Core Viewpoint - On November 15, Suzhou Zelgen Biopharma Co., Ltd. announced the cancellation of its U.S. subsidiary Gensun Biopharma Inc. and plans to list in Hong Kong [1][4]. Group 1: Company Overview - Zelgen Biopharma was established in 2009, focusing on the independent research, development, production, and commercialization of innovative drugs. It successfully listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2020 as the first unprofitable company [2]. - The company has been operating at a loss since its listing, with revenues increasing but not yet achieving profitability [4]. Group 2: Subsidiary Cancellation - Gensun, established in February 2016, was a wholly-owned subsidiary responsible for early exploratory research in antibody drug development. It reported zero revenue from 2022 to 2024 and incurred net losses of $8.15 million, $3.99 million, $4.80 million, and $4.38 million respectively [3]. - The cancellation of Gensun is part of the company's overall operational strategy to reduce management costs, improve research efficiency, and optimize organizational structure. The research work has been taken over by the parent company, and the cancellation is not expected to have a significant adverse impact on the company's overall business [3]. Group 3: Financial Performance - Zelgen's revenue from 2020 to 2024 was as follows: 27.66 million, 190 million, 302 million, 386 million, and 533 million yuan, with losses of 319 million, 451 million, 457 million, 279 million, and 138 million yuan respectively. In the first three quarters of 2025, revenue reached 593 million yuan, a year-on-year increase of 54.49%, with a net loss of 93.42 million yuan [4][5]. - Sales expenses have been rising, with figures from 2020 to 2025 being 35.07 million, 140 million, 228 million, 250 million, 271 million, and 332 million yuan, representing a percentage of revenue that has decreased from 126.79% to 55.97% [5]. Group 4: Cash Flow and Financing - As of September 30, 2025, the net cash flow from operating activities was -16.73 million yuan, a decline of 125.11% compared to the previous year [6]. - The company has relied heavily on external financing, having undergone multiple capital increases and equity transfers before its IPO, raising 2.026 billion yuan in 2020 and 1.2 billion yuan through a private placement in 2023 [6][7].