New stock news | Wangshan Wangshui submits secondary application to Hong Kong Stock Exchange, with a sharp drop in revenue and continued losses

According to the disclosure of the Hong Kong Stock Exchange on July 31st, Suzhou Wangshan Wangshui Biopharmaceutical Co., Ltd. (referred to as "Wangshan Wangshui") has submitted an application to the Hong Kong Stock Exchange Main Board, with CITIC SEC as its exclusive sponsor. Previously, the company had submitted an application to the Hong Kong Stock Exchange on January 27th. The prospectus shows that Wangshan Wangshui is a biopharmaceutical company engaged in the discovery, acquisition, development, and commercialization of small molecule drugs. The company strategically screens and focuses on three therapeutic areas: viral infections, neurological and psychiatric disorders, and reproductive health. It has developed an outstanding pipeline consisting of nine innovative assets (including two core products, LV232 and TPN171, and a key product, VV116). According to Zacks Research data, the Chinese antiviral drug market, neurological and psychiatric drug market, and reproductive health drug market are expected to increase from RMB 20.3 billion, RMB 103.9 billion, and RMB 36.2 billion in 2024 to RMB 40.3 billion, RMB 123.5 billion, and RMB 42.2 billion in 2035, respectively. Despite significant growth, there are still considerable challenges in developing successful therapies in these treatment areas, presenting vast unmet clinical needs and huge market opportunities for innovative treatments. Among the nine innovative assets in the company's pipeline, two are in or near the commercialization stage, four are in clinical stage, and three are in pre-clinical stage. VV116, LV232, and TPN171 specifically target the antiviral drug market, neurological and psychiatric drug market, and reproductive health drug market, and are ready to meet significant clinical needs. The company's customers mainly include externally authorized customers, direct sales customers who purchase drugs directly from the company, distributors, and pharmaceutical companies to whom the company provides CRO services. In the years 2023, 2024, and the four months ended April 30, 2025, the revenue generated from the top five customers in each fiscal year/period accounted for 99.3%, 86.6%, and 91.2% of the company's total revenue for each fiscal year/period. In terms of commercialization, the company sells dapoxetine directly or indirectly through distributors to chain pharmacies and sells ribavirin indirectly through Chinese distributors, as well as selling VV116 and TPN171 to companies and individual customers in Uzbekistan. The company's internal sales and marketing team mainly promotes the company's products through various marketing activities in China and Uzbekistan and sells them through different channels. In terms of production capacity, the company has a production facility at Jiangsu Lianyungang Port in Jiangsu Province, with a total construction area of approximately 51,955 square meters, housing an oral solid dosage form small molecule drug workshop and a raw material drug workshop. The Jiangsu Lianyungang Port factory has obtained GMP certification. The Jiangsu Lianyungang Port factory started production in June 2024, with an annual designed production capacity of 100 million capsules and 600 million tablets. Financially, for the fiscal years 2023, 2024, and the four months ended April 30, 2025, Wangshan Wangshui achieved revenues of approximately RMB 200 million, RMB 11.832 million, and RMB 12.958 million, respectively; meanwhile, the annual/in period profits were approximately RMB 6.427 million, -RMB 21.8 million, and -RMB 11.2 million, respectively.