Group 1 - The stock of Beihai Kangcheng-B (01228) has surged over 9%, with a remarkable year-to-date increase of 16 times, currently trading at 2.4 HKD with a transaction volume of 16.13 million HKD [1] - In the first half of the year, Beihai Kangcheng reported revenues of 22.248 million HKD, a decrease of 50.33% year-on-year, while achieving a profit of 59.238 million HKD, compared to a loss of 247 million HKD in the same period last year [1] - The revenue decline is attributed to the company's strategic focus on rare diseases since 2021, with the termination of the distribution agreement for the product He Li An in Taiwan by the end of 2024, leading to a 170,000 HKD or 6.9% decrease in revenue excluding sales in Taiwan [1] Group 2 - In August, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares in Beihai Kangcheng [2] - The agreement includes a commercial service contract that grants Baiyang's subsidiary promotional rights for specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [2] - Beihai Kangcheng's three rare disease products have passed the preliminary review for the commercial insurance innovative drug directory announced by the National Healthcare Security Administration, including the recently approved long-term enzyme replacement product for Gaucher disease patients [2]

Group 1 - The stock of Beihai Kangcheng-B (01228) has surged over 9%, with a remarkable year-to-date increase of 16 times, currently trading at 2.4 HKD with a transaction volume of 16.13 million HKD [1] - In the first half of the year, Beihai Kangcheng reported revenues of 22.248 million HKD, a decrease of 50.33% year-on-year, while achieving a profit of 59.238 million HKD, compared to a loss of 247 million HKD in the same period last year [1] - The revenue decline is attributed to the company's strategic focus on rare diseases since 2021, with the termination of the distribution agreement for the product He Li An in Taiwan by the end of 2024, leading to a revenue drop of 1.7 million HKD or 6.9% excluding sales in Taiwan [1] Group 2 - In August, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares in Beihai Kangcheng [2] - The agreement includes a commercial service contract that grants Baiyang's subsidiary promotional rights for specific Beihai Kangcheng products in mainland China, Hong Kong, and Macau [2] - Beihai Kangcheng's three rare disease products were included in the preliminary list of innovative drugs for commercial insurance published by the National Healthcare Security Administration on August 12, including the recently approved long-term enzyme replacement product for Gaucher disease [2]

Core Viewpoint - Beihai Kangcheng-B (01228) reported a significant increase in stock price following its interim results, with a rise of over 12% and a current price of 2.54 HKD, reflecting a trading volume of 10.31 million HKD [1] Financial Performance - The company reported a revenue of 22.248 million HKD for the first half of the year, a decrease of 50.33% year-on-year [1] - The net profit for the period was 59.238 million HKD, a turnaround from a loss of 247 million HKD in the same period last year [1] - Revenue decline was primarily attributed to the strategic focus on rare diseases initiated in 2021, with the termination of the distribution agreement for the product He Li An in Taiwan by the end of 2024 [1] - Excluding the sales of He Li An in Taiwan, the company's revenue decreased by 1.7 million HKD or 6.9% compared to the same period in 2024, mainly due to proactive inventory management and reduced stock of Mai Ruibei in the channels [1] Strategic Developments - In August 2025, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, with Baiyang investing 100 million HKD in the company [1] - The agreement includes an exclusive commercialization service contract, enhancing strategic collaboration between Beihai Kangcheng and Baiyang Pharmaceutical [1] - A subsidiary of Baiyang Pharmaceutical will gain promotional rights for specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [1]

Core Viewpoint - Beihai Kangcheng-B (01228) experienced a significant stock price increase of over 12% following the release of its interim results, indicating positive market sentiment despite a decline in revenue [1] Financial Performance - For the first half of the year, the company reported revenue of 22.248 million, a decrease of 50.33% year-on-year [1] - The company achieved a profit of 59.238 million, compared to a loss of 247 million in the same period last year, marking a turnaround to profitability [1] - Revenue decline was primarily attributed to the company's strategic focus on rare diseases initiated in 2021, with the termination of the distribution agreement for the product "He Li An" in Taiwan by the end of 2024 [1] - Excluding the sales of "He Li An" in Taiwan, the company's revenue decreased by 1.7 million or 6.9% compared to the same period in 2024, mainly due to proactive inventory management and reduced stock of "Mai Ru Bei" in the channels [1] Strategic Developments - In August 2025, the company announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million Hong Kong dollars to subscribe for shares in Beihai Kangcheng [1] - The agreement includes an exclusive commercialization service contract, enhancing strategic collaboration between the two companies [1] - A subsidiary of Baiyang Pharmaceutical will gain promotional rights for specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [1]

Core Viewpoint - Beihai Kangcheng-B (01228) reported a significant decrease in revenue for the six months ending June 30, 2025, with earnings of 22.248 million, a year-on-year decline of 50.33% [1] Financial Performance - The company achieved a profit of 59.238 million, contrasting with a loss of 247 million in the same period last year [1] - Earnings per share stood at 0.14 yuan [1] Revenue Drivers - The revenue decline is primarily attributed to the company's strategic focus on rare diseases initiated in 2021, leading to the cessation of sales of He Li An in Taiwan after the distribution agreement ends in late 2024 [1] - Excluding the sales of He Li An in Taiwan, revenue decreased by 1.7 million or 6.9% compared to the same period in 2024 [1] - The company implemented proactive inventory management in the first half of 2025, resulting in reduced inventory levels of Mai Ru Bei in the distribution channels [1]