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]

Group 1 - Company plans to spin off its subsidiary Mandi Group and list it independently on the Hong Kong Stock Exchange [1] - The proposed spin-off will involve a distribution of Mandi shares to shareholders based on their ownership percentage and a global offering of new Mandi shares [1] - Mandi submitted its application to the Stock Exchange on November 20, 2025, for the approval of its shares to be listed and traded [1] Group 2 - Mandi is primarily owned by the company and several other entities, holding approximately 87.16%, 3.38%, 2.80%, 4.00%, and 2.65% of the equity respectively [2] - The spin-off group is recognized as a leading professional consumer pharmaceutical company in China, focusing on skin health and weight management solutions [2] - Mandi has established a leadership position in the hair health sector within the broader skin health industry, launching the first 5% minoxidil solution in 2001 and planning to introduce a second-generation minoxidil foam product in 2024 [2]