Core Viewpoint - The investment made by the company in 2015 to acquire Mandi International has yielded nearly tenfold returns, with Mandi's valuation reaching HKD 58 billion in November 2025, compared to the original acquisition price of HKD 5.28 billion [1][24]. Group 1: Investment and Valuation - The acquisition of Mandi International in 2015 for HKD 5.28 billion has resulted in a valuation increase to HKD 58 billion by November 2025, representing a nearly tenfold increase [1][24]. - Mandi's revenue from its core product, Minoxidil solution, has surpassed HKD 1 billion, with projected revenues of HKD 14.55 billion and net profits of HKD 3.9 billion for 2024 [2]. Group 2: Market Position and Product Strategy - Mandi holds a 53.3% market share in the Minoxidil solution segment, which is a leading treatment for androgenetic alopecia [4]. - The company has emphasized marketing, with sales expenses projected to be six times that of R&D expenses in 2024 [2][8]. - Mandi's 5% Minoxidil solution is expected to generate approximately HKD 9.91 billion in revenue for 2024, accounting for nearly 70% of total revenue [5]. Group 3: Challenges and Future Prospects - Despite strong revenue, Mandi faces challenges as the growth of its main product, Minoxidil solution, has begun to decline, with projected revenue drops of 10% in 2024 and over 25% in the first half of 2025 [14]. - The company is actively seeking to diversify its product offerings, including new products for skin and weight management, with plans to submit applications for new drugs by 2027 [16][17]. - The introduction of a 5% Minoxidil foam product has shown promising growth, generating HKD 2.83 billion in the first half of 2025, indicating potential for continued revenue growth [19].

Core Viewpoint - Recently, 3SBio announced the proposal to spin off its subsidiary Mandi International for independent listing on the Hong Kong Stock Exchange, with 3SBio holding 87.16% of Mandi's shares, and after the spin-off, 3SBio will not retain any interests in Mandi [1][5] Group 1: Company Overview - Mandi International was established in 1997 as Zhejiang Wansheng Pharmaceutical Co., Ltd., and launched China's first 5% minoxidil product in 2001, filling a gap in the domestic hair loss treatment market [1][2] - Mandi International's revenue is primarily dependent on the Mandi product series, which includes 5% minoxidil solutions and shampoos, contributing over 90% of its revenue [3][4] Group 2: Market Potential - The hair health management market in China has expanded from 19.8 billion yuan in 2018 to an estimated 52.7 billion yuan in 2024, with a projected compound annual growth rate (CAGR) of 11.3% from 2024 to 2035 [2] - Over 339 million people in China are affected by hair loss, with more than 60% of them under the age of 35 [2] Group 3: Financial Performance - Mandi International's revenue from 2022 to 2024 is projected to grow from 982 million yuan to 1.455 billion yuan, with a CAGR of 21.7%, and net profits are expected to rise from 202 million yuan to 390 million yuan [3] - In the first half of 2025, Mandi International achieved revenue of 743 million yuan, a year-on-year increase of approximately 20.2% [3] Group 4: Product Development - Mandi International launched the second-generation minoxidil product, Mandi 5% minoxidil foam, which saw rapid sales growth, generating 307 million yuan in 2024 and 283 million yuan in the first half of 2025 [4] - The company has a pipeline of products under development, including treatments for acne, obesity, and vitiligo, although these contribute less to current revenue [4] Group 5: Strategic Rationale for Spin-off - The spin-off is expected to provide multiple commercial benefits, including enhanced value transparency, independent financing platforms, and optimized management responsibilities, which will improve decision-making and market responsiveness [5]