Core Viewpoint - Kexing Pharmaceutical (688136.SH) plans to sell its wholly-owned subsidiary, Shenzhen Tong'an Pharmaceutical Co., Ltd., for 15 million yuan to reduce management costs and improve asset operation efficiency [1][13]. Group 1: Company Performance - Kexing Pharmaceutical's stock price has doubled since the beginning of the year, with a significant increase of 156.50% from 21.86 yuan per share at the end of 2024 to 56.07 yuan on June 4 [6][10]. - The company reported a revenue of 14.07 billion yuan in 2024, an increase of 11.75% year-on-year, and achieved a net profit of 31 million yuan, marking a turnaround from previous losses [10][11]. - Despite the revenue growth, the company's R&D expenses significantly decreased to 168 million yuan in 2024, down 51.30% from the previous year [11][13]. Group 2: Shareholder Actions - The controlling shareholder, Shenzhen Keyi Pharmaceutical Holdings Co., Ltd., plans to reduce its stake by up to 3%, potentially cashing out over 336 million yuan based on the stock price at the time of the announcement [4][5]. - This is the first time since Kexing Pharmaceutical's IPO that the major shareholder has announced a reduction in holdings, raising market concerns about the intention behind the move [3][5]. Group 3: Market Reactions - Following the announcement of the major shareholder's reduction plan, Kexing Pharmaceutical's stock price fell to 50.95 yuan per share by June 12 [8]. - Market skepticism arose due to the significant stock price increase prior to the reduction announcement, with some investors questioning the motives behind the shareholder's decision [5][6].

Core Viewpoint - The stock of Kexing Pharmaceutical has experienced significant fluctuations, with a cumulative closing price deviation exceeding 30% over three trading days, prompting a notice of abnormal trading [1][2]. The company emphasizes that its innovative drug projects are still in the preclinical stage, indicating uncertainty in future progress [2]. Group 1: Company Performance and Financials - Kexing Pharmaceutical is primarily engaged in the research, production, and sales of recombinant protein drugs and microbiome preparations, focusing on antiviral, hematology, oncology, immunology, and degenerative diseases [3]. - The company reported a significant decline in profits post-IPO, with net profits dropping from 1.39 billion yuan in 2020 to a loss of 902.95 million yuan in 2022. However, in 2024, it achieved a revenue of 1.407 billion yuan, a year-on-year increase of 11.75%, and a net profit of 31.48 million yuan, marking a return to profitability [4]. - Kexing currently has six proprietary products on the market and has introduced 16 products in key disease areas such as oncology and diabetes [5]. Group 2: Research and Development - The company has ten innovative drug projects in development, with nine still in the preclinical stage, highlighting the uncertainty in the R&D pipeline [6]. - R&D investment for 2024 was reported at 199 million yuan, a decrease of 42.31% year-on-year, with the proportion of R&D investment to revenue dropping from 27.39% in 2023 to 14.14% [6]. - The number of R&D personnel decreased from 208 in 2022 to 138 in 2024, indicating a significant reduction in workforce [7]. - Kexing is actively pursuing internationalization and aims to complete a certain number of clinical submissions for innovative drugs in the US and China each year, while also enhancing its business development capabilities [8].