Fundraising plan changes again! Net profit has been negative for five consecutive years, and Aidi Pharmaceutical is increasing investment in new anti-AIDS drugs

On March 3rd, Aidi Pharmaceutical (688488) issued multiple announcements, announcing the termination of the simple private placement plan launched in mid-January, and quickly disclosed a new fundraising plan. The new plan aims to raise no more than 1.277 billion yuan, which will be invested in three major projects: the global clinical development of a new type of HIV integrase inhibitor (INSTI), the acquisition of minority equity in the controlling subsidiary Nanda Pharmaceutical, and working capital supplementation.

This is the second adjustment to Aidi Pharmaceutical’s financing plan since January this year, and it is also the boldest attempt in the refinancing field in over five years since its listing. The pharmaceutical company, which has been losing money for five consecutive years, is trying to turn the situation around by increasing investment in anti-AIDS new drugs.

Significant Increase in Fundraising Amount

Aidi Pharmaceutical’s latest announcement shows that the company has decided to terminate its 2026 A-share issuance to specific targets through a simplified procedure, and simultaneously disclosed the 2026 plan for such issuance.

The plan indicates that the company’s fundraising amount will not exceed 1.277 billion yuan. After deducting issuance costs, the net proceeds will be used for the global clinical development of a new type of HIV integrase inhibitor (INSTI), the acquisition of 22.2324% equity in Nanda Pharmaceutical from minority shareholders, and working capital supplementation, with planned investments of 767 million yuan, 130 million yuan, and 380 million yuan respectively.

One of the company’s actual controllers, Fu Heliang, plans to subscribe to no less than 30 million yuan and no more than 50 million yuan of the shares issued in this round. Other shares will be subscribed by other target investors participating in this issuance.

It is worth noting that the simple private placement that Aidi Pharmaceutical terminated in mid-January this year initially planned to raise no more than 185 million yuan, with 130 million yuan allocated to acquiring a 22.2324% stake in Nanda Pharmaceutical, and 55 million yuan for working capital. However, less than two months later, this plan was called off.

Aidi Pharmaceutical stated that, considering the current actual situation of the company, development plans, and the fact that relevant securities service agencies no longer meet the conditions for simplified issuance to specific targets, after careful research, the board of directors decided to terminate the simple private placement. Based on the company’s actual situation and capital market factors, the company plans to raise funds through the 2026 targeted issuance of A-shares to better align with future development plans.

In fact, this is not the first time Aidi Pharmaceutical has adjusted its fundraising plan. The company first disclosed a private placement plan in 2024, with a total fundraising target of no more than 100 million yuan, all intended for working capital. However, this plan was also terminated in mid-January this year.

From the perspective of the proposed fundraising amount, Aidi Pharmaceutical’s three fundraising plans have gradually increased. The projects funded have also expanded, with the January plan adding the acquisition of Nanda Pharmaceutical’s equity, and the current private placement further increasing investment in the global clinical development of the new HIV integrase inhibitor (INSTI).

Wu Zewei, a special researcher at Sushang Bank, told Beijing Business Today that the adjustment of Aidi Pharmaceutical’s fundraising plan, shifting from a simplified procedure to a targeted issuance, reflects the company’s proactive optimization of financing strategies based on its development stage and the capital market environment. The participation of Fu Heliang in subscribing personally not only demonstrates confidence in the company’s future but also helps stabilize market expectations. The new plan significantly raises the fundraising cap to 1.277 billion yuan, aiming to reserve sufficient “ammunition” for the long-term development of core businesses, representing a more strategic upgrade in financing.

Heavy Investment in Anti-HIV Sector

The main use of funds raised through this private placement will be for the “Global Clinical Development of a New Type of HIV Integrase Inhibitor (INSTI).”

Specifically, Aidi Pharmaceutical stated that, in response to unmet clinical needs in the domestic and international HIV/AIDS treatment fields, it plans to develop a new combination formulation of a safer integrase inhibitor. Through multi-center clinical research in China and internationally, the goal is to achieve NDA submission and approval in China, the US, and other markets, filling the gap in innovative drugs in the domestic integrase inhibitor combination field, enriching the company’s HIV product pipeline, and further enhancing its global brand influence and core competitiveness in the fight against HIV.

