Company Overview - The company, Shiyao Innovation, submitted its prospectus to the Hong Kong Stock Exchange on December 10, 2025, aiming for a mainboard listing, with CITIC Securities as the sole sponsor [1] - Shiyao Innovation was spun off from Shiyao Group and was listed on the A-share market in March 2019, with a market capitalization of 47.5 billion RMB as of December 11 [1] - The company focuses on biopharmaceuticals, functional raw materials, and health foods, reporting revenues of 1.98 billion RMB in 2024 and a net loss of 304 million RMB [1] Financial Performance - For the first seven months of 2025, the company reported revenues of 1.24 billion RMB, a year-on-year increase of 8.74%, with a net loss of 226 million RMB [8] - The gross profit margin for the first seven months of 2025 was 38.27%, while the R&D expense ratio was approximately 42.67% [8] - The company has seen a significant increase in net loss year-on-year, with a 483.69% increase in net loss for the first seven months of 2025 compared to the previous year [8] Product and Market Focus - The company has expanded its main business into the biopharmaceutical sector by acquiring control of Giant Rock Biotech in 2024, marking a strategic shift in its development [1] - Shiyao Innovation is the largest producer of synthetic caffeine globally from 2020 to 2024, supplying major companies like Coca-Cola, PepsiCo, and Red Bull [1] - The company is strategically focusing on antibody drugs, ADCs, and mRNA vaccines, with a strong pipeline of 15 drugs in clinical or late-stage development, including 9 ADCs and 1 mRNA vaccine [3][5] Industry Insights - The global antibody drug market is projected to grow from $163.8 billion in 2019 to $254.3 billion in 2024, with a compound annual growth rate (CAGR) of 9.2% [10] - The synthetic caffeine market is expected to grow from $391.4 million in 2019 to $578.5 million in 2024, with a CAGR of 8.1% [19] - The company holds a 51.5% market share in China's synthetic caffeine market as of 2024 [20]

Core Viewpoint - The Hong Kong stock market for the biopharmaceutical sector is experiencing a surge in IPO activity, with several companies successfully passing hearings and submitting applications, indicating a positive market sentiment and growth potential in the industry [1][5]. Market Performance - Since December, companies like Jiahe Biotech, Hansai Aitai, Mingji Hospital, and Huazhang Biotech have progressed in the IPO process, while others like Hemei Pharmaceuticals and Gaoguang Pharmaceuticals have submitted their applications [1]. - On December 10, Baoji Pharmaceuticals debuted on the Hong Kong stock market, opening 129% higher and closing at HKD 69 per share, with a total market capitalization of HKD 22.493 billion [1]. - In the first three quarters of this year, 28 companies in the domestic healthcare sector went public, a 100% increase year-on-year, with over 40% being innovative drug companies [1]. Future Outlook - The primary market for biopharmaceutical IPOs in Hong Kong is expected to remain strong, with predictions that it will continue to be the preferred listing location for Chinese biotech companies through 2026 [1]. - The Hong Kong Securities and Futures Commission and the Hong Kong Stock Exchange have emphasized the importance of maintaining quality standards in IPO applications while encouraging market participation [1]. Innovation and Competition - The evaluation criteria for innovative drug companies are becoming more comprehensive, focusing on core R&D pipeline competitiveness, product commercialization progress, and profitability [3]. - Companies like Junshi Biosciences and Gaoguang Pharmaceuticals are advancing in business development (BD) collaborations, while others like Hemei Pharmaceuticals and Shiyao Innovation are entering commercialization phases [5][7]. Market Dynamics - The global market for Tumor Infiltrating Lymphocyte (TIL) therapy is projected to grow from USD 104 million in 2024 to USD 1.692 billion by 2030, with the first TIL therapy expected to enter the Chinese market around 2027 [5]. - The number of clinical trials for oncology conducted by Chinese companies has reached 39% of the global total, reflecting the competitive landscape in the oncology sector [6]. Financial Performance - Despite advancements, companies like Hemei Pharmaceuticals and Gaoguang Pharmaceuticals are facing profitability challenges, with reported losses of CNY 73 million and CNY 190 million, respectively, for the first half of 2025 [7]. - Shiyao Innovation, focusing on biopharmaceuticals, reported a net loss of CNY 226 million in the first seven months of 2025, highlighting the financial pressures in the sector [9]. A+H Listing Strategy - The trend of A+H dual listing is becoming more common among biopharmaceutical companies, with Shiyao Innovation exemplifying this strategy [9][10]. - Companies are increasingly cautious about market conditions, as seen with Baili Tianheng delaying its H-share IPO due to concerns over market sentiment and pricing [10][11]. Investment Sentiment - Investors are shifting focus from storytelling to data-driven approaches, emphasizing pipeline focus, data differentiation, and cash flow management to enhance company valuations [11].

