Core Viewpoint - Dongyangguang Pharmaceutical is planning to absorb and merge Dongyangguang Changjiang Pharmaceutical and list on the Hong Kong Stock Exchange, with a focus on maintaining its competitive edge in the antiviral drug market, particularly oseltamivir [1][4][10]. Group 1: Company Overview - Dongyangguang Pharmaceutical is a comprehensive pharmaceutical company engaged in the research, production, and commercialization of drugs, focusing on infection, chronic diseases, and oncology [4]. - The company has submitted its application for listing on the Hong Kong Stock Exchange and aims to complete the merger with Dongyangguang Changjiang Pharmaceutical, which will lead to the latter's delisting [1][4]. Group 2: Financial Performance - The revenue and net profit of Dongyangguang Pharmaceutical have shown significant fluctuations from 2022 to 2024, with revenues of approximately 3.814 billion, 6.386 billion, and 4.019 billion yuan, and net profits of -1.416 billion, 1.014 billion, and 24.803 million yuan respectively [10]. - The sales revenue from oseltamivir (including the best-selling product Kewai) accounted for 81.2%, 86.9%, and 64.2% of annual revenue from 2022 to 2024 [7]. Group 3: Market Position and Competition - The company faces intense competition in the antiviral drug market, with over 120 pharmaceutical companies producing flu medications and more than 70 companies manufacturing oseltamivir [9]. - The market for antiviral drugs in China is projected to reach 6.7 billion yuan by 2024, with oseltamivir expected to generate sales of 4.7 billion yuan, representing 70.3% of the market share [9]. Group 4: Product Dependency and Risks - Dongyangguang Pharmaceutical is heavily reliant on oseltamivir, which poses risks as the market becomes more competitive following the expiration of key patents [8][11]. - The company has seen a gradual increase in revenue from chronic disease treatments, with sales from these products rising from 517 million to 1.068 billion yuan from 2022 to 2024, indicating a potential diversification strategy [11].