Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 3.099 billion CNY, a year-on-year increase of 16% [2] - The net profit attributable to shareholders was 306 million CNY, reflecting a growth of 32.5% year-on-year [2] - Adjusted net profit was 349 million CNY, with a year-on-year growth rate of 3.1%, which is slower than revenue growth [2] Group 2: Business Segment Performance - Laboratory services generated revenue of 1.857 billion CNY, up 15.7% year-on-year, with a gross margin of 45.5%, an increase of 1.4 percentage points [4] - CMC (small molecule CDMO) services reported revenue of 693 million CNY, a growth of 19.1%, with a gross margin of 30.4%, up 2.5 percentage points [4] - Clinical research services achieved revenue of 447 million CNY, marking a 14.2% increase [4] - Revenue from large molecule and cell & gene therapy services was 99 million CNY, reflecting a growth of 7.9% [4] Group 3: Operational Insights - The strong operating cash flow reached 853 million CNY, a year-on-year increase [2] - The company’s workforce increased compared to the same period in 2024 due to new hires [2] - The second phase of the small molecule CDMO in Shaoxing is under construction, with two workshops expected to be operational by the end of 2025 [6] Group 4: Market Dynamics - Over 90% of the small molecule CDMO business comes from overseas clients, indicating a strong international market presence [7] - The company’s laboratory chemical services are expanding in scope, driven by industry recovery and new technology developments [5]

Financial Performance - Revenue for Q1 2025 reached RMB 3,099 million, a 16.0% increase from RMB 2,671 million in Q1 2024 [9] - Net profit attributable to shareholders was RMB 306 million, up 32.5% from RMB 231 million in Q1 2024 [9] - Non-IFRS adjusted net profit increased by 3.1% to RMB 349 million from RMB 339 million [9] - Operating cash flow for Q1 2025 was RMB 853 million, a 14.4% increase from RMB 746 million in Q1 2024 [9] Revenue Composition - Revenue from China delivery business grew by 15.7% [11] - Revenue from overseas delivery business increased by 18.3% [11] - Laboratory services contributed 60% to revenue, with clinical research services at 14% and CDMO at 22% [11] - Revenue from top 20 pharmaceutical companies grew by 29.1% [14] Customer Growth - Revenue from North American clients increased by 16.8% [12] - Revenue from European clients rose by 26.6% [12] - Revenue from Chinese clients grew by 13.1% [12] Cost and Margin Analysis - Gross margin for laboratory services improved to 45.5% in Q1 2025 from 44.1% in Q1 2024 [17] - Gross margin for clinical services increased to 11.8% from 9.3% [19] - Gross margin for large molecule services improved despite being in a construction phase [20] Strategic Outlook - The company aims for a revenue growth target of 10-15% for the full year 2025 [33] - The company emphasizes the importance of health demand and technological innovation in driving industry growth [33]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index within the next 12 months [4][10]. Core Insights - The company achieved a revenue of 3.099 billion yuan in Q1 2025, representing a year-on-year increase of 16.03%, and a net profit attributable to shareholders of 306 million yuan, up 32.54% year-on-year [1][2]. - The company continues to strengthen its technological advantages in small molecule research and production services, establishing an integrated service platform that serves numerous global clients [3]. - New order growth exceeded 10% year-on-year in Q1 2025, with laboratory services and CMC (small molecule CDMO) services both showing strong performance [2]. Summary by Sections Financial Performance - In Q1 2025, domestic revenue grew by 15.71%, accounting for 87.74% of total revenue, while overseas revenue increased by 18.33%, making up 12.26% of total revenue [1]. - The gross margin for Q1 2025 was 66.34%, showing a year-on-year decrease of 1.01 percentage points but an increase of 1.51 percentage points from the previous quarter [1]. - The company expects revenues of 13.715 billion yuan, 15.539 billion yuan, and 17.388 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 11.7%, 13.3%, and 11.9% [3][5]. Business Segments - Revenue from laboratory services reached 1.857 billion yuan, up 15.74% year-on-year; CMC services generated 693 million yuan, up 19.05%; clinical research services brought in 447 million yuan, up 14.25%; and large molecule and cell and gene therapy services totaled 987 million yuan, up 7.94% [2]. Future Outlook - The company is projected to achieve net profits of 1.756 billion yuan, 2.177 billion yuan, and 2.471 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 24, 19, and 17 [3][5].

