Core Viewpoint - The company Haina Pharmaceutical is attempting to list on the Hong Kong Stock Exchange after failing to secure an IPO in the A-share market and facing challenges in a merger and acquisition attempt, marking a critical juncture for its future growth and financial stability [2][26]. Company Overview - Haina Pharmaceutical focuses on the CXO (Contract Research Organization) services and aims to drive growth through a dual strategy of "CXO services + self-owned product sales" [2]. - The company has experienced a compound annual growth rate (CAGR) of 28.3% in revenue from 2022 to 2024, but has faced significant challenges including declining performance, reduced sales channels, and legal disputes [2][26]. Financial Performance - In the first half of 2025, the company's revenue and net profit decreased by 16.97% and 24% respectively, amounting to 178 million yuan and 22 million yuan [3][11]. - The company's revenue growth has sharply declined from a 54.74% increase in 2023 to a mere 3.65% in 2024, followed by negative growth in 2025 [11][26]. - The gross margin has also decreased from 60.1% in 2022 to 47.1% in 2024, indicating a significant drop in profitability [13]. Challenges Faced - The company has seen a drastic reduction in its distribution network, with the number of distributors dropping from 90 in 2024 to just 10 by mid-2025 [15]. - Haina Pharmaceutical is facing liquidity issues, with cash and cash equivalents decreasing from 166 million yuan at the end of 2022 to 62.73 million yuan by mid-2025, while short-term bank loans have increased significantly [18][19]. - The company has a high level of trade receivables, which surged to 176 million yuan by mid-2025, indicating cash flow challenges and potential bad debt risks [21][22]. Strategic Moves - The company is attempting to raise funds through its Hong Kong IPO to alleviate cash flow issues and support R&D investments and production capacity expansion [26]. - Haina Pharmaceutical's leadership, particularly CEO Zou Qiaogen, is under pressure to not only achieve a successful IPO but also to reverse the declining profitability trend [9][26]. Historical Context - Founded in 2001, Haina Pharmaceutical has evolved from a focus on generic drug research to a comprehensive service provider in the pharmaceutical industry, including CRO and CDMO services [10]. - The company has undergone multiple rounds of financing, with significant investments from various institutional investors, although some have exited prior to the IPO attempt [5][6][8].

Core Viewpoint - Nanjing Haina Pharmaceutical Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, following a previous unsuccessful attempt for an A-share IPO due to the withdrawal of its sponsor [1][2] Financial Performance - Haina Pharmaceutical has shown steady revenue growth from 2022 to 2024, with revenues of 265 million, 409.6 million, and 424.6 million RMB respectively, but net profit has declined by 27% in 2024 [2][3] - For the first half of 2025, the company reported revenues of 178 million RMB and a net profit of 22.08 million RMB, representing declines of 16.97% and 25.82% year-on-year [2][3] - The gross profit margin has decreased from 60.1% in 2022 to 46.0% in 2024, although it rebounded to 52.1% in the first half of 2025 [3] Business Model and Services - Haina Pharmaceutical operates a unique "CXO + MAH" business model, focusing on both contract research organization (CRO) services and proprietary product pipelines [4][5] - The majority of revenue comes from CXO services, accounting for 65% in 2022 and increasing to 87.8% in 2024 [5] - The company has signed 67 drug technology transfer agreements, indicating a proactive approach to commercialization [5] Market Position and Industry Context - The CXO industry is experiencing growth, with the outsourcing expenditure in the pharmaceutical sector expected to rise from 47.8% in 2024 to 61.0% by 2029 [8] - Haina Pharmaceutical ranks second in China for the number of approved clinical trials and marketing licenses among CXO service providers [11] - Despite growth potential, the company faces challenges due to its focus on generic drugs, which have lower technical barriers compared to innovative drugs [11][12] Financial Health and Risks - The company has experienced negative cash flow from operating activities in 2024 and the first half of 2025, indicating potential financial strain [6] - Accounts receivable have increased significantly, leading to longer collection periods, which may pose risks to cash flow [7] - The competitive landscape for generic drugs is pressured by national procurement policies, impacting pricing and profitability [12]

