Core Viewpoint - Weijian Pharmaceutical, a leading Chinese pharmaceutical company specializing in kidney and blood diseases, has submitted its listing application to the Hong Kong Stock Exchange, showcasing strong revenue growth and a robust product pipeline [1][10]. Group 1: Company Overview - Weijian Pharmaceutical has over 20 commercialized drugs and one candidate drug, focusing on the treatment of kidney and blood diseases, with the largest number of commercialized original research drugs in China for kidney disease [1]. - The company has demonstrated strong 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][10]. - 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]. Group 2: Product and Market Focus - The company focuses on three main disease areas: kidney diseases, respiratory and infectious diseases, and blood diseases, with kidney disease products being the primary revenue source [2]. - In the first half of 2025, revenue shares from these three disease areas are 37.6%, 25.1%, and 19.9% respectively, with other products contributing 17.4% [2]. - Key products for kidney diseases include Gaiyouping, Kewpeiwei, Keliroluo, and Naisbao, with Kewpeiwei being the first FDA-approved targeted therapy for CKD-aP [4]. Group 3: Commercialization and Sales Network - Weijian Pharmaceutical has a strong commercialization capability, with sales of Keliroluo increasing from approximately 500,000 boxes in 2017 to about 7.5 million boxes in 2024, a 14-fold increase [4]. - The company's distribution network covers over 30 provinces and municipalities in China, reaching more than 10,000 hospitals and over 60,000 retail pharmacies [4]. - The company has a growing number of distributors, with 260 distributors in the first half of 2025, an increase of 94 from 2022 [5]. Group 4: Industry Outlook - The Chinese CKD treatment market is expected to maintain double-digit growth, with a projected market size of 25.1 billion in 2024 and a CAGR of 11.3%, reaching 82.5 billion by 2035 [6]. - The market for treating secondary hyperparathyroidism (CKD-SHPT) is also growing, with Weijian holding a 15.9% market share in the calcium mimetics segment [8]. - The blood disease treatment market is also expanding, with a projected market size of 3.9 billion by 2035, driven by increasing incidence rates [8]. Group 5: Competitive Advantages - Weijian Pharmaceutical's diverse product portfolio and strong market position in kidney and blood diseases provide a competitive edge, with several products expected to accelerate commercialization and revenue growth [9]. - The company has established strong partnerships and a robust academic network, supporting its clinical development and regulatory approval processes [5]. - The company's financial strength, with cash equivalents of 479 million as of June 2025, positions it well for future acquisitions and growth opportunities [5].

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].