Core Viewpoint - Jiangsu Wuzhong Pharmaceutical Development Co., Ltd. has announced a delay in the completion of certain fundraising investment projects, specifically extending the expected operational date for the raw material drug phase II project to July 2026, due to ongoing technical improvements and to ensure project quality [1][4][5]. Fundraising Overview - The company was approved to issue up to 45.38 million shares, with an actual issuance of 41,046,070 shares at a price of 12.52 yuan per share, raising a total of approximately 513.90 million yuan, netting about 502.38 million yuan after deducting issuance costs [1][2]. - As of June 30, 2025, the actual amount used for fundraising projects was approximately 496.15 million yuan, leaving a remaining balance of about 26.41 million yuan [2][3]. Investment Project Details - The company has made adjustments to several fundraising projects, including the cancellation of some projects and the reallocation of funds to others, such as the raw material drug phase II project and the development of anti-tumor drugs [2][3]. - The company has also permanently supplemented working capital with surplus funds from completed projects, ensuring ongoing operational support [3][4]. Delay Reasons and Measures - The delay in the raw material drug phase II project is attributed to the need for further technical improvements, with the first phase of construction completed and the second phase still in progress [4]. - The company plans to adhere to regulatory requirements and optimize resource allocation to ensure timely completion of the projects despite the delays [4][5]. Approval Process - The board of directors and the supervisory board of the company approved the delay in the project timeline on August 28, 2025, without requiring shareholder approval [5][6]. - The sponsor institution has confirmed that the decision complies with relevant regulations and does not alter the intended use of the raised funds or harm shareholder interests [5][6].

Core Points - The company plans to use part of its idle raised funds to temporarily supplement working capital, with an amount not exceeding 12 million RMB and a duration of no more than 12 months from the board's approval date [1][4]. Summary of Fundraising Situation - The company was approved to issue up to 45.38 million new shares, with an actual issuance of 41,046,070 shares at a price of 12.52 RMB per share, raising a total of approximately 513.90 million RMB, netting about 502.38 million RMB after deducting issuance costs [1][2]. - As of June 16, 2025, the actual amount used for fundraising projects was approximately 496.14 million RMB, leaving a remaining amount of approximately 26.41 million RMB [2]. Summary of Fundraising Investment Projects - The company has several projects with varying levels of investment and usage, including: - National Class I anti-cancer drug project with a committed investment of 156.10 million RMB, with 34.94 million RMB used [2]. - Raw material drug project with a committed investment of 46 million RMB, fully utilized [2]. - Automation warehouse project with a committed investment of 36.80 million RMB, with 8.12 million RMB used [2]. - The total amount for temporary working capital supplementation is set at 12 million RMB [3][4]. Approval Process for Fund Usage - The board and supervisory committee approved the plan to use idle funds on June 25, 2025, ensuring compliance with relevant regulations and that it would not affect the normal progress of fundraising investment projects [4][5]. - The supervisory committee and the sponsor institution both expressed support for the plan, confirming it aligns with regulatory requirements and does not harm shareholder interests [5].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [4][22]. Core Views - The company is entering a growth cycle driven by new product launches, despite facing profit pressure in 2024. The revenue for 2024 is projected at 759 million yuan, a 5.09% increase, with a net profit of 107 million yuan, reflecting a 0.57% growth [1][2]. - In Q1 2025, the company reported a revenue of 187 million yuan, down 9.47%, and a net profit of 21 million yuan, down 52.30% [1][2]. - The non-contract custom business saw a robust growth of 17.27% in 2024, reaching 676 million yuan, while the contract custom business declined by 43% due to early contract terminations by some clients [2][3]. Financial Summary - The total revenue for 2024 is 759 million yuan, with a projected growth rate of 5.1% for the following years, reaching 850 million yuan in 2025 and 982 million yuan in 2026 [3][9]. - The net profit for 2024 is 107 million yuan, with expected growth rates of 14.8% in 2025 and 21.2% in 2026, leading to 122 million yuan and 148 million yuan respectively [3][9]. - Earnings per share (EPS) is projected to increase from 0.25 yuan in 2024 to 0.29 yuan in 2025 and 0.35 yuan in 2026 [3][9]. - The target price for the stock is set at 10.55 yuan, with the current price at 7.09 yuan, indicating a potential upside [3][4].