得益于创新药投融资复苏和新签订单回暖，公司业绩逐步改善。 事件：公司发布了2025 年第一季度报告，2025Q1 公司实现营收30.99 亿元，同比增长16.03%；实现归 母净利润3.06 亿元，同比增长32.54%。 得益于创新药投融资复苏和新签订单回暖，公司业绩逐步改善： 收入端，2025Q1 公司实现营收30.99 亿元，同比增长16.03%。其中，实验室服务、CMC、临床研究服 务、大分子和细胞与基因治疗服务分别实现营收18.57 亿元（+15.74%）、6.93 亿元（+19.05%）、4.47 亿元（+14.25%）、0.99 亿元（+7.94%）。 新签订单回暖且项目陆续交付，核心业务稳步发展： 利润端，2025Q1 公司实现归母净利润3.06 亿元，同比增长32.54%。 投资建议： 预计2025 年-2027 年公司的归母净利润分别为19.28 亿元、21.48 亿元、23.89 亿元；预计2025 年EPS 为 1.08 元/股，给予25 倍PE，对应6 个月目标价为27.00 元/股，给予买入-A 的投资评级。 风险提示：新药研发失败风险；海外政策不确定性风险：CXO 行业竞争加剧风险 ...

Summary of the Conference Call for 康龙化成 (Crown Bioscience) Q1 2025 Company Overview - 康龙化成 reported a revenue of 30.96 billion CNY in Q1 2025, representing a year-on-year growth of 15.4% [2][3] - The company maintains its revenue growth guidance for 2025 at 10% to 15% and expects to continue generating positive free cash flow [2][9] Key Financial Performance - The adjusted net profit for Q1 2025 was 3.49 billion CNY, a year-on-year increase of 3.1%, while the net profit attributable to shareholders was 3.06 billion CNY, up 32.5% [3][4] - The laboratory services segment generated 18.57 billion CNY, with a gross margin of 45.5%, up 1.4 percentage points [2][5] - The small molecule CDMO services segment reported revenue of 6.93 billion CNY, with a gross margin of 30.4%, an increase of 2.5 percentage points [2][5] - Clinical services revenue was 4.47 billion CNY, with a gross margin of 11.8%, up 2.5 percentage points [2][5] - The revenue from large molecule and cell & gene therapy services was 99 million CNY, showing a year-on-year growth of 7.9% [2][5] Revenue Breakdown by Region and Client Type - Revenue from Chinese laboratories and factories grew by 15.7%, accounting for 88% of total revenue; overseas revenue increased by 18.3%, making up 12% [2][6] - North American client revenue rose by 16.8%, representing 65% of total revenue; European client revenue increased by 26%, accounting for 18% [2][6] Order Growth and Market Trends - New orders maintained a double-digit growth of over 10% in Q1 2025, continuing the trend from the previous year [2][7] - The CMC business is focused on early clinical stages, with expectations for several large projects to advance into later stages, which will enhance CMC revenue and overall performance [4][23] Strategic Initiatives and Future Outlook - The company is investing in advanced technologies in the biosciences field, including 3D cell culture and organ-on-a-chip models, to stay at the forefront of industry developments [4][12] - The company anticipates that the adjusted net profit growth will accelerate from Q2 2025 onwards as operational efficiencies improve [3][4] - The overall market for laboratory services and biosciences is expected to continue its recovery, with double-digit growth anticipated in both sectors [9][20] Challenges and Considerations - The company faces challenges related to increased operational costs and depreciation due to new capacity coming online in 2024 [4][3] - The impact of geopolitical factors, such as tariffs and the IRA Act, on client R&D and production needs is being monitored, but the company remains optimistic about its growth trajectory [14][19] Conclusion - 康龙化成's Q1 2025 performance reflects strong growth across its segments, with a positive outlook for the remainder of the year, driven by strategic investments and a robust order pipeline [29]

Investment Rating - The report maintains a "Buy-A" investment rating with a target price of 27.00 CNY per share for the next six months [4][6]. Core Insights - The company has shown a recovery in new orders and project deliveries, leading to improved performance in Q1 2025, with revenue reaching 3.099 billion CNY, a year-on-year increase of 16.03%, and a net profit of 306 million CNY, up 32.54% year-on-year [1][2][3]. Revenue and Profit Growth - The revenue breakdown for Q1 2025 includes laboratory services at 1.857 billion CNY (+15.74%), CMC at 693 million CNY (+19.05%), clinical research services at 447 million CNY (+14.25%), and large molecule and cell & gene therapy services at 99 million CNY (+7.94%) [2][3]. - The company expects a revenue growth of 10%-15% year-on-year for 2025, driven by a recovery in the innovative drug investment and financing sector [3]. Financial Projections - The projected net profits for 2025, 2026, and 2027 are 1.928 billion CNY, 2.148 billion CNY, and 2.389 billion CNY respectively, with an expected EPS of 1.08 CNY per share for 2025 [4][5]. - The report anticipates a steady increase in revenue from 13.792 billion CNY in 2025 to 17.759 billion CNY in 2027 [5][11]. Market Performance - As of April 25, 2025, the company's stock price was 23.19 CNY, with a market capitalization of approximately 41.236 billion CNY [6][7]. - The stock has shown a 12-month absolute return of 27.1% [7].