AHB(SH:688639) Cai Jing Wang·2025-10-14 09:38Core Viewpoint - Anhui Huaheng Biotechnology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, marking a significant step in its internationalization strategy [1][3] Company Overview - Established in 2005, the company focuses on the research, large-scale production, and commercialization of bio-based products using synthetic biology technology [1] - It is recognized as one of the most comprehensive companies globally in commercializing bio-based products through synthetic biology [1] - The company is the first globally to industrialize a series of amino acids, including L-Alanine and L-Valine, through anaerobic fermentation [1] - As of mid-2025, the company's main bio-based products include amino acids, vitamins, and other bio-based materials, with stable long-term partnerships established with over 768 clients across 85 countries [1] Financial Performance - Revenue figures for the company from 2022 to the first half of 2025 are as follows: RMB 1.419 billion, RMB 1.938 billion, RMB 2.178 billion, and RMB 1.489 billion respectively [2] - Profit figures for the same period are: RMB 319 million, RMB 447 million, RMB 185 million, and RMB 109 million respectively [2] - The company experienced significant revenue growth, but profits saw a sharp decline after peaking in 2023, attributed to increased production and decreased market prices for its valine products [2] - The gross margin has also decreased significantly from 40.4% in 2023 to 23.5% in the first half of 2025, reflecting increased competition and pricing pressure in the industry [2] Market Position and Stock Performance - The company's stock price has fluctuated since its listing on the Shanghai Stock Exchange in April 2021, reaching a market capitalization of over RMB 22 billion at its peak [2] - However, after May 2024, the stock price declined sharply, and as of October 14, 2025, the stock closed at RMB 34.01 per share, with a market capitalization of approximately RMB 8.5 billion, indicating a significant reduction from its peak [2] Strategic Implications - The IPO in Hong Kong is seen as a crucial step for the company's global expansion, with potential funding to support this strategy [3] - The ability to reverse the declining profit trend remains to be tested in the market [3]