According to the Star Daily on April 22 (Reporter Li Yu), Huaheng Bio released its 2024 annual report and 2025 first quarter report today (April 22).

In 2024, Huaheng Bio achieved revenue of 2.178 billion yuan, an increase of 12.37% year-on-year; the net income attributable to the parent company was 0.19 billion yuan, a decrease of 57.80% year-on-year; the basic EPS was 0.82 yuan. The company plans to distribute a cash dividend of 2.5 yuan per 10 shares (including tax).

During the reporting period, the company's net cash flow from operating activities was 0.199 billion yuan, a decrease of 33.71% compared to the same period last year, mainly due to an increase in cash paid for the purchase of commodities and services.

Overall, during the reporting period, the amino acid series revenue still had the highest share in Huaheng Bio's main products, but overall gross margin significantly declined due to intensified market competition and price decreases. Despite the pressure on performance, it continued to increase R&D investment to promote technological upgrades and new product development.

In the fourth quarter of 2024, the company achieved revenue of 0.639 billion yuan, and the net income attributable to shareholders of the parent company was 0.02 billion yuan, with a net income excluding non-recurring items of 0.012 billion yuan.

From the perspective of the main business products, in 2024, the company achieved revenue of 1.509 billion yuan from the amino acid series products, an increase of 3.01% year-on-year, accounting for 69.30% of total revenue; the gross margin was 30.00%, a decrease of 13.32 percentage points year-on-year, mainly due to intensified market competition and product price decreases. The vitamins series achieved revenue of 0.207 billion yuan, a decrease of 5.04% year-on-year; the gross margin was 20.77%, a decrease of 34.33 percentage points year-on-year, mainly affected by changes in market demand and rising costs.

In Huaheng Bio's product structure, the amino acid series remains the main component, but its profitability has weakened.

By region, in 2024, the company's overseas market achieved revenue of 1.032 billion yuan, a year-on-year increase of 30.34%; the gross margin was 31.92%, a year-on-year decrease of 13.73 percentage points, mainly due to intensified product price competition.

In the same period, the domestic market achieved revenue of 0.773 billion yuan, a year-on-year decrease of 15.28%; the gross margin was 24.80%, a year-on-year decrease of 19.29 percentage points, mainly affected by weak market demand and rising costs.

In terms of R&D investment, the company's R&D expenses for 2024 amounted to 0.124 billion yuan, a year-on-year increase of 13.99%, accounting for 5.70% of revenue, an increase of 0.09 percentage points compared to the previous year. The number of R&D personnel was 288, accounting for 13.14% of total employees, with an average salary of 0.1647 million yuan, an increase of 8.19% compared to the previous year.

During the reporting period, the company held a total of 78 invention patents and 77 utility model patents, with 10 new invention patents added. It has made several breakthroughs in the fields of fermentation and enzyme production technology, involving process optimization and large-scale production of products such as valine and arginine.

In terms of industry status, the biological manufacturing industry is in a rapid development phase, driven by synthetic biology technology, with a continuously expanding market for bio-based materials, amino acids, vitamins, and other products. However, industry competition is becoming increasingly fierce, with significant market price fluctuations, and companies need to reduce costs through technological innovation to maintain competitive advantages.

As new capacity is released in the industry and market competition intensifies, Huaheng Biotech needs to further consolidate its technological advantages and explore Emerging Markets to meet challenges.

Regarding the progress of fundraising projects, the company's construction project for an annual production of 0.05 million tons of bio-based succinic acid and bio-based product raw materials has accumulated an investment of 0.4 billion yuan, achieving 100% of the planned progress; the project for the annual production of 0.05 million tons of bio-based malic acid has accumulated an investment of 0.284 billion yuan, achieving 100% of the planned progress. The above projects are progressing as planned and may further enhance its capacity utilization and market competitiveness.

Just today (April 22), Huaheng Biotech released its 2025 Q1 report, announcing total operating revenue of 0.687 billion yuan, a year-on-year increase of 37.20%; net income attributable to the parent was 51.0961 million yuan, a year-on-year decrease of 40.98%.

The reporter from the Star Daily noticed that regarding executive changes, today (April 22) in the evening, Huaheng Biological announced that it recently received a report from Fan Yi about a position adjustment. Due to internal work adjustments, he will no longer serve as the Board of Directors secretary of the company but will continue to hold the positions of director, deputy general manager, and financial officer. At the same time, Zeng Miao has been appointed as the company's securities affairs representative.