ALEBUND-B (09637) Profit Warning: Revenue surged over sevenfold in the first half of the year, significantly narrowing losses, with growth potential drawing considerable attention.

On August 6, after market hours, ALEBUND-B (09637) released a positive earnings announcement, disclosing 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 RMB 12.1 million in the same period last year. The loss for the period is expected to be around RMB 158 million to RMB 178 million, narrowing by about 15% to 25% compared to RMB 210 million in the same period last year. The announcement stated that the significant increase in revenue is primarily due to two factors: first, the recognized licensing income under the licensing and equity agreement with R1 Therapeutics regarding AP306; second, the increase in sales of Meixinluo. The narrowing of losses is mainly due to the termination of certain share redemption liabilities before the listing, which is a one-time factor, and no interest related to this liability will be accrued during the reporting period. In terms of news, Libang Pharmaceutical performed strongly in the secondary market this week (August 3 to 6), with a cumulative rise of nearly 20% over four trading days, driven by multiple catalysts. First, there is an expectation of inclusion in the Stock Connect. According to a research report from China International Capital Corporation, Hang Seng Index Company will announce the results of its semi-annual review of the Hang Seng Composite Index on August 21, with 49 stocks expected to be included in the Stock Connect, and Libang Pharmaceutical is among them. Inclusion could expand the investor base and potentially enhance the liquidity of H-shares. Second, the enthusiasm for the FSGS sector is being transmitted from the US stock market. Travere Therapeutics' core product, FILSPARI, saw its net sales in the United States nearly double year-on-year in the second quarter, with the long-term medication shortage for FSGS being repriced by the capital market. It is noteworthy that Libang's self-developed AP303 is also in this sector. Third, the clinical value of AP303 is being realized. This product is a first-in-class dual PPAR agonist and is positioned as a disease-modifying therapy that may significantly delay or prevent the progression of CKD. It has been 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 an additional Phase Ib trial in China), and it holds a Phase II IND for FSGS, with plans to advance to Phase II clinical trials in the second half of 2026. Its indications cover FSGS, DKD, and IgAN patients with proteinuria (basket Phase II) and ADPKD (which has been granted orphan drug status by the FDA). From completing Phase I to holding the FSGS Phase II IND, AP303 stands at the starting point of realizing its clinical value. Fourth, the global development of AP306 is accelerating. The global Phase IIb multi-regional clinical trial (NCT06712654) co-filed by the company and R1 has completed the randomization and dosing of the first subject. Previously, AP306 had reached a licensing and equity agreement with R1 regarding rights outside Greater China, and the licensing income confirmed in this positive earnings announcement further validates that the collaboration has entered a period of harvest. In addition, Libang Pharmaceutical's first commercial product, Meixinluo (a long-acting erythropoietin in collaboration with Roche), continues to grow in volume, with revenues expected to increase by about 370% year-on-year in 2025, and it has been included in the national medical insurance directory; the oral phosphate binder AP301 has completed the Phase III registration clinical trial in China.