Yongshun Biotechnology (920729) held a performance briefing for the year 2025 to address the reasons for the decline in revenue and the growth in net profit

Guangdong Yongshun Biopharmaceutical Co., Ltd. held a performance briefing for the 2025 annual report via remote network on May 18th on the "Investor Relations Interactive Platform" of Panorama. The company's director and general manager, Mr. Wu Feng, vice president and financial officer, Ms. Li Qiuhong, and vice president and board secretary, Mr. Lin Jianxin, attended the briefing. In response to investors' concerns about the decline in operating income while net profit increased, the company stated: "The decline in operating income in 2025 is mainly due to the combined effects of sluggish pig prices, intensified industry competition, and the ongoing implementation of the government procurement policy of 'first hit, then supplement,' leading to a year-on-year decrease in both sales volume and selling price of major products. The increase in net profit attributable to shareholders of the listed company is mainly due to the company's strengthened management of accounts receivable, enhanced internal management, and implementation of quality improvement and efficiency enhancement measures, resulting in varying degrees of decrease in period expenses, credit impairment losses, and asset impairment losses." Regarding product research and development, the company disclosed that in 2025 it obtained one new veterinary drug certificate for the inactivated vaccine against Newcastle disease virus (P-VI strain); received three clinical approval documents for "five-valent live vaccine against chicken coccidiosis," "inactivated vaccine against Streptococcus iniae in turbot," and "inactivated vaccine against porcine epidemic diarrhea (HB strain)"; obtained two invention patent authorizations; and received seven notifications for re-examination and inspection of "trivalent inactivated vaccine against porcine transmissible gastroenteritis, porcine epidemic diarrhea, and porcine δ coronavirus disease." The company stated it will focus on multi-valent vaccines and genetically engineered vaccines, "with R&D projects covering vaccines for pigs, poultry, and aquaculture, actively promoting a diversified product layout." Regarding the porcine circovirus type 2 subunit vaccine (E. coli source), the company explained that this product obtained a new veterinary drug registration certificate from the Ministry of Agriculture and Rural Affairs in January 2023 and will be launched for sale in the second half of 2025. "Driven by this new product, the company's sales revenue from the porcine circovirus vaccine reached 10.4765 million yuan, a year-on-year increase of 28.89%, becoming another product of the company to break the ten million yuan mark." The company believes that this product will continue to grow in volume, "on one hand, relying on the product's own technological advantages to meet market epidemic prevention needs; on the other hand, leveraging the company's mature sales channels, existing customer resource accumulation, and a marketing strategy that balances domestic and international markets." The company stated it will adhere to the strategy of "channel sinking, technical marketing, and service marketing," aligning with the trend of large-scale farming in downstream sectors, continuously developing multi-valent vaccines, "matching standardized immunization procedures for large-scale farms," and deepening strategic cooperation with large farming groups. In terms of accounts receivable management, the company "strictly conducts credit due diligence on new cooperative customers, prudently selects cooperation entities; regularly conducts credit risk assessments on existing customers, dynamically adjusts credit and sales policies," and currently "the overall aging structure of accounts receivable is reasonable, and the collection rhythm is generally stable." According to Longbridge, the company is a biopharmaceutical enterprise integrating R&D, production, sales, and technical services of veterinary biological products, with its main products being vaccines for pigs and poultry. The company offers a complete range of products, covering more than 30 varieties of vaccines for pigs and poultry, including monovalent vaccines, multivalent vaccines, polyvalent vaccines, and multi-valent multivalent vaccines