Core Viewpoint - The performance in H1 2025 meets expectations, with the consolidation of Zhongshan Haiji and Hong'an Jiyuan enhancing company performance. The apparent revenue shows steady growth, but internal business growth is under pressure due to lower respiratory disease incidence compared to the same period last year and the impact of VAT rate adjustments. The respiratory disease incidence remains low in Q3 2025, and internal revenue growth is expected to remain under pressure. However, the apparent revenue is anticipated to achieve stable year-on-year growth in the second half of the year. The company, as a leader in the molecular diagnostics industry, has a rich product matrix and high industry recognition, with a clear first-mover advantage in respiratory testing. The expansion of home testing services further contributes to revenue growth, and the company is optimistic about achieving integrated diagnosis and treatment through mergers and self-research [1][3][8]. Financial Performance - In H1 2025, the company achieved operating revenue of 869 million yuan, a year-on-year increase of 21.15%, and a net profit attributable to shareholders of 163 million yuan, up 3.84%. The net profit after deducting non-recurring items was 136 million yuan, an increase of 12.19%. The basic earnings per share were 0.28 yuan. In Q2 2025, the operating revenue was 393 million yuan, a year-on-year increase of 20.59%, while the net profit attributable to shareholders was 71 million yuan, a decrease of 6.21% [2][3]. Business Segments - The performance of Zhongshan Haiji's growth hormone business was notable, contributing 216 million yuan in revenue during the consolidation period. Hong'an Jiyuan contributed 10.54 million yuan in revenue. Excluding the contributions from these two companies, the company's internal business revenue declined by 10% year-on-year in H1 2025. The overall performance in H1 2025 met expectations, despite the internal growth being under pressure due to lower respiratory disease incidence and VAT adjustments [3][4]. Product Development - In the molecular diagnostics field, the company has launched its first fungal testing reagent, significantly improving the efficiency of diagnosing invasive pulmonary fungal diseases. The company is leveraging an "Internet + Healthcare" home testing model to drive respiratory product sales directly to consumers, with promising prospects for expanding this model to other product categories [4]. Investment and Mergers - The company is actively seeking quality targets for investment and collaboration, having acquired 100% of Zhongshan Haiji's shares to establish a foothold in the growth hormone sector. This acquisition supports long-term development in pediatrics and aids in creating an integrated health solution strategy. The company has also increased its investment in Zhenmai Bio to accelerate the domestic replacement of gene sequencing solutions and promote international breakthroughs in gene technology [6][7]. Financial Metrics - In H1 2025, the company's gross profit margin was 73.28%, a decrease of 3.99 percentage points year-on-year, primarily due to price reductions in high-margin respiratory testing kits and VAT policy adjustments. The sales expense ratio was 31.83%, while the management expense ratio decreased to 12.09%. The research and development expense ratio was 17.71%, and the financial expense ratio was -3.98% due to reduced interest income from deposits. The net operating cash flow was -143 million yuan, compared to -63 million yuan in the same period last year [7]. Future Outlook - Looking ahead to the second half of the year, the company expects to be affected by VAT rate adjustments and the unbundling of testing project packages. The respiratory disease incidence remains low, and internal revenue growth is anticipated to remain under pressure in Q3 2025. However, the consolidation of Zhongshan Haiji and Hong'an Jiyuan is expected to contribute to revenue growth, with apparent revenue projected to achieve stable year-on-year growth in the second half [8]. Profit Forecast and Valuation - In the short term, with the significant improvement in domestic PCR testing efficiency and clinical awareness, the penetration rate of molecular diagnostics is expected to rise rapidly. The company, as a leader in molecular diagnostics, is poised for steady development in various fields, including respiratory, maternal and child health, hepatitis, and blood screening. However, short-term performance may be volatile due to respiratory disease incidence, VAT rate adjustments, and policy impacts. In the medium to long term, the company has strong advantages in R&D, channels, and branding, actively expanding into new application areas in molecular diagnostics [9].

