Zelgen(SH:688266) Zheng Quan Zhi Xing·2025-09-05 10:14Core Viewpoint - The report outlines the ongoing supervision and compliance of Suzhou Zejing Biopharmaceutical Co., Ltd. by China International Capital Corporation, emphasizing the company's adherence to regulations and the status of its financial performance in the first half of 2025. Summary by Sections Continuous Supervision Work - The supervising institution has established a comprehensive and effective supervision system and has signed a continuous supervision agreement with the company, clarifying the rights and obligations of both parties during the supervision period [1]. - During the supervision period from January to June 2025, the company did not report any violations or illegal activities [1][2]. - The supervising institution conducted regular communications, site visits, and due diligence to monitor the company's compliance with laws and regulations [1]. Financial Performance - For the first half of 2025, the company reported a revenue of CNY 375.65 million, a 56.07% increase compared to CNY 240.70 million in the same period of 2024 [1]. - The total profit for the same period was a loss of CNY 77.41 million, slightly improved from a loss of CNY 79.49 million in the previous year [1]. - The net loss attributable to shareholders was CNY 72.80 million, compared to a loss of CNY 66.54 million in the previous year [1]. - The cash flow from operating activities showed a significant decline, with a net outflow of CNY 17.02 million, down from an inflow of CNY 112.55 million in the same period last year [1]. Research and Development - The company has a strong focus on R&D, with R&D expenses accounting for 52.31% of its revenue in the first half of 2025, a decrease from 75.26% in the previous year [1]. - The company is actively developing a pipeline of innovative drugs targeting oncology and autoimmune diseases, with several products in various stages of clinical trials [20][21][24]. Competitive Advantages - The company possesses a differentiated product pipeline with several drugs already approved or nearing commercialization, including treatments for advanced liver cancer and thyroid cancer [20][21]. - The company is also exploring new targets and technologies to enhance its product offerings and maintain a competitive edge in the biopharmaceutical industry [22][26]. Risks and Challenges - The company faces significant risks, including the potential for unprofitability, reliance on external financing for R&D, and challenges in clinical trial recruitment and regulatory approvals [3][4][14]. - The competitive landscape in the pharmaceutical industry is intense, with the company needing to adapt to rapid technological changes and regulatory shifts [15][16]. Future Outlook - The company aims to enhance its international presence and collaboration capabilities, leveraging its innovative drug development platforms and established clinical networks [25][26]. - As more products approach commercialization, the company anticipates sustained revenue growth, which will support further R&D investments and strategic initiatives [24][25].