Core Viewpoint - The company, Haili Biological, is facing challenges after a high-premium acquisition of 55% of Shaanxi Ruisheng Biological Technology Co., Ltd. for 935 million yuan, which has not met expectations due to intensified market competition and declining product prices [1][2][3]. Group 1: Acquisition Details - Haili Biological announced a price adjustment for the acquisition of Ruisheng Biological, reducing the purchase price to approximately 536 million yuan, with the seller returning about 399 million yuan [1][3]. - The initial valuation of Ruisheng Biological was 1.94 billion yuan, with a significant premium of 321.11% at the time of acquisition [2]. - The acquisition was intended to facilitate Haili's transition into the oral tissue repair and regeneration materials sector [2][3]. Group 2: Market Conditions - Since the acquisition, the market has seen the approval of around 20 similar products, leading to aggressive price competition that has forced Ruisheng Biological to lower its prices significantly [3]. - In the second quarter of 2025, Ruisheng's product prices dropped by 40%, impacting profitability despite a slight increase in market share [3][6]. - Changes in tax policies have also negatively affected Ruisheng's financial performance, shifting from a simplified tax rate of 3% to a general tax rate of 13% [3]. Group 3: Financial Performance - Haili Biological's overall profitability has been weak, with net profits fluctuating below 100 million yuan since its IPO in 2015 [1][4][5]. - In 2024, Haili reported a net profit of 171 million yuan, a year-on-year increase of 172.28%, but the adjusted net profit was only 11 million yuan, reflecting a 10.49% decline [5]. - For the first half of 2025, Ruisheng Biological's revenue and net profit were significantly lower than half of its 2024 figures, indicating ongoing financial pressure [6].

Core Points - The company has reported on the status of its fundraising and usage of funds for the first half of 2025, ensuring compliance with relevant regulations and guidelines [1][27][28] Fundraising Overview - The company raised a total of RMB 122,745.00 million through the issuance of 105 million shares at a price of RMB 11.69 per share, with a net amount received of RMB 115,825.79 million after deducting underwriting fees [1][2] - As of December 31, 2024, the cumulative amount used from the raised funds was RMB 85,401.36 million, leaving a balance of RMB 33,787.48 million [3] Fund Usage in 2025 - In the first half of 2025, the company directly invested RMB 8,922.68 million into fundraising projects and incurred a total of RMB 0.52 million in settlement fees [4][5] - The company generated a total of RMB 1,341.72 million from cash management of idle funds, which includes RMB 12.98 million in interest income [5] Fund Management - The company has established a management system for the raised funds, including a dedicated account for fund storage and strict approval processes to ensure proper usage [7] - As of June 30, 2025, the company had a remaining balance of RMB 26,206.00 million in raised funds, with RMB 3,206.00 million in the dedicated account [5][6] Changes in Fund Investment Projects - The company terminated the "Animal Biological Product Workshop Technical Transformation Project" and redirected the remaining funds of RMB 28,713.72 million to a new project, "High-level Animal Vaccine Industrialization Base Construction Project (Phase I)" [13][14] Compliance and Reporting - The company has adhered to all relevant regulations regarding the storage and usage of raised funds, ensuring timely and accurate disclosures [16][27][28]

Core Viewpoint - The company plans to utilize idle raised funds for cash management, not exceeding RMB 260 million, to enhance fund efficiency while ensuring the normal operation of fundraising projects and maintaining fund safety [1][2][8] Summary by Sections Investment Purpose - The company aims to improve fund efficiency and increase shareholder returns by managing temporarily idle raised funds, ensuring it does not affect the progress of fundraising projects [5][7] Fund Source and Limit - The company will use up to RMB 260 million of idle raised funds for cash management, which can be rolled over within the specified limit [2][5] Investment Duration - The investment period is valid for 12 months from the date of the board's approval [5][6] Investment Method - The company will invest in high-security, liquid products such as structured deposits, time deposits, and large certificates of deposit, ensuring compliance with relevant regulations [5][6] Impact on Daily Operations - The cash management of idle funds will not affect the normal operation of fundraising projects and is expected to enhance overall performance and shareholder returns [7][8] Approval Process - The proposal for cash management has been approved by the board and supervisory board, complying with legal and regulatory requirements [8]

