---
title: "4 generic drugs contribute over 90% of revenue! Haixi New Pharma relies on centralized procurement for 'easy money', why still in a hurry to list in Hong Kong?"
type: "Topics"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/topics/32909051.md"
description: "By August this year, the centralized procurement policy has officially implemented ten batches. From pilot to normalization, the reshuffle in the generic drug industry has accelerated, and only pharmaceutical companies with real capabilities can stay afloat. Among them, there are no shortage of policy beneficiaries who have ridden the fast lane of centralized procurement and figured out profitable business strategies. In the recent IPO boom, we found such an example—Haixi New Drug. It is reported that after the first submission on January 3 this year expired, Haixi New Drug is once again targeting the Hong Kong Stock Exchange, with Huatai International and CMB International acting as joint sponsors. Currently, the company is advancing with a dual strategy of 'generic + innovation'..."
datetime: "2025-08-13T12:27:05.000Z"
locales:
  - [en](https://longbridge.com/en/topics/32909051.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/32909051.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/32909051.md)
author: "[医药研究社](https://longbridge.com/zh-HK/profiles/15545088.md)"
---

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# 4 generic drugs contribute over 90% of revenue! Haixi New Pharma relies on centralized procurement for 'easy money', why still in a hurry to list in Hong Kong?

By August this year, the centralized procurement policy has officially implemented ten batches. From pilot to normalization, the reshuffle of the generic drug industry has accelerated, and only pharmaceutical companies with real capabilities can stay afloat.

Among them, there are no shortage of policy beneficiaries who have ridden the fast lane of centralized procurement and figured out profitable business strategies.

In the recent IPO boom, we found such a sample—Haixi New Drug. It is reported that after the first submission on January 3 this year expired, Haixi New Drug is once again targeting the Hong Kong Stock Exchange, with Huatai International and CMB International acting as joint sponsors.

Currently, the company is advancing with a dual-track strategy of "generic + innovation," but the generic drug business still dominates, with the centralized procurement driving its growth. At the same time, Haixi New Drug's choice to develop innovative drugs is also partly influenced by centralized procurement.

It can be said that Haixi New Drug has become a representative dual-track pharmaceutical company in the era of centralized procurement.

**Quietly Profiting in the Red Ocean of Generic Drugs**

The red ocean of generic drugs is evident.

Data from the National Health Commission shows that among over 4,000 Chinese pharmaceutical companies, more than 90% are generic drug manufacturers; of the 170,000 drug approvals nationwide, over 95% are for generic drugs. In such a fiercely competitive environment, as a small-to-medium-sized pharmaceutical company, Haixi New Drug is not particularly prominent, and its current performance scale is relatively limited.

According to the prospectus, from 2022 to 2024, Haixi New Drug's revenues were 212 million, 317 million, and 467 million yuan, respectively; gross profits were 172 million, 264 million, and 387 million yuan; and net profits were 68.98 million, 117 million, and 136 million yuan.

Additionally, in the first five months of 2025, the company achieved revenue of 249 million yuan, a 37.6% increase from 181 million yuan in the same period last year; net profit was 90.21 million yuan, compared to 62.97 million yuan in the same period last year.

However, it is not hard to see that Haixi New Drug is a typical example of "quietly making money," and its strong performance growth is hard to ignore.

Behind this, the generic drug business continues to expand its commercial boundaries.

The prospectus states that as of the latest practicable date, Haixi New Drug has obtained approval from the National Medical Products Administration for 14 generic drugs, of which four contribute over 90% of the company's revenue. These are Haibutong (Amlodipine Atorvastatin Calcium Tablets), Anbili (Mosapride Citrate Tablets), Ruiantuo (Cinacalcet Hydrochloride Tablets), and Saixifu (Hydroxychloroquine Sulfate Tablets), used for hypertension, coronary heart disease, hypercholesterolemia, functional dyspepsia, secondary hyperparathyroidism (SHPT), rheumatoid arthritis, juvenile chronic arthritis, systemic lupus erythematosus, and discoid lupus erythematosus, respectively.

From this product layout, it is clear that one key foundation for Haixi New Drug's generic drug success is its focus on mainstream therapeutic areas with broad demand.

Specifically, Haixi New Drug's commercialized product portfolio mainly includes generic drugs for digestive, cardiovascular, endocrine, nervous system, and inflammatory diseases. According to CIC data, these therapeutic areas accounted for over 25% of China's total pharmaceutical sales in 2023.

