The decision to go public was approved by nearly unanimous vote, and Guangdong Hec Technology Holding Co., Ltd. (06887) is entering its final countdown to list on the Hong Kong Stock Exchange.

On June 29, after announcing the application to the Hong Kong Stock Exchange for approval of listing and trading, Guangdong Hec Technology Holding Medicine (06887) - the leading domestic innovative pharmaceutical company is just one step away from officially entering the Hong Kong stock market. The conditions for private privatization and absorption merger have been approved by shareholder voting at the extraordinary general meeting and H-share class shareholder meeting. On the evening of July 21, Guangdong Hec Technology Holding Medicine and HEC CJ PHARM jointly announced that the proposal resolution on the conditional private privatization of HEC CJ PHARM by the offeror through absorption merger with HEC CJ PHARM had been fully approved with over 99% of votes in favor on the same day. Therefore, as an important step in the capital operation of Guangdong Hec Technology Holding Group's pharmaceutical assets, all conditions for the listing of Guangdong Hec Technology Holding Medicine in Hong Kong have been met. Guangdong Hec Technology Holding Medicine will start trading on the Stock Exchange of Hong Kong at 9 am on August 7 (Thursday). With the completion of this transaction, shareholders of Guangdong Hec Technology Holding Medicine are set to benefit from the agreement. This innovative listing path in the Hong Kong stock market is the first of its kind, and the specific plan involves privatizing the subsidiary HEC CJ PHARM, in which Guangdong Hec Technology Holding Medicine holds a 51.41% stake, through absorption merger and issuing H-shares to all exchanging shareholders as consideration. The key information for investors in this core transaction term is the exchange ratio and special dividends. The exchange ratio is set at 0.263614 Guangdong Hec Technology Holding Medicine H-shares for every HEC CJ PHARM H-share. It is expected that Guangdong Hec Technology Holding Medicine H-shares will have a theoretical value ranging from HKD 67.04 to HKD 81.44 by the end of 2024. This means that the value of HEC CJ PHARM's H-shares at the time of privatization will be between HKD 17.67 and HKD 21.47, with a mid-value of HKD 19.36. Considering the closing price on June 27 of HKD 14.90, this represents a theoretical premium return of 30% for secondary market investors. Additionally, at the extraordinary general meeting and H-share class shareholder meeting of Guangdong Hec Technology Holding Medicine, the company announced the payment of special dividends: HEC CJ PHARM H-share shareholders will receive HKD 1.50 per share in special dividends after the merger is effective. It is worth mentioning that the total number of H-shareholders of HEC CJ PHARM is approximately 654 million shares, of which about 428 million shares will receive special dividends, meaning that the major shareholder holding 226 million shares will not be eligible for the special dividend payout. Therefore, starting from the announcement on June 29, with the added benefits of the privatization premium and special dividends of HEC CJ PHARM, small and medium shareholders can expect to receive a premium return of over 40%. This underscores the high regard for shareholder rights and equity maintenance in Guangdong Hec Technology Holding Medicine's innovative listing scheme on the Hong Kong stock market. "True innovation" to drive further growth Despite the fact that Guangdong Hec Technology Holding Medicine's stock price has risen by over 70% since the beginning of the year, there is still room for further growth. Through integration, Guangdong Hec Technology Holding Medicine is expected to leverage internal economies of scale and synergy advantages, continuously unleash the value of "true innovation," and achieve nonlinear explosive growth in terms of valuation. After more than 20 years of continuous investment, Guangdong Hec Technology Holding Medicine has established a fully autonomous, systematic, and comprehensive research and development platform and technical system, covering multiple advanced technology areas such as small molecule targeted drugs, AIDD, small nucleic acids, ADC, PROTAC, and specific antibodies. With the support of advanced innovative technology platforms, Guangdong Hec Technology Holding Medicine currently has 150 drugs on the market globally, with over 100 drugs in research and development, including 49 first-class innovative drugs, many of which have the commercial potential of "billion-dollar molecules." For example, the company's representative drug in the field of oncology, Klyfotinib, with significant anti-tumor activity and good safety, is expected to have a global sales peak potential of $1 billion. In November last year, the company entered into a deep cooperation with 3SBIO to prepare for its future scaled commercialization. In addition, another investigational new drug, Ifeniketone, with outstanding clinical performance in the treatment of idiopathic pulmonary fibrosis (IPF), has the capability to expand into the treatment of interstitial pneumonia/liver fibrosis and the huge potential of combination therapy with ADC class drugs, demonstrating significant potential as a "billion-dollar molecule." With the rapid development of the valuation recovery trend in the Hong Kong stock market's pharmaceutical sector since the beginning of this year, it is evident that market capital has shown increasing favoritism towards value targets with stable fundamentals and higher valuation growth ceilings. In this market environment, as a scarce high-value bio-pharmaceutical investment target, Guangdong Hec Technology Holding Medicine's high configuration value is expected to continue to bring investors high returns on investment.