CCHT(SZ:000661) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-04 13:06Core Viewpoint - Changchun High-tech is accelerating its plan for a Hong Kong IPO to seek new opportunities amid a significant decline in performance, marking the start of its "A+H" dual-platform listing journey [2][13]. Financial Performance - The company's market value has shrunk by approximately 157 billion RMB over five years, from over 210 billion RMB in May 2021 to 53 billion RMB as of September 30, 2025 [4]. - Revenue projections for 2022 to 2024 are approximately 12.63 billion RMB, 14.57 billion RMB, and 13.47 billion RMB, with net profits of 4.21 billion RMB, 4.78 billion RMB, and 2.71 billion RMB respectively. The first half of 2025 saw a revenue of 6.60 billion RMB and a net profit of 932 million RMB [5]. - Notably, revenue is expected to decline by 7.55% year-on-year in 2024, with net profit dropping by 43.01%. The mid-2025 net profit is projected to decrease by 42.85% year-on-year [5]. Market Challenges - The primary issue facing Changchun High-tech is performance volatility, largely due to over-reliance on growth hormone products [6][7]. - The introduction of centralized procurement policies has led to price reductions for growth hormone products, significantly impacting revenue [7]. - The growth hormone market in China has seen rapid expansion, growing from 4 billion RMB in 2018 to 11.6 billion RMB in 2023, with a compound annual growth rate of 23.9% [7][8]. Competitive Landscape - Changchun High-tech holds a 74% market share in the growth hormone sector, but faces increasing competition, particularly from long-acting growth hormone products, which are gaining market share at over 50% annually [8]. - The company’s vaccine business has also faced setbacks, with a 39.96% decline in revenue year-on-year for the first quarter of 2025 [9]. Strategic Moves - The company is pursuing a Hong Kong listing as a critical step in its internationalization strategy, aiming to enhance its funding for research and development, improve brand influence, and optimize shareholder structure [2][13]. - As of September, around 20 companies are planning to list in Hong Kong, indicating a growing trend among biopharmaceutical firms [12][14]. Future Outlook - The success of the Hong Kong IPO is seen as vital for transitioning from a regional leader to a global biopharmaceutical platform, with immediate benefits in financing and brand empowerment [16]. - However, the long-term value will depend on the company's ability to deliver on its product pipeline and expand into international markets [16].