Event: The company released its report for the third quarter of 2023. It achieved revenue of 2.91 million yuan (+37334%) during the reporting period and revenue of 2.99 million yuan (+17580%) from the beginning of the year to the end of the reporting period. The operating income is mainly the revenue reported and realized by Hickway (APL-1706) in the Lecheng International Medical Tourism Pilot Zone in Boao, Hainan, as imported drugs and medical devices that are in urgent clinical need, and license fee revenue generated by the company's external licensing data.

APL-1202 is in critical clinical trials and is expected to fill the gap in the therapeutic market. APL-1202 (Weiske) is the world's first oral, reversible MetaP2 inhibitor to enter critical/phase III clinical trials in the field of anti-tumor research. It is expected to fill the gap in the market for non-muscle-invasive bladder cancer (NMIBC) treatment. High-risk NMIBC in combination with chemotherapy perfusion treatment is in a critical/phase III clinical trial. After reaching the target number of events, it can be locked up, uncovered, and statistically analyzed.

The APL-1702 international multi-center clinical trial has reached a major end point and is expected to become the world's first non-vaccine product with proven efficacy against cervical HSIL. APL-1702 is a photodynamic therapy product integrating drugs and devices. The high-grade squamous intraepithelial lesion (HSIL) of the cervix for APL-1702 was completed in July 2022, and all participants were enrolled in the international multicenter phase III clinical trial. In September 2023, the international multicenter phase III clinical trial of APL-1702 reached the main research end point, and is expected to become the world's first non-vaccine product with proven efficacy against cervical HSIL.

Strengthen product collaboration in the urogenital field and accelerate the implementation of full-course disease management strategies. The company introduced perzopanib tablets and nellatinib maleate tablets around the urogenital field. Both drugs are oral tablets that are easy to take, and are already covered by medical insurance reimbursement. The burden on patients is small, so it is expected that the company's product collaboration in the urogenital field will be strengthened. The company independently built the “Clinical Medicine Club” online doctor service platform to provide full-path professional education for early screening, diagnosis, surgery, medication and follow-up for bladder cancer. It provides urological surgeons with full-course management services through a combination of online and offline models, enhancing the integrated diagnosis and treatment layout in the field of urogenital diseases.

Profit forecast: With the gradual implementation of APL-1202 and APL-1702, we expect the company's revenue for 2023-2025 to be 0.05, 0.4 billion and 61 billion yuan, respectively.

Risk warning: R&D progress falls short of expectations, commercialization of core varieties falls short of expectations, policy risks.