Core Viewpoint - Haixi New Drug successfully listed on the Hong Kong Stock Exchange, marking a significant milestone for the company and the local biopharmaceutical industry [2][21]. Company Overview - Haixi New Drug, founded by a couple with strong academic backgrounds, has developed four core generic drugs and has a unique dual-track model combining generic and innovative drugs [9][15]. - The company was established in collaboration with three state-owned asset platforms in Fujian province [18]. Listing Process - The company initially planned to list on October 17 but delayed the listing due to the need for additional time to finalize announcements and obtain regulatory approval [4][5]. - Haixi New Drug became the first new stock to experience a delayed listing after dark pool trading under the FINI system in Hong Kong [6]. Stock Performance - The stock opened at 102 HKD, a 18.06% increase from the issue price of 86.4 HKD, and reached 110.2 HKD by midday, representing a 27.5% increase [2]. - The stock's trading volume reached 219 million HKD on the first day [2]. Financial Performance - The company has achieved profitability, with revenue projected to grow from 212.5 million RMB in 2022 to 466.7 million RMB in 2024, and net profit expected to rise from 68.98 million RMB to 136.08 million RMB in the same period [17][25]. - The four core generic drugs contribute over 90% of the company's revenue, with projected revenues for 2024 from these drugs totaling approximately 4.5 billion RMB [17]. Future Plans - The company plans to use the net proceeds of 940 million HKD from the IPO to enhance its research and development capabilities and expand its product pipeline [26]. - Haixi New Drug has four innovative drugs in early clinical stages, with the most advanced candidate targeting osteosarcoma expected to enter Phase III trials by the second half of 2025 [28].

Core Viewpoint - Fujian Haixi New Drug Creation Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange (HKEX) after previously considering an A-share listing, highlighting its established position with 14 approved generic drugs and profitability [1][5]. Company Background - Founded in March 2012 by Dr. Kang Xinshan and Feng Yan, the company transitioned to a joint-stock company in November 2022, headquartered in Fuzhou, Fujian Province [1][4]. - The company is currently valued at approximately 1.948 billion yuan [4]. Shareholding Structure - The main controlling shareholders include Dr. Kang Xinshan, Feng Yan, and Tai Rui He Investment, holding about 41.17% of the issued share capital [2][3]. Business Model - Haixi New Drug operates a dual-track model, focusing on both generic and innovative drugs, with 14 approved generic drugs and 4 innovative drugs in the pipeline [5][7][11]. - The company’s generic drug portfolio addresses various therapeutic areas, contributing to over 25% of China's pharmaceutical sales in 2023 [8]. Financial Performance - Revenue growth has been observed, with reported revenues of 212 million yuan in 2022, 317 million yuan in 2023, and projected revenues of 467 million yuan in 2024 [19][21]. - The net profit for the same periods was 68.98 million yuan, 117.45 million yuan, and 136.08 million yuan respectively [19][21]. Product Portfolio - The company’s revenue is primarily derived from three products, which accounted for 98.2%, 92.9%, 82.6%, and 84% of total revenue in the respective years [22]. - The product "Haihui Tong" has achieved significant market share, reaching 59.3% in 2024 [22]. Challenges and Competition - The company faces pressure from national centralized procurement, with contracts for four products expiring between 2025 and 2026, which may impact future revenues [23][24]. - The innovative drug pipeline, particularly the C019199, faces intense competition from multiple companies developing similar agents for solid tumors [17][19].