Core Viewpoint - Dongyang Sunshine Pharmaceutical is pursuing a unique "zero fundraising IPO" strategy by merging with its subsidiary Dongyang Sunshine Changjiang Pharmaceutical, aiming to enhance its competitive position in the pharmaceutical industry [2][3]. Group 1: Listing Strategy - The company plans to go public in Hong Kong through a merger with its subsidiary, which will involve issuing H-shares to shareholders without raising new funds [3]. - This unconventional approach is intended to consolidate its pharmaceutical assets and create a comprehensive pharmaceutical company that integrates R&D, production, and commercialization [3]. Group 2: Market Position - Dongyang Sunshine Pharmaceutical holds a dominant position in the domestic market for its core product, Oseltamivir Phosphate, ranking first in 2024 [2]. - The sales contribution of Oseltamivir Phosphate to total revenue has fluctuated but remains a crucial support for the company's performance from 2022 to 2024 [2]. Group 3: R&D and Innovation - The company has established a robust R&D platform with over 1,100 professionals, focusing on various therapeutic areas including infections, chronic diseases, and oncology [8]. - Dongyang Sunshine has a diverse portfolio of over 150 approved drugs and more than 100 drugs in development, with 49 first-class innovative drugs [8][9]. - The company has invested significantly in R&D, with expenditures of 792 million yuan, 827 million yuan, and 888 million yuan from 2022 to 2024, representing 20.8%, 13.0%, and 22.1% of total revenue respectively [9]. Group 4: Business Development (BD) Collaborations - The company is actively engaging in BD collaborations to expand its commercialization pathways, including a notable agreement with Apollo Therapeutics valued at $938 million for a dual-specific fusion protein [6][7]. - Dongyang Sunshine is one of the few Chinese pharmaceutical companies developing insulin products for the U.S. market, showcasing its global resource integration capabilities [7]. Group 5: AI Technology in R&D - The company is leveraging AI technology across various stages of drug development, having established multiple advanced AI-driven models to enhance innovation and efficiency [9]. - A recent AI-driven first-class new drug, HEC169584, has been approved for clinical trials targeting non-alcoholic fatty liver disease (NASH) [9].

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].