Core Viewpoint - Yuwang Bio-Nutrition Limited has submitted its prospectus to the Hong Kong Stock Exchange, focusing on the development, production, and sale of refined fish oil and dietary supplements. The company has experienced a significant decline in revenue and profit margins in the first half of 2025 compared to previous years [1][4]. Financial Performance - The company reported net profits of approximately RMB 67.297 million, RMB 101.869 million, RMB 125.313 million, and RMB 22.764 million for the years 2022, 2023, 2024, and the first half of 2025, respectively [2][3]. - Revenue figures for the same periods were approximately RMB 534 million, RMB 661 million, RMB 832 million, and RMB 343 million, indicating a year-on-year decrease of 27.1% in the first half of 2025 compared to the same period in 2024 [2][4]. Product Margins - The gross margin for refined fish oil dropped from 24.7% in the first half of 2024 to 8.3% in the first half of 2025. Similarly, the gross margin for fish oil soft capsules and other dietary supplements decreased from 31.8% to 24.7% during the same period [5][4]. - The core product lines, including refined fish oil and dietary supplements, contributed approximately 97.5%, 97.0%, 98.0%, and 98.8% to total revenue in 2022, 2023, 2024, and the first half of 2025, respectively [3]. Market Position - Yuwang Bio is recognized as the largest supplier of food-grade refined fish oil and its products globally, holding an 8.1% market share based on sales volume in 2024 [2]. - The company has a significant international presence, with revenue from non-China markets accounting for 47.3%, 53%, 60.9%, and 55% of total revenue in 2022, 2023, 2024, and the first half of 2025, respectively [8]. Customer Base - The company primarily sells its products to dietary supplement brand owners, fish oil product manufacturers, wholesalers, and pharmacies. Revenue from the top five customers accounted for approximately 23%, 17.5%, 18%, and 22.7% of total revenue in the respective years [6][8].

Core Viewpoint - Yuwang Bio-Nutrition Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange, focusing on the development, production, and sale of refined fish oil and dietary supplements, with a notable decline in revenue and profit margins in the first half of 2025 compared to previous periods [1][4]. Financial Performance - The company reported net profits of approximately 67.3 million RMB, 102 million RMB, 125.3 million RMB, and 22.8 million RMB for the years 2022, 2023, 2024, and the first half of 2025, respectively [3]. - Revenue figures for the same periods were approximately 534 million RMB, 661 million RMB, 832 million RMB, and 343 million RMB, indicating a year-on-year revenue decrease of 27.1% in the first half of 2025 compared to the same period in 2024 [3][4]. Product Margins - The gross margin for refined fish oil dropped from 24.7% in the first half of 2024 to 8.3% in the first half of 2025, while the gross margin for fish oil soft capsules and other dietary supplements decreased from 31.8% to 24.7% in the same timeframe [5]. - The core product lines, including refined fish oil and dietary supplements, contributed approximately 97.5%, 97.0%, 98.0%, and 98.8% to total revenue for the years 2022, 2023, 2024, and the first half of 2025, respectively [3]. Market Position - Yuwang Bio is recognized as the largest supplier of food-grade refined fish oil and its products globally, holding an 8.1% market share based on sales volume in 2024 [2]. Customer Base - The company generates significant revenue from its top five customers, which accounted for approximately 23%, 17.5%, 18%, and 22.7% of total revenue in the years 2022, 2023, 2024, and the first half of 2025, respectively [6]. Export Revenue - A substantial portion of the company's revenue comes from international markets, with non-China market revenue accounting for 47.3%, 53%, 60.9%, and 55% of total revenue in the years 2022, 2023, 2024, and the first half of 2025, respectively [8]. Cost Structure - Raw material costs, primarily for fish oil, represent a significant portion of the company's total sales costs, accounting for 87.4%, 89.9%, 88.8%, and 86.7% in the years 2022, 2023, 2024, and the first half of 2025, respectively [9].

Core Viewpoint - Yuwang Bio-Nutrition Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, highlighting its position as a leading player in the refined fish oil market with a global market share of 8.1% [1] Financial Performance - The company's main business includes the development, production, and sale of refined fish oil, fish oil soft capsules, and other dietary supplements, which accounted for approximately 97.5% to 98.8% of total revenue from 2022 to mid-2025 [2] - Revenue grew from 534.3 million RMB in 2022 to 661 million RMB in 2023, and is projected to reach 832.3 million RMB in 2024, indicating a strong compound annual growth rate [2] - Profitability improved from 67.3 million RMB in 2022 to 102 million RMB in 2023, peaking at 125.3 million RMB in 2024, with profit margins also increasing during this period [2] Recent Challenges - In the first half of 2025, revenue was 343 million RMB, but net profit plummeted to 22.8 million RMB, resulting in a net profit margin of only 6.6%, a significant drop from 15.1% in 2024 [3] - The gross profit margin fell from a high of 28.1% in 2023 to 20.7% in the first half of 2025, primarily due to soaring sales costs, which accounted for 79.3% of revenue in the same period [3][4] - Administrative expenses surged to 5.4% of revenue in the first half of 2025, up from approximately 2-3% in previous years, contributing to a decline in operating profit margin from 22.6% in 2024 to 8.8% in 2025 [4] Cost Pressures - Raw material costs, particularly fish oil, represent a significant portion of total sales costs, exceeding 87% over the past three years, making the company vulnerable to price fluctuations [6] - The company lacks pricing power in a competitive market, making it difficult to pass on rising costs to customers without risking order loss [6][7] Market Exposure - The company's overseas revenue share increased from 47.3% in 2022 to 60.9% in 2024, indicating a strong reliance on international markets, particularly the U.S., which poses risks due to ongoing trade tensions [8] - High inventory levels, reaching 210 million RMB at the end of 2023, present a risk if market demand falls short or if product obsolescence occurs [8][9] Operational Efficiency - The decline in inventory turnover days from 138 days in 2023 to 92 days in the first half of 2025 may indicate improved operational efficiency, but could also reflect a strategy to reduce inventory in response to rising raw material costs [9] - The company’s ability to maintain profitability amidst rising costs and external pressures is critical for its future performance [9]