Core Viewpoint - Zhejiang Zhenyuan Co., Ltd. has announced the termination of its plan to issue shares to specific investors, citing a continuous decline in revenue and a strategic shift towards synthetic biology projects [1][4]. Group 1: Financial Performance - The company's revenue has been on a downward trend, with reported figures of 4.145 billion, 4.106 billion, 3.741 billion, and 1.283 billion yuan for the years 2022 to 2025 (first half), reflecting year-on-year changes of -14.77%, -0.94%, -8.91%, and -34.49% respectively [6]. - The net profit attributable to shareholders has also fluctuated, with figures of 77.91 million, 81.64 million, 34.73 million, and 56.26 million yuan for the same periods, showing year-on-year changes of 0.79%, 4.79%, -57.46%, and 29.27% respectively [6]. - The company has acknowledged that its revenue and net profit growth rates are below industry averages due to increased competition and regulatory changes in the pharmaceutical sector [6]. Group 2: Strategic Initiatives - Zhejiang Zhenyuan is focusing on the synthetic biology sector, planning to establish a production base for various synthetic biological products, including 2,400 tons of histidine and 1,000 tons each of L-DOPA and tyrosine [7]. - The company has undertaken structural optimization through acquisitions and strategic investments, including the integration of its pharmaceutical wholesale business and the introduction of China Resources Pharmaceutical Group as a strategic investor [8]. Group 3: Fundraising and Project Development - The company initially planned to raise 3 billion yuan through a private placement to fund its synthetic biology projects but later decided to utilize its own and self-raised funds for project implementation after terminating the fundraising plan [1][4]. - The total investment for the synthetic biology projects is estimated at 1.068 billion yuan, with the company planning to use up to 495 million yuan from the fundraising efforts, which accounts for approximately 46.34% of the total investment [2].

Core Viewpoint - Zhejiang Zhenyuan has decided to terminate its plan for a private placement of shares originally intended to raise 495 million yuan due to the current capital market environment and the company's overall development strategy [1][4]. Group 1: Fundraising and Project Details - The company initially aimed to raise 495 million yuan to focus on core pharmaceutical industrial projects, including the raw material drug aggregation enhancement project and the Shangyu industrialization base project [2]. - The raw material drug aggregation enhancement project has a total investment of 481 million yuan, with 195 million yuan planned to be raised from the issuance. It is designed to have an annual production capacity of 436 tons and is expected to generate annual sales revenue of 565 million yuan and a net profit of 124 million yuan upon full production [2][3]. - The Shangyu industrialization base project has a total investment of 587 million yuan, with 300 million yuan planned to be raised. It aims to produce 2,400 tons of histidine and other products, with expected annual sales revenue of 624 million yuan and a net profit of 179 million yuan upon completion [3]. Group 2: Project Progress and Financial Status - Both projects are currently under construction and have not been affected by the termination of the share issuance. The raw material drug aggregation enhancement project has a construction progress of 40%, while the Shangyu industrialization base project has reached 95% completion [4][5]. - As of June 30, the company reported a cash balance of 513 million yuan, indicating sufficient liquidity despite a slight decrease from the end of 2024. The overall debt level remains manageable, with short-term borrowings of 20.08 million yuan and long-term borrowings of 169 million yuan [4].

Core Viewpoint - Zhejiang Zhenyuan has decided to terminate its plan to issue shares to specific investors and has withdrawn its application due to considerations of the current capital market environment and the company's overall development strategy [1][2]. Group 1: Termination of Share Issuance - The company held a board meeting on October 21, 2025, where it approved the decision to terminate the share issuance and withdraw the application [1]. - The termination decision was made after thorough communication and analysis with relevant parties, considering the current capital market conditions [2]. Group 2: Financial Implications - The company stated that the termination of the share issuance will not adversely affect its normal production and operations, nor will it harm the interests of shareholders, especially minority shareholders [2]. - The planned fundraising amount was up to 49,500 million CNY, intended for specific projects including the construction of a production base for various biochemical products and an enhancement project for raw materials [2][3]. Group 3: Project Details - The projects intended for the raised funds included: 1. Construction of a production base for 2,400 tons of histidine, 1,000 tons of levodopa, and 1,000 tons of tyrosine, with a total investment of approximately 58.70 million CNY and planned fundraising of 30 million CNY [3]. 2. A project for enhancing raw material production with a total investment of about 48.12 million CNY and planned fundraising of 19.50 million CNY [3]. - The total investment for both projects was approximately 106.83 million CNY, with a total planned fundraising of 49.50 million CNY [3].

Summary of Conference Call Records Industry or Company Involved - **Zhejiang Zhenyuan**: Focused on biotechnological synthesis and amino acid production - **Guohang**: Engaged in international cargo transportation and logistics Core Points and Arguments - **Zhejiang Zhenyuan's Project**: The company is advancing its biological directed synthesis project, specifically for hydrochloride histidine, with all sections of the project nearly installed and testing underway. Production is expected to commence in Q3 2025. Hydrochloride histidine serves as a starting raw material for synthesizing ergotamine [5][6] - **Investment in Synthetic Biology**: Zhejiang Zhenyuan has invested significantly in synthetic biology over the years, collaborating with renowned research institutions such as the Tianjin Institute of Industrial Biotechnology and East China University of Science and Technology. This has led to the development of advanced synthetic biology technologies for large-scale production of various amino acids, which are crucial for food additives, health supplements, and pharmaceutical intermediates [5][6] - **Guohang's International Operations**: Guohang's international cargo routes cover 21 cities across 12 countries, with new routes planned for 2024, including Guangzhou to Mexico City. The company is leveraging passenger aircraft for cargo transport, enhancing its service capabilities in line with the Belt and Road Initiative. A new cargo route from Chengdu to Dubai is set to open in April 2025 [5][6] Other Important but Possibly Overlooked Content - **Market Trends**: The top trending topics in the interactive platform include artificial intelligence, photovoltaics, and industrial robotics, indicating a strong market interest in these sectors [2] - **Emerging Technologies**: The company is also exploring developments in high-end CNC machine tools, smart control systems, and robotics, which are expected to drive future growth [6][7] - **Stock Performance**: Recent stock performance shows a +1.88% increase for Zhejiang Zhenyuan and a -2.54% decrease for Guohang, reflecting market reactions to their respective developments [7]