Group 1: Company Overview and Operations - Baicheng Pharmaceutical has an international marketing department responsible for the export sales of active pharmaceutical ingredients and formulations [3] - The company is actively pursuing internationalization, with three active pharmaceutical ingredients (Minoxidil, Amorolfine, and Acetylcysteine) having submitted EU registration applications in 2024 [5] Group 2: Research and Development - In 2024, the company invested CNY 320 million in R&D, with plans to continue expanding R&D efforts [5] - The company has made significant progress in innovative drug development, having obtained two IND approvals for Class 1 new drugs and completed 11 IND submissions for Class 2 new drugs [6] - The company has 98 R&D projects with sales rights as of the end of 2024, of which 25 projects have been approved [6][7] Group 3: Financial Performance - The company reported a net loss of CNY 52,742,809.58 for the year 2024 [6] - Commercial production revenue for 2024 was CNY 36 million, attributed to the subsidiary, Saimer Pharmaceutical [6] Group 4: Strategic Focus - The company aims to balance R&D investment with short-term profitability by enhancing research efficiency and quality [4] - Future growth drivers include expanding the generic drug business, increasing innovative drug initiatives, and enhancing overseas market presence [6]

Investment Rating - The industry investment rating is maintained at "Overweight" [2] Core Insights - The report highlights the significant potential for the glutathione market, driven by increasing health and beauty demands, product innovation, and supportive policies [10][11] - The recent suspension of imports from KYOWA HAKKO BIO CO., LTD. is expected to create a supply shortage, leading to price increases and potential shifts in the global glutathione industry landscape [10][11] Summary by Sections Industry Performance - Over the past 12 months, the industry has shown a relative return of -15.34% compared to the CSI 300 index, with an absolute return of -3.11% [3] Market Demand and Growth - The glutathione market is experiencing steady growth, with the market size increasing from approximately 930 million RMB in 2021 to 1.121 billion RMB in 2023, and is expected to continue growing [10] - The Asia-Pacific region holds the largest share of the global glutathione market at 60%, with North America and Europe following at 28% and 11% respectively [10] Key Market Players - Major suppliers in the glutathione market include Kyowa Hakko Bio Co. Ltd., Wuhan Grand Hoyo Co. Ltd., and Ningbo Honor Chemtech Co. Ltd., with Kyowa Hakko Bio being one of the largest producers [10][11] Future Outlook - The Chinese glutathione market is projected to expand from 19.43 million USD in 2023 to 23.09 million USD by 2030, increasing its global market share [10] - The report suggests that domestic companies may increase R&D investments and enhance production technologies to meet market demands, particularly in light of the recent import suspension [11]