FOSUNPHARMA(SH:600196) Bei Jing Shang Bao·2025-11-11 10:59Core Viewpoint - Real Bio Technology Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange, facing significant financial challenges due to declining revenues and high losses, primarily linked to its dependence on a single product, Azvudine [1][3][6]. Financial Performance - The company reported a cumulative loss of 989 million RMB over two and a half years, with net losses of 784 million RMB in 2023, 40 million RMB in 2024, and 165 million RMB in the first half of 2025 [4][6]. - Revenue peaked at over 1 billion RMB in 2022 but plummeted to 344 million RMB in 2023 and is projected to drop to 238 million RMB in 2024, with a staggering 91.65% decline in the first half of 2025, resulting in only 16.53 million RMB [2][3][4]. Product and Market Dependency - Azvudine is the only commercialized product, which has faced a significant drop in demand following the termination of its partnership with Fosun Pharma, leading to a highly concentrated customer base where 99.6% of revenue came from the top five clients in 2024 [3][4]. - The company is attempting to diversify its product offerings by exploring new indications for Azvudine and developing additional drug candidates, including CL-197 for HIV and other oncology treatments [6][7]. Research and Development Challenges - Despite efforts to expand its R&D pipeline, the company has seen a 36.8% decrease in R&D spending from 2.38 billion RMB in 2023 to 1.51 billion RMB in 2024, which raises concerns about its ability to innovate and generate future revenue [6][7]. - The current R&D projects are primarily in early clinical stages, which may not yield immediate financial returns, complicating the company's transition from a single-product focus to a diversified pharmaceutical entity [6][7]. Financial Obligations and Pressure - Real Bio is under pressure from a total of 713 million RMB in financing agreements with redemption clauses, which could force the company to buy back preferred shares at a 10% annual interest rate if certain conditions are met [1][7]. - As of mid-2025, the company had only 50.05 million RMB in cash, while administrative and R&D expenses approached 100 million RMB, indicating a significant cash flow issue [7].