Core Insights - Weijian Pharmaceutical, a leading Chinese pharmaceutical company focused on kidney and blood diseases, has submitted its listing application to the Hong Kong Stock Exchange, with Huatai International as its sole sponsor [1] - The company has a strong product portfolio with over 20 commercialized drugs and one candidate drug, leading the market in China for innovative drugs treating kidney diseases [1][5] - The company has demonstrated robust financial performance, with a compound annual growth rate (CAGR) of 12.8% in revenue from 2022 to 2024, and a significant acceleration in growth in the first half of 2025, reaching 119.8% [1][6] Financial Performance - Adjusted EBITDA for the years 2023 to the first half of 2025 is projected to be 0.32 billion, 1.12 billion, and 1.79 billion respectively, with profit margins increasing from 3.61% to 22.46% [1][6] - The Hong Kong pharmaceutical sector has performed well this year, with an overall increase of over 90%, providing a favorable valuation environment for new listings [1] Product Portfolio and Market Position - The company’s core revenue comes from kidney disease products, which accounted for 37.6% of total revenue in the first half of 2025, while blood disease products contributed 19.9% [2] - Key products include innovative therapies such as Kepwei® and Kelirol®, with significant sales growth, particularly for Kelirol®, which increased from approximately 500,000 boxes in 2017 to about 7.5 million boxes in 2024 [5][6] - The company has a strong sales network covering over 30 provinces and more than 10,000 hospitals, enhancing its commercial capabilities [5] Industry Outlook - The Chinese CKD treatment market is expected to grow at a double-digit rate, with a projected market size of 25.1 billion in 2024 and a CAGR of 11.3% until 2035 [7] - The market for treating secondary hyperparathyroidism (SHPT) in CKD patients is also expanding, with the company holding a 15.9% market share in this segment [9] - The blood disease treatment market is also on the rise, with a projected market size of 3.9 billion by 2035, driven by increasing incidence rates [9][10] Strategic Development - Weijian Pharmaceutical employs three main development strategies: mergers and acquisitions, licensing, and strategic partnerships, to enhance its product offerings in kidney and blood diseases [2][6] - The company is committed to R&D investment, supported by a strong academic network across over 3,200 tertiary hospitals in China, facilitating clinical development [6] - The company plans to continue monitoring major disease trends and may pursue acquisitions of pharmaceutical companies with strong industry positions [6]

Core Viewpoint - Weijian International Holdings Group Limited (Weijian Pharmaceutical) is seeking to go public on the Hong Kong Stock Exchange, showcasing strong performance but facing challenges in its IPO journey. Group 1: Company Overview - Established in 2011, Weijian Pharmaceutical is a leading Chinese pharmaceutical company focused on the treatment of kidney and blood diseases, with a comprehensive capability in drug development, production, and commercialization [1]. - The company has developed a diverse product portfolio, covering six kidney drugs, making it the Chinese pharmaceutical company with the highest number of commercialized original drugs for kidney diseases [1][2]. Group 2: Financial Performance - Revenue for the years 2022, 2023, 2024, and the first half of 2025 was RMB 724 million, RMB 887 million, RMB 902 million, and RMB 797 million, respectively, with corresponding net profits of RMB -92.8 million, RMB -17 million, RMB 8.57 million, and RMB 2.40 million [1][2]. - The total loss over three and a half years amounted to RMB 77.19 million [1]. Group 3: Customer Concentration - The company relies heavily on a few major clients, with total revenue from the top five clients for the years ending December 31, 2022, 2023, 2024, and the first half of 2025 being RMB 435 million, RMB 487 million, RMB 539 million, and RMB 487 million, respectively, accounting for 60.2%, 54.8%, 59.8%, and 61.1% of total revenue [3][4]. Group 4: Market Competition - The company faces increasing market competition, particularly with the drug Sinacalcet, which has seen its market share decline from 35% in 2019 to 19.7% in 2024 due to generic drug competition [5]. - The company anticipates price reductions of 30%-50% for two of its products during the 2024 national medical insurance directory adjustment, which could further impact gross margins [5]. Group 5: Research and Development - The company has a low R&D investment ratio, with expenditures of RMB 17.27 million, RMB 19.36 million, and RMB 11.86 million for the years 2022-2024, representing less than 2% of revenue, which is below the industry average [7]. Group 6: Supply Chain Risks - The company faces supply chain risks, with 82% of procurement in the first half of 2025 coming from the top five suppliers, and the largest supplier accounting for 41.9% of total procurement [8].