2025-09-18 14:41Summary of Haohai Biology Conference Call Company Overview - Company: Haohai Biology - Date: September 18, 2025 Key Points Industry and Company Performance - Revenue Decline: Haohai Biology's revenue for the first half of 2025 decreased by 34% year-on-year, primarily due to changes in VAT policy affecting hyaluronic acid products, resulting in a profit reduction of approximately 30 million yuan [2][3] - Overall Revenue: The company achieved a revenue of 1.304 billion yuan in the first half of 2025, a year-on-year decline of 7% but a quarter-on-quarter increase of about 11% [3] - Net Profit: The net profit attributable to shareholders was 210 million yuan, down 10% year-on-year, but up 34% quarter-on-quarter [3] Business Segment Performance - Aesthetic Medicine Segment: - Revenue decreased by 9% year-on-year, with hyaluronic acid sales down 17% [2][4] - Human epidermal growth factor sales increased by 14% [2] - High-end hyaluronic acid product "Haimi" saw sales growth exceeding double digits, now accounting for over 40% of the segment [2][7] - Ophthalmology Segment: - Revenue decreased by 20% year-on-year, but sales of preloaded aspheric intraocular lenses increased by 74% [2][4] - High oxygen permeability orthokeratology lenses saw an 86% increase in sales [2][5] - Surgical Segment: - Revenue grew by 60%, with innovative hemostatic product "Kangrui Gel" contributing 44 million yuan [2][5] - New anti-adhesion surgical products performed well, achieving 40 million yuan in sales shortly after launch [2][24] Product Development and Market Strategy - High-End Product Focus: The company is focusing on exporting high-end products, with preparations for "Haimi" and "Haimi Yuebai" underway [10] - New Product Lines: The company is expanding its aesthetic medicine offerings, including dermal fillers and light therapy devices, with some products receiving FDA certification [11][12] - Technological Advantages: "Haimi" utilizes a unique cross-linking process for smooth injection, while "Haimi Yuebai" employs amino acid cross-linking for safety and effectiveness [9] Market Challenges and Responses - Impact of VAT Policy: The adjustment of VAT from 3% to 13% on hyaluronic acid and chitosan products is expected to impact profits throughout 2025, but no similar effects are anticipated in 2026 [2][5] - Competitive Landscape: The OK lens segment faced challenges due to competition from new products like defocus frame glasses, leading to a decline in sales [20][21] - Price Pressure: The company is increasing R&D investment in mid-to-high-end products to counteract potential price pressures from upcoming procurement policies [15] Future Outlook - Performance Expectations: The company remains optimistic about future growth despite current economic uncertainties, focusing on steady marketing efforts and product development [26] - Market Share Potential: The domestic multifocal intraocular lens market share is expected to increase due to price adjustments in procurement policies [16] Additional Insights - Sales of Human Epidermal Growth Factor: This product has seen significant growth due to its application in aesthetic medicine, with sales increasing since 2024 [13] - Surgical Product Innovations: The innovative hemostatic product "Kangrui Gel" has entered the Shanghai medical insurance directory, with plans to expand into other provinces [25] This summary encapsulates the key insights from Haohai Biology's conference call, highlighting the company's performance, strategic focus, and market challenges.