Group 1: Company Overview - He Yuan Bio is a pioneer in the "rice blood-making" industry, focusing on plant-derived recombinant protein expression technology[7] - The company's core product, recombinant human serum albumin injection (HY1001), was approved for market in July 2025, making it the first recombinant human albumin drug approved in China[12] - The market for human serum albumin in China is projected to grow from 25.8 billion RMB in 2020 to 57 billion RMB by 2030, with a compound annual growth rate (CAGR) of 8.25%[12] Group 2: Financial Metrics - As of September 23, 2025, comparable companies have a median market capitalization of 24.899 billion RMB, with a median price-to-earnings ratio of 26.60 times[20] - He Yuan Bio's revenue from 2022 to H1 2025 was 0.13 billion, 0.24 billion, 0.25 billion, and 0.13 billion RMB, respectively, which is below the average of comparable companies[24] - The company's R&D expenses from 2022 to H1 2025 were 1.10 billion, 1.59 billion, 1.17 billion, and 0.56 billion RMB, with a compound growth rate of 2.81%, slightly above the comparable average of 2.06%[29] Group 3: Market Position and Risks - He Yuan Bio has a unique first-mover advantage in the recombinant human albumin market, with no other similar products approved in China as of August 2025[12] - The company faces risks related to not yet being profitable, as most of its products are still in the R&D phase[43] - There is a risk that the supply of medicinal rice may not meet the demands of large-scale commercial production, which could impact operations[44]

Investment Rating - The report assigns a mid-to-low level investment rating to He Yuan Bio, with an AHP score of 2.59, placing it in the 42.6% percentile of the AHP model [7]. Core Insights - He Yuan Bio is a pioneer in the "rice blood production" industry, having launched the first recombinant human albumin product in China, which was approved in July 2025. This product addresses the market for liver cirrhosis with low albumin levels, which constitutes about 30% of the human serum albumin market [9][14]. - The company has developed two major technology platforms: the OryzHiExp for efficient recombinant protein expression and the OryzPur for protein purification, achieving high purity levels and cost reductions [17]. - He Yuan Bio has a robust pipeline with eight products in development or on the market, targeting various clinical needs across different age groups, thus reducing dependency on any single area [9][14]. Summary by Sections AHP Score and Expected Allocation Ratio - He Yuan Bio's AHP score is calculated to be 2.59, indicating a mid-to-low ranking within the AHP model [7]. - The offline issuance adopts a lock-up mechanism with varying lock-up ratios and periods for different classes of investors [7]. Company Highlights and Features - He Yuan Bio is recognized as the first company to utilize rice endosperm cell bioreactors for large-scale production of pharmaceutical proteins, with a focus on recombinant human albumin [9]. - The company has established a comprehensive sales network across over 30 provinces in China and is preparing for negotiations to enter the national medical insurance directory [21]. - The company has cultivated over 9,000 acres of medicinal rice to ensure a stable supply of raw materials for production [18]. Financial Comparison with Peers - He Yuan Bio has only one product on the market compared to an average of four for comparable companies, indicating a relatively slower development pipeline [25]. - The company's revenue and net profit figures are lower than those of comparable companies, primarily due to the lack of market-ready products [27]. - R&D expenses have shown a compound annual growth rate of 2.8%, slightly above the average of comparable firms [33]. Fundraising Projects and Development Vision - The company plans to use the funds raised from its IPO for the construction of a recombinant human albumin industrialization base, new drug development projects, and to supplement working capital [43]. - The industrialization base project aims to enhance production capacity and meet the growing market demand for human serum albumin [19].

Core Viewpoint - He Yuan Bio has successfully passed the review for its initial public offering on the Sci-Tech Innovation Board, but it continues to face challenges such as ongoing losses and declining revenue [1][4]. Financial Performance - The company reported a significant decline in revenue, with a 37.88% drop in the first quarter of 2025, resulting in a net loss of approximately 48.2 million yuan, which is a 64.38% increase in losses compared to the same period last year [4]. - From 2022 to 2024, He Yuan Bio's revenue was 13.4 million yuan, 24.3 million yuan, and 25.2 million yuan, while the net losses were 144 million yuan, 187 million yuan, and 151 million yuan, totaling approximately 482 million yuan in cumulative losses over three years [3][4]. Capital Raising and Cash Flow - The company has relied on financing activities to maintain operations, with net cash flow from financing activities of 568 million yuan, 72.6 million yuan, and 104 million yuan from 2022 to 2024, while cash flow from operating activities remained negative [4]. Business Strategy and Product Development - He Yuan Bio attempted to diversify into the cosmetics sector with its brand "San de San Ci Fang," but all product registrations have been canceled, indicating a retreat from this market [5][6][7]. - The company is now focusing on the production of recombinant human fibronectin for beauty products, with revenue from other business segments showing a slight increase but still accounting for less than 5% of total revenue [7].