Fundraising Plan - The company plans to raise a total of no more than 850 million yuan, with the net amount after deducting issuance costs to be used entirely for project construction [1] - The total investment for the projects exceeds the net amount raised, with the company planning to cover the shortfall through self-funding or other financing methods [1] Necessity and Feasibility of Fundraising - The R&D center construction project is a continuation of a previous fundraising initiative, aimed at addressing a funding gap to ensure smooth project development [2][3] - The project aims to establish a comprehensive R&D headquarters with international vision, focusing on intelligent, digital, and international research capabilities [2] Project Details - The total investment for the R&D center is 984.23 million yuan, with 207.97 million yuan already invested from previous fundraising efforts and 650 million yuan planned from the current fundraising [3][4] - The project will include advanced facilities such as a high-standard data center and automated systems to enhance research efficiency and data reliability [3] R&D Focus and Market Position - The company emphasizes the importance of R&D as a core driver for pharmaceutical development, with a focus on building a strong pipeline of innovative products [5][6] - Recent product launches, including a treatment for dry eye syndrome, have significantly contributed to revenue growth, with total revenue increasing from approximately 689 million yuan in 2020 to about 1.943 billion yuan in 2024 [5][6] Future R&D Directions - The company is expanding its product line in the ophthalmology sector, focusing on innovative treatments for various eye diseases, including age-related macular degeneration and diabetic macular edema [7][8] - The development of new treatment methods, including gene therapy, is seen as a key opportunity for the company to enhance its market position [7] Financial Impact of Fundraising - The fundraising will improve the company's liquidity and capital structure, enhancing its ability to manage risks and support sustainable growth [12][13] - The successful implementation of the fundraising projects is expected to strengthen the company's core competitiveness and long-term viability [13]

Core Viewpoint - The company has shown significant growth in revenue and net profit in both 2024 and Q1 2025, driven by successful product launches and a strong pipeline in the ophthalmic drug sector [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 1.943 billion yuan, a year-on-year increase of 32.42%, and a net profit of 338 million yuan, up 40.84% [1]. - For Q1 2025, the company reported revenue of 536 million yuan, representing a 53.24% year-on-year growth, and a net profit of 146 million yuan, which surged by 319.86% [2]. - The overall gross margin improved to 78.33% in 2024, with a further increase to 80.16% in Q1 2025 [3]. Cost Management - The company reduced its total expense ratio to 56.47% in 2024, down by 1.51 percentage points, and further decreased it to 47.26% in Q1 2025, a drop of 17.21 percentage points [3]. - Sales expense ratio decreased to 36.30% in 2024 and further to 31.34% in Q1 2025 [3]. Product Development and Market Position - The company’s product "Meioupin" is the first low-concentration atropine eye drops approved in China for delaying myopia progression in children, included in multiple clinical guidelines [4]. - The company is advancing its pipeline with several products in various stages of clinical trials, including drugs for dry eye syndrome and other ophthalmic conditions [5]. Investment Outlook - The company is projected to achieve revenues of 3.03 billion yuan, 4.04 billion yuan, and 5.07 billion yuan for 2025 to 2027, with respective year-on-year growth rates of 55.9%, 33.2%, and 25.6% [6]. - Net profit forecasts for the same period are 600 million yuan, 820 million yuan, and 1.05 billion yuan, with growth rates of 78.7%, 36.1%, and 28.1% respectively [6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to experience rapid growth in 2025, particularly with the anticipated increase in sales of low-concentration atropine [3][4] - In 2024, the company reported a revenue of 1.943 billion yuan, representing a year-on-year increase of 32.42%, and a net profit attributable to shareholders of 338 million yuan, up 40.84% [3][4] - The company is positioned as a leader in the myopia prevention medication sector, with a strong focus on the promotion of its core product, low-concentration atropine [3][4] Financial Summary - The company's revenue is projected to grow from 1.943 billion yuan in 2024 to 2.948 billion yuan in 2025, reflecting a year-on-year growth rate of 51.7% [6] - The net profit attributable to shareholders is expected to increase significantly from 338 million yuan in 2024 to 688 million yuan in 2025, marking a growth of 103.6% [6] - The gross margin is forecasted to improve from 78.3% in 2024 to 80.6% in 2025, while the net margin is expected to rise from 17.4% to 23.3% during the same period [6] Product Development - The company has developed a series of ophthalmic products, including the first approved cyclosporine eye drops for dry eye syndrome in China, which generated sales of 298 million yuan in 2023 [4] - The approval of sulfate atropine eye drops in March 2024 is expected to enhance the company's product lineup and meet the growing demand for myopia treatment among children and adolescents [4] - The revenue from eye drops is projected to reach 1.366 billion yuan in 2024, with a remarkable growth rate of 106.08% [4]