Summary of the Conference Call for Nanxiao Technology Industry Overview - The small nucleic acid delivery technology achieved a breakthrough in 2014, addressing degradation issues and expanding its application in common and chronic disease treatments, laying the foundation for market growth [2][3] - The small nucleic acid market is projected to reach $5.7 billion in 2024 and is expected to grow to $40-50 billion by 2030 [2][3] - The market for small nucleic acid solid-phase synthesis carriers is expected to reach $500 million by 2030 (approximately 3.5 billion RMB) [3] Company Insights - Nanxiao Technology holds a 70% market share in the peptide resin market and collaborates with major pharmaceutical companies like Novartis and GSK, anticipating at least a 50% share in the small nucleic acid solid-phase synthesis carrier market, equating to 1.7-1.8 billion RMB [2][3] - The company has a strong customer base, including top pharmaceutical firms such as Novartis, GSK, Annamics, Ionis, and BioGen, ensuring stable and high-quality order sources, which is a competitive advantage [4] - Nanxiao Technology, in collaboration with Japan's Nitto, possesses a comprehensive patent portfolio in small nucleic acids, enhancing its market competitiveness [2][4] Financial Performance and Growth Expectations - Since its IPO in 2015, Nanxiao Technology's revenue has grown from 300 million RMB to 2.6 billion RMB in 2024, with profits increasing from 50 million RMB to 800 million RMB [5] - The company has experienced two significant growth acceleration phases: commercialization of lithium extraction from salt lakes from 2017 to 2019, and the explosive growth of peptide solid-phase synthesis carriers from 2021 to 2023 [5] - It is expected that in 2026, the company will enter a third growth acceleration phase, with small nucleic acid business scaling from 0 to 1, and new products from key downstream customers like Novartis and GSK being launched [5] - Despite a slowdown in growth over the past two years leading to a decline in valuation, the anticipated industrialization and scaling of small nucleic acids is expected to drive both performance and valuation growth [5]