performance: 23H1 company achieved revenue of 0.295 billion yuan (+0.45%), excluding the impact of magnetic bead revenue for nucleic acid testing (testing revenue 35.01 million in the first half of last year), revenue increased by 14.04 in the first half of last year. Q1 and Q2 alone achieved revenue of 1.32/0.163 billion yuan respectively, with Q2 revenue up 6.59 percent year-on-year and 23.41 percent month-on-month. First-half return net profit 31.83 million (-80.72), non-return net profit 19.3421 million (-81.16). Taking into account 23H1 equity incentive costs of about 63.36 million, the same period last year, the spectrum of non-economic income of 51.54 million yuan, excluding the impact of two factors, 23H1 net profit of 93.87 million yuan (-25.5), non-return net profit of 81.38 million (-29.31). 23H1 consolidated gross margin of 79.06 percent (-2.15pct), due to changes in product structure after the merger. 23H1 net profit margin of 8.49.

biomedical sector: 23H1 revenue was 0.27 billion yuan (+12.09%), accounting for 91.48 of the total revenue. Among them, chromatography packing and chromatography media 23H1 revenue of 0.211 billion yuan (5.45%), the first half of the chromatography packing and chromatography media gross margin of 85.7%(0.62pct), single Q2 chromatography packing and chromatography media revenue increased by 31.5% month-on-month. In the first half of the third phase of chromatography packing and media revenue of 0.104 billion yuan, accounting for 49.15 of the filler and media revenue (8.1pct). For macromolecular drug separation and purification income of 0.141 billion yuan (+6.73%), for small molecule separation and purification income of 0.058 billion yuan (-9.92%).

research and development investment: 23H1 company's research and development expenses were 83.3558 million (+112.95), accounting for 28.24 (+14.92pct) of total revenue. 23H1 research and development expenses included 22.9158 million equity payment expenses, an increase of 19.4186 million over the same period last year. after excluding equity payment expenses, research and development expenses increased by 69.55 over the same period last year.

the company has built a complete biopharmaceutical, chiral drug separation and purification laboratory and pilot scale-up platform, in addition to the Suzhou headquarters, in Boston, Chengdu, Beijing and Guangzhou have built application laboratories, and Zhaoyan Biology, Kangfang Pharmaceuticals, Kinsey Pharmaceuticals, Kingsley and other signed strategic partners.

profit forecast and rating: the company is expected to achieve revenue of 7.08/8.07/0.935 billion yuan in 23-25 years, with a year-on-year growth rate of 0.3/14%/15.9; Net profit attributable to the parent company was 0.76/0.92/0.116 billion yuan, with a year-on-year growth rate of -72.2/20.7/25.9. Give an "overweight" rating.

Risk warning: product sales are less than expected, market competition is intensifying, macro policy environment changes, etc.