HIV, or human immunodeficiency virus, is the pathogen that causes AIDS. Currently, there is no effective cure. Due to the high replication and mutation characteristics of HIV’s genome, single-drug therapy cannot effectively and sustainably suppress viral replication in infected individuals, and resistance can easily develop. Therefore, monotherapy cannot achieve sustained treatment effects.

In this context, new integrase inhibitors with stronger antiviral effects and better safety profiles provide more reliable options. Currently, there are no domestically developed HIV integrase inhibitors with independent intellectual property rights, and complete independent formulations of integrase combination drugs are also scarce.

In fact, Aidi Pharmaceutical has long been involved in the field of anti-HIV innovative drugs. Its first anti-HIV innovative drug, Enovorin tablets, was launched in June 2021, becoming the first domestically produced Class 1 oral anti-HIV drug. Its second innovative drug, Enomimide tablets, was approved for domestic listing in December 2022, with a new indication approved in September 2024. Both drugs have been renewed at original prices and included in the National Medical Insurance Directory (2025).

Deng Yong, director of the Health Law and Innovation Transformation Center at Beijing University of Chinese Medicine, said that the market prospects for new anti-HIV drugs are broad, with increasing competition. The global demand for anti-HIV medications is huge, domestic market penetration continues to rise, and there is ample room for domestic substitution. Integrase inhibitors and long-acting formulations are key growth points, with clear technological iteration directions. Coupled with favorable policies such as national insurance support and accelerated review and approval, the commercialization prospects of new drugs are increasingly certain.

However, Deng Yong also pointed out that multinational pharmaceutical companies are accelerating the layout of next-generation products. The industry has entered a stage driven by both innovation capability and cost control, and only companies with core technology, strong commercialization ability, and policy adaptability will stand out.

Net Profit to Continue Losing Money for Five Years

Behind the private placement, Aidi Pharmaceutical has experienced four consecutive years of net losses. According to its performance report, the company’s net profit in 2025 is expected to continue to be negative, marking five years of consecutive losses.

Financial data shows that from 2021 to 2024, Aidi Pharmaceutical’s operating revenues were approximately 256 million yuan, 244 million yuan, 411 million yuan, and 418 million yuan, respectively; net profits attributable to the parent were approximately -30 million yuan, -124 million yuan, -76 million yuan, and -141 million yuan.

In 2025, the company’s net profit is expected to remain negative but with a reduced loss. The 2025 performance forecast shows that the company’s revenue will reach 721 million yuan, a year-on-year increase of 72.49%, and net loss attributable to the parent will be approximately 19.73 million yuan, a reduction in loss year-on-year.

It is worth noting that the projects funded by this fundraising are also important factors in the company’s expected reduction in net loss in 2025. The performance report indicates that increased revenue from anti-HIV innovative drugs and the consolidation of Nanda Pharmaceutical’s operations contributed to an approximate 255 million yuan increase in gross profit compared to the previous year.

Additionally, Aidi Pharmaceutical stated that, during the reporting period, increased efforts in new drug promotion and the consolidation of Nanda Pharmaceutical’s operations led to a rise of about 92 million yuan in sales expenses compared to the previous year; meanwhile, due to market expansion and changing expectations, asset impairment losses decreased by about 48 million yuan year-on-year.

In fact, this is not the first time Aidi Pharmaceutical has extended an olive branch to Nanda Pharmaceutical. It was reported that in July 2022, the company acquired a 19.96% stake in Nanda Pharmaceutical, and in 2024, it carried out a major asset restructuring by paying cash to further purchase a 31.16% stake, gaining control of Nanda Pharmaceutical.

Data shows that Nanda Pharmaceutical mainly engages in the R&D, production, and sales of biopharmaceuticals and raw materials, with key products including thrombolytic drugs such as urokinase injection and low-molecular-weight heparin sodium raw materials. Aidi Pharmaceutical stated that after this acquisition, the company will increase its controlling stake in Nanda Pharmaceutical, which will help further realize business synergy, improve control and decision-making efficiency over subsidiaries, and enhance profitability.

Regarding related issues, Beijing Business Today sent an interview letter to Aidi Pharmaceutical, but as of press time, no response has been received.