Summary of Haohai Biology Conference Call Company Overview - **Company**: Haohai Biology - **Date**: September 18, 2025 Key Points Industry and Company Performance - **Revenue Decline**: Haohai Biology's revenue for the first half of 2025 decreased by 34% year-on-year, primarily due to changes in VAT policy affecting hyaluronic acid products, resulting in a profit reduction of approximately 30 million yuan [2][3] - **Overall Revenue**: The company achieved a revenue of 1.304 billion yuan in the first half of 2025, a year-on-year decline of 7% but a quarter-on-quarter increase of about 11% [3] - **Net Profit**: The net profit attributable to shareholders was 210 million yuan, down 10% year-on-year, but up 34% quarter-on-quarter [3] Business Segment Performance - **Aesthetic Medicine Segment**: - Revenue decreased by 9% year-on-year, with hyaluronic acid sales down 17% [2][4] - Human epidermal growth factor sales increased by 14% [2] - High-end hyaluronic acid product "Haimi" saw sales growth exceeding double digits, now accounting for over 40% of the segment [2][7] - **Ophthalmology Segment**: - Revenue decreased by 20% year-on-year, but sales of preloaded aspheric intraocular lenses increased by 74% [2][4] - High oxygen permeability orthokeratology lenses saw an 86% increase in sales [2][5] - **Surgical Segment**: - Revenue grew by 60%, with innovative hemostatic product "Kangrui Gel" contributing 44 million yuan [2][5] - New anti-adhesion surgical products performed well, achieving 40 million yuan in sales shortly after launch [2][24] Product Development and Market Strategy - **High-End Product Focus**: The company is focusing on exporting high-end products, with preparations for "Haimi" and "Haimi Yuebai" underway [10] - **New Product Lines**: The company is expanding its aesthetic medicine offerings, including dermal fillers and light therapy devices, with some products receiving FDA certification [11][12] - **Technological Advantages**: "Haimi" utilizes a unique cross-linking process for smooth injection, while "Haimi Yuebai" employs amino acid cross-linking for safety and effectiveness [9] Market Challenges and Responses - **Impact of VAT Policy**: The adjustment of VAT from 3% to 13% on hyaluronic acid and chitosan products is expected to impact profits throughout 2025, but no similar effects are anticipated in 2026 [2][5] - **Competitive Landscape**: The OK lens segment faced challenges due to competition from new products like defocus frame glasses, leading to a decline in sales [20][21] - **Price Pressure**: The company is increasing R&D investment in mid-to-high-end products to counteract potential price pressures from upcoming procurement policies [15] Future Outlook - **Performance Expectations**: The company remains optimistic about future growth despite current economic uncertainties, focusing on steady marketing efforts and product development [26] - **Market Share Potential**: The domestic multifocal intraocular lens market share is expected to increase due to price adjustments in procurement policies [16] Additional Insights - **Sales of Human Epidermal Growth Factor**: This product has seen significant growth due to its application in aesthetic medicine, with sales increasing since 2024 [13] - **Surgical Product Innovations**: The innovative hemostatic product "Kangrui Gel" has entered the Shanghai medical insurance directory, with plans to expand into other provinces [25] This summary encapsulates the key insights from Haohai Biology's conference call, highlighting the company's performance, strategic focus, and market challenges.

Group 1 - The company is planning to acquire 55% equity of Changchun Samit Optoelectronics Technology Co., Ltd. through a combination of issuing shares and cash payment [1] - The transaction is expected not to constitute a major asset restructuring based on preliminary assessments [1] - The company's stock will be suspended from trading starting July 31, 2025, with an expected suspension period of no more than 10 trading days [1] Group 2 - Samit’s business scope includes research, production, and sales of optoelectronic instruments, optoelectronic equipment, and electromechanical equipment [1] - The company also provides technical consulting and services, as well as research and sales of computer software and hardware, motors, optical components, and electronic components [1]

Group 1 - The company, Jin Cheng Zi (688291.SH), is planning to acquire 55% equity of Changchun Samit Optoelectronic Technology Co., Ltd. ("Samit") through a combination of issuing shares and cash payment [1] - The transaction is expected to raise supporting funds and is preliminarily assessed not to constitute a major asset reorganization [1] - The company's stock will be suspended from trading starting July 31, 2025, for a period not exceeding 10 trading days [1] Group 2 - Samit's business scope includes research, production, and sales of optoelectronic instruments, optoelectronic equipment, electromechanical equipment, as well as technical consulting and services [1] - The company also engages in the research and sales of computer software and hardware, motor development and sales, and sales of optical and electronic components [1]

Core Points - The company, North Electro-Optic Co., Ltd., is planning to issue new shares to specific investors, with a total of 73,966,642 shares at a price of 13.79 RMB per share, raising approximately 1.02 billion RMB [9][10][29] - The shares will be listed on the Shanghai Stock Exchange after a six-month lock-up period following the issuance [10][29] - The issuance process has been approved by relevant authorities, including the China Securities Regulatory Commission [27][28] Group 1: Issuance Details - The company will issue A-shares with a par value of 1.00 RMB each [3][4] - The issuance is targeted at 15 specific investors, all participating in cash subscriptions [10][29] - The total amount raised from the issuance is 1,019,999,993.18 RMB, with net proceeds after fees amounting to 1,009,449,486.02 RMB [9][11] Group 2: Regulatory Compliance - The issuance has received necessary approvals from the board of directors, shareholders, and the China Securities Regulatory Commission [27][28] - The process adheres to the relevant laws and regulations, ensuring fairness and compliance throughout [27][28] - The company has established a special account for the raised funds, which will be monitored by a tripartite agreement [11][12] Group 3: Investor Participation - A total of 168 specific investors were invited to participate in the subscription process [6][7] - The subscription process was conducted under legal supervision, ensuring compliance with the established rules [7][8] - The issuance price was determined based on competitive bidding, with the final price set at 13.79 RMB per share, which is above the minimum required price [9][10]

Core Viewpoint - The implementation opinion aims to enhance the supply capacity of quality consumer goods in Sichuan, targeting a revenue of 1.2 trillion yuan for large-scale consumer goods enterprises by 2027, alongside the establishment of various product standards and categories [1]. Group 1: Innovation and Technology - The focus is on strengthening core technologies such as computing terminal chips and distributed operating systems, with an emphasis on developing ultra-high-definition smart TVs, laser projection devices, and smart speakers [2]. - The initiative promotes the integration of AIoT technology to create smart home platforms and accelerate the intelligent upgrade of household appliances like TVs, refrigerators, and air conditioners [2]. - There is a push for the development of wearable products such as smartwatches and VR/AR devices, forming an innovation chain from core components to smart terminals and ecological scenarios [2]. Group 2: Digital Product Supply - The plan emphasizes the software and animation industry, accelerating the development of generative AI products and applications, including large model applications and AI content generation tools [2]. - It aims to enhance the maturity of immersive technologies like VR, AR, and mixed reality, targeting high-performance digital devices such as smart headsets and interactive equipment [2]. Group 3: High-End Product Supply - The initiative encourages continuous iteration of new energy vehicle products and services, guiding enterprises to upgrade and develop suitable products for market demand [3]. - There is a focus on upgrading core components such as display panels, smart sensors, and electronic parts to enhance the supply capacity of high-end electronic products [3]. - The plan includes the establishment of a "green channel" for innovative product research and development, aiming to shorten the approval cycle for new products [3].