Group 1 - The company reported a revenue of 869 million yuan for the first half of 2025, representing a year-over-year increase of 21.15%, and a net profit attributable to shareholders of 163 million yuan, up 3.84% year-over-year [1] - In Q2 2025, the company achieved a revenue of 393 million yuan, a year-over-year increase of 20.59%, but the net profit attributable to shareholders decreased by 6.21% to 71 million yuan [1] - The company plans to distribute a cash dividend of 2.62 yuan for every 10 shares for the first half of 2025 [1] Group 2 - The company's overseas business grew rapidly, with revenue increasing by over 60% year-over-year in the first half of 2025, and it has established subsidiaries in countries like Indonesia, France, the Philippines, and Canada [1] - The company is focusing on expanding its market penetration in private hospitals in France and Italy, and has developed product solutions for the U.S. market targeting respiratory and urinary tract infections [1] Group 3 - The company is advancing its "diagnosis + treatment" integration strategy, having fully acquired Zhongshan Haiji, which generated 240 million yuan in revenue and 97 million yuan in net profit, a 120% year-over-year increase [2] - The sequencing business revenue exceeded 30 million yuan in the first half of 2025, marking a threefold year-over-year increase [2] - The company has increased its investment in strategic sectors, with over 100 million yuan in new investments, a year-over-year increase of over 40% [2] Group 4 - The company's gross margin for the first half of 2025 was 73.28%, a decrease of 3.99 percentage points year-over-year [3] - Sales expenses rose to 276 million yuan, a year-over-year increase of 23.67%, primarily due to higher promotional and technical consulting costs [3] - Research and development expenses were stable at 119 million yuan, with ongoing development of diagnostic solutions in respiratory and maternal-child health fields [3] Group 5 - Revenue forecasts for the company from 2025 to 2027 are projected at 1.862 billion, 2.120 billion, and 2.311 billion yuan, with year-over-year growth rates of 27.71%, 13.84%, and 9.04% respectively [3] - Net profit attributable to shareholders is expected to be 303 million, 408 million, and 546 million yuan for the same period, with growth rates of 10.06%, 34.52%, and 33.79% respectively [3] - The current price-to-earnings ratios are projected at 40x, 30x, and 22x for 2025, 2026, and 2027 [3]

Core Viewpoint - The company is committed to enhancing operational efficiency and quality, focusing on investor returns through strategic initiatives and innovation in the healthcare sector [1][3][6]. Group 1: Operational Efficiency and Management - The company achieved a revenue of 1,000 million yuan, representing a year-on-year growth of 3.84%, while the net profit attributable to shareholders, excluding non-recurring gains and losses, increased by 10.65% [1]. - The company has implemented standardized management, resource focus, and process optimization to drive efficiency, resulting in continuous growth in per capita output [2]. - The organization is adapting its structure dynamically to market changes, enhancing collaboration between demand and delivery, and strengthening resource allocation mechanisms [2]. Group 2: Research and Development Innovation - The company increased its R&D investment to 153.82 million yuan, a year-on-year increase of 6.3%, accounting for 17.71% of revenue, with capitalized investment growing by 30.16% [3]. - Over 100 new domestic and international registration certificates were obtained, bringing the total to over 1,700, alongside the addition of more than 70 patents and software copyrights [3]. - The company launched innovative products in key areas such as respiratory health, genetic sequencing, and drug genomics, enhancing its product matrix and supporting national healthcare initiatives [4][5]. Group 3: Investor Returns and Engagement - The company emphasizes a stable profit distribution policy, proposing to distribute no less than 300 million yuan in cash annually from 2024 to 2026, totaling at least 900 million yuan over three years [7]. - A cash dividend of 2.75 yuan per share was proposed, with a total of over 2.3 billion yuan distributed since its listing [7]. - The company has implemented three rounds of share repurchase plans, totaling over 580 million yuan, and plans to cancel shares to enhance earnings per share [8]. Group 4: Information Disclosure and Governance - The company has disclosed 40 temporary announcements and 2 regular reports in the first half of 2025, ensuring timely communication of important information to investors [9]. - The governance structure has been optimized by revising the articles of association, eliminating the supervisory board, and enhancing the audit committee's supervisory powers [11]. - The company has revised multiple governance documents to promote standardized operations and strengthen internal governance mechanisms [11]. Group 5: Strategic Development and Future Outlook - The company is increasing investment in strategic emerging sectors, with over 100 million yuan invested in subsidiaries, marking a growth of over 40% [6]. - The management has shown confidence in the company's long-term value by increasing their shareholding by approximately 150 million yuan since its listing [12]. - The company is actively participating in training organized by regulatory bodies to enhance compliance awareness and operational capabilities [12].