Industry Overview - The hard brain (spinal) membrane patch is a sheet-like material used for temporary or permanent repair of defects in the dura mater and/or spinal dura mater [1] - The demand for hard brain (spinal) membrane patches is increasing due to the aging population, rising incidence of cerebrovascular diseases, and improved disease awareness among the public [1][8] - The market size for hard brain (spinal) membrane patches in China is projected to reach 1.18 billion yuan in 2024 and 1.841 billion yuan by 2029 [1][8] Market Status - The artificial hard brain (spinal) membrane patch is primarily used to fill local losses or defects in the dura mater, which is crucial for protecting brain tissue [6] - Since 2020, hard brain (spinal) membrane patches have been included in bulk procurement across 24 provinces in China, leading to significant price reductions, with average price drops of 70%-90% in several provinces [6][8] - The market size for hard brain (spinal) membrane patches had previously expanded significantly from 2016 to 2020 but faced a contraction due to centralized procurement policies [8] Key Enterprises - Major companies in the hard brain (spinal) membrane patch industry include Guanhao Biological, Zhenghai Biological, Maipu Medical, and Bairen Medical, among others [2][12] - Guanhao Biological reported a total revenue of 377 million yuan in 2024, with a year-on-year decline of 6.6% [13] - Zhenghai Biological's revenue for 2024 was 363 million yuan, down 12.19% year-on-year, with its membrane series products generating 149 million yuan [15] Development Trends - Technological innovations such as 3D printing, nanofiber materials, and bioactive composite materials are being increasingly applied in the development and production of hard brain (spinal) membrane patches [17] - The domestic production rate of artificial hard brain (spinal) membrane patches has reached 90%, with companies like Maipu Medical and Guanhao Biological enhancing their technological capabilities [18] - Government policies supporting the medical device industry and stricter regulations are creating a favorable environment for the development of the hard brain (spinal) membrane patch industry [19]

Core Viewpoint - Guanhao Biological has decided to terminate its plan to issue shares to specific investors due to changes in the market environment and overall development strategy, retracting its application documents [1][4]. Group 1: Termination of Share Issuance - The company announced the termination of its share issuance plan initiated in March 2023, which aimed to raise up to 500 million yuan (approximately 70 million USD) by issuing shares at 8.96 yuan per share [1][3]. - The funds from the planned issuance were intended to enhance the company's financial strength and support its operations, improving financial structure and liquidity [3][4]. - The stock price of Guanhao Biological has increased by 69.75% compared to the proposed issuance price, closing at 15.21 yuan per share on June 23 [1][4]. Group 2: Financial Performance - In 2024, the company reported revenue of 377 million yuan, a year-on-year decline of 6.60%, with a net profit attributable to shareholders of 27.42 million yuan, down 11.57% [4]. - For the first quarter of the current year, the company achieved revenue of 94.80 million yuan, a year-on-year increase of 3.67%, and a net profit of 14.87 million yuan, up 3.30% [4]. - As of the end of the first quarter, the company had cash and cash equivalents of 122 million yuan and current liabilities of 146 million yuan [4].