Core Viewpoint - The company reported a positive performance in Q3 2025, with revenue and net profit showing significant year-over-year growth, indicating a sustained upward trend in its financial performance [4][5]. Financial Performance - In Q3 2025, the company achieved revenue of 12.90 billion (CNY) (+7.37% YOY) and a net profit of 2.22 billion (CNY) (+42.30% YOY), with a non-GAAP net profit of 2.20 billion (CNY) (+46.42% YOY) [5]. - The gross margin for Q3 2025 was 37.78% (+4.10 percentage points YOY), and the net profit margin was 17.22% (+4.13 percentage points YOY), reflecting a significant improvement in profitability [5]. CDMO Business - The CDMO business generated revenue of 22.91 billion (CNY) in H1 2025 (+16.27% YOY) with a gross margin of 41.02% (-0.04 percentage points YOY) [6]. - The company is deepening collaborations with major clients, with a notable increase in non-commercial projects from overseas core clients and a rapid growth in projects from Biotech clients in the U.S. and Europe [6]. - New orders in Q3 2025 showed a significant recovery, with an increase in key clinical batches and NDA projects, indicating a positive outlook for revenue growth in the next 1-2 years [6]. Emerging Business - The TIDES business is accelerating, with a rapid increase in new peptide projects signed overseas [7]. - The second phase of commercial capacity construction is expected to be operational by November 2025, reaching a scale of 800 kilograms per year, which will alleviate capacity bottlenecks in peptide production [7]. - The company is also establishing commercialization capacity for small nucleic acids domestically while maintaining R&D platforms internationally [7]. API Business - In H1 2025, the API business generated revenue of 5.23 billion (CNY) (-28.48% YOY) with a gross margin of 23.26% (+2.07 percentage points YOY) [9]. - In Q3 2025, prices for certain raw materials showed a slight decline, but the company anticipates an improvement in prices by Q4 2025 [9].

Core Insights - Haisheng Pharmaceutical reported a revenue of 1.938 billion yuan for 2024, a year-on-year decline of 10.75% [1] - The company recorded a net loss attributable to shareholders of 330 million yuan, narrowing by 21.38% year-on-year [1] - The basic earnings per share stood at -0.21 yuan [1] Financial Performance - The decline in performance was primarily due to multiple factors impacting the pharmaceutical and dye industries, with intense market competition leading to price pressures [4] - Total assets at the end of 2024 were 7.456 billion yuan, down 0.85% year-on-year, while total liabilities increased by 21.2% to 2.324 billion yuan, resulting in a debt-to-asset ratio of 31.2% [4] - The net cash flow from operating activities was 175 million yuan, a decrease of 27.31% year-on-year, mainly due to increased asset impairment losses and depreciation [4] - Cash flow from financing activities saw a significant decline of 96.51%, while cash flow from investing activities worsened from -128 million yuan to -527 million yuan [4] Business Segments - The pharmaceutical segment generated revenue of 1.368 billion yuan, down 11.77% year-on-year, accounting for 70.59% of total revenue [4] - The dye segment reported revenue of 551 million yuan, a decline of 8.80%, representing 28.47% of total revenue [4] - Key products in the dye segment, such as Reactive Brilliant Blue KN-R, maintained a high market share with double-digit sales growth [4] Research and Development - R&D expenditure for 2024 was 129 million yuan, constituting 6.68% of total revenue [5] - The company is focusing on the development of specialty APIs, generics, and innovative drugs, with new projects like a peptide platform and expansion into ophthalmic, psychiatric, and cardiovascular applications [5]