Summary of the Conference Call for 亚辉龙 (Aihuilong) Company Overview - **Company**: 亚辉龙 (Aihuilong) - **Industry**: In Vitro Diagnostics (IVD) Key Financial Performance - **Revenue**: - Total revenue for the first three quarters of 2025 was 1.287 billion yuan, a year-on-year decline of 7.69% [3] - Main business revenue was 1.257 billion yuan, down 7.8% year-on-year [3] - Revenue for Q3 2025 was 478 million yuan, showing a year-on-year growth of 10.25% and a quarter-on-quarter increase of 22.44% [5] - **Gross Margin**: - Main business gross margin was 60.85%, down 2.5 percentage points year-on-year [6] - Self-operated business gross margin was 67.42%, down 3.08 percentage points year-on-year [6] Market Performance - **Domestic vs. International Revenue**: - Domestic self-operated business revenue was 866 million yuan, down 12.74% year-on-year, accounting for 80.63% of total self-operated revenue [3] - International self-operated business revenue was 208 million yuan, up 39.39% year-on-year, accounting for 19.37% of total self-operated revenue [3] Business Segments - **Chemiluminescence Business**: - Revenue for the first three quarters was 967 million yuan, down 6.66% year-on-year [7] - Q3 revenue was 364 million yuan, up 13.99% year-on-year and 26.16% quarter-on-quarter [8] - Domestic chemiluminescence revenue was 777 million yuan, down 13.89% year-on-year, while international revenue was 190 million yuan, up 41.96% [7] Installation and Market Expansion - **Instrument Installation**: - As of September 30, 2025, over 12,410 self-operated chemiluminescence instruments were installed, with 1,806 new installations in the first three quarters [9] - Domestic installations accounted for 44.55% of new installations, while international installations grew by 15.16% [9] - **Market Coverage**: - Products covered over 6,200 medical institutions in China, with a 70% coverage rate in top-tier hospitals [10] Research and Development - **Innovation**: - Collaborated with the National University of Singapore on cardiovascular research, leading to the commercialization of a patented test kit [4] - The ANA intelligent interpretation system has achieved a 95% accuracy rate, with a target of 98% [12] - The pancreatic function platform is expected to be approved in 2026, with a business model that includes direct software sales and clinical education [13][14] Industry Dynamics - **Market Trends**: - The IVD industry is undergoing structural changes, with domestic brands gaining market share against imports [16][17] - The number of IVD companies has significantly decreased, with expectations of a market recovery in 2026 [25][24] - **Policy Impact**: - The implementation of centralized procurement policies has positively impacted the company's market share and testing volume [26][24] Future Outlook - **Strategic Plans**: - Focus on enhancing existing specialty projects and expanding market share [18] - Plans to enter the Japanese market with 12 projects submitted for approval, expecting significant revenue contributions starting in 2027 [31] - Continued investment in AI and IVD applications to enhance technological capabilities and market competitiveness [15] Conclusion - **Long-term Vision**: The company aims to become a leading player in the domestic IVD market within five years and a global leader in specific diagnostic fields within ten years [34]

Core Viewpoint - The company is a leading player in the domestic autoimmune diagnostics sector, achieving high growth in the chemiluminescence field through a strategy of "specialized hospital entry and routine volume expansion," with a non-COVID self-owned business revenue of 1.672 billion yuan in 2024, representing a year-on-year growth of 26.13% [1][3] Group 1: Business Performance - The company has established itself as a leader in the chemiluminescence field, with a compound annual growth rate (CAGR) of 31.4% for non-COVID self-owned business from 2020 to 2024, and a CAGR of 35.9% specifically for chemiluminescence business [2] - In 2024, the company's non-COVID self-owned business revenue reached 1.672 billion yuan, with domestic revenue of 1.422 billion yuan (up 21.14%) and overseas revenue of 250 million yuan (up 64.78%) [3][4] - The company is actively adjusting channel inventory, which has led to short-term performance pressure, but is expected to recover high growth in the second half of 2025 due to a low base effect from the previous year [3] Group 2: Market Environment - The IVD sector is facing pressure from policies such as centralized procurement and DRG cost control, with the overall revenue and net profit of the IVD sector expected to decline by 6.45% and 64.98% respectively in 2024 [3][4] - The domestic chemiluminescence market is projected to reach 47.14 billion yuan in 2023, with a CAGR of 20% from 2018 to 2023, indicating significant room for domestic replacement as imported brands still hold over 70% market share [4] Group 3: AI and Technological Development - The company is leveraging AI technology to accelerate the development of smart laboratories and product transformation in response to clinical needs, having established a subsidiary focused on intelligent information systems [5] - The company has developed several AI-driven products, including the iTLA Max automated laboratory system and the ANA intelligent interpretation system, which enhance its competitive edge in the medical field [5] Group 4: Future Outlook - The company is expected to maintain stable growth in revenue and profit, with projected revenues of 2.322 billion yuan, 2.759 billion yuan, and 3.247 billion yuan for 2025 to 2027, reflecting year-on-year growth rates of 15.45%, 18.80%, and 17.69% respectively [6][7] - The company aims to enhance efficiency and reduce costs, with profit growth anticipated to outpace revenue growth in the future [6]