ALEBUND-B (09637) Profit Alert: Revenue surged over 7 times in the first half of the year, losses significantly narrowed, and growth potential has garnered considerable attention.

After the market closed on August 6, ALEBUND-B (09637) announced a positive profit forecast, revealing its unaudited financial performance for the six months ending June 30, 2026. During the reporting period, the group expects to record revenue of approximately RMB 103 million to RMB 106 million, a substantial increase of about 750% to 775% compared to approximately RMB 12.1 million in the same period last year; the anticipated loss during the period is expected to be around RMB 158 million to RMB 178 million, narrowing by about 15% to 25% compared to approximately RMB 210 million in the same period last year. The announcement stated that the significant revenue growth was primarily due to two factors: first, the confirmation of licensing revenue under the licensing and equity agreement with R1 Therapeutics for AP306; second, driven by the sales growth of Meixinluo. The narrowing of the loss was mainly attributed to the termination of redemption liabilities for certain shares prior to the company's listing, which is a one-time factor, meaning that related interest will no longer be accrued during the reporting period. In terms of news, Libang Pharmaceutical has seen strong performance in the secondary market this week (August 3 to 6), with a cumulative increase of nearly 20% over four trading days, driven by multiple catalysts. Firstly, there is the expectation of inclusion in the Hong Kong Stock Connect. According to a report from CICC, Hang Seng Index Company will announce the semi-annual review results of the Hang Seng Composite Index on August 21, with 49 stocks expected to be included in the Hong Kong Stock Connect, among them Libang Pharmaceutical. Inclusion is expected to broaden the investor base and potentially enhance the liquidity of H-shares. Secondly, the heat in the FSGS sector is being transmitted from the US stock market. Travere Therapeutics core product FILSPARI saw a nearly doubling of net sales in the US in the second quarter year-on-year, leading to a repricing in the capital market for the long-term drug shortage indication of FSGS. Notably, Libangs self-developed AP303 is also in this sector. Thirdly, the clinical value of AP303 is being realized. This product is a first-in-class dual PPAR agonist, positioned as a disease-modifying therapy expected to significantly delay or prevent the progression of CKD. It is independently discovered, developed, and globally owned by the company. In terms of clinical progress, AP303 has completed Phase I trials in Australia and China (along with a Chinese Phase Ib trial), and the FSGS Phase II IND is secured, with advancement to Phase II clinical trials expected in the second half of 2026. The indications cover FSGS, DKD, and IgAN patients with high proteinuria (basket Phase II), and ADPKD (which has received FDA orphan drug designation). From the completion of Phase I to securing the FSGS Phase II IND, AP303 stands at the threshold of realizing its clinical value. Fourthly, global development of AP306 is accelerating. The global Phase IIb multi-regional clinical trial (NCT06712654) being jointly applied for by the company and R1 has completed randomization and dosing of the first subject. Previously, AP306 had reached a licensing and equity agreement with R1 for rights outside of Greater China, and the licensing revenue confirmed in this profit announcement further validates that this collaboration has entered a harvest period. In addition, Libang Pharmaceutical's first commercialized product, Meixinluo (a long-acting erythropoiesis-stimulating agent developed in collaboration with Roche), continues to increase in volume, with revenue in 2025 expected to grow by approximately 370% year-on-year, and it has been included in the national medical insurance catalog; the oral phosphate binder AP301 has completed Phase III registration clinical trials in China.