Core Viewpoint - The article highlights the stark contrast between the high valuation of Suzhou Wangshan Wangshui Biopharmaceutical Co., Ltd. at 4.45 billion and its plummeting revenue, which fell by 95% from nearly 200 million in 2023 to just 10 million in 2024, questioning whether the company is genuinely engaged in business or merely playing a sophisticated numbers game [1][5]. Group 1: Financial Performance - The company's revenue dropped from approximately 1.96 billion in 2023 to about 10 million in 2024, representing a 95% decline [5][14]. - The net profit shifted from a profit of approximately 42.37 million in the same period to a loss of about 156 million [14]. - The company invested around 100 million in research and development, but its production capacity utilization was only 1.1% for capsules and 0.2% for tablets, indicating significant underutilization of resources [14]. Group 2: Valuation and Market Dynamics - The company achieved a valuation of 4.45 billion, raising questions about who is willing to pay such a price for a company with nearly zero revenue [5][14]. - The timing of the IPO registration and the approval of its core product, TPN171, appears to be strategically orchestrated, with the IPO registration occurring just 12 days before the drug's approval [5][14]. - The valuation of innovative pharmaceutical companies often relies on the potential of their drug pipelines rather than current sales or profits, leading to inflated valuations based on future expectations [9][10]. Group 3: Investment Implications - The article warns investors to critically assess whether high valuations are based on genuine business potential or merely capital market speculation [8][10]. - It emphasizes the importance of understanding the flow of money and how returns are generated, often through subsequent rounds of higher valuations rather than actual value creation [9][10]. - Investors should be cautious of the imbalance between high research investment and low production capacity utilization, as this indicates a lack of readiness for commercial success [10].