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 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]