Zelgen(SH:688266) Shang Hai Zheng Quan Bao·2025-08-22 21:46Core Viewpoint - The company has not yet achieved profitability and faces significant cumulative losses due to ongoing research and development expenses, despite having several products approved for commercial sale [1][2]. Group 1: Company Overview - The company, Suzhou Zelgen Biopharmaceutical Co., Ltd., has several products included in the medical insurance directory, including Tofacitinib tablets for advanced liver cancer and other conditions [1]. - The company has received approval for the marketing of recombinant human thrombin and Tofacitinib tablets, but these products are still in the market access phase [1][2]. Group 2: Financial Situation - As of June 30, 2025, the company has accumulated losses and may continue to incur losses in the future, which will depend on the success of its drug commercialization and the number of ongoing research projects [2]. - The company has significant reliance on external financing for its working capital, which may pressure its financial situation if expenses exceed available financing [2]. Group 3: Fundraising and Use of Funds - The company raised a total of RMB 2,025.6 million from its initial public offering in 2020, with a net amount of RMB 1,908.22 million after deducting related expenses [8][31]. - In 2021, the company raised RMB 1,199.99 million through a private placement, with a net amount of RMB 1,181.93 million after expenses [9][32]. - As of June 30, 2025, the company has used RMB 1,677.81 million of the initial public offering funds and RMB 406.25 million of the private placement funds [10][15]. Group 4: Risk Factors - The company faces risks related to its ongoing research and development projects, which require substantial investment and may not yield successful outcomes [2][3]. - The company has not declared any cash dividends due to its inability to generate profits, which may negatively impact shareholder returns [2].