Summary of Key Points Core Viewpoint - The company intends to utilize idle raised funds for cash management to enhance fund efficiency and shareholder returns while ensuring that it does not affect the ongoing investment projects or the normal operations of the company [1][6]. Group 1: Fundraising and Usage - The company raised a total of RMB 1,227.45 million from its initial public offering (IPO) by issuing 105 million shares at a price of RMB 11.69 per share, with a net amount of RMB 1,141.73 million after deducting issuance costs of RMB 85.72 million [1][2]. - The total investment amount for the projects funded by the IPO is RMB 1,799.19 million, with RMB 1,747.03 million allocated from the raised funds [2]. - Due to a lower-than-expected net amount from the IPO, the company adjusted its investment projects, excluding certain projects and reallocating funds to ensure efficient use [2][3]. Group 2: Cash Management Plan - The company plans to use up to RMB 260 million of idle raised funds for cash management, ensuring that it does not impact the investment projects or the company's operations [3][5]. - The investment period for the cash management is valid for 12 months from the board's approval date, with a focus on low-risk, high-liquidity investment products [3][4]. - The income generated from cash management will be used to supplement any shortfall in the investment amounts for the projects and will be returned to the raised funds account upon maturity [4][6]. Group 3: Impact on Operations - The cash management of idle funds is expected to improve the efficiency of fund usage without affecting the normal progress of investment projects or the company's core business [4][6]. - By managing idle funds effectively, the company aims to achieve additional investment returns, thereby enhancing overall performance and providing greater returns to shareholders [4][6]. Group 4: Compliance and Approval - The cash management plan has been approved by the company's board and supervisory board, complying with relevant laws and regulations [5][6]. - The company will adhere to strict risk control measures and disclose information as required by regulatory authorities [4][6].

Core Viewpoint - The company reported a revenue of 303 million yuan in 2024, a year-on-year increase of 0.64%, but faced a net loss of 44.74 million yuan, marking its first loss since going public due to intensified competition in the animal health industry and declining vaccine prices [1] Group 1: Financial Performance - The company achieved a revenue of 303 million yuan in 2024, reflecting a growth of 0.64% compared to the previous year [1] - The net profit attributable to shareholders was a loss of 44.74 million yuan, which is the first loss since the company was listed [1] - The decline in gross margin was attributed to increased competition and lower prices for vaccine products, despite an increase in product sales [1] Group 2: Product Development and Market Strategy - The company is focused on expanding its market share in the government procurement sector and enhancing its presence in the pig vaccine market while also developing the ruminant vaccine market and improving its pet biological product offerings [1] - In the pig vaccine segment, several products are in the approval process, including vaccines for porcine infectious pleuropneumonia and porcine reproductive and respiratory syndrome [1] - The company has made significant progress in developing new pet biological products, including a long-acting recombinant canine alpha interferon and mRNA vaccines [2] Group 3: Research and Development - The company invested 85.99 million yuan in R&D in 2024, with a notable acceleration in the conversion of research results, filing 28 national patent applications and obtaining 2 new veterinary drug registration certificates [2] - The company’s animal inactivated vaccine workshop has passed GMP certification, and the construction of production lines for live vaccines and mRNA vaccines is progressing steadily [2] Group 4: Expansion into Human Medicine - The company is leveraging its technology platform to explore opportunities in the human medicine sector, establishing a subsidiary focused on innovative drugs and investing in a company specializing in human monoclonal antibodies [3] - The company plans to commercialize the sale of experimental pigs to support its product development efforts [3]