Core Viewpoint - The company is experiencing a recovery in traditional business growth, with emerging businesses gradually ramping up, leading to improved profitability quarter by quarter [1] Financial Performance - For Q1-Q3 2025, revenue reached 2.544 billion yuan, a year-on-year increase of 19.7%, with a net profit attributable to shareholders of 79.92 million yuan, marking a turnaround from losses [2] - In Q3 alone, revenue was 923 million yuan, up 19.4% year-on-year, and net profit was 52.86 million yuan, significantly improving from losses, with a quarter-on-quarter growth of 68.7% [2] - The gross margin for Q1-Q3 2025 was 28.86%, an increase of 5.6 percentage points year-on-year, while Q3 gross margin was 31.02%, stable year-on-year and up 2.1 percentage points quarter-on-quarter [2] Business Segments - Revenue from small molecule APIs for Q1-Q3 2025 was 2.350 billion yuan, a year-on-year increase of 19.4%, while emerging business revenue was 190 million yuan, up 23.4% [3] - The small molecule formulation CDMO segment generated 101 million yuan, remaining flat year-on-year, while CGT CDMO revenue was 43 million yuan, up 7.1% [3] - New molecular businesses, including peptides, oligonucleotides, and ADCs, saw revenue of 46 million yuan, a substantial increase of 254.8% year-on-year [3] Market Performance - Overseas market revenue for Q1-Q3 2025 was 1.805 billion yuan, a year-on-year increase of 17%, while domestic market revenue was 739 million yuan, up 21% [3] Profitability Trends - The gross margin for the overseas market was approximately 40%, an increase of 5 percentage points year-on-year, driven by high-value commercial projects [4] - The domestic market gross margin was around 1%, improving from -3% in H1 2025; excluding emerging business impacts, the domestic gross margin was about 18% [4] - Overall gross margin for the company was approximately 35%, showing a trend of improvement [4] Emerging Business Impact - The new business segments negatively impacted the net profit attributable to shareholders by approximately 164 million yuan, with a total reduction in losses of about 17.5 million yuan [4] - The small molecule formulation, gene cell therapy, and new molecular businesses contributed to the net profit reductions of 67.69 million yuan, 38.67 million yuan, and 57.25 million yuan, respectively [4] Catalysts - There is an unexpected growth in orders and terminal demand for new businesses, indicating positive market dynamics [5]

Core Viewpoint - The company reported a strong financial performance in Q3 2025, with significant revenue growth and a return to profitability, driven by high-value commercialization projects and cost reduction measures [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.544 billion yuan, representing a year-on-year increase of 19.7%, and a net profit attributable to shareholders of 80 million yuan, marking a turnaround from losses [1]. - In Q3 2025 alone, the company generated revenue of 923 million yuan, up 19.4% year-on-year and 12.7% quarter-on-quarter, with a net profit of 53 million yuan, continuing the trend of profitability recovery [1]. - The gross margin for the first three quarters of 2025 was 28.9%, an increase of 5.6 percentage points year-on-year, with the overseas market gross margin around 40% and the domestic market gross margin at approximately 1% [2]. Business Development - The core business of small molecule CDMO showed steady growth, with revenue of 2.350 billion yuan in the first three quarters of 2025, a year-on-year increase of 19%, driven by the ramp-up of high-value projects [2]. - The overseas market contributed 1.805 billion yuan in revenue, up 17% year-on-year, while the Chinese market generated 739 million yuan, reflecting a 21% increase [2]. - New business segments are showing a clear path to reduced losses, with small molecule formulation CDMO revenue flat year-on-year, and gene and cell therapy revenue at 42.86 million yuan, a growth of about 7% [3]. Profitability Outlook - The company has adjusted its net profit forecasts for 2025 and 2026 upwards by 100.5% and 15.9% respectively, now projecting net profits of 140 million yuan and 270 million yuan [4]. - The target price has been raised by 7.1% to 30.00 yuan, indicating a potential upside of 17.1% from the current stock price, based on DCF valuation [4].

Core Insights - The company reported a revenue of 2.544 billion yuan for the first three quarters, marking a year-on-year growth of 19.72% [1] - The net profit attributable to shareholders reached 79.92 million yuan, and the net profit after deducting non-recurring gains and losses was 53.68 million yuan, both showing a turnaround from losses compared to the same period last year [1] - The net cash flow from operating activities was 375 million yuan, reflecting a significant year-on-year increase of 54.1% [1] Financial Performance - In Q3, the company achieved a revenue of 923 million yuan, with a year-on-year growth of 19.44% [1] - The net profit attributable to shareholders for Q3 was 52.86 million yuan, and the net profit after deducting non-recurring gains and losses was 47.26 million yuan, both indicating a recovery from losses compared to the previous year [1] - As of the end of Q3, total assets amounted to 8.581 billion yuan, and net assets attributable to shareholders were 5.335 billion yuan, indicating a more robust asset structure [1] Business Segments - The company has established a collaborative development framework involving small molecule API CDMO, small molecule formulation CDMO, gene and cell therapy CDMO, and new molecular businesses [2] - From January to September, the small molecule API CDMO business generated revenue of 2.350 billion yuan, reflecting a year-on-year growth of approximately 19% [2] - The new molecular business emerged as the largest growth driver, with revenue of approximately 46.27 million yuan, a staggering year-on-year increase of 255% [2] Market Performance - Revenue from overseas markets reached 1.805 billion yuan, showing a year-on-year growth of 17% [2] - Revenue from the Chinese market was 739 million yuan, with a year-on-year increase of 21% [2] - The overall gross margin for the company was approximately 29%, an increase of nearly 6 percentage points year-on-year [2] Profitability Trends - The gross margin for overseas markets was about 40%, up 5 percentage points year-on-year, while the domestic market gross margin was around 1% [2] - Excluding the impact of new businesses, the domestic market gross margin was approximately 18% [2] - The gross margin for Q3 improved by about 3 percentage points from Q2, reaching 31%, indicating a trend of improving profitability [2]