Financial Performance - In the first half of 2025, the company achieved operating revenue of 302 million CNY, representing a year-on-year increase of 29.33% compared to 233 million CNY in the same period last year [1][2] - The net profit attributable to shareholders was -11.15 million CNY, a decline of 117.88% from -5.12 million CNY in the previous year [1][2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -10.22 million CNY, down 107.42% from -4.93 million CNY year-on-year [1][2] - The net cash flow from operating activities was -5.79 million CNY, a significant decrease of 116.98% from 34.11 million CNY in the same period last year [1][2] Previous Year Performance - In 2024, the company reported operating revenue of 537 million CNY, a decrease of 5.26% compared to the previous year [2] - The net profit attributable to shareholders was -27.59 million CNY, compared to a profit of 23 million CNY in the same period last year [2] - The net profit after deducting non-recurring gains and losses was -28.22 million CNY, down from a profit of 20.96 million CNY year-on-year [2] - The net cash flow from operating activities was -20.59 million CNY, compared to 68.13 million CNY in the previous year [2] Fundraising Activities - The company went public on the Shenzhen Stock Exchange's ChiNext board on April 9, 2021, issuing 29 million shares at a price of 8.24 CNY per share, raising a total of 238.96 million CNY [3] - The net proceeds from the public offering after deducting issuance costs were 194.18 million CNY, intended for production projects and working capital [3] - On December 13, 2022, the company announced the issuance of convertible bonds, raising a total of 380 million CNY, with net proceeds of 373.22 million CNY after costs [4] - The total amount raised from both fundraising activities was 618.96 million CNY [5]

Core Viewpoint - The company reported steady revenue growth in Q1 2025, but profit performance was negatively impacted by increased expenses [2] Financial Performance - In Q1 2025, the company achieved revenue of 139 million yuan, a year-on-year increase of 13.90% [2][4] - The net profit attributable to shareholders was 1.08 million yuan, a year-on-year decrease of 69.50% [2][4] - The non-recurring net profit was 1.34 million yuan, down 61.42% year-on-year [2] - The gross margin improved to 24.24%, an increase of 2.67 percentage points year-on-year [2] - The net margin was -0.55%, a decline of 2.92 percentage points year-on-year [2] Cost and Investment Insights - The decline in net profit was primarily due to increased R&D expenses from the subsidiary Huahai, which rose by 4.39 million yuan year-on-year [2] - Financial expenses increased by 7.49 million yuan year-on-year due to the cessation of capitalizing interest on convertible bonds after the completion of fundraising projects [2] Capacity Expansion - As of March 31, 2025, the company's total fixed assets amounted to 1.13 billion yuan, an increase of 927 million yuan compared to the same period in 2024, expanding the total scale by approximately five times [2] - The company has officially put into production the fundraising project "Production Construction Project of Progesterone and Intermediate BA" and is enhancing the construction of the Huahai joint raw material drug project and steroid industry chain upgrade project [2] Share Buyback Program - The company plans to repurchase shares using its own funds and a special loan for share buybacks, with 10% from its own funds and 90% from the loan [3] - The total repurchase amount will be no less than 20 million yuan and no more than 30 million yuan, with a maximum repurchase price of 23.84 yuan per share [3] - As of March 31, 2025, the company had repurchased 120,000 shares, accounting for 0.10% of the total share capital, with a total transaction amount of 1.92 million yuan [3] Investment Outlook - The company’s capacity is expected to be gradually released, and profitability is anticipated to recover with increased capacity utilization [4] - Revenue forecasts for 2025, 2026, and 2027 are 617 million yuan, 741 million yuan, and 889 million yuan, respectively, with net profits projected at -31 million yuan, -15 million yuan, and 53 million yuan [4] - Corresponding PE ratios for 2026 and 2027 are estimated at 121X and 33X, respectively, with a continued "buy" rating [4]