Core Viewpoint - Nanjing Haina Pharmaceutical Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, following a previous unsuccessful attempt for an A-share IPO due to the withdrawal of its sponsor [1] Financial Performance - Haina Pharmaceutical has experienced a decline in both revenue and net profit in the first half of 2025, with revenue of 178 million yuan and net profit of 22.08 million yuan, representing decreases of 16.97% and 25.82% year-on-year, respectively [2][3] - The company's revenue from 2022 to 2024 showed steady growth, with figures of 265 million yuan, 410 million yuan, and 425 million yuan, but net profit fell by 27% in 2024 [2][3] - The overall gross margin decreased from 60.1% in 2022 to 46.0% in 2024, although it rebounded to 52.1% in the first half of 2025 [3] Business Model and Services - Haina Pharmaceutical operates a unique "CXO + MAH" business model, focusing on both contract research organization (CRO) services and proprietary product pipelines, primarily in chemical generics and improved innovative drugs [4][5] - The company has a comprehensive CXO platform covering the entire drug development process, with 398 ongoing CXO projects as of mid-2025 [5] Market Position and Challenges - Haina Pharmaceutical ranks second in China for the number of approved clinical trials and marketing licenses among CXO service providers, but its focus on generics places it at a competitive disadvantage compared to peers specializing in innovative drugs [11] - The domestic CXO industry is fragmented, with major players facing pressures from national procurement policies, leading to significant revenue declines for competitors [12] Industry Outlook - The CXO industry is expected to grow, with the outsourcing expenditure in the pharmaceutical sector projected to rise from 36.8% in 2020 to 66.0% by 2034 [8] - Despite facing short-term performance pressures, Haina Pharmaceutical's unique business model and full-chain service capabilities may provide competitive advantages in a challenging market [12]

Core Viewpoint - Haina Pharmaceutical is an integrated pharmaceutical research and manufacturing company that provides CXO services and has proprietary product pipelines, ranking second in China for clinical trial approvals and market authorizations [3][4]. Company Overview - Haina Pharmaceutical operates one of the most comprehensive CXO platforms in the industry, covering the entire drug development process from discovery to commercialization [3]. - The company has 242, 331, 383, and 398 ongoing CXO projects as of December 31 for the years 2022, 2023, 2024, and June 30, 2025, respectively [3]. Proprietary Pipeline - In addition to CXO services, Haina Pharmaceutical has proprietary pipelines and has signed 67 drug technology transfer agreements during the historical record period [4]. - Notable projects include Omeprazole Sodium Bicarbonate Suspension and Levofolinate Injection [4]. Financial Performance - Revenue increased from RMB 264.73 million in 2022 to RMB 409.65 million in 2023, and is projected to reach RMB 424.59 million in 2024 [5][6]. - The net profit attributable to the parent company was approximately RMB 59.77 million, RMB 73.02 million, and RMB 53.30 million for the years 2022, 2023, and 2024, respectively [7]. - The overall gross profit margin was 60.1%, 50.3%, and 46.0% for the years 2022, 2023, and 2024, respectively [8]. Industry Overview - The global pharmaceutical market is projected to reach USD 1.542 trillion by 2024, with a compound annual growth rate (CAGR) of 5.1% from 2024 to 2034 [10]. - The Chinese pharmaceutical market is expected to grow to RMB 1.6297 trillion by 2024, with a CAGR of 5.9% from 2024 to 2034 [10]. - The CRO service market in China is anticipated to grow from RMB 52.2 billion in 2020 to RMB 87.8 billion by 2024, with a CAGR of 13.9% [16]. - The small molecule CMO/CDMO service market is projected to increase from RMB 22.6 billion in 2020 to RMB 60 billion by 2024, with a CAGR of 27.6% [19].

Company Overview - Haina Pharmaceutical is an integrated company engaged in drug research and manufacturing, providing CXO services and possessing proprietary product pipelines for commercialization through technology transfer [3][4] - The company ranks second in China for the total number of approved clinical trials and marketing licenses among CXO service providers [3] - Haina operates one of the most comprehensive CXO platforms in the industry, covering the entire drug development process from discovery to commercialization [3] Proprietary Pipeline and Technology Transfer - Haina has signed 67 drug technology transfer agreements during the reporting period, with notable projects including Omeprazole Sodium Bicarbonate Suspension and Dexamethasone Injection [4] - The company operates eight technology platforms that span drug chemistry research, complex formulation development, and GMP-scale production [4] Financial Performance - Revenue increased from RMB 264.73 million in 2022 to RMB 409.65 million in 2023, and is projected to reach RMB 424.59 million in 2024 [5][6] - Despite growth in proprietary pipeline revenue, total revenue for the six months ending June 30, 2025, is expected to decline to RMB 178 million from RMB 214.30 million in the same period of 2024 [6] - The gross profit margin has decreased from 60.1% in 2022 to 50.3% in 2023, with a slight recovery to 52.1% in the first half of 2025 [8][9] Industry Overview - The global pharmaceutical market is projected to grow from USD 1.542 trillion in 2024 to USD 2.527 trillion by 2034, with a CAGR of 5.1% [9] - The Chinese pharmaceutical market is expected to reach RMB 1.6297 trillion in 2024, growing to RMB 2.8863 trillion by 2034, with a CAGR of 5.9% [9] - The CRO service market in China is anticipated to grow from RMB 52.2 billion in 2020 to RMB 87.8 billion in 2024, with a CAGR of 13.9% [15] - The small molecule CMO/CDMO service market is projected to expand from RMB 22.6 billion in 2020 to RMB 60 billion in 2024, with a CAGR of 27.6% [18]