2026-01-21 02:15Summary of the Earnings Call Transcript Company Overview - The company discussed is Zhaoyan New Drug, focusing on its financial performance and projections for 2025. Key Financial Projections - 2025 Revenue Forecast: Expected to be between 1.573 billion to 1.738 billion CNY, representing a year-over-year decline of 13.9% to 22.1% [1] - Net Profit Forecast: Projected net profit attributable to shareholders is between 233 million to 349 million CNY, showing a significant increase of 214.0% to 317.0% year-over-year [1] - Non-GAAP Net Profit: Expected to be between 246 million to 370 million CNY, indicating a substantial growth of 945.2% to 1467.7% year-over-year [1] Q4 2025 Specifics - Q4 Revenue Forecast: Anticipated revenue for Q4 is between 588 million to 753 million CNY, with a year-over-year decline of 14.0% but a quarter-over-quarter increase of 10.2% [2] - Q4 Net Profit: Projected net profit for Q4 is between 152 million to 268 million CNY, with a year-over-year growth of 5.2% to 85.8% [2] - Non-GAAP Net Profit for Q4: Expected to be between 217 million to 341 million CNY, reflecting a year-over-year increase of 58.6% to 148.5% [2] Profit Margin Insights - Profit Margin Trends: The profit margins for laboratory services and other businesses are narrowing, with reported losses in Q1 to Q4 of -0.25 billion, -0.40 billion, -0.46 billion, and -0.57 billion CNY respectively [2] - Profit Margin Rates: The profit margin rates for these services were reported at -9%, -11%, -15%, and -8% for the respective quarters [2] Biological Asset Valuation - Significant Increase in Biological Assets: In Q4, the fair value of biological assets is expected to show a positive change of 312 million to 359 million CNY, which is significantly higher than the average of 47 million CNY in the previous three quarters [2] - Market Price and Natural Growth Factors: The increase is attributed to both rising market prices and natural growth of the biological assets [2] - Asset Valuation of Monkeys: The valuation for 3-5 year old monkeys is projected to increase by 20,000 to 40,000 CNY, with the end-of-year valuation for these assets expected to reach 100,000 to 120,000 CNY [2]