Summary of the Conference Call for Angli Kang Company Overview - **Company**: Angli Kang - **Industry**: Pharmaceutical and Biotechnology Key Points and Arguments Innovation and Drug Development - Angli Kang is addressing its lack of experience in innovative drugs through collaborative models, focusing on core new drugs such as Affinity 1,618 (a first-in-class drug expected to have phase I data by mid-2026) and a CD47-targeting antibody drug expected to file IND in Australia and domestically within the year [2][4] - The company has adopted a tiered transition strategy in its innovation transformation, where existing generic drugs provide short-term performance support, modified new drugs build a mid-term moat, and innovative drugs open long-term growth opportunities [3] Core New Drugs Progress - Affinity 1,618 is currently in phase I clinical trials, with data expected in mid-2026. The second core new drug, a tumor microenvironment-activated IGG1 subtype targeting CD47, is expected to file IND in Australia and domestically within the year [4][5] Market Potential - Once commercialized, Affinity 1,618 is projected to achieve sales exceeding 3 billion yuan, indicating significant market potential and substantial valuation elasticity based on a 3x price-to-sales (PS) estimate [6] Business Segments and Risks - The company has cleared existing risks in its formulation business, with multiple specialty generic drugs launched and successfully winning bids in centralized procurement, which is expected to drive medium to long-term growth [7] - The raw materials and specialty intermediates business, primarily focused on cephalosporins, is currently affected by weak domestic antibiotic demand but is expected to stabilize and recover starting in 2026 [7] Financial Performance and Growth Expectations - Angli Kang's main business profits are approximately 120 million yuan, with an expected annual growth rate of 30-50%. The combination of innovative drug potential and continuous introduction of new pipelines suggests strong future performance growth [8] Additional Important Insights - The high-purity plant-derived cholesterol and its derivatives provide stable and substantial cash flow, enhancing the company's financial stability [7]