REMEGEN(688331) Hua Xia Shi Bao·2025-05-23 11:18Core Viewpoint - Rongchang Biopharmaceutical (9995.HK) has announced a H-share placement plan to raise approximately HKD 796 million, reflecting the company's ongoing financial challenges despite a significant revenue increase in 2024 [2][4]. Financial Performance - In 2024, Rongchang Biopharmaceutical reported a revenue of approximately CNY 1.72 billion, a year-on-year increase of 58.54%, but still faced a net loss of CNY 1.468 billion [3][4]. - The company has experienced losses in six out of the seven years since its establishment, with a peak loss of CNY 1.511 billion in 2023 [4][5]. - In Q1 2025, the company achieved a revenue of CNY 526 million, representing a 59.17% year-on-year growth, but continued to incur a net loss of CNY 254 million [4][7]. Product Development and Market Position - Rongchang Biopharmaceutical focuses on innovative biopharmaceuticals, particularly in antibody drug conjugates and therapeutic antibodies [4][6]. - The company has two commercialized products: RC18 (Taitasip) and RC48 (Vidisizumab), which have contributed to its revenue growth since their market approval [6][8]. - Despite the growth in sales, the company faces challenges with slowing growth rates for its core products, indicating potential market saturation or increased competition [6][8]. Funding and Financial Strategy - The recent H-share placement is a critical move to address the company's cash flow pressures and support ongoing research and development efforts [2][8]. - The company has faced difficulties in previous fundraising attempts, including a failed private placement in 2024, highlighting ongoing financial strain [9][10]. - As of Q1 2025, the company's cash reserves decreased to CNY 722 million, while short-term borrowings reached CNY 1.131 billion, indicating significant debt pressure [8][9]. Industry Context - The biopharmaceutical industry is characterized by high research and development costs and long commercialization timelines, leading to widespread financial challenges among similar companies [8]. - Experts suggest that companies need to optimize cost structures and enhance collaboration to achieve profitability in a competitive market [8].