Group 1 - The core viewpoint of the article is that Haohai Biological's revenue and net profit have declined in the first half of 2025, indicating challenges in its key business segments, particularly in medical aesthetics and ophthalmology [1][2][3] - The company reported a revenue of 1.304 billion yuan, a year-on-year decrease of 7.12%, and a net profit attributable to shareholders of 211 million yuan, down 10.29% [1][2] - The main product segments, including medical aesthetics, ophthalmology, and orthopedics, all experienced revenue declines, with medical aesthetics generating 575 million yuan, down 9.31%, ophthalmology 368 million yuan, down 18.61%, and orthopedics 227 million yuan, down 2.58% [2][3] Group 2 - The decline in the hyaluronic acid business is attributed to changes in VAT rates affecting sales revenue and weak sales of entry-level products, which have not sustained their market advantage for nearly a decade [3][4] - The company’s high-end products, such as the third-generation and fourth-generation hyaluronic acid series, are performing well, but the overall medical aesthetics business may face negative growth for the first time this year [5][6] - The ophthalmology segment has seen significant revenue drops, particularly in cataract surgery products, which fell by 28.76%, largely due to national medical cost control policies [6][7] Group 3 - The company is actively responding to declining performance by focusing on high-end products and has seen a 73.82% increase in sales of mid-range pre-filled non-spherical products [9][10] - The competitive landscape in the medical aesthetics market is challenging, with several leading companies reporting similar revenue declines, indicating a broader industry adjustment [5][6] - The strategic shift towards mid-to-high-end products is seen as an opportunity, but the company faces challenges in product development and market penetration due to strong competition from imported brands [9][10]

Core Viewpoint - The recent investigation of Jiang Wei, a major shareholder of Haohai Biological Technology, by the China Securities Regulatory Commission for suspected insider trading is not expected to significantly impact the company's operations or stock performance [1][2]. Company Overview - Haohai Biological Technology is recognized for its "medical aesthetics + ophthalmology" business model, with a focus on high-margin products such as artificial lenses and medical-grade hyaluronic acid [2][3]. - The company is the first biopharmaceutical firm listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange's Sci-Tech Innovation Board [2]. Financial Performance - Revenue has shown consistent growth from 1.3 billion yuan in 2020 to 2.6 billion yuan in 2024, while net profit increased from 200 million yuan to 400 million yuan during the same period, despite a significant drop in 2022 [2][3]. - In 2024, the company reported revenue of 2.698 billion yuan, a year-on-year increase of 1.64%, and a net profit of 420 million yuan, up 1.04% [3]. Market Challenges - The medical aesthetics and ophthalmology sectors are facing increased competition and price reductions due to national procurement policies, leading to stagnation in revenue growth for 2024 [3]. - The medical aesthetics segment has shown signs of growth fatigue, with revenues from medical beauty and wound care products increasing from 460 million yuan in 2021 to 1.2 billion yuan in 2024, but growth rates are declining [3]. Product Development - In July 2024, Haohai Biological Technology received approval for its fourth-generation hyaluronic acid product, Hai Mei Yue Bai, aimed at treating moderate to severe nasolabial folds, positioning it as a potential growth driver in the high-end medical aesthetics market [4]. - The product is priced at 13,800 yuan for 1ml and 19,800 yuan for 2ml, indicating a premium positioning [4]. Recent Performance - In the first quarter of 2024, the company experienced a decline in both revenue and net profit, with revenue at 619 million yuan, down 4.25%, and net profit at approximately 90.31 million yuan, down 7.41% [4].