Summary of the Conference Call for Yaoshi Technology Industry and Company Overview - Yaoshi Technology has been deeply engaged in the molecular building block sector for 19 years, accumulating extensive experience in independent research and patent development, establishing an integrated service system from early research to commercial production [2][5][6] - The core growth point for the company is small molecules, which are essential for new drug development [2][5] Key Points and Arguments - The company has demonstrated excellent performance in cost reduction and efficiency enhancement, with faster delivery speeds and improved service quality, making it difficult for new entrants to penetrate the market [2][8] - In the first half of 2025, the overall revenue of the company grew by 32%, with CDMO (Contract Development and Manufacturing Organization) business increasing by over 60% and order growth approaching 20% [2][11] - The number of phase III and commercial projects increased by 51% year-on-year, indicating a strong pipeline of high-value projects [2][11] - The company expects to adjust its revenue forecast for 2025 to between 1.5 billion to 2 billion, driven by better-than-expected backend revenue and improved capacity utilization [3][13] Future Growth Trends - The backend CDMO business is entering a harvest period, with significant growth expected as commercial projects ramp up [4][12] - By the end of 2025, the company anticipates completing renovations at its Nanjing R&D center, which will alleviate supply-side pressures and restore growth in front-end demand [4] - The company’s integrated service model from research to commercialization is expected to return to a rapid growth trajectory, with net profit anticipated to show significant elasticity in 2026 [4][13] Unique Advantages - Yaoshi Technology has a dedicated information collection team that researches cutting-edge patents globally, allowing the company to provide innovative building blocks to clients [7] - The company’s ability to design, synthesize, and scale building blocks enhances customer dependency and loyalty, creating a competitive edge [7][9] - The proprietary nature of the building blocks, protected by patents, ensures that certain technologies cannot be bypassed, further solidifying the company's market position [9][10] Financial Performance and Projections - The company’s gross margin is expected to recover to between 30% and 35%, with profit elasticity becoming evident as capacity utilization improves [3][13] - The current valuation of the company is considered reasonable but has significant upside potential as order growth accelerates [14] Additional Important Insights - The company has established a comprehensive platform that spans from chemical drug discovery to chemical development and subsequent commercialization [10] - The anticipated increase in capacity utilization and the launch of new projects are expected to enhance profitability and market competitiveness [12][13]

Core Viewpoint - Bayer is committed to enhancing its focus and resource investment in China's innovation ecosystem, aiming to collaborate with local innovators to discover the next significant breakthroughs in drug development [1]. Group 1: Competition Announcement - Bayer China has officially launched the "Co-Creation New Drug" competition, inviting Chinese innovators and biotechnology companies to submit and showcase their innovative research pipelines, drug molecules, or new technologies with breakthrough potential [1]. Group 2: Target Therapeutic Areas - The competition focuses on several key therapeutic areas, including: - Precision Oncology - Precision Cardiorenal Diseases - Immunology & Inflammation [2]. Group 3: Research Pipeline Stages - The competition accepts submissions at various stages of the research pipeline, ranging from early pre-clinical candidate compounds (pre-PCC) to clinical proof of concept (clinical PoC) [2]. Group 4: Drug Molecule Forms - Eligible drug molecule forms include: - Biologics - Small molecules (SMOL) - Conjugated drugs (XDC) - Genetic medicine - Small nucleic acid drugs (siRNA) - Molecular glue - Other platform technologies [3]. Group 5: Evaluation Criteria - Submissions will be evaluated by a review committee composed of Bayer China's and global R&D and business development experts based on innovation level, key data, advancement speed, and alignment with Bayer's R&D strategy [4].

Core Insights - Scientists from Walter and Eliza Hall Institute in Australia have discovered a small molecule that can selectively inhibit apoptosis, which opens new avenues for treating neurodegenerative diseases such as Parkinson's and Alzheimer's [1] Group 1 - The research findings were published in the latest issue of the journal "Science Advances" [1]