Net profit due to mother increased month-on-month in the first quarter of 2025, and the bioactive substance business and medical terminal business remained stable. The company achieved operating income of 1.078 billion yuan in the first quarter of 2025, a year-on-year decrease of 20.77%; realized net profit of 0.102 billion yuan, a year-on-year decrease of 58.13%; realized net profit after deduction of 0.082 billion yuan, a year-on-year decrease of 64.62%; and basic earnings per share was 0.21 yuan, compared to 0.51 yuan in the same period last year. In the first quarter of 2025, the company achieved net profit attributable to shareholders of listed companies of 0.102 billion yuan, a loss of 0.188 billion yuan in the fourth quarter of 2024, and an increase of about 0.29 billion yuan in the first quarter of 2025 compared to the fourth quarter of 2024; after excluding impairment losses, net profit attributable to parent shareholders in the first quarter of 2025 increased by about 0.18 billion yuan compared to the fourth quarter of 2024. Looking at the business structure, the company's bioactive substance business and medical terminal business are still steady, and the progress of R&D, registration and marketization of new bioactive ingredients and new medical terminal pipelines is accelerating; however, the dermatology innovation and transformation business, which accounts for a relatively high revenue share of the company, is still in an adjustment cycle.
Gross profit margin and net profit margin declined due to changes and adjustments in the company's management. The company's gross margin for the first quarter of 2025 was 72.15%, a year-on-year decrease of 3.58pct. On the cost side, the cost rate for the period was 58.40%, up 7.13 pcts year on year. Among them, sales expenses ratio, management expense ratio, financial expense ratio, and R&D expenses ratio were 36.56%, 12.53%, -0.42%, and 9.74%, respectively, up 0.52 pct, up 3.99 pct, down 0.08 pct, and 2.70 pct, respectively. The company's net interest rate for the first quarter of 2025 was 9.38%, down 8.51pct year-on-year.
The chairman sank into management and participated in brand communication and positioning. The chairman and general manager of the company began a decline in management, directly taking over the management of the Brand and Communications Management Center, BM Skin Action, and the Miber brand, focusing on maintaining the corporate brand, and taking the lead in implementing cutting-edge technology and brand positioning based on global omics research and development. At the same time, the company suspended inefficient marketing activities carried out in the past based on discount promotion logic, and re-established a brand content system based on technological strength and AI-assisted recognition. Despite a temporary decline in sales revenue, conditions were created for a healthy increase in financial indicators, and paths were explored for adjustments to Runbaiyan and Quadi.
Increased strategic investment is expected to open up room for future growth. In 2024, the company invested heavily in long-term, strategic, and forward-looking, including: 1. The company promoted supply chain transformation to improve production efficiency and intelligence, and implemented production capacity layouts including Haikou (regenerative medicine base), Tianjin (64 pilot conversion production lines), Dongying, and Xiangtan to further consolidate the advantages of the entire industry chain. These investments were transformed one after another, and expenses related to the company's supply chain increased year-on-year; 2. The company continued to maintain forward-looking R&D investment, focusing on cutting-edge technology to provide R&D resource guarantees for the company's sustainable development and enhance medium- to long-term competitiveness. There has been an increase; 3. The company continues to increase investment in innovative business, actively laying out emerging businesses with large future market space and good development prospects, such as regenerative medicine and nutritional science innovation transformation business, etc., and investment in strategic innovation businesses remains stable year over year, which is expected to open up new growth space for the company's future development; 4. Company management change -- the remuneration system reform will be implemented around April 2024, and the overall remuneration of employees increased year over year.
Investment proposal: The company is a world-renowned biotechnology company and biomaterials industry chain platform company driven by synthetic biotechnology innovation. With eight major R&D platforms including synthetic biology R&D platforms, functional sugar R&D platforms, cell biology research platforms, regenerative medicine research platforms, pilot transformation platforms, application mechanism research platforms, material functionalization technology platforms, and formulation platforms, the company has established a full industry chain business system for bioactive materials from raw materials to medical terminal products, dermatology innovation transformation products and nutritional science innovation transformation products, serving the world's pharmaceuticals, cosmetics, Manufacturing companies, medical institutions and end users in the food and other fields. It is predicted that the company's EPS for 2025-2027 will be 0.96 yuan, 1.34 yuan, and 1.87 yuan respectively, and the corresponding PE will be 50.6X, 36.1X, and 25.9X, respectively, maintaining an “increase in holdings” investment rating.
Risk warning: new product development risk, new product registration risk, raw material price change risk, inventory management and price reduction risk, dealer management risk, overseas business risk, industry regulation risk, risk of increased industry competition.
