Core Viewpoint - Changfeng Pharmaceutical Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange after previous unsuccessful attempts to list on the STAR Market in China, focusing on the development and commercialization of inhalation drugs for respiratory diseases [1][3]. Financial Performance - The company reported revenues of RMB 349.1 million, RMB 556.4 million, and RMB 608 million for the years 2022, 2023, and projected for 2024, respectively, with net profits of -RMB 49.4 million, RMB 31.7 million, and RMB 21.1 million during the same periods [2][4]. - The gross profit margin improved from 76.6% in 2022 to 82.2% in 2023, indicating better cost management [4]. Product Dependency - The company heavily relies on its inhalation product CF017, which accounted for 96.2%, 98.4%, and 94.5% of total revenue in 2022, 2023, and projected for 2024, respectively [4][6]. - CF017 is the company's first approved product for treating bronchial asthma, highlighting the risk of revenue concentration [4][6]. Sales and Distribution - Approximately 98.8%, 99.5%, and 99.3% of the company's product sales revenue came from distributors during the reporting periods, indicating a strong dependence on the distribution network [7]. - The company has a high customer concentration, with revenue from the top five customers accounting for 60.2%, 69.4%, and 66.4% of total revenue in the respective years [8]. Cost Structure - Sales and distribution expenses have increased over the reporting periods, totaling approximately RMB 594 million over three years [9]. - Research and development expenses were RMB 1.07 billion, RMB 1.33 billion, and RMB 1.22 billion for the years 2022, 2023, and projected for 2024, with a noted decrease in 2024 due to outsourcing certain services [9].