NKF(SH:603707)2025-10-27 00:31Summary of the Conference Call for Jianyou Co., Ltd. Company Overview - Company: Jianyou Co., Ltd. - Date: October 24, 2025 Key Points Financial Performance - Revenue for the first three quarters of 2025 decreased by 5.25% year-on-year to 3.09 billion RMB, while net profit fell by 29% to 430 million RMB, primarily due to increased sales and management expenses, especially in the U.S. market [2][3] - The total assets reached 10.3 billion RMB, with net assets attributable to shareholders at 6.75 billion RMB [3] Sales and Management Expenses - Sales expenses increased by approximately 90 million RMB, and management expenses rose by about 50 million RMB, largely due to investments in the U.S. market for large molecules and innovative drugs [4] - The company expects total revenue for the year to be between 4.2 billion and 4.4 billion RMB, with profits around 600 million to 700 million RMB [4] Raw Material and CDMO Business - The raw material segment saw a revenue decline of 37% year-on-year, with net gross profit down 40%. However, a 15% price increase is anticipated due to rising demand for high-quality raw materials [10] - CDMO business revenue decreased by 60%, but excluding certain sales impacts, it remained stable year-on-year, with future order growth expected at 25%-30% [11] Domestic and International Formulations - Domestic formulation shipments fell by 13% year-on-year, with gross profit declining over 20% due to price reductions following contract renewals [12] - International formulations performed well, with sales volume increasing by 21% and revenue up 32%, significantly driven by the U.S. market [14] Major Products and Market Competition - Three main large molecule products (White Purple, Adalimumab) maintained stable market shares, although White Purple faced pricing competition [8] - The company expects total revenue from these products to be adjusted to 65 million USD, with a net gross profit of 30 million USD for the year [9][16] Innovative Drug Development - The M22 Phase II clinical trial was completed, showing that 50% of patients could discontinue hormone treatment within six months. Discussions with the FDA for Phase III are ongoing [7] - The company plans to launch three insulin products in collaboration with Dongbao, targeting a 15%-20% market share within 4-6 quarters [17] R&D and Future Strategy - R&D expenses increased by 45 million RMB year-on-year, with five new projects initiated in the peptide large molecule field [6] - The company aims for large molecule drugs to account for over 60% of revenue by 2030, with a focus on expanding in the U.S. and European markets [4][22] Market Environment and Regulatory Changes - The FDA's easing of clinical requirements for biosimilars is expected to intensify competition but also provide opportunities for efficient companies [21] - The company is adapting its strategy to increase the proportion of self-completed projects in the large molecule field, aiming for 40%-50% by the end of 2025 [23] Challenges and Opportunities - The company faces challenges from pricing pressures and competition but is optimistic about future growth driven by innovative drug development and market expansion [31][33] - The strategic focus includes enhancing R&D capabilities and leveraging regulatory changes to improve market positioning [32] Conclusion - Jianyou Co., Ltd. is navigating a challenging market environment with a strategic focus on innovation and expansion in large molecule drugs, while addressing cost pressures and competition effectively. The company is well-positioned for future growth, with a clear roadmap for product development and market penetration.