CSPC Innovation(SZ:300765) Sou Hu Cai Jing·2026-01-08 14:04Core Viewpoint - The global largest caffeine supplier, Shiyao Innovation Pharmaceutical Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange, marking a significant transition as the company shifts from its traditional caffeine business to innovative pharmaceuticals amid a leadership change within its parent company, Shiyao Group [2][9]. Group 1: Company Background and Business Transition - Shiyao Innovation, formerly known as Sinoway, has been a long-term supplier of caffeine to major brands like Coca-Cola and Red Bull, and is recognized as the world's largest producer of synthetic caffeine [3][4]. - The company has been diversifying its business since 2016, entering the health food sector and acquiring 100% of Shiyao Shengxue, becoming a leading producer of acarbose raw materials [3][6]. - Despite its historical revenue from functional raw materials and health foods, which constituted over 90% of total revenue, there has been a decline from 2.57 billion yuan in 2022 to 1.84 billion yuan in 2024 [6][8]. Group 2: Financial Performance and Challenges - The financial performance of Shiyao Innovation has been declining, with revenues dropping from 2.84 billion yuan in 2022 to 1.98 billion yuan in 2024, and a net profit decrease from 294 million yuan in 2022 to a loss of 304 million yuan in 2024 [8][6]. - The acquisition of Shiyao Shengxue has introduced a new biopharmaceutical platform, but the revenue contribution from biopharmaceutical products remains below 10%, with the acquired entity still operating at a significant loss [8][6]. Group 3: Leadership Transition - A notable leadership transition occurred as Cai Lei, the son of the founder Cai Dongchen, took over as CEO of Shiyao Group, indicating a shift to a second-generation leadership [9][12]. - Cai Lei's background in international research and sales is expected to enhance the company's global strategy, focusing on overseas collaborations and clinical advancements [11][12]. - The leadership change coincides with the company's IPO plans, adding a layer of family legacy to the transition [9][12].