Core Viewpoint - Fuxiang Pharmaceutical is experiencing a growth in its mid-year performance compared to last year, but it remains in a loss position. The company plans to improve its net profit through various products and strategies [2]. Group 1: Business Performance and Strategies - The company aims to enhance its pharmaceutical business by increasing the selling price of key intermediates and expanding production capacity for various products, which will improve gross margins and competitiveness [2]. - In the new energy sector, Fuxiang's lithium battery electrolyte additive products are performing well in terms of shipment volume and cost control, with prices at historical lows, indicating potential for profit growth as the industry recovers [2]. - The synthetic biology sector is being developed with a focus on microbial protein, with a new food raw material application already accepted for review by the National Health Commission, aiming for approval and market launch in the second half of the year [2][4]. Group 2: Microbial Protein Business Advantages - Fuxiang Pharmaceutical is a pioneer in the domestic microbial protein industry, with significant production capacity and proprietary technology, including patents in multiple countries [3]. - The company has achieved international advanced levels in key technologies for microbial protein production and has received various quality certifications for its products [3]. - Collaborations with academic institutions are in place to foster innovation across the entire industry chain, emphasizing green production and cost efficiency [3]. Group 3: Future Plans for Synthetic Biology - The company plans to obtain necessary approvals for its new protein products and enhance market presence through brand building and international expansion [4]. - Focus will be on accelerating the industrialization of new protein products and recruiting talent to build a high-performance team [4]. - Strategic partnerships have been established to advance product development and market promotion, with a strong outlook for amino acid water-soluble fertilizers [4].

Financial Performance - The company reported an increase in mid-year performance compared to last year, but remains in a loss state [2] - Future strategies will focus on improving net profit through various products and avenues [2] Pharmaceutical Manufacturing - The decline in raw material prices for 6-APA and the recovery in prices for the key intermediate 4-AA will enhance the gross margin of the pharmaceutical business [3] - Successful completion of supplier qualification for the new process product, Tazobactam, is expected to reduce production costs and improve market competitiveness [3] - Expansion of Piperacillin production capacity is underway, with significant market demand for combination formulations [3] - New compound formulations are being launched, which will drive demand for related products [3] New Energy Business - The company leads in the industry for lithium battery electrolyte additives in terms of shipment volume and cost control [3] - Current prices for these additives are at historical lows, with limited room for further decline; a price rebound could significantly enhance profits [3] Synthetic Biology - The company is a pioneer in microbial protein production, with significant advancements in core strains, production technology, and market access [4][5] - The registration application for the new protein as a food ingredient has been accepted, with expectations for approval in the second half of the year [4][9] - The company is constructing a project with an annual capacity of 200,000 tons of microbial protein, aiming for a production scale of 20,000 tons of microbial protein and 50,000 tons of amino acid water-soluble fertilizer [5][15] Quality and Certification - The new protein has received multiple international certifications, including HALAL and KOSHER, and has passed various food safety management system certifications [6] - The company has developed proprietary strains and achieved international advanced levels in production technology [5][6] Market Expansion and Collaboration - Strategic partnerships have been established with various companies in the microbial protein sector, enhancing market penetration [11] - The company plans to build an open commercial transformation platform to accelerate product commercialization and brand development [10] Product Development - The new protein can be applied in various sectors, including plant-based meat alternatives, protein drinks, and health products [12] - The company is actively developing new applications and has created several product samples for market introduction [12] Environmental and Regulatory Compliance - The company’s production processes aim for zero emissions and align with national agricultural reduction goals [7][14] - The amino acid water-soluble fertilizer is positioned to meet growing market demands due to regulatory support for green products [15]

Core Viewpoint - The company has made significant progress in its strategic development, focusing on optimizing governance structures and enhancing operational efficiency while achieving a reduction in net losses during the first half of 2025 [5][6]. Company Overview - The company reported a revenue of 514.67 million yuan in the first half of 2025, with a net profit attributable to shareholders of -6.91 million yuan, reflecting a year-on-year reduction in losses by 15.55 million yuan [5][6]. Key Developments - The company has optimized its governance structure, ensuring continuity and stability through the re-election of the board and the appointment of senior management [6]. - The company’s new protein product successfully obtained GRAS certification in the U.S., facilitating its entry into international markets [6]. - The company was included in the first batch of the national bio-manufacturing landmark product list, showcasing its technological strength in the field of microbial protein [6]. Future Plans - For the second half of 2025, the company will focus on three main business divisions: pharmaceuticals, new energy, and synthetic biology, aiming to enhance marketing and R&D capabilities [7]. - The pharmaceutical division plans to deepen collaboration with key customers and enhance product development to improve market competitiveness [8]. - The new energy division aims to strengthen strategic partnerships and optimize production processes to reduce costs and enhance operational efficiency [8]. - The synthetic biology division will focus on commercializing its new protein product and expanding its market presence through innovative applications [9][10]. Product Development - The company is advancing its amino acid water-soluble fertilizer product, which utilizes by-products from its new protein production process, aiming for certification and market launch in the second half of 2025 [12].