Company Overview - Zhonghui Biotech was listed on the Hong Kong Stock Exchange on August 11, with an intraday increase of up to 168.8%, setting a record for the highest first-day gain for a new stock in Hong Kong in 2025, ultimately closing up approximately 158% at HKD 33.28 per share, with a total market capitalization of HKD 13.09 billion [1] - Prior to its listing, Zhonghui Biotech showed strong demand in the dark market, with a rise of over 170%, and recorded over 4000 times oversubscription during the public offering phase, raising over HKD 210 billion, making it the most oversubscribed stock in the Hong Kong biotech sector this year [1] - The company issued 33.44 million H-shares at a final offering price of HKD 12.90, which is at the lower end of the price range, raising approximately HKD 431 million, with the funds primarily allocated for the development and registration of its core products and other vaccines [1] Product Pipeline - Zhonghui Biotech's product pipeline includes two core products: a quadrivalent influenza virus subunit vaccine and an in-development lyophilized human rabies vaccine, along with 11 other vaccines in various stages of research [2] - The quadrivalent influenza virus subunit vaccine, named Huili Kangxin, received approval from the National Medical Products Administration in May 2023 and is currently the only approved quadrivalent influenza vaccine in China, having started commercialization in September 2023, serving as a major revenue source [2] - The in-development lyophilized human rabies vaccine is expected to enter Phase III clinical trials in Q3 2025, which could provide a significant additional revenue stream if successful [2] Financial Performance - Zhonghui Biotech is in its early development stage with high R&D expenditures, reporting revenues of CNY 52 million, CNY 260 million, and CNY 413,000 for the years 2023, 2024, and the first quarter of 2025, respectively, alongside net losses of CNY 425 million, CNY 259 million, and CNY 87 million for the same periods [2] - R&D expenses for the same periods were CNY 283 million, CNY 206 million, and CNY 47 million, indicating a significant investment in product development [2] Market Potential - The Chinese human vaccine market (excluding COVID-19 vaccines) has substantial growth potential, increasing from CNY 53.5 billion in 2019 to CNY 96.1 billion in 2024, and is projected to reach CNY 331.9 billion by 2033 according to Frost & Sullivan [2]

Core Viewpoint - Zhonghui Biotech-B is set to go public on the Hong Kong Stock Exchange from August 8, 2025, focusing on innovative vaccine development and commercialization in China [3][4]. Company Overview - Established in 2015, Zhonghui Biotech specializes in innovative vaccine research and commercialization, employing a dual strategy of "independent innovation + authorized introduction" to meet unmet vaccine needs [3]. - The company aims to gradually replace traditional and imported vaccines with high-end products and extend its competitive advantage to international markets [3]. Product Pipeline - As of the prospectus date, Zhonghui Biotech has a pipeline of 13 vaccine products targeting various infectious diseases, including core products and 11 candidates in different clinical stages [3][4]. - Key products include the first and only approved quadrivalent influenza subunit vaccine in China, which has shown a serum protection rate of 89.41%-97.98% against four influenza virus strains [5]. Financial Performance - The company exhibits rapid revenue growth but continues to incur losses, typical for a research-driven biotech firm [4]. - Revenue for 2023 was 0.52 billion yuan, primarily from the quadrivalent influenza vaccine, with projections for 2024 to reach 2.60 billion yuan, reflecting a 400% year-on-year increase [5]. - The net loss for 2023 was 4.25 billion yuan, narrowing to 2.59 billion yuan in 2024 due to increased revenue [5]. IPO Details - The IPO will utilize a standard offering mechanism, with subscription dates from July 31 to August 5, 2025, and pricing on August 6 [4][6]. - The share price range is set between 12.90 and 15.50 HKD, with a total issuance of approximately 33.44 million shares [6]. - The expected net proceeds of around 4.21 billion HKD will focus on advancing the product pipeline, with 63.6% allocated to core product development [6][7]. Market Sentiment - The IPO is anticipated to attract significant market interest, with early subscription rates exceeding 41 times, indicating strong short-term speculative interest [7]. - The absence of well-known institutional investors may signal weaker long-term confidence, despite the high initial market enthusiasm [7].

Group 1 - The company, Zhonghui Biotech-B (02627), plans to conduct an initial public offering (IPO) from July 31 to August 5, 2025, with a global offering of 33.44 million H-shares, where 10% will be offered in Hong Kong and 90% internationally [1] - The offering price per share is set between HKD 12.9 and HKD 15.5, with trading expected to commence on August 8, 2025 [1] - The company focuses on the research, development, manufacturing, and commercialization of innovative vaccines and traditional vaccines using new technologies, aiming to replace traditional and imported vaccines in China and expand its competitive advantage internationally [1] Group 2 - The cornerstone investors, including Jiaxing Xinyang and Huatai Capital Investment, have agreed to subscribe for shares worth approximately USD 13 million, with an estimated subscription of 7.1136 million H-shares at a midpoint offering price of HKD 14.20 per share [2] - This subscription represents about 21.3% of the total shares offered in the global offering, assuming no exercise of the over-allotment option [2] - The estimated net proceeds from the global offering, after deducting underwriting fees and expenses, is approximately HKD 421 million [2] Group 3 - The company plans to allocate approximately 63.6% of the net proceeds from the global offering to the development and registration of its core products, with specific allocations for ongoing research and overseas registration of the quadrivalent influenza virus subunit vaccine and the Phase III clinical trial of the freeze-dried rabies vaccine [3] - About 18.1% will be used for the development and registration of other pipeline vaccines, while 8.4% will enhance production and commercialization capabilities [3] - Additionally, 4.9% will be allocated for the development and operation of various technological platforms, and 5.0% will be used for working capital and general corporate purposes [3]