Core Viewpoint - CSPC Innovation Pharmaceutical Co., Ltd. (formerly known as CSPC New Drug Co., Ltd.) has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to leverage its strong market position in the biopharmaceutical and health supplement sectors [2][18]. Company Overview - Established in 2006, CSPC Innovation focuses on research, development, and manufacturing of biopharmaceuticals, functional raw materials, and health supplements, positioning itself as a leader in the health sector [3][19]. - The company is the world's largest producer of synthetic caffeine, supplying major beverage companies like Coca-Cola, PepsiCo, and Red Bull, with products distributed in over 65 countries [3][19]. Business Expansion - In 2016, CSPC Innovation expanded into the health supplement market, offering a diverse range of products aimed at enhancing immunity, improving bone density, and providing antioxidant support [4][20]. - The acquisition of 100% of CSPC Saint Snow in 2022 allowed the company to diversify its product offerings to include other functional raw materials, such as acarbose and anhydrous glucose [4][20]. Biopharmaceutical Development - In 2024, CSPC Innovation gained control of Giant Bio, marking its entry into the biopharmaceutical sector with a focus on innovative therapies targeting unmet clinical needs in oncology, autoimmune diseases, and infectious diseases [5][21]. - The company has commercialized two antibody drugs and developed mRNA vaccines, including the first domestically developed COVID-19 mRNA vaccine in China [5][21]. Research and Development Pipeline - CSPC Innovation has 15 drugs in clinical or late-stage development, including 9 antibody-drug conjugates (ADCs) and 1 mRNA vaccine, targeting high-incidence cancers and other significant unmet medical needs [6][22]. - The ADC pipeline focuses on indications such as lung cancer, breast cancer, gastric cancer, colorectal cancer, and esophageal squamous cell carcinoma, with key targets including EGFR and HER2 [6][22]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first seven months of 2025 were approximately RMB 2.84 billion, RMB 2.54 billion, RMB 1.98 billion, and RMB 1.24 billion, respectively, with net profits showing a decline in 2024 and 2025 [12][13]. - The revenue breakdown indicates that functional raw materials and health supplements accounted for the majority of sales, while biopharmaceutical products contributed a smaller portion [12][13]. Shareholder Structure - Prior to the IPO, CSPC Innovation's major shareholders include CSPC Group, which holds approximately 75.30% of the shares, with the remaining 24.70% held by other A-share shareholders [9][25]. Management Team - The board of directors consists of 10 members, including 3 executive directors and 5 independent non-executive directors, ensuring a diverse governance structure [10][27].

Company Overview - The company, Shiyao Innovation Pharmaceutical Co., Ltd. (stock code: 300765.SZ), has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor [1] - The company focuses on the research, production, and commercialization of biopharmaceuticals, functional raw materials, and health foods [4] Business Development - In 2024, the company acquired control of Giant Bio, expanding its main business into the biopharmaceutical sector, marking a key step in its strategic transformation [5] - The company is engaged in the development of innovative therapies targeting unmet clinical needs in significant disease areas such as tumors, autoimmune diseases, and infectious diseases [5] - The company has a strong technical foundation in antibody drugs, antibody-drug conjugates (ADC), and mRNA vaccines, with plans to commercialize two antibody drugs in the second half of 2024 [5] Product Pipeline - As of December 1, 2025, the company has 15 drugs in clinical or late-stage development, including 9 ADCs and 1 mRNA vaccine [5] - The company’s mRNA vaccine products, including the first domestically developed COVID-19 mRNA vaccine, have been included for emergency use in China [5] Financial Performance - The company's revenue for the fiscal years ending July 31 for 2022, 2023, 2024, and the first seven months of 2025 were approximately RMB 2.838 billion, RMB 2.539 billion, RMB 1.980 billion, and RMB 1.241 billion respectively [8] - The company's profit for the same periods was approximately RMB 294 million, RMB 126 million, a loss of RMB 304 million, and a loss of RMB 226 million respectively [8] - The gross profit margin for these years was approximately 46.8%, 45.6%, 41.8%, and 38.3% [9] Industry Outlook - The global pharmaceutical market is expected to grow from USD 1,324.5 billion in 2019 to USD 1,542 billion in 2024, with a compound annual growth rate (CAGR) of 5.0% from 2024 to 2030 [11] - The Chinese pharmaceutical market is projected to grow from RMB 1,629.7 billion in 2024 to RMB 2,129.7 billion in 2030, with a CAGR of 4.6% from 2024 to 2030 [11] - The global oncology drug market is expected to expand from USD 143.5 billion in 2019 to USD 253.3 billion in 2024, with a CAGR of 12.0% [12] Market Position - The company is positioned as a significant player in the biopharmaceutical sector, focusing on innovative therapies and addressing unmet clinical needs [5][11] - The company has established a solid partnership with leading beverage companies, leveraging its expertise in caffeine production and health food products [6]