Core Viewpoint - The company is facing challenges in its cell and gene therapy CDMO business due to macroeconomic changes, industry conditions, and downstream demand, resulting in low order prices and negative gross margins, although there has been some improvement compared to the previous year [1][2]. Group 1: Company Overview - The company is focused on cell and gene therapy, which is a key development direction in the biopharmaceutical industry, supported by national and local policies [2]. - The company aims to enhance its competitiveness and market penetration by improving R&D efficiency, expanding into new business areas, and optimizing operations [2]. Group 2: Financial Data - The company reported a net loss of RMB 10,515.07 million for the first half of 2025, primarily due to low order prices and the early production stage of its projects [21]. - The company has fully utilized the raised funds for planned investments, with no reported issues in fund management or usage [10][20]. Group 3: Shareholder Information - The company has not disclosed any special arrangements regarding corporate governance or significant changes in major shareholders [3][4]. Group 4: Upcoming Events - The company will hold a performance briefing on August 27, 2025, to discuss its half-year results and address investor questions [5][8].

Core Viewpoint - The report highlights the ongoing challenges faced by He Yuan Biotechnology in its cell and gene therapy CDMO business, including low order prices and high operational costs, despite some improvements compared to the previous year [1][2]. Company Overview - He Yuan Biotechnology is listed on the Shanghai Stock Exchange with the stock code 688238, focusing on cell and gene therapy [2]. - As of the end of the reporting period, the total assets of the company were approximately 2.12 billion RMB, a decrease of 7.23% from the previous year [2]. Financial Performance - The company's revenue for the reporting period was approximately 119.85 million RMB, reflecting a year-on-year increase of 6.01% [3]. - The total profit for the period was a loss of approximately 102.77 million RMB, an improvement from a loss of 113.36 million RMB in the previous year [3]. - The net loss attributable to shareholders was approximately 104.57 million RMB, compared to a loss of 113.35 million RMB in the same period last year [3]. - The cash flow from operating activities showed a loss of approximately 88.50 million RMB, which is an improvement from a loss of 114.63 million RMB in the previous year [3]. - The weighted average return on net assets decreased by 0.69 percentage points to -6.35% [3]. Industry Context - The cell and gene therapy sector is identified as a key development area in the biopharmaceutical industry, supported by various national and local policies [2]. - The company aims to enhance its competitiveness and market penetration by improving R&D efficiency and expanding into new business areas [2].

Core Viewpoint - The company reported a revenue of 120 million yuan for the first half of 2025, reflecting a year-on-year growth of 6.01%, but continued to incur a net loss of 105 million yuan, although this was an improvement compared to a loss of 113 million yuan in the same period last year [1]. Financial Performance - Revenue for the first half of 2025 reached 120 million yuan, marking a 6.01% increase year-on-year [1]. - The net profit attributable to shareholders was -105 million yuan, an improvement from -113 million yuan in the previous year [1]. - Basic earnings per share were -0.163 yuan [1]. Business Operations - The company's cell and gene therapy CDMO business faced challenges due to macroeconomic changes, industry conditions, and downstream demand [1]. - The execution order prices for the CDMO business remained at a low level [1]. - The operational costs, including depreciation, energy consumption, and administrative expenses, were relatively high, contributing to the overall loss [1]. - The gross profit margin for the cell and gene therapy CDMO business remained negative [1].

Core Insights - The company reported a revenue of 248 million yuan for 2024, marking a year-on-year growth of 21.16% [1] - The establishment of the "Regenerative Medicine Center" signifies a strategic expansion into cell therapy, potentially becoming a new growth highlight for the company [1] - The completion of the first phase of the Lingang Industrial Base enhances the company's production capabilities, positioning it as a leading provider of one-stop services for cell and gene therapy product development [1] Financial Performance - The company achieved CDMO sales revenue of 135 million yuan, an increase of 26.12% compared to the previous year [2] - New CDMO business orders exceeded 270 million yuan during the year, indicating strong demand and order progress [2] - The company assisted clients in obtaining 12 IND approvals within the reporting period, contributing to a total of 44 IND approvals to date [2] Strategic Initiatives - The company initiated a share repurchase plan in 2025, having repurchased approximately 18.73 million shares, accounting for 2.8853% of total shares, with an average price of 5.34 yuan per share [2] - Part of the repurchased shares is intended for equity incentives, aiming to align the interests of the core team with the company's long-term development [2] - The company continues to leverage its diverse technical capabilities across various cell therapy fields, including oncolytic viruses, AAV gene therapy, CAR-T/NK, and stem cells [2]