Recently, Kexing Pharmaceutical released its 2025 semi-annual report and simultaneously announced that the company is planning to issue H shares and list them on the Hong Kong Stock Exchange.

Kexing Pharmaceutical was listed on the Shanghai Stock Exchange in December 2020. As of the close of trading on August 31, 2025, it had a market value of approximately RMB 9.071 billion.

As an innovative international biopharmaceutical company mainly engaged in the integration of research and development, production and sales of recombinant protein drugs and microecological preparations.Focus on the treatment fields of antiviral, anti-tumor, autoimmunity, metabolism, degenerative diseases, etc., create cutting-edge biotechnology platforms such as new proteins, new antibodies, and nucleic acid drugs, and adhere to the "innovation + internationalization" two-wheel drive platform-based development model. At the same time, explore the widespread application of biotechnology in the field of general health, actively cultivate and incubate new industries, and strive to become a leader in high-quality biopharmaceutical and serve patients around the world.

The core driving force behind the 576% surge in net profit

• Revenue side: In the first half of 2025, the company achieved operating income of 700 million yuan, a year-on-year decrease of 7.8%, mainly due to the decline in domestic centralized procurement prices.
• Profit end: Net profit attributable to the parent company was 80.34 million yuan, a year-on-year increase of 576.45%.
• Split core variables: -Overseas revenue was 188 million yuan, a year-on-year increase of 108.94%, and gross profit margin remained above 70%, driving the optimization of the overall profit structure;-Sales expenses were 255 million yuan, a year-on-year decrease of 23.86%. Management and research and development expenses were also compressed simultaneously, and the overall period expenses decreased by 84.48 million yuan;-Asset impairment losses decreased by approximately 15 million yuan year-on-year.

The explosion in performance is not "wealth on paper", but is caused by the heavy volume of overseas high-margin varieties combined with hard compression of costs, and is sustainable.

Listing process-the fastest Q4 opens a new window for Hong Kong stocks

The company's announcement made it clear that the board of directors has reviewed and approved the issuance of H shares. The next step will be to go through the shareholders 'meeting, the filing with the China Securities Regulatory Commission, and the hearing on the Hong Kong Stock Exchange. It is expected to open a new window for Hong Kong stocks as soon as the fourth quarter of 2025.

The issuance ratio is capped at 15%, and 15% over-allotment rights are reserved. The cornerstone investors and the green shoe mechanism have laid the foundation for liquidity in advance.For new funds, the discount space between the current price of A-shares and the pricing of potential H-shares will become the core yardstick for short-term arbitrage.

Valuation Story--Overseas Closed Loop + Gradient Pipeline Lock Long-term Premium

Kexing Pharmaceutical's overseas commercial network has covered more than 40 countries. After obtaining EU GMP, albumin paclitaxel has been increased in 13 countries, driving the proportion of overseas revenue to jump from 12% to 27%.Among the 18 research pipelines, GB18 China-US Double Reporting IND and GB24 target the 100 billion IBD market. In addition, 19 overseas equity products have been introduced, forming a complete echelon of "innovative drugs + high-end complex preparations + biosimilars".

Once the A+H dual financing platform is implemented, high overseas growth verifies execution, and gradient pipelines provide long-term imagination, the valuation story will have verifiable and sustainable hard core support.

In general, Kexing Pharmaceutical's profit side has used a growth rate of 576%, its capital has correctly used H-share issuance to seize new heights in Hong Kong stocks, and the industrial side has used an internationalization closed-loop to lock in long-term valuations.

In 2025, A+H listings will be active, the Hong Kong stock market will be booming, and the number of IPOs will increase significantly compared with last year.Wealth Broker produces Lighthouse Research Reports for each newly listed Hong Kong stock company to help investors quickly understand its fundamentals. Details can be found on the Wealth Broker APP Stock Details page.

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