Core Viewpoint - Changfeng Pharmaceutical is attempting to go public on the Hong Kong Stock Exchange after two unsuccessful attempts to list on the STAR Market, highlighting its urgent need for capital and the complexities of its financing structure [2][3]. Group 1: Company Background and IPO Attempts - Changfeng Pharmaceutical has faced challenges in its listing journey, having withdrawn its application for the STAR Market in April 2021 and again failing in June 2023 [2]. - The company has raised a total of 1.412 billion yuan through eight rounds of financing from December 2010 to June 2020, indicating strong investor interest [2]. - The complex equity structure involves over 40 investors and includes performance-based agreements that have reactivated due to the failed IPO attempts [2]. Group 2: Product Dependency and Financial Performance - The company heavily relies on its core product CF017, which accounted for 96.2%, 98.4%, and 94.5% of total revenue from 2022 to 2024, respectively [4]. - CF017 has been approved by both the National Medical Products Administration of China and the FDA, but the company has only a few other products in early commercialization stages, limiting revenue diversification [5]. - Revenue projections for Changfeng Pharmaceutical are 349 million yuan, 556 million yuan, and 608 million yuan for 2022, 2023, and 2024, respectively, with CF017 being the primary revenue driver [4]. Group 3: Market Competition and Challenges - The market share of CF017 is projected to decline from approximately 20% in 2023 to 16% in 2024, despite a revenue increase from 548 million yuan to 574 million yuan, indicating rising competition [7]. - The unit price of CF017 has decreased from 2.78 yuan in 2022 to 2.74 yuan in 2024, while sales volume growth has slowed significantly [7]. - The company’s profitability has fluctuated, with net profits of -49.4 million yuan in 2022, 31.7 million yuan in 2023, and a projected decline of 33.53% in 2024 [8]. Group 4: R&D and Sales Expenditure - Changfeng Pharmaceutical's R&D spending has decreased from 107 million yuan in 2022 to 122 million yuan in 2024, with a declining R&D expense ratio [10]. - In contrast, sales expenses have increased significantly, reaching 236 million yuan in 2024, with a sales expense ratio consistently above the industry average [10][12]. - The company has shifted its sales expense structure, with a significant portion now categorized as "business development expenses," raising concerns about transparency and compliance [14][15].

Group 1 - Hillhouse Capital has reduced its stake in BeiGene, selling 16 million shares, bringing its total holdings down to 68.55 million shares, which is 4.89% of the company, no longer making it a major shareholder [1] - The sale occurred on May 9, 2025, at a minimum price of $230.23 per share, resulting in proceeds of approximately $3.68 billion [1] - The stock prices of BeiGene across A-shares, H-shares, and U.S. shares have rebounded this year, with U.S. shares seeing an increase of over 30% [1] Group 2 - Following the reduction of its stake in BeiGene, Hillhouse Capital is set to subscribe to the IPO of Hengrui Medicine [3] - Hengrui Medicine plans to issue 225 million H-shares, with a price range of HKD 41.45 to HKD 44.05 per share, potentially raising up to HKD 13.08 billion [3][4] - The IPO is expected to attract significant interest from international investment institutions, including Hillhouse Capital and others [3] Group 3 - Hengrui Medicine's IPO pricing represents a discount of 19.3% compared to the average A-share price over the past ten days [4] - The company aims for a stable pricing strategy to build investor confidence and ensure successful fundraising, avoiding significant post-listing price volatility [5] - Hengrui Medicine and BeiGene are in a competitive race for the title of "Pharmaceutical King" in the A-share market, with Hengrui currently leading by a market cap of 24 billion yuan as of May 15 [5]