Core Viewpoint - The article discusses the challenges faced by Betta Pharmaceuticals, particularly the decline in profitability and the impact of product competition on its financial health, leading to a liquidity crisis and the need for a third attempt at an IPO in Hong Kong [6][14]. Financial Performance - In the first half of 2025, Betta Pharmaceuticals reported a revenue of 1.731 billion yuan, a year-on-year increase of 15.37%, but the net profit dropped by 37.53% to 140 million yuan, indicating a dangerous trend of "increased revenue without increased profit" [7][10]. - The second quarter of 2025 saw a significant decline in profitability, with a revenue of 814 million yuan corresponding to a net profit of 39.808 million yuan, a staggering year-on-year decrease of 68.36% [7][10]. Product Challenges - The core product, Camrelizumab (凯美纳), has seen a cumulative price drop of 54% due to multiple rounds of medical insurance negotiations and is facing competition from generics after its patent expiration in 2023, leading to stagnation in growth [6][8]. - Another key product, Ensartinib (贝美纳), is under pressure with a 71% price reduction and competition from five similar products in the European market, resulting in declining gross margins [8][9]. - The third-generation EGFR inhibitor, Bafetinib (贝福替尼), has not met sales expectations, with first-half sales failing to reach the disclosure threshold of 173 million yuan, significantly below the market expectation of 1 billion yuan [8][9]. Research and Development (R&D) Issues - Betta Pharmaceuticals has reduced its R&D investment from 700 million yuan in 2022 to 500 million yuan in 2024, with only 226 million yuan spent in the first half of 2025, a year-on-year decrease of 10.4% [9][15]. - The R&D team size has halved from 647 to 327, contrasting sharply with the industry trend where A-share innovative pharmaceutical companies increased R&D investment by 18% in the same period [9][15]. Cash Flow and Debt Situation - The company's operating cash flow has deteriorated, with a net cash flow from operating activities of 445 million yuan in the first half of 2025, a decline of 14.7% year-on-year [10][11]. - As of June 2025, current liabilities exceeded current assets by 398 million yuan, resulting in a current ratio of only 0.77, indicating significant short-term debt repayment pressure [10][11]. IPO Attempts and Market Conditions - Betta Pharmaceuticals announced its third attempt at an IPO in September 2025, aiming to issue up to 15% of its total shares, with the primary goal of alleviating liquidity issues [14][16]. - The previous two IPO attempts in 2021 were unsuccessful due to deteriorating financial conditions and market sentiment, with the second application expiring in June 2022 [13][14]. Industry Context - The challenges faced by Betta Pharmaceuticals reflect broader issues within the Chinese innovative pharmaceutical sector, including price controls, intensified competition, and a decline in new drug applications [14][15]. - The article highlights the need for companies to adapt by focusing on new global targets and improving cost control to survive in a competitive landscape [15][16].

Core Viewpoint - Beida Pharmaceutical reported a revenue of 2.892 billion yuan for 2024, representing a year-on-year increase of 17.74%, and a net profit attributable to shareholders of 403 million yuan, up 15.67% year-on-year [1] Financial Performance - The overall gross margin for the company was 81.38%, a decrease of 2.15 percentage points year-on-year; the period expense ratio was 65.72%, down 7.37 percentage points year-on-year [2] - The operating cash flow net amount was 911 million yuan, a decrease of 0.33% year-on-year [2] - The company achieved a net profit of -14 million yuan in Q4 2024, a decline of 131.51% year-on-year [1] R&D Progress - The company expanded its pipeline with five products currently on sale, and received FDA approval for its first overseas product, Bemetan (Ensartinib), in December 2024 [3] - R&D investment for the year was 717.78 million yuan, accounting for 24.80% of revenue, with multiple innovative drug IND approvals during the reporting period [4] Strategic Collaborations - The company has established strategic partnerships with various organizations to enhance its R&D pipeline, including a commercialization agreement for a plant-derived recombinant human serum albumin injection [5] - In November 2024, the company invested 20 million yuan in Ruipuchen to collaborate on stem cell therapy business [5] Investment Outlook - Revenue forecasts for 2025-2027 are adjusted to 3.69 billion, 4.46 billion, and 5.24 billion yuan, with expected year-on-year growth rates of 27.7%, 20.6%, and 17.5% respectively [6] - The net profit forecasts for the same period are 610 million, 910 million, and 1.21 billion yuan, with growth rates of 51.6%, 48.2%, and 33.4% respectively [6]