KEXING BIOPHARM CO.(SH:688136) 3 6 Ke·2025-11-28 07:57Core Viewpoint - Kexing Biopharmaceutical Co., Ltd. (referred to as "Kexing Pharmaceutical") has officially listed in Hong Kong after nearly five years of being on the A-share market, marking the beginning of its "A+H" dual-platform financing strategy. However, the company faces multiple challenges, including operational bottlenecks, increasing debt pressure, and governance issues that have raised market confidence concerns [1][2]. Financial Performance - Kexing Pharmaceutical's revenue has shown limited growth in recent years, with significant fluctuations in net profit. The operating revenues for 2022, 2023, 2024, and the first half of 2025 were 1.316 billion, 1.259 billion, 1.407 billion, and 700 million respectively, while net profits were -93 million, -195 million, 27 million, and 79 million respectively. Notably, in the first three quarters of 2025, the revenue reached 1.148 billion, a year-on-year increase of 10.54%, with a net profit of 111 million, marking a staggering year-on-year growth of 547.7% [3][5]. Product and Market Dynamics - The sustainability of Kexing Pharmaceutical's growth is questioned, as 80% of its revenue comes from four core products. The revenue from these products has remained stagnant between 1.2 billion and 1.3 billion from 2022 to 2024. The company's gross margin has also been declining, from 75.4% in 2022 to 63.6% in the first half of 2025 [7][8]. Governance and Compliance Issues - Kexing Pharmaceutical has faced significant governance and compliance issues, including receiving a regulatory warning for inaccurate information disclosure. The company had discrepancies in its earnings forecasts and failed to maintain consistent voluntary disclosures. Additionally, it mismanaged raised funds by investing in non-principal-protected products, which is against regulatory guidelines [9][10]. Shareholder Actions - Prior to the IPO, Kexing Pharmaceutical's controlling shareholder, Deng Xueqin, significantly reduced his holdings, cashing out over 1 billion in just five months. This raised concerns about shareholder intentions and market trust, especially as the company's total market value is only 6.78 billion [11][15].