Core Viewpoint - Huazhen Biotechnology (Qingdao) Co., Ltd. (stock code: 02396.HK) listed on the Hong Kong Stock Exchange today, opening below the issue price at HKD 33.80 and closing at HKD 27.00, representing a decline of 29.32% from the final offer price of HKD 38.20 [1][4]. Summary by Relevant Sections Share Issuance and Capital Structure - The total number of shares offered globally was 17,648,800 H-shares, with 1,765,000 shares for public offering in Hong Kong and 15,883,800 shares for international offering [2]. - At the time of listing, the total number of issued shares was 117,657,522 [2]. Financial Details - The final offer price was set at HKD 38.20, resulting in total proceeds of HKD 674.18 million. After deducting estimated listing expenses of HKD 74.36 million, the net proceeds amounted to HKD 599.82 million [4][5]. Use of Proceeds - The net proceeds from the global offering are intended to fund the ongoing clinical development and commercialization of core products Pro-101-1 and Pro-101-2, purchase professional equipment related to R&D and quality control, and cover third-party service fees, personnel costs, and raw material costs for clinical research activities [6]. Company Overview and Product Pipeline - Established in 2012, Huazhen Biotechnology is a biopharmaceutical company based in China, focusing on developing protein drugs for medical needs and market opportunities, particularly in wound healing therapies [6]. - The company has a pipeline of ten candidate products, seven of which are PDGF candidates, including two core products: Pro-101-1 for burn treatment and Pro-101-2 for diabetic foot treatment [6]. Financial Performance - The company reported revenues of RMB 471,700 in 2023 and RMB 261,100 in 2024, with no revenue generated from product sales. The net losses for the same periods were RMB 105.2 million and RMB 212.3 million, respectively [7][9]. - Cumulative losses over the two years and nine months amounted to RMB 451.9 million [8]. Cash Flow Analysis - The net cash used in operating activities was RMB 57.9 million in 2023 and RMB 90.1 million in 2024, indicating ongoing cash outflows primarily due to R&D and administrative expenses [10].

Core Insights - Huazhang Biopharmaceutical Company (华芢生物-B) has successfully completed its IPO subscription, raising HKD 900.2 million with an oversubscription rate of 594 times [1] - The company plans to issue 17.6488 million H-shares, with approximately 10% allocated for public offering and 90% for international placement, and expects to list on December 22 [1] Company Overview - Established in 2012, Huazhang Biopharmaceutical focuses on developing protein drugs for various therapeutic indications, particularly in wound healing therapies [1] - The company is currently developing two core products: Pro-101-1 for deep second-degree burns and Pro-101-2 for diabetic foot ulcers, with both in different stages of clinical trials [2] Clinical Development - Pro-101-1 has completed the statistical analysis of its Phase IIb clinical trial, while Pro-101-2 is in Phase II, but the enrollment progress has been slow since February 2022 [2] - There are concerns regarding the statistical significance of the clinical trial data for Pro-101-1, indicating potential challenges in proving its efficacy [2] Market Position - As of the latest date, there are no approved PDGF products in the Chinese biopharmaceutical market, with Huazhang Biopharmaceutical holding two of the three PDGF drug pipelines in the country [3] - The company aims to commercialize at least two innovative drugs within the next six years, utilizing a direct sales team and strategic partnerships for market coverage [3] Financial Performance - The company has reported net losses for the past years, with losses of RMB 105 million, RMB 212 million, and RMB 135 million for the fiscal years ending September 30, 2023, 2024, and 2025 respectively, primarily due to R&D and administrative expenses [3] Use of Proceeds - Approximately 61.8% of the net proceeds from the global offering will be allocated to the continued clinical development and commercialization of core products Pro-101-1 and Pro-101-2 [4] - Other allocations include 18.8% for enhancing R&D capabilities through equipment purchases, 6.3% for preclinical development of other PDGF products, and 10% for working capital and general corporate purposes [4]

Core Viewpoint - Huazhen Biotech plans to conduct an IPO from December 12 to December 17, 2025, aiming to issue 17.6488 million H-shares, with approximately 10% allocated for public offering in Hong Kong and 90% for international offering, including a 15% over-allotment option [1] Group 1: Company Overview - Established in 2012, Huazhen Biotech is a Chinese biopharmaceutical company focused on developing protein drugs, primarily targeting wound healing therapies [1] - The core products include rhPDGF-BB drugs, with Pro-101-1 for burn treatment and Pro-101-2 for diabetic foot treatment [1] - As of the latest practical date, the company has ten candidate products, seven of which are PDGF candidates [1] Group 2: IPO Details - The offering price per share is expected to range from HKD 38.2 to HKD 51, with trading on the Hong Kong Stock Exchange anticipated to commence on December 22, 2025, at 9:00 AM (Hong Kong time) [1] - Assuming a median offering price of HKD 44.60 and no exercise of the over-allotment option, the net proceeds from the global offering are estimated to be approximately HKD 709 million [1] Group 3: Use of Proceeds - Approximately 61.8% of the proceeds will be allocated to the continued clinical development and commercialization of core products Pro-101-1 and Pro-101-2 [1] - About 18.8% will be used to enhance research and development capabilities through equipment purchases [1] - Approximately 6.3% will fund ongoing preclinical development of PDGF products outside the core products, such as fresh wounds, pressure ulcers, and radiation ulcers [1] - Around 3.1% will be directed towards preclinical research activities for Mes-201, Oli-101, and Oli-201 [1] - About 10.0% will be reserved for working capital and general corporate purposes [1]

Core Viewpoint - Huazhan Biotechnology (Qingdao) Co., Ltd. has passed the listing hearing on the Hong Kong Stock Exchange, with Huatai International and CITIC Securities as joint sponsors [1] Company Overview - Established in 2012, the company is a biopharmaceutical firm based in China, focusing on developing therapies, particularly protein drugs targeting medical needs and market opportunities [3] - The company's main focus is on discovering, developing, and commercializing wound healing therapies, currently centered on platelet-derived growth factor (PDGF) drugs [3] Product Pipeline - As of the last feasible date (December 5, 2025), the company has two core products in its pipeline: 1. Pro-101-1 for treating deep second-degree burns, which has completed statistical analysis of Phase IIb clinical trial data 2. Pro-101-2 for treating diabetic foot ulcers, currently in Phase II clinical trials [3][5] - The company also has eight other candidate products in its pipeline [3] Clinical Trial Progress - For Pro-101-1, there is no statistically significant difference between the treatment and placebo groups based on FAS, leading to an extension of the evaluation of Phase IIb results and the initiation of Phase IIIa trials [4] - If the Phase IIIa trial results are unsatisfactory, the company may not receive approval to proceed to Phase IIIb trials, significantly limiting the market potential for Pro-101-1 [4] Financial Performance - The company reported losses of approximately 105.19 million RMB, 212.25 million RMB, and 134.47 million RMB for the fiscal years ending in 2023, 2024, and the nine months ending September 30, 2025, respectively [5][6] - Revenue for the fiscal year 2023 was 472 thousand RMB, with a gross profit of 217 thousand RMB [6]