Core Viewpoint - The company, Olin Bio (688319.SH), has decided to terminate its planned private placement of shares due to current market conditions and internal assessments, despite the ongoing progress of its vaccine research and production base technology renovation project [1][2]. Group 1: Company Overview - Olin Bio is headquartered in Chengdu and has three core products: Tetanus Toxoid Vaccine, Hib Conjugate Vaccine, and AC Conjugate Vaccine, with the Tetanus Toxoid Vaccine maintaining a leading market share in China [1]. - The company has a GMP base of approximately 80,000 square meters, which includes three bulk production lines, four filling lines, two packaging lines, one R&D center, one quality inspection center, and one experimental animal center [1]. Group 2: Fundraising and Financials - The planned private placement aimed to raise 175 million yuan for the technology renovation project, which has a total investment of approximately 290 million yuan [2]. - As of the first half of 2025, Olin Bio reported cash and cash equivalents of 184 million yuan and total liabilities of 902 million yuan, indicating potential cash flow pressure if the technology renovation project proceeds without the planned fundraising [2]. Group 3: Market Reaction and Stock Performance - Following the announcement of the private placement, Olin Bio's stock price surged from 16.17 yuan on June 17 to 28.87 yuan by September 2, representing an increase of over 78% [3]. - The company’s significant stock price increase raised concerns among investors about potential market overheating, especially as the private placement price was set significantly lower than the current market price [3][2]. Group 4: Shareholder Actions - Shortly after the private placement announcement, the controlling shareholder, Shanghai Wushan Biotechnology Co., Ltd., announced a plan to reduce its holdings by up to 12.18 million shares, representing no more than 3% of the company's total share capital [4].

Fundraising Plan - The company plans to raise a total of up to RMB 300 million, with a net amount of RMB 125.29 million allocated for specific projects after deducting related issuance costs [1] - The total investment for the projects is RMB 290 million, which aligns with national industrial policies and does not involve overcapacity or high-energy-consuming industries [1] Project Overview - The fundraising project focuses on the "Vaccine R&D Production Base Technical Renovation Project," which includes upgrading production lines for major products such as tetanus and polysaccharide vaccines [2] - The project aims to replace old production lines with new automated and intelligent production lines while maintaining overall production capacity stability [2][3] Necessity of the Project - The project is necessary to adapt to industry trends and improve production management, ensuring compliance with vaccine production quality management standards [2][3] - The renovation will enhance production efficiency and product quality, which is crucial for the company's main revenue sources [3] Competitive Advantage - The vaccine industry is technology-intensive, requiring continuous innovation and improvement to maintain competitiveness [4] - The project will support the stable production of core products, providing cash flow for ongoing research and development of new products [4] Feasibility of the Project - The project aligns with national policies promoting equipment upgrades in the pharmaceutical industry, enhancing production quality and efficiency [5] - The company has established a robust quality management system that complies with various regulations, ensuring product quality throughout the production lifecycle [6] Implementation and Economic Impact - The project will be implemented over four years, with funding allocated based on project progress [8] - The project is expected to enhance the company's production capabilities and financial health, leading to improved long-term profitability and reduced financial risks [12] Conclusion - The fundraising project is in line with national policies and industry trends, aiming to optimize production processes and enhance product quality, thereby ensuring the company's competitive advantage and sustainable growth [12][13]