Here is the English translation of the provided text: Haisike (002653.SZ, referred to as "the Company") continues its internal integration.

Recently, the Company announced progress on an innovative drug going overseas.

A few days ago, the Company released its semi-annual report for 2024, with the stock price remaining high.

This company, known as "Little HengRui," has a similar growth path and its R&D team mostly comes from HengRui Medicine.

Along the way, the Company has experienced the baptism of capitalization and the transformation of innovative development.

After being sought after by the capital market, the Company's expectations for going overseas have been fully pulled, and the pressure has followed, and an internal adjustment has arrived as promised.

What was a chicken rib to him is honey to me.

Shenyang and Chengdu, from the northeast to the southwest, across most of China, have engraved the past of the three musketeers of Haisike.

In the 1990s, Wang Junmin and Fan Xiulian, who were assigned to state-owned enterprises after graduating from university, resigned from their iron rice bowls and joined the Sichuan Medical University Pharmaceutical Factory as pharmaceutical sales in their respective regions.

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Between identity changes, the gears of fate began to turn.

Through work, the two people from Shenyang met Zheng Wei, the director of the Chengdu Kanghong Pharmaceutical Technology Center.

In 2000, Wang Junmin, Fan Xiulian, Zheng Wei, and others formed the prototype of the three musketeers of Haisike.

In a few years, the three established several companies in Shenyang and Chengdu, accumulated the first pot of gold by obtaining the right to distribute drugs and selling them.

During this period, the three had some dealings with the predecessor of Haisike, Tibet Kangxin.

In 2007, the natural person shareholders of Tibet Kangxin transferred shares to the three musketeers because the business did not achieve the expected development.

What was a chicken rib to him is honey to me.

At that time, the three musketeers had been in the pharmaceutical distribution business for a long time, but they wanted to go a step further and complete the transformation from pure sales to industrialization.

Tibet Kangxin, which had several drug numbers, not only became a piece of rough jade but also accelerated the capitalization process of the three musketeers.

In 2010, Tibet Kangxin was renamed Haisike.

Before that, the three musketeers integrated and injected sales platforms to bring the company onto a large-scale, industrialized track.

Since then, the company has started the road to going public and was listed on the Shenzhen Stock Exchange in 2012.

Under rapid changes, Haisike and the three musketeers' attention gradually shifted from focusing on marketing to innovative research and development.

Although most products still choose to outsource production, the company began to "gain weight" to build a research and development team to build barriers.

After going public, the company introduced the development team of HengRui Medicine, proposed a "combination of imitation and innovation" strategy, and laid out a series of drugs such as me-too, me-better, and best-in-class.

The entire path has entered a cycle of research and development, going public, and sales.

If it works, it is to open up a growth template for a big single product.

In 2020, the company's first innovative drug Huan Bo Fen was approved for listing and quickly got results.

Triggering the capital "emotional value" Huan Bo Fen is in the anesthesia drug plate, which has always been clear.

Renfu Medicine is the leader, followed by Enhua Medicine, and HengRui Medicine is known for innovation.

However, Haisike's activity has disrupted this ecosystem.

In the first half of this year, the company's operating income was 1.687 billion yuan, a year-on-year increase of 23.14%.

Among them, anesthetic products achieved 517 million yuan, a year-on-year increase of 50.94%, and Huan Bo Fen contributed the main source.

The drug is an optimized and improved drug for Enhua Medicine's single product Fule Li, which can better solve clinical pain points.

This innovation not only made Haisike taste the sweetness but also met the capital market's "emotional value."

At the same time, Renfu Medicine and Enhua Medicine's operating income was 12.86 billion yuan and 2.763 billion yuan, respectively.

As of September 5, the company's market value reached 36.32 billion yuan, higher than Renfu Medicine and Enhua Medicine's 31.98 billion yuan and 26.54 billion yuan.

The valuation of capital requires companies to continuously provide imagination space to trigger "emotional value."

The success of Huan Bo Fen is only the first step.

In institutional roadshows, investors continue to ask about the progress of the company's innovative drugs going overseas.

Within this year, the company increased its capital to its U.S. subsidiary by $40 million (about 280 million yuan), mainly to promote the listing of Huan Bo Fen locally.

At the same time, the company plans to cancel and establish a new subsidiary in Australia to optimize the allocation and speed up the internationalization process of products.

Haisike said to "Investor Network," "Huan Bo Fen is currently in the third phase of clinical research in the United States.

As of June 30, 2024, it has invested about 300 million yuan.

Subsequently, it will continue to complete the closure of clinical centers and the preparation and declaration of materials, and it is expected to invest at least another 250 million yuan in RMB," and "the establishment, change, and cancellation of overseas subsidiaries are all needed for the business of overseas clinical projects.

It is a reasonable decision made by the company based on its environment and business objectives."

Earlier, the company sold the rights and interests of the in-research respiratory drug HSK31858 tablets to the Italian manufacturer Chiesi.

Another overseas project, TYK2, recently received milestone money and is expected to increase the total profit by about $12.84 million (about 91 million yuan) in 2024.

The valuation depends on overseas projects, but the company has also failed in the introduction of projects.

In April this year, the company announced the termination of the introduction of Riluzole oral dissolving film and made impairment provisions, involving an amount of 53 million yuan, because "there is a large uncertainty in the market access and commercialization prospects in China in the future."

The project is developed by the United States Aquestive and is used to treat amyotrophic lateral sclerosis.

In May 2023, the company submitted an application for marketing authorization to the National Medical Products Administration and was accepted.

The internal large-scale integration of performance and stock price has gradually given Haisike the title of "Little HengRui."

In terms of growth trajectory, the company started with generic drugs, then went public with innovative drugs, and laid out pipelines such as anti-tumor and blood sugar reduction, which are similar to HengRui Medicine.

However, to grow into a towering tree, the most important nutrients are internal.

In August, the company announced a resource integration, and its subsidiary Chengdu Haisike plans to acquire all the equity of Haisike Kangrui held by Tibet Pharmaceutical for 50 million yuan.

After the completion, Chengdu Haisike will transfer all the equity of Tibet Pharmaceutical held to the company for 32 million yuan.

This plan is a new version, and the old version is that the company directly acquires Tibet Pharmaceutical for 50 million yuan.

The tortuous integration, the internal circulation of 32 million yuan of funds.

If implemented, Tibet Pharmaceutical will become a first-level subsidiary of the company, and Haisike Kangrui will be transferred to Chengdu Haisike.

The company said to "Investor Network" that the transfer plan is based on the needs of business development, all of the above are wholly-owned subsidiaries of the company, and the financial statements have been included in the company's consolidated financial statements.

The adjustment of the transfer plan does not affect the company's operating indicators and financial status, and there is no interest transfer or other improper behavior.

In fact, this round of internal large-scale integration is just a microcosm.

In April, Chengdu Haisike planned to sell Shenyang Haisike to the company for 210 million yuan.

According to the business of each family, the company will unify the marketing, production, and other plates under its command, and the research and development platform will continue to adjust.

Haisike also said that the integration is based on the needs of business development, and the transaction funds for the relevant equity adjustments have not flowed out of the group, nor have they flowed to overseas.

The internal large-scale adjustment has already signaled before.

At the end of 2023, the company announced that director Yan Pangke and deputy general manager Wu Nan were transferred to Tibet Pharmaceutical, focusing on the research and development and commercialization of innovative drugs.

In 2014, Yan Pangke, who served as the director of the research and development department of HengRui Medicine, was invited by Zheng Wei, one of the three musketeers, to join the company to engage in research and development.