BIOKIN PHARMACEUTICAL(SH:688506) Sou Hu Cai Jing·2025-08-21 05:44Core Viewpoint - Bailitianheng (688506.SH) briefly turned profitable due to an $800 million upfront payment from a BD deal but has returned to a state of loss, with significant declines in revenue and net profit in the first half of the year [2][4][12]. Financial Performance - In the first half of the year, the company reported revenue of 171 million yuan, a decrease of 96.92% year-on-year, and a net profit loss of 1.118 billion yuan, down 123.96% year-on-year [2][4]. - Revenue from chemical drugs and traditional Chinese medicine continues to decline, while investment in innovative drug research and development (R&D) is increasing [2][4]. - The company has a projected funding gap of 4.8 billion yuan over the next three years, exacerbated by a halted IPO in Hong Kong, leading to reliance on a planned fundraising of up to 3.764 billion yuan [2][8][11]. R&D Investment - Bailitianheng has transitioned from chemical generics and traditional Chinese medicine to focus on innovative biopharmaceuticals, particularly in the ADC field, with significant R&D expenditures [4][6]. - R&D expenses have increased significantly, reaching 1.043 billion yuan in the first half of the year, a 90.74% increase year-on-year, with a total of 3.75 billion yuan spent in 2023 [6][10]. - The company has 15 innovative drugs in clinical trials, with 3 in Phase III trials, indicating a high level of ongoing investment in R&D [8][10]. Market Position and Stock Performance - Despite the company's losses, its market capitalization exceeded 125.7 billion yuan, ranking sixth on the STAR Market, with stock price fluctuations since the BMS deal [12][13]. - Institutional investors have significantly reduced their holdings in Bailitianheng, with a drop from 50.50% to 30.43% in ownership over the past year [3][13].