Summary of the Conference Call on Antu Biology's Q3 Performance Company Overview - **Company**: Antu Biology - **Industry**: Biotechnology and Medical Diagnostics Key Points and Arguments Financial Performance - **Q3 Revenue**: Approximately 3.127 billion CNY, with a year-on-year decline of 1.5% [2][3] - **Segment Performance**: - **Enzyme-linked Immunosorbent Assay (ELISA)**: Revenue of 1.766 billion CNY, down 7.86% year-on-year [2] - **Microbial Testing Reagents**: Revenue of 271 million CNY, down 1.08% [3] - **Nucleic Acid Testing Reagents**: Revenue of 25.957 million CNY, down 2.57% [3] - **Asset Instruments**: Revenue of 287 million CNY, up 17.45% [3] - **Export Revenue**: 277 million CNY, up 38.35% [3] Industry Dynamics - **Policy Impact**: The industry is significantly affected by policies such as centralized procurement and the potential implementation of a national unified pricing directory [7][8] - **Market Recovery**: The company believes that the market is nearing a bottom, with slight improvements expected in the coming years, although growth will be slow due to pressures on medical insurance payments [8][9] - **Price Adjustments**: The company anticipates that price adjustments will occur post-implementation of the tumor testing centralized procurement policy, with expected adjustments in the single-digit percentage range [12][36] Equipment Installation and Sales - **Installation Numbers**: - 600-speed machines: 559 units installed [4] - 200-speed machines: 400 units installed [4] - **Sales Strategy**: Adjustments were made to sales targets for agents due to high initial expectations, which were not met [10] Export Growth - **Export Performance**: Significant growth in exports, particularly in instruments, with Q3 international sales reaching approximately 73 million USD, a year-on-year increase of over 130% [14][15] - **Key Markets**: Growth noted in countries like Russia, Mexico, and Brazil, with India remaining a primary market [16][17] Competitive Landscape - **Domestic vs. Imported Products**: The company is positioned to benefit from the shift towards domestic products as hospitals increasingly opt for local suppliers due to pricing pressures on imports [38][39] - **Market Share**: The company expects to capture a larger market share as imported brands struggle with pricing and compliance issues [39] Future Outlook - **Long-term Strategy**: The company aims for a 50% annual growth target in international markets, emphasizing local sales and service [26] - **Product Development**: Continued investment in product development and market expansion is planned, particularly in the sequencing business [22][23] Challenges - **Regulatory Delays**: Delays in obtaining necessary certifications for new products may hinder growth in the sequencing segment [22][23] - **Price Competition**: The company faces challenges from aggressive pricing strategies in the market, particularly from larger competitors [28][30] Conclusion - Antu Biology is navigating a challenging environment marked by regulatory changes and competitive pressures. However, the company is optimistic about gradual recovery and growth, particularly in the domestic market, as it adapts its strategies to align with evolving industry dynamics.

Group 1 - The core viewpoint is that the in vitro diagnostic industry is facing unprecedented challenges due to intensified competition and various policy reforms, including the continuous promotion of centralized procurement and the rapid implementation of DRG [2] - The company is actively optimizing human resource costs as part of its strategy to reduce expenses and enhance efficiency in response to market and policy challenges [2] - The company is committed to improving its operational performance and increasing its intrinsic value amidst the evolving industry landscape [2]

Core Viewpoint - The National Healthcare Security Administration has issued guidelines for the adjustment of the basic medical insurance directory and the commercial health insurance innovative drug directory, marking a significant shift in the role of commercial health insurance in the multi-tiered medical security system [1][2]. Group 1: Policy Changes - The new guidelines include the first incorporation of the commercial health insurance innovative drug directory into the adjustment scheme, indicating a major adjustment in the design logic and industry positioning of the directory [1][2]. - The commercial insurance companies will exit the price negotiation process, with the directory's nature shifting to a "recommended list," while the healthcare department will lead drug access and price confidentiality negotiations [1][2]. Group 2: Industry Participation - Pharmaceutical companies now have two pathways for submitting information for national negotiations and competitive drug pricing, akin to "filling out college applications," allowing them to choose between the medical insurance directory or the commercial insurance directory [2]. - There is a general expectation within the industry regarding the new directory, particularly as it allows companies to bypass restrictions from DRG/DIP reforms, making participation more attractive [2][4]. Group 3: Market Dynamics - The commercial health insurance market is experiencing a stabilization in growth, with 298 local health insurance products launched across various provinces as of October 31, 2024 [4]. - The participation level of commercial insurance companies may significantly influence the actual implementation of the directory, as it currently resembles a "recommended directory" without strict volume relationships [4][5]. Group 4: Support for Innovative Drugs - There is a consensus in the industry that the payment responsibility for innovative drugs is shifting from medical insurance to commercial insurance, which is seen as an inevitable trend [6]. - The 2023 measures from Shanghai aim to enhance the multi-payment mechanism to support the development of innovative drugs, indicating a broader push for integrating innovative drugs into both basic medical insurance and commercial health insurance [7]. Group 5: Future Outlook - The 2025 government work report emphasizes the need to deepen medical insurance payment reforms and support the development of innovative drugs, highlighting the potential for commercial insurance to play a larger role in this area [8]. - The commercial health insurance sector currently contributes only 7.7% to the payment for innovative drugs, indicating significant room for growth as demand for specialized medical services increases [8].

Core Viewpoint - The company held an online performance briefing on May 27, 2025, to discuss its 2024 annual and 2025 Q1 performance, addressing investor concerns and highlighting operational and financial conditions [1]. Group 1: Financial Performance - The company's gross margin for 2024 increased by 2.86 percentage points to 69.23%, attributed to supply chain management optimization and product structure adjustments, despite a decline in operating revenue [2]. - In Q1 2025, the company achieved operating revenue of 244 million yuan, with overseas conventional product revenue reaching 47 million yuan, a year-on-year increase of 66.51% [2]. Group 2: Business Strategy and Market Position - The company is responding to industry challenges such as centralized procurement and DRG policies by optimizing sales strategies and enhancing service systems to maintain stable business development [4]. - The Metis6000 fully automated biochemical immunoassay line targets secondary and lower-tier hospitals, with over 70% of installations in these facilities, indicating a clear market positioning strategy [4][5]. Group 3: Product Development and Innovation - The Metis7000 fully automated biochemical immunoassay line is in the trial production phase, aiming to enhance performance and cost-effectiveness, with a broad testing menu covering nearly 400 items [5]. - The company plans to further increase the proportion of its chemiluminescence business, which accounted for 26.72% of self-produced product revenue in 2024, growing by 31.14% year-on-year [4]. Group 4: International Expansion - The company has established a presence in 66 countries and regions, holding over 2,500 overseas registration certificates and product import permits, with a focus on expanding its market share in Europe, Asia, and Latin America [5].