Core Insights - Meihua's total revenue for 2024 reached 1.373 billion yuan, marking a year-on-year increase of 12.85%, while net profit attributable to shareholders surged by 476.64% to 67 million yuan [1] - The company's CDMO business faced a significant decline, with revenue dropping by 39.30%, raising concerns about future profitability [5] Group 1: Business Performance - The formulation business exhibited strong growth, with revenue increasing by 83.52%, driven by the approval of multiple products and successful bids in various provinces [4] - The raw material business showed a recovery with a revenue growth of 6.10%, supported by the significant increase in the Sitagliptin product line, despite challenges from geopolitical tensions and rising raw material costs [4] Group 2: CDMO Business Challenges - The CDMO business experienced a notable revenue decline of 39.30%, influenced by factors such as investment disruptions, high base effects from COVID-19, price wars, and geopolitical issues [5] - The low performance of the CDMO segment not only affected the overall revenue structure but also posed challenges to future profitability, necessitating a reevaluation of business strategies [5] Group 3: R&D and Innovation - Meihua increased its R&D investment to 131 million yuan, accounting for 9.56% of total revenue, focusing on innovative areas such as GLP-1 delivery systems and mRNA drug delivery systems [6] - The company is actively exploring emerging markets, developing products in weight loss and anti-aging, which could provide new growth opportunities in the future [6]