Core Viewpoint - The company, Anglikang, is facing significant challenges as it plans to raise 1.16 billion yuan through a private placement of A-shares to fund innovative drug research and industrialization projects, amidst a sharp decline in its gross margin from 64.7% in 2021 to 38.78% in the first three quarters of 2025, marking a ten-year low [1][2]. Group 1: Financial Performance - The gross margin of the company has decreased by nearly 40% over four years, raising scrutiny over its financing motives [1]. - The core product's price drop is a major reason for the expected revenue decline in 2024 [1]. Group 2: Financing History - The company has faced ongoing criticism for its "heavy financing and light returns" approach, with previous fundraising efforts resulting in a significant portion of the capital remaining unutilized for intended projects [2]. - As of September 2025, 22.91% of the funds raised in previous rounds had not been invested in the original projects, with 420 million yuan used multiple times to supplement working capital [2]. Group 3: Innovation and Market Position - The new fundraising project is closely related to previous initiatives, with 677 million yuan allocated for "tumor innovative drug research," raising questions about the efficiency of past investments [2]. - The company’s only innovative drug in development, ALK-N001, faces stiff competition in a market with many players already established in the ALK inhibitor space [2]. Group 4: Risks and Investor Concerns - The controlling shareholder has a high equity pledge ratio of 41.81%, which could lead to structural instability if margin calls are triggered [2]. - The dilution of earnings per share from 0.39 yuan to 0.36 yuan post-placement raises concerns for small investors, especially if the innovative drug development fails [2]. - Historical data shows an average stock price decline of 18% within 30 days following the announcement of similar fundraising plans, leaving uncertainty about the current situation [2]. Group 5: Conclusion - The fundraising initiative is viewed as a critical gamble for the company's survival, as the traditional pharmaceutical sector faces challenges from price cuts, pushing the company towards innovative drug development, which is fraught with high failure rates and long investment horizons [3].