Core Viewpoint - The financial performance of Botao Biological has significantly declined due to the fading benefits from COVID-19 testing, with a notable drop in revenue and net profit in the first half of 2025 compared to previous years [1][2][3]. Financial Performance - In the first half of 2025, Botao Biological reported revenue of 203 million yuan, a year-on-year decrease of 23.91%, and a net profit attributable to shareholders of 12.4 million yuan, down 82.82% [1]. - The company experienced a rapid revenue increase from 2019 to 2022, with revenues growing from approximately 200 million yuan in 2019 to 1.8 billion yuan in 2022, driven by COVID-19 testing [2]. - However, revenues fell sharply in 2023 and 2024, with reported figures of 442 million yuan and 559 million yuan, reflecting year-on-year changes of -76.75% and 26.53%, respectively [2]. Business Operations - The decline in performance is attributed to reduced demand for respiratory testing products and a slowdown in government procurement, particularly affecting U.S. operations due to tariffs [1][3]. - The company’s investment projects, initially expected to yield significant benefits, have not met projections, particularly in the expansion of diagnostic product production capacity [4][5]. Investment and Strategic Direction - Botao Biological has shifted focus towards the brain-computer interface sector, investing in Qingstone Yongjun Medical Equipment Co., which targets treatment for severe depression [7][8]. - The investment is seen as a strategic move to transition from diagnostic to therapeutic technologies, with potential market growth anticipated in the future [8]. Market Response - Following favorable policy announcements regarding brain-computer interface development, Botao Biological's stock experienced a temporary increase, although subsequent announcements of share reductions by the actual controller raised market concerns [8].