Company Overview - The company specializes in the development of new drugs, including HC-1119, HP518, HP568, HP501, HP515, HP537, and HP560 [8] - The first class new drug, HC-1119, is expected to be approved for sale in May 2025, leading to a modest increase in sales revenue from material and intermediate sales [8] Financial Performance - The company anticipates total revenue for 2025 to be between 19 million and 22 million yuan, influenced by the inclusion of HC-1119 in the National Medical Insurance Drug List, which will result in a significant price reduction [8] - Research and development expenses for 2025 are projected to be between 105 million and 125 million yuan, a decrease of 4.903 million to 6.903 million yuan compared to the previous year [8] - The company expects to report a net loss for 2025, although the loss will be reduced compared to the previous year when excluding non-recurring gains and losses [9] Historical Revenue and Profit Trends - Historical total revenue and net profit data indicate fluctuations, with total revenue expected to show a growth rate of -1,000% to 6,000% from 2020 to 2025 [10] - The company has experienced varying growth rates in total revenue and net profit over the years, with specific projections for 2025 indicating a continued trend of net losses [10] Valuation Metrics - The company’s valuation metrics include price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-sales (P/S) ratio, with P/E being negative during loss periods, making P/B and P/S more relevant for valuation [13]

Core Viewpoint - The report highlights Haichuang Pharmaceutical's focus on innovative drug development, particularly in the areas of cancer and metabolic diseases, utilizing advanced technologies such as PROTAC and deuterated drugs to address unmet clinical needs [5][9]. Financial Performance - The company reported a revenue of 13.17 million yuan for the first half of 2025, a significant increase of 11,899.08% compared to the same period last year [4]. - The total profit for the period was a loss of 61.85 million yuan, which is an improvement from a loss of 100.40 million yuan in the previous year [4]. - The net profit attributable to shareholders was also a loss of 61.85 million yuan, showing a reduction in losses by 33.63% compared to the previous year [4]. Product Development - The company’s first core product, deuterated enzalutamide soft capsules (HC-1119), received approval from the NMPA and generated sales revenue of 13.07 million yuan [4][8]. - HC-1119 has shown significant clinical benefits, including a 42% reduction in the risk of disease progression or death in patients with metastatic castration-resistant prostate cancer (mCRPC) [8][9]. - The company has a robust pipeline of drugs in various stages of development, including HP518 and HP568, targeting different cancer types and mechanisms [6][10]. Market Strategy - The company is implementing a comprehensive commercialization strategy that includes academic promotion and building a competitive marketing team to enhance brand awareness and market access [9]. - The product HC-1119 has been launched in major cities, marking its entry into the clinical application phase and providing new treatment options for prostate cancer patients [9][10]. Research and Development Focus - Haichuang Pharmaceutical emphasizes innovation in drug development, particularly in addressing the challenges of drug resistance in prostate cancer treatment through its PROTAC technology [10]. - The company aims to leverage its advanced research platforms to enhance its global competitiveness in the pharmaceutical market [5][9].

Investment Rating - The report does not specify a clear investment rating for the company [1] Core Views - The company has made progress in its research pipeline, particularly with the drug HC-1119, which is expected to receive approval by the end of 2024 [8] - The company reported a revenue of 0.367 million yuan for 2024, with a net profit attributable to the parent company of -199.5 million yuan, indicating a reduction in losses compared to previous periods [8] - The company is advancing its PROTAC drug development, with significant milestones achieved in clinical trials for various indications [8] Financial Summary - **Revenue Forecast**: The company is projected to achieve revenues of approximately 159 million yuan in 2025, 379.7 million yuan in 2026, and 580 million yuan in 2027, reflecting a growth rate of 43,243.59% in 2025 [3][10] - **Net Profit**: The net profit attributable to the parent company is expected to improve from -150.64 million yuan in 2025 to a positive 5.37 million yuan in 2027, with a growth rate of 105.93% in 2027 [3][11] - **Earnings Per Share (EPS)**: EPS is projected to improve from -1.52 yuan in 2025 to 0.05 yuan in 2027 [3][11] - **Return on Equity (ROE)**: ROE is expected to turn positive at 0.56% by 2027, improving from -14.46% in 2025 [3][11] Research and Development Progress - The company has completed patient enrollment for its oral AR PROTAC drug HP518 in a Phase II clinical trial for mCRPC, and it has received FDA fast track designation for another indication [8] - The clinical trial for HP568 targeting ER+/HER2- advanced breast cancer has received approval from the NMPA and is set to begin patient dosing [8] Investment Recommendations - The report suggests monitoring the company closely due to the anticipated approval of its first innovative drug, 德恩鲁胺 (Deenluzumab), which has already been accepted for NDA [8]