Core Viewpoint - Jiangxi Biological, the largest provider of human tetanus antitoxin in China, has officially submitted its IPO application to the Hong Kong Stock Exchange, showcasing rapid revenue growth but facing significant risks due to reliance on a single product and slow R&D progress [1][3][5]. Financial Performance - Jiangxi Biological's total revenue increased from 142 million yuan in 2022 to 221 million yuan in 2024, with profits rising from 26.5 million yuan to 75.1 million yuan, reflecting a compound annual growth rate (CAGR) of 68.5% [1][3]. - The revenue from human TAT accounted for over 90% of total income during the same period, with sales figures of 133 million yuan, 184 million yuan, and 206 million yuan respectively [3][4]. Product Dependency and Market Risks - The company heavily relies on human TAT, which poses operational risks due to potential changes in healthcare policies that could affect pricing and sales [3][4]. - Despite being included in the national medical insurance directory, any removal could significantly impact sales and profitability [3]. International Market Strategy - To capture markets in Southeast Asia and Africa, Jiangxi Biological has adopted a "low-price for market share" strategy, which has reduced profit margins significantly [4]. - The average export price of human TAT is approximately 3.6 yuan per unit, only 30% of the domestic average price, leading to a gross margin of 60.8% compared to 84.3% domestically [4]. R&D Pipeline and Challenges - The company is expanding its product line to include human antivenom products, but the R&D progress is slow, with significant delays in clinical trials for new products [5][6]. - R&D expenditures decreased by 43.54% in 2024, falling below distribution and administrative costs, indicating a lack of investment in innovation [6][7]. Market Growth Outlook - The human TAT market in China is projected to grow from 21.6 million USD in 2019 to 33.5 million USD in 2024, with a declining growth rate expected in the coming years [7]. - Without new growth points, Jiangxi Biological may face challenges in sustaining its growth trajectory [7].

Core Viewpoint - Jiangxi Biological has submitted a listing application to the Hong Kong Stock Exchange, with CICC and China Merchants Securities International as joint sponsors. This follows a previous application submitted in April 2025 [1]. Company Overview - Jiangxi Biological is the largest provider and exporter of human tetanus antitoxin (TAT) in China and globally, operating a comprehensive antiserum platform. The company has a global sales and distribution network covering over 23,500 medical institutions, including more than 1,500 tertiary medical institutions in China [3][6]. - The product portfolio includes human TAT, veterinary tetanus antitoxin, PMSG, and various hormone drugs, with plans to launch additional products upon regulatory approval [3][5]. Market Position - According to Frost & Sullivan, Jiangxi Biological holds a market share of 65.8% in the Chinese human TAT market and 36.6% globally, with projected sales of 25.4 million doses in 2024 [6]. - The company has maintained a dominant position in the Chinese human TAT market for 18 consecutive years, with nearly 100% of its exports going to over 30 countries and regions in Asia and Africa [6]. Financial Performance - Jiangxi Biological reported revenues of approximately RMB 142 million, RMB 198 million, and RMB 221 million for the fiscal years 2022, 2023, and 2024, respectively. The net profits for the same periods were approximately RMB 26.5 million, RMB 55.5 million, and RMB 75.1 million [7][8].

Core Viewpoint - The Hong Kong stock market's innovative drug sector has shown strong performance since 2025, with a cumulative increase of nearly 100%, indicating a rising capital market interest. Jiangxi Biological has submitted a listing application to the Hong Kong Stock Exchange, potentially becoming the first "serum stock" in Hong Kong [1]. Industry Overview - Jiangxi Biological focuses on the essential demand in infectious disease prevention, differentiating itself from other innovative drug companies by integrating both human and veterinary medicines, thus enhancing its value growth path amid the competitive landscape of innovative drug targets [3]. - The global infectious disease sector faces a long-term shortage of medical resources, creating a clear growth trajectory for the antiserum industry. Traditional vaccines and antibiotics have limitations, making antiserum increasingly vital in public health systems [4]. Market Potential - The antiserum market is expanding, with Tetanus Antitoxin (TAT) meeting approximately 60% of China's clinical demand, with an annual consumption exceeding 20 million doses. TAT's rapid efficacy and cost advantages make it a preferred choice in price-sensitive markets [5]. - The global TAT market is projected to grow from $8.46 million in 2024 to $20 million by 2028, with a CAGR of 24%. In China, the TAT market is expected to increase from $3.35 million to $6.62 million during the same period, with a CAGR of 18.6% [6]. Company Strengths - Jiangxi Biological is a leading antiserum company with a fully integrated supply chain, ensuring quality and cost-effectiveness. It is the only company globally using inactivated antigens, recombinant proteins, and mRNA antigens for antiserum development [11]. - The company maintains a dominant market position, holding over 50% market share in China for 18 consecutive years, with TAT accounting for 36.6% of the global market and 65.8% of the Chinese market [15]. - The company has a robust pipeline, addressing significant gaps in the market for snake antivenom and other products, with clinical trials planned for various antivenoms starting from 2025 [16][17]. Distribution and Market Reach - Jiangxi Biological has a comprehensive sales network covering 23,500 medical institutions in China, with TAT included in national health insurance, facilitating rapid access to grassroots medical and emergency scenarios [18]. - The company exports TAT to over 30 countries in Asia and Africa, holding a 90% market share in countries like the Philippines and Egypt, demonstrating its competitive edge in international markets [18]. Conclusion - Antiserum is being re-evaluated for its strategic importance in public health. Jiangxi Biological is positioned to leverage technological advancements and its integrated capabilities to enhance its role in the global antiserum supply chain, addressing the needs of millions while contributing to global infectious disease prevention [19].