Core Viewpoint - Mengke Pharmaceutical plans to issue shares to Haiqing Pharmaceutical to raise no more than 1.033 billion yuan, but faces opposition from a board member and the largest shareholder, indicating potential management and shareholder conflicts [2][6][7] Financial Performance - Mengke Pharmaceutical has been experiencing long-term losses, with revenues of 48 million yuan in 2022, 91 million yuan in 2023, and projected 130 million yuan in 2024, while net losses were 220 million yuan, 421 million yuan, and 441 million yuan respectively [3] - In the first half of 2025, the company reported revenues of 66.97 million yuan and a net loss of 139 million yuan [3] Product Overview - The core product, Contizolam Tablets, is used for treating complex skin and soft tissue infections, generating 66.97 million yuan in revenue in the first half of 2025, a year-on-year increase of 10.26% [3] - Other products are in preclinical stages, focusing on indications for anti-infection, oncology, and nephrology [4] Production and Collaboration - Mengke Pharmaceutical lacks production capabilities and outsources the manufacturing of Contizolam Tablets to Huahai Pharmaceutical [4] - The company aims to use the funds raised for research and commercialization projects, particularly in the field of antibiotic resistance [5] Shareholder and Board Dynamics - The largest shareholder, Genie Pharma, holds 10.92% of shares and plans to vote against the stock issuance, citing concerns over the fairness and necessity of the transaction [2][6] - Board member Zhao Yachao voted against the issuance, raising issues about the lack of thorough investigation and the broad use of raised funds [6][7] Strategic Implications - If the issuance proceeds, Haiqing Pharmaceutical will become the controlling shareholder with a 20% stake, potentially leading to changes in the company's strategic direction [6] - The management believes that partnering with Haiqing Pharmaceutical aligns with the company's interests despite the opposition [7]