Core Viewpoint - The report highlights the ongoing challenges faced by the company in its cell and gene therapy CDMO business, including low order prices and high operational costs, while also emphasizing the potential for growth in the industry supported by favorable policies and technological advancements [1][6][11]. Financial Performance - The company reported a revenue of approximately 119.85 million yuan for the first half of 2025, representing a 6.01% increase compared to the same period last year [4]. - The total profit for the period was a loss of approximately 102.77 million yuan, an improvement from a loss of 113.36 million yuan in the previous year [4]. - The net profit attributable to shareholders was approximately -104.57 million yuan, showing a reduction in losses compared to -113.35 million yuan in the same period last year [4][5]. Industry Overview - The cell and gene therapy sector is identified as a key growth area in biomedicine, with significant advancements in technology and increasing clinical applications [7][11]. - The global pipeline for gene therapies has expanded, with over 4,469 gene therapy projects reported as of mid-2025, indicating a robust growth trajectory in the industry [10][11]. - The industry is characterized by a diverse landscape, with both large enterprises and numerous small to medium-sized companies, leading to a competitive environment [7][11]. Technological Advancements - Continuous innovation in gene editing and delivery technologies is crucial for the advancement of cell and gene therapies, with AI playing a significant role in enhancing research efficiency [8][9]. - Recent breakthroughs in stem cell therapy and regenerative medicine are paving the way for new clinical applications, demonstrating the potential for significant market growth [12][13]. Market Dynamics - The investment landscape for cell and gene therapy is showing signs of recovery in China, with a total financing amount of approximately 4.09 billion yuan in the first half of 2025, up from 2.57 billion yuan in the same period of 2024 [11][12]. - Despite the positive trends, the CDMO sector faces challenges due to the complexity and high costs associated with drug development and production, which may hinder rapid revenue growth [11][12]. Regulatory Environment - The government continues to support the cell and gene therapy industry through various policies aimed at promoting innovation and ensuring quality standards in drug development [14].

Core Insights - The company has evolved from a small 12 square meter incubation base to a production platform of over 77,000 square meters in Lingang, becoming a pioneer in the cell and gene therapy (CGT) sector [2][4] - The chairman emphasizes the importance of perseverance and innovation in driving the company's growth and success in the CGT field [2][3] Company Development - The company started its journey in 2006, initially providing adenoviral vector services to research institutions and gradually expanding its operations [3] - The company has successfully transitioned from a small startup to a major player in the CGT industry, benefiting from a solid foundation laid in its early years [3][4] Capital Market Interaction - The company went public on the New Third Board in 2016, which provided sufficient funding to expand its capabilities in the gene therapy CDMO sector [4] - In 2022, the company successfully listed on the Sci-Tech Innovation Board, and by 2024, its Lingang base's first phase construction was completed and fully operational [4] Industry Trends - Cell and gene therapy is recognized as the "third revolution" in life sciences, with increasing applications in treating various diseases [5] - The company is focused on overcoming challenges in the CGT industry by enhancing its core technologies and expanding its intellectual property protection [5][6] Technological Advancements - The company aims to improve the development and production processes of gene therapy vectors, including the research of AAV viral vectors for rare diseases and the development of non-viral gene therapy vectors [5][6] - The company is investing in large-scale GMP production and quality control technologies to address bottlenecks in the CGT production process [6] Future Strategy - The company plans to leverage its Lingang base to provide comprehensive CRO/CDMO solutions, aiming to reduce costs and accelerate drug development [7][8] - Future initiatives include expanding into stem cell therapy and regenerative medicine, establishing a full-service capability from cell storage to clinical transformation [8] - The company is also looking to grow its CRO and CDMO services internationally, with potential mergers and collaborations to diversify its product offerings in cell and gene therapy [8]