Of course, competition in popular markets is inevitably fiercer. How has Haixi New Drug expanded its market share?

Policy dividends cannot be ignored. Currently, centralized procurement has inherent advantages in improving drug accessibility and expanding sales scale, and Haixi New Drug has caught this wave.

The prospectus shows that the four generic drugs mentioned above have all been included in the National Volume-Based Procurement (VBP) program and are among the top products in their respective segments.

Additionally, Haixi New Drug has established sales and distribution networks with over 18,000 hospitals and other medical institutions (including more than 5,100 tertiary or secondary hospitals and over 22,000 pharmacies), covering all provinces, municipalities, and autonomous regions in China.

By scaling sales to reduce costs, the company's profitability path is clear. Notably, the outsourced production model has allowed Haixi New Drug to retain significant profit margins. The prospectus mentions that Haixi New Drug focuses on drug R&D and commercialization, while production is outsourced to qualified CMOs, maximizing capital utilization and production efficiency while ensuring quality and reducing capital investment in manufacturing facilities.

Perhaps because of this, Haixi New Drug has not been significantly affected by price cuts in centralized procurement but has instead amplified economies of scale. Overall, the company's recent "takeoff" is inseparable from centralized procurement, but given the policy's evolving nature, Haixi New Drug still faces transitional risks.

**New Centralized Procurement Rules Are Forcing Pharmaceutical Companies to Transform**

As mentioned earlier, Haixi New Drug's business logic is coherent.

With growth as the core goal, R&D focuses on unmet needs in diverse markets, enriching the pipeline, while production emphasizes lightweight outsourcing. Commercialization leverages centralized procurement to accelerate sales, achieving a dynamic balance among revenue, costs, and profits.

But stepping outside this balance, Haixi New Drug's dependencies are clear: growth relies heavily on a few generic drugs, whose sales are driven by centralized procurement. If the VBP inclusion period ends or the policy changes significantly, Haixi New Drug could face instability.

This is not unwarranted worry.

First, the "VBP tickets" for core products are running out. The prospectus shows that Haibutong and Anbili, which contributed nearly 50% and 30% of revenue in the first five months of this year, respectively, see their VBP inclusion periods end on December 31, 2025, and June 30, 2026. Haixi New Drug is under increasing pressure to prepare for the next round of centralized procurement.

Meanwhile, centralized procurement rules are not static. On July 15, the National Drug Procurement Office launched the 11th round of centralized procurement, introducing new rules to refine the process. Some changes may impact Haixi New Drug's future product strategy.

For example, the new rules allow medical institutions to report demand by specific products, indicating which brands they prefer and expected volumes. Winning bidders can directly supply these institutions.

This reflects a shift toward respecting clinical preferences, forcing pharmaceutical firms to strengthen branding. Larger, well-established companies may secure larger volumes.

Additionally, the new rules set production red lines: companies must have at least two years of experience in producing similar formulations, and their production lines must not violate GMP standards for two years.

For Haixi New Drug, as a small-to-medium-sized company, its branding is weaker compared to industry giants, and its outsourced production model is at a disadvantage under the new rules. The call for transformation is clear.

The dual-track strategy of "generic + innovation" is Haixi New Drug's core approach to mitigating risks.

The prospectus shows that Haixi New Drug has four innovative drugs in its pipeline, targeting cancer, ophthalmology, and respiratory diseases. The lead candidate, C019199, is positioned as a potential first-in-class drug, with clinical development focusing on solid tumors like osteosarcoma, breast cancer, colorectal cancer, and pancreatic cancer.

Moreover, Haixi New Drug is building a production base in Changle District, Fuzhou, with a total area of 90,000 square meters. The facility, with multiple production lines for 2 billion oral solid doses annually, is expected to be operational by the end of 2025.

Clearly, reducing reliance on generic drugs and enhancing R&D and production capabilities are now top priorities for Haixi New Drug.

However, the company faces a funding crunch. As of May 2025, Haixi New Drug had only 46.25 million yuan in cash and equivalents, making its Hong Kong IPO a critical move.

In summary, while centralized procurement has fueled Haixi New Drug's growth, it is now pushing the company out of its comfort zone, presenting both challenges and opportunities. The next test will come from the capital markets.

Source: Pharmaceutical Research Society