Core Viewpoint - Baihua Pharmaceutical (600721.SH), a company specializing in pharmaceutical research and development services (CRO), announced that it received a notification from its controlling shareholders regarding the planning of a share transfer agreement, which may lead to a change in the company's control [1] Group 1 - The company is involved in the pharmaceutical research and development services sector [1] - The controlling shareholders include Mi Zaiqi, Mi Enhua, and Yang Xiaoling [1] - The potential share transfer could significantly impact the company's governance structure [1]

Core Viewpoint - The controlling family of Baihua Pharmaceutical (600721.SH), led by Mienhua Mi, is planning a potential transfer of shares that may lead to a change in the company's control [1] Group 1: Company Background - Baihua Pharmaceutical, originally known as "Baihua Village," was the first listed company of the Xinjiang Production and Construction Corps, with its stock listed on the Shanghai Stock Exchange in 1996 [2] - The company has undergone multiple asset restructurings, transitioning from retail and trade to pharmaceutical research and development services after acquiring Nanjing Huawai Pharmaceutical in 2016 [2] Group 2: Financial Performance - Baihua Pharmaceutical has experienced significant fluctuations in net profit from 2019 to 2024, with figures of 34.38 million, -320 million, 59.83 million, -34.76 million, 12.97 million, and 41.48 million yuan respectively [3] - In the first nine months of 2025, the company reported a revenue of 299 million yuan, a year-on-year increase of 2.74%, and a net profit of 32.67 million yuan, up 36.41% compared to the previous year [3] Group 3: Shareholding Changes - In December 2024, the controlling shareholder of Baihua Pharmaceutical changed, with the actual controllers now including Mienhua Mi, his son Mizanqi Mi, and Yang Xiaoling, holding a combined 20.71% of the total shares [1][2] - Following the change in control, the shareholding structure of Hualing Industrial Group also shifted, with Xinjiang Commerce and Logistics Asset Management Co., Ltd. becoming the controlling shareholder [4] Group 4: Future Outlook - Baihua Pharmaceutical has been suspended from trading since December 29, with expectations that the company's future direction will be clarified within 2025 [5]

Group 1 - The core revenue of the company for the first half of 2025 reached 375 million yuan, with new orders amounting to 532 million yuan, reflecting a year-on-year increase of 7.39% [1] - The total backlog of orders stood at 1.112 billion yuan, which is a 14.29% increase compared to the end of 2024 [1] - The company experienced growth across all business segments, with a combined year-on-year increase of 6.86% in new projects for IND and NDA applications [1] Group 2 - The company is a leading comprehensive R&D service provider in the biopharmaceutical non-clinical research sector, recognized for its international service capabilities [2] - As of June 30, 2025, the company has successfully assisted in over 200 innovative drug research services, including several groundbreaking therapies and products [2] - The strategic project in Nantong has been successfully implemented, covering an area of 24,000 square meters and featuring 130 international standard animal housing units, which will enhance the company's capacity and efficiency in innovative molecules and advanced therapies [2]

Core Insights - The company reported a revenue of 375 million yuan for the first half of 2025, impacted by a slowdown in investment and market demand in the domestic pharmaceutical industry, leading to increased competition and reduced sales order prices [1] - New order value reached 532 million yuan, a year-on-year increase of 7.39%, while the backlog of orders grew to 1.112 billion yuan, up 14.29% from the end of 2024 [1] - The company maintained a strong focus on R&D, with R&D expenditure as a percentage of revenue rising from 3.67% to 5.94%, reflecting a commitment to technological innovation and long-term growth potential [1] Business Performance - All business segments performed well, with the core IND and NDA new project numbers increasing by 6.86% year-on-year, showcasing the company's strong market expansion capabilities [1] - The company secured one new authorized invention patent during the reporting period, bringing the total number of authorized patents to 69 by the end of the reporting period [1] International Expansion - The company has established itself as a leading CRO in China, being one of the first to obtain GLP certifications from NMPA, OECD, and FDA, aligning with international standards [2] - Significant growth in international business new orders was noted, enhancing the company's recognition and influence in the global market [2] - The company has assisted in over 200 innovative drug research services, including several groundbreaking therapies and products, demonstrating its capability in both domestic and international markets [2] Capacity Development - The company successfully launched its strategic project in Nantong, covering an area of 24,000 square meters and planning 130 international standard animal housing units, which will enhance its capabilities in innovative molecules and advanced therapies [3]