Core Viewpoint - Suzhou Wangshan Wangshui Biopharmaceutical Co., Ltd. (Wangshan Wangshui) is under market scrutiny due to its core product, TPN171, also known as Angweida, which has recently been approved for sale. The company has submitted its application for a second time to the Hong Kong Stock Exchange, facing significant challenges including a projected revenue decline in 2024 and reliance on major clients for income [1][2][4]. Group 1: Product and Pipeline - Wangshan Wangshui has a total of nine innovative assets focusing on antiviral, neuropsychiatric, and reproductive health fields [1][2]. - TPN171, a PDE5 inhibitor, was approved in Uzbekistan in September 2022 and in China in July 2023 for treating erectile dysfunction (ED) [2]. - The company also has VV116, which is approved for COVID-19 treatment in China and Uzbekistan, but its contribution to revenue is diminishing [3][4]. Group 2: Financial Performance - The company reported revenues of approximately 200 million yuan, 11.83 million yuan, and 12.96 million yuan for the years 2023, 2024, and the first four months of 2025, respectively, with net losses of about 6.43 million yuan, 220 million yuan, and 112 million yuan during the same periods [3][4]. - The decline in revenue is attributed to a significant reduction in licensing income, which varies based on licensing arrangements and milestones [3]. Group 3: Client Dependency - Wangshan Wangshui has a high dependency on major clients, with revenues from the top five clients accounting for 99.3%, 86.6%, and 91.2% of total revenue for the years 2023, 2024, and the first four months of 2025, respectively [4][5]. - The largest client, referred to as Client A, contributed over 51% of revenue in 2023, with this figure increasing to 65.1% in 2024 [4][5]. Group 4: Production Capacity and Expansion Plans - The company plans to use funds raised from its IPO for product development and capacity expansion, including the construction of a new factory in Qingdao, expected to be completed by the end of 2026 [6][8]. - The current production facility in Lianyungang has low capacity utilization rates, with capsule production at 0% and tablet production at 1.3% for the first four months of 2025 [7][8]. - The company anticipates that as its products gain market share and more candidates enter commercialization, production line utilization will gradually improve [8].