Core Viewpoint - The stock price of Asia-Pacific Pharmaceutical has significantly increased due to the rise in the innovative drug sector, with a year-to-date increase of 135% as of July 30, closing at 7.17 yuan per share [2][5]. Company Performance - Asia-Pacific Pharmaceutical expects to achieve a net profit attributable to shareholders of 100 million to 110 million yuan in the first half of 2025, representing a year-on-year growth of 1726.42% to 1909.06% [2][4]. - The company has faced financial challenges in recent years, with revenues of 515 million yuan in 2020, 315 million yuan in 2021, 373 million yuan in 2022, and 421 million yuan in 2023, alongside net profits of 27.27 million yuan, -228 million yuan, -133 million yuan, and -11.87 million yuan respectively [3]. - In 2024, the company reported revenues of 405 million yuan, a decrease of 3.68% year-on-year, but turned a profit with a net profit of 34.24 million yuan, primarily due to non-recurring gains [3][4]. Business Operations - Asia-Pacific Pharmaceutical specializes in the research, production, and sales of chemical preparations, with a portfolio of 111 approved formulations and five raw material drug approvals [3]. - The company has been actively restructuring, including the sale of its subsidiary, which contributed approximately 149 million yuan to its profit total for the first half of 2025 [4]. Industry Context - The innovative drug index has surged nearly 50% since the beginning of 2025, reflecting a broader trend in the industry driven by policy benefits, technological breakthroughs, and increased capital inflow [7]. - The Chinese innovative drug sector is transitioning from "generic" to "global innovation," with a significant increase in licensing transactions and contributions to international conferences [8].