuwang Bio is facing multiple challenges, including raw material supply and overseas market dynamics, which necessitate its rapid entry into the capital market to expand production capacity and enhance brand promotion [2][3]. Financial Performance - Yuwang Bio's revenue from 2022 to 2024 was approximately 534 million, 661 million, and 831 million RMB, with net profits of about 67 million, 102 million, and 125 million RMB respectively [3]. - In the first half of 2025, the company experienced a 27.13% year-on-year decline in revenue to approximately 343 million RMB, with net profit dropping 74.01% to about 23 million RMB [3]. - The revenue breakdown shows that refined fish oil contributed 36.7%, 30.8%, 31.0%, and 26.2% to total revenue from 2022 to 2025, while fish oil soft capsules and other dietary supplements accounted for 60.8%, 66.2%, 67.0%, and 72.6% respectively [3][4]. Market Position - Yuwang Bio holds an 8.1% share of the global market for refined fish oil, positioning it as the leading player in the industry [3]. - The company relies heavily on overseas markets, with non-China market revenue accounting for 47.3%, 53.0%, 60.9%, and 55.0% of total revenue from 2022 to the first half of 2025 [5]. Supply Chain Challenges - The company lacks strong bargaining power in the supply chain, with raw material costs constituting 87.4%, 89.9%, 88.8%, and 86.7% of total sales costs from 2022 to the first half of 2025 [6]. - Yuwang Bio's main raw material, crude fish oil, is primarily imported from Peru, making it vulnerable to fluctuations in fishing quotas and environmental conditions [9]. Pricing and Sales Trends - The average selling price of high-purity fish oil increased from 128,000 RMB per ton in 2022 to 221,000 RMB in 2024, while sales volume decreased from 197 tons to 140 tons [10]. - In the first half of 2025, the average selling prices for high-purity and medium-purity fish oil were 133,000 RMB and 74,000 RMB per ton, with sales volumes of 50 tons and 454 tons respectively [10]. Brand Development - Yuwang Bio has developed four major brands targeting different consumer segments, but its C-end product performance remains weak, contributing less than 3% to total revenue during the reporting period [12][14]. - The company has 45 proprietary dietary supplement products as of June 30, 2025, but C-end revenue was only approximately 12 million, 15 million, 17 million, and 9.05 million RMB in the respective years [14]. Leadership and Strategic Focus - The company is currently led by Liu Ruicui, who took over in 2015 and has focused on contract manufacturing (CDMO) as the primary business model [17][18]. - As of the first half of 2025, CDMO dietary supplement product revenue accounted for 70.0% of total revenue, indicating a strong emphasis on contract manufacturing [18].