Company Dynamics - Kangzheng Pharmaceutical plans to spin off its subsidiary, Demai Pharmaceutical, which focuses on skin health, for independent listing on the Hong Kong Stock Exchange [3] - Kangzheng holds 90.8% of Demai's shares, with the remaining 9.2% held by employee incentive platforms [3] - The spin-off is expected to be executed through a distribution of shares to existing shareholders [3] Financial Performance - Demai Pharmaceutical's revenue from 2022 to 2024 is projected to be 384 million, 473 million, and 618 million respectively, totaling nearly 1.5 billion with a compound annual growth rate of 26.89% [4] - Despite revenue growth, Demai has reported losses of 55.17 million, 4.703 million, and 106 million over the same period, attributed to high sales and R&D expenses [4] - The company has successfully entered the skin-level skincare market, with related business revenue exceeding 10% of total revenue [3][4] Market Implications - No skin-level skincare companies have successfully listed on the Hong Kong Stock Exchange to date, making Demai's potential listing a significant milestone for the sector [4] - A successful listing would signal positive developments for the skin-level skincare industry in the capital market [4]