New Stock News | Haina Medicine submits application to Hong Kong Stock Exchange, covering the entire chain of business including drug discovery, CMC, pre-clinical and clinical development.

According to the disclosure on November 7th by the Hong Kong Stock Exchange, Nanjing Haina Pharmaceutical Technology Co., Ltd. (Haina Pharmaceutical) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CICC as its exclusive sponsor. The prospectus shows that Haina Pharmaceutical is an integrated pharmaceutical research and manufacturing company that provides CXO services. The company also has a proprietary product pipeline, mainly commercialized through pharmaceutical technology transfer. According to a Frost & Sullivan report, during the historical period and up to the last practicable date (November 2, 2025), Haina Pharmaceutical ranked second among CXO service providers in China in terms of the total number of approved clinical trials and market authorizations. According to the same source, Haina Pharmaceutical also ranked second in the total number of clinical trial and market authorization applications submitted during the same period. Haina Pharmaceutical operates one of the most comprehensive CXO platforms in the industry, covering the full range of drug discovery, CMC, preclinical and clinical development, registration and validation, and commercial production. The company offers end-to-end or modular CRO and CMO solutions covering drug development and CMC, clinical and bioequivalence testing services, regulatory submissions, and contract manufacturing. As of December 31, 2022, December 31, 2023, December 31, 2024, and June 30, 2025, Haina Pharmaceutical had 242, 331, 383, and 398 ongoing CXO projects, respectively. In addition to CXO services, Haina Pharmaceutical also has proprietary pipelines. For each asset in the proprietary pipeline, the company will choose to monetize through pharmaceutical technology transfer or commercialization based on its characteristics and market considerations. Depending on the asset's characteristics and development stage, Haina Pharmaceutical will transfer development and manufacturing technology to third parties before obtaining market authorization or transfer the market authorization upon approval of the product. During the historical period, Haina Pharmaceutical signed 67 drug technology transfer agreements. Representative transactions include projects such as omeprazole sodium bicarbonate dry mixed suspension (I) and (II), leucovorin injection, and diclofenac epolamine patch. Furthermore, Haina Pharmaceutical operates eight major technology platforms covering a range from drug chemistry research, complex drug formulation research, to drug quality research, clinical implementation, and GMP industrial production. Financial Information Revenue During the historical period, Haina Pharmaceutical's revenue steadily increased from RMB 265 million in 2022 to RMB 410 million in 2023 and further to RMB 425 million in 2024. However, despite revenue growth in the proprietary pipeline business, the company's total revenue slightly decreased from RMB 214 million for the six months ended June 30, 2024 to RMB 178 million for the six months ended June 30, 2025. Net Profit and Comprehensive Income Attributable to Owners of the Company In the years 2022, 2023, 2024, and the six months ended June 30, 2024 and 2025, Haina Pharmaceutical's net profit and comprehensive income attributable to owners of the company were approximately RMB 59.767 million, RMB 73.015 million, RMB 53.295 million, and RMB 22.084 million, respectively. Gross Profit and Gross Profit Margin The overall gross profit margin for Haina Pharmaceutical was 60.1%, 50.3%, 46.0%, and 52.1% for the years 2022, 2023, 2024, and the six months ended June 30, 2025, respectively. Industry Overview The prospectus mentioned that the global pharmaceutical market reached $1,542 billion in 2024 and is expected to reach $1,957.9 billion and $2,526.9 billion in 2029 and 2034, respectively, with a compound annual growth rate of 5.1% from 2024 to 2034. With support from factors such as population structure, policies, and technology, the market of China Meheco Group is expected to continue steady growth. The market size of China Meheco Group reached RMB 1,629.7 billion in 2024 and is projected to reach RMB 1,985.4 billion and RMB 2,886.3 billion in 2029 and 2034, with a compound annual growth rate of 5.9% from 2024 to 2034. CXO Service Industry Companies in the CXO service industry provide research and production services for pharmaceutical companies. The CXO service industry is mainly composed of Contract Research Organizations (CROs) and Contract Manufacturing Organizations (CMOs)/Contract Development and Manufacturing Organizations (CDMOs). CXO providers support the entire drug lifecycle, including early drug discovery, preclinical research, clinical development, technology transfer, commercial production, and post-marketing surveillance. CRO Services As shown in the figure below, the Chinese CRO services market refers to the total revenue generated by Chinese companies in the field of contract research services for drug discovery, preclinical, and clinical research. The market size increased from RMB 52.2 billion in 2020 to RMB 87.8 billion in 2024, with a compound annual growth rate of 13.9%, and is expected to grow at a compound annual growth rate of 13.3% from 2024 to 2029, reaching RMB 163.8 billion in 2029. Small Molecule CMO/CDMO Services The market size of small molecule CMO/CDMO services increased from RMB 22.6 billion in 2020 to RMB 60 billion in 2024, with a compound annual growth rate of 27.6%. As shown in the figure below, it is expected to grow at a compound annual growth rate of 18.5% from 2024 to 2029, reaching RMB 140.4 billion in 2029. Board of Directors and Management Information The board of directors is responsible for the general management and operation of the company's business. The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors. Directors serve a term of three years and may be re-elected. Shareholding Structure As of the last practicable date, Dr. Zou (Dr. Qiaogen Zou) has the right to control and exercise the aggregate voting rights of 45.82% of the total issued share capital of the company, including (i) approximately 34.31% held by himself and (ii) approximately 5.77%, 2.92%, 2.07%, and 0.75% held by Haina Changxing, Zhongxing Yuan, Pangu Lin, and Hengzhiyun, respectively. Dr. Zou is a general partner of Haina Changxing, Zhongxing Yuan, Pangu Lin, and Hengzhiyun. Other shareholders include Yuehe Gubian, Huatai Healthcare, Mr. Lin Guangmao, China Jianhua, Hubei Gaojin, Gaokem Investment, Jiangsu Jincai, Hefei Investment, Nanjing Innovation Investment, Boda Pharmaceutical, Jiangxi State-Controlled Industrial Fund, etc. Advisory Team Exclusive Sponsor: China International Finance Hong Kong Securities Limited Exclusive Sponsor and Legal Advisors for [Compilation]: OMelveny & Myers LLP for Hong Kong law; Jointide Law Firm for China law Reporting Accountants: Ernst & Young Legal Advisors for China law: Guofeng Law Firm Industry Consultants: Frost & Sullivan Consultancy (Beijing) Co., Ltd., Shanghai Branch Compliance Advisor: Howden Capital Limited