Core Insights - Haisheng Pharmaceutical reported a revenue of 101 million yuan in the first half of 2025, representing a year-on-year growth of 42.14% and a net profit of 30.33 million yuan, up 29.33% year-on-year [1] - The company is a key supplier in the veterinary and pharmaceutical raw materials sector, capitalizing on the recovery of the aquaculture industry and expanding its revenue sources through new product launches and successful fundraising projects [1][3] Industry Trends - The global aging population is projected to reach nearly 1.6 billion by 2050, with 16% of the population aged 65 and older, driving demand for chronic disease management and elderly care medications [2] - The Chinese elderly population is expected to reach 310 million by the end of 2024, accounting for 22% of the total population, further increasing the demand for pharmaceuticals [2] - The global veterinary drug market is expected to exceed 60 billion USD by 2025, with a compound annual growth rate (CAGR) of 7.5% from 2022 to 2025 [2] Company Performance - In the first half of 2025, Haisheng Pharmaceutical's raw materials and intermediates business generated revenues of 77.94 million yuan and 22.71 million yuan, respectively, with year-on-year growth rates of 58.14% and 5.46% [3] - The gross profit margins for raw materials and intermediates were 43.81% and 42.25%, indicating strong product competitiveness and market expansion effectiveness [3] R&D and Innovation - Haisheng Pharmaceutical maintains a high level of R&D investment, with expenditures of 5.17% of revenue in the first half of 2025, reflecting a year-on-year increase of 28.68% [4] - The company has developed core patented technologies that effectively reduce production costs and ensure product quality consistency, supporting profitability and market competitiveness [4] Market Strategy - The company achieved domestic revenue of 78.44 million yuan and international revenue of 22.41 million yuan in the first half of 2025, with gross margins of 39.70% and 56.34%, respectively [5][6] - Haisheng Pharmaceutical is expanding its global market presence while optimizing internal operations and technical capabilities, which is expected to drive revenue growth [5][6] Client Relationships - The company has established partnerships with notable domestic and international clients, ensuring stable sales growth and continuous operational optimization [7] - Haisheng Pharmaceutical is well-positioned to capture opportunities arising from the recovery of the aquaculture industry and the expansion of its product offerings [7]

Company Overview - Haisheng Pharmaceutical achieved operating revenue of 166 million yuan and a net profit attributable to shareholders of 50.75 million yuan in the 2024 annual report [1] - As of the end of Q4, the company's total assets reached 703 million yuan, an increase of 128.8% compared to the previous year, while the net assets attributable to shareholders grew by 129.5% to 653 million yuan [1] - The company focuses on the research, production, and sales of APIs (Active Pharmaceutical Ingredients) and pharmaceutical intermediates, with key products occupying significant market positions [1] Industry Context - The veterinary and pharmaceutical industries in China are experiencing accelerated growth due to supportive policies, increased health awareness, and the advancement of national food safety strategies [2] - The global veterinary drug market is projected to grow from 44.59 billion USD in 2022 to 83.76 billion USD by 2030, with a compound annual growth rate (CAGR) of 8.2% [2] - The domestic veterinary drug market is expected to expand from 68.62 billion yuan in 2021 to 139.57 billion yuan by 2027, with a CAGR of 12.56% [2] - The global API market is anticipated to grow from 174.96 billion USD in 2020 to 245.88 billion USD by 2026, with a CAGR of 5.84% [2] Competitive Advantages - Haisheng Pharmaceutical has been recognized as a national high-tech enterprise since 2016 and has received various honors for environmental protection and safety management [3] - The company possesses a comprehensive product chain in the sulfonamide API and intermediate sector, with proprietary synthesis technology for key products [3] - The company has maintained an upward trend in R&D expenses, indicating a commitment to innovation, with R&D expenses increasing from 6.02 million yuan in 2019 to 9.03 million yuan in 2023, reflecting a CAGR of 10.70% [4] Market Expansion - Haisheng Pharmaceutical's products are marketed in Europe, Oceania, Asia, and South America, with major clients including ELANCO and AMPHRAY [4] - As of H1 2024, domestic business revenue accounted for 67.27% of total revenue, while international revenue made up 32.73% [4] Future Strategy - The company aims to continue focusing on the API and intermediate sectors, particularly in the sulfonamide API niche, leveraging its complete industrial chain and advanced R&D capabilities [5] - Haisheng Pharmaceutical plans to enhance its market competitiveness through CDMO (Contract Development and Manufacturing Organization) collaborations with well-known veterinary and pharmaceutical companies [6]