Summary of the Conference Call for Botao Bio Company Overview - **Company**: Botao Bio - **Investment**: Strategic investment in Qingshi Yongjun, focusing on brain-computer interface (BCI) technology for treatment of treatment-resistant depression (TRD) [2][3] Key Industry Insights - **Market Potential**: Approximately 20 million patients globally suffer from treatment-resistant major depression, indicating a significant market opportunity [2][8] - **Current Treatment Landscape**: Existing treatments for TRD are largely ineffective, creating a gap for innovative solutions like those being developed by Qingshi Yongjun [8][9] Core Points and Arguments - **Strategic Investment**: Botao Bio's investment in Qingshi Yongjun is not purely financial; it aims to enhance R&D capabilities in the BCI field [2][3] - **Clinical Trials**: Initial clinical trial data shows promising results, with one patient reportedly cured after one week of treatment [2][6] - **Future Clinical Trials**: A formal clinical trial involving 100 patients is expected to start in the second half of 2026, pending successful preliminary results [7] - **Regulatory Pathway**: Botao Bio plans to obtain Class III medical device registration by around 2029, with a focus on promoting the product through top-tier hospitals [2][10] Financial Aspects - **Projected Costs**: Estimated treatment costs are around 500,000 CNY, with a product factory price of approximately 200,000 CNY [11] - **Funding Requirements**: Anticipated clinical and registration costs are over 100 million CNY, with plans for further investment in Qingshi Yongjun [12] Collaboration and Market Strategy - **Synergy with Qingshi Yongjun**: Both entities share a unified core team and are integrated with Zhejiang University’s research institute, enhancing their collaborative potential [4][5] - **Market Expansion Plans**: Botao Bio aims to expand into international markets, including obtaining FDA certification for the U.S. market [10][11] Additional Insights - **Impact of External Factors**: The suspension of U.S.-China tariffs and currency fluctuations have positively influenced Botao Bio's U.S. business outlook [4][18] - **IVD Industry Outlook**: The IVD industry is expected to show slight improvement in 2026, although competition remains fierce [21] - **Microfluidics Development**: Botao Bio is investing in microfluidics technology, targeting revenue goals of 500 million to 1 billion USD in the coming years [20] Conclusion Botao Bio is strategically positioning itself in the burgeoning field of brain-computer interfaces, particularly for treatment-resistant depression, with a robust plan for clinical trials and market expansion. The company is leveraging its financial resources and collaborative partnerships to navigate regulatory pathways and capitalize on significant market opportunities.

Financial Performance - In H1 2025, the company reported revenue of 203 million yuan, a decrease of 23.91%, and a net profit attributable to shareholders of 12.4 million yuan, down 82.82% [1] - Q2 2025 revenue was 115 million yuan, a decline of 12.27%, with a net profit of 3.67 million yuan, down 88.72% [1] - The decline in revenue was primarily due to tariff impacts on U.S. business and a slowdown in government procurement, alongside decreased demand for mosquito products in Latin America and respiratory testing in domestic markets [1] Cost and Expense Analysis - The company's expense ratios for R&D, sales, management, and financial costs were 19.67%, 9.91%, 17.46%, and -6.38% respectively, with increases of 8.31, 5.67, 5.47, and 6.29 percentage points [1] - Profit margins were more adversely affected than revenue due to increased registration fees, employee stock plan costs, and reduced financial income [1] Product Development and Innovation - The company launched several new products in H1 2025, including four new drug testing reagents and a chikungunya virus testing reagent, enhancing its product pipeline [2] - Microfluidic technology has improved device portability and adaptability, achieving laboratory-level sensitivity while reducing costs by 60% [2] - The company is focusing on the development of cardiac markers, thyroid function, and nutritional products, with multi-item testing on a single chip already achieved [2] Strategic Initiatives - The company has strategically entered the brain-computer interface market through its subsidiary, investing in a company that targets treatment for severe depression [2] - The brain-computer interface market is expected to grow significantly due to policy support and technological breakthroughs, which could enhance the company's long-term growth prospects [2] Future Projections - Revenue projections for 2025-2027 are 585 million yuan, 731 million yuan, and 890 million yuan, with net profits of 108 million yuan, 166 million yuan, and 215 million yuan respectively [3] - Corresponding P/E ratios for 2025-2027 are expected to be 54.12, 35.17, and 27.27 [3]