Mingyu Pharmaceutical Files With HKEX: Ongoing Net Losses Since Inception, No Revenue From Commercial Product Sales

On November 24, According To Disclosures From The Hong Kong Stock Exchange, Mingyu Pharmaceutical Submitted Its Prospectus, With Morgan Stanley, BofA Securities, And CITIC Securities (27.600, 0.13, 0.47%) Serving As Joint Sponsors.

The Prospectus Indicates That Mingyu Pharmaceutical, Founded In 2018 By Former Hengrui Executive Cao Guoqing, Is An Innovative Biotechnology Company Nearing Commercialization. It Has Built A Robust Clinical‑Stage Oncology Portfolio Anchored By A Proprietary Antibody‑Drug Conjugate (ADC) Platform And A Novel PD‑1/VEGF Bispecific Antibody (bsAb), Alongside Its Own Late‑Stage Immunology Assets Advancing Toward Commercialization. As Of The Latest Practicable Date, The Pipeline Comprises 13 Candidates, With 10 In Clinical Stages, Focused On Oncology And Autoimmune Diseases.

“The Company’s Core Product MHB036C Is A TROP2 ADC Targeting The Multi‑Billion‑Dollar Solid Tumor Market And Possessing Best‑In‑Class Potential. It Is Currently Being Studied Together With Key Product MHB039A In Phase I/II Combination Studies For First‑Line And Subsequent Non‑Small Cell Lung Cancer, And In Phase II Combination Studies For First‑Line And Subsequent Breast Cancer. The Company’s Key Product MHB088C Is A Potential Best‑In‑Class B7‑H3 ADC For Treating Small Cell Lung Cancer And Other Cancers. It Is Undergoing A Phase III Trial As A Monotherapy For Second‑Line Small Cell Lung Cancer, And A Phase I/II Trial In Combination With MHB039A For First‑Line And Subsequent Small Cell Lung Cancer,” Mingyu Pharmaceutical Stated. “As One Of The Few Companies Globally With Fully Proprietary ADC And Bispecific Antibody Development Platforms, We Hold A Unique Position To Lead The Next Generation Of Oncology Therapies.”

Continuous Net Losses, With Potential Persistence Over The Next Few Years: inancial Data In The Prospectus Show That The Company Recorded No Operating Revenue In 2023 And 2024, Until The First Half Of 2025, When Revenue Reached Approximately RMB 264 Million.

Mingyu Pharmaceutical Noted That During The Track Record Period, Its Candidates Had Not Yet Been Commercialized, And Revenue In The First Half Of 2025 Was Mainly Derived From A Licensing Agreement With Qilu.

The Prospectus States That Since Establishment, The Company Has Consistently Incurred Net Losses And May Continue To Do So For Several Years, Potentially Failing To Achieve Or Sustain Profitability.

New Drug R&D Costs Are Extremely High, Requiring Significant Upfront Outlays And Carrying Major Risks, Including Candidates Failing To Demonstrate Safety And Efficacy, Failing To Obtain Regulatory Approval, Or Failing To Achieve Commercial Viability. To Date, The Company Has Not Generated Revenue From Commercial Product Sales And Has Incurred Substantial R&D And Other Operating Expenses. Accordingly, The Company Recorded Net Losses Of RMB 137.3 Million In 2023, RMB 282.6 Million In 2024, RMB 65.8 Million For The Six Months Ended June 30, 2024, And RMB 167 Million For The Six Months Ended June 30, 2025. The Company Expects To Continue Incurring Net Losses In The Foreseeable Future.

Currently, The Company’s Cumulative Losses For 2023–2025 Were Approximately RMB 789 Million, RMB 1.071 Billion, And RMB 1.238 Billion, Respectively. With Respect To Suppliers, The Company’s Vendors Mainly Include CROs And CDMOs Providing Services For Its R&D Activities.

For The Years Ended December 31, 2023 And 2024, And The Six Months Ended June 30, 2025, Purchases From The Top Five Suppliers Accounted For 49%, 58.6%, And 54% Of Total Procurement, Respectively. Purchases From The Largest Supplier Were RMB 32.1 Million, RMB 58.6 Million, And RMB 17.9 Million, Representing 20.6%, 23.8%, And 22.3% Of Total Procurement In Each Period.

Significant Cash Consumption Since Inception: Since Establishment, Mingyu Pharmaceutical Has Completed Multiple Financing Rounds, Including A USD 131 Million Series C Round In July 2025, With A Post‑Money Valuation Of RMB 3.936 Billion.

The Company’s Cash And Cash Equivalents Declined From RMB 131 Million As Of December 31, 2023 To RMB 29.7 Million As Of December 31, 2024, Mainly Due To Reduced Financing Activities And Increased Cash Outflows. They Subsequently Rose To RMB 149 Million As Of June 30, 2025, Primarily Due To Cash Generated From The Licensing Agreement With Qilu And Pre‑C Financing.

The Prospectus Shows That During The Track Record Period, The Company Recorded Net Operating Cash Outflows And Net Liabilities. The Company May Require Additional Financing To Support Operations, And Failure To Obtain Adequate Funding Could Hinder The Development And Commercialization Of Its Candidates.

Mingyu Pharmaceutical Stated That Since Establishment, Operations Have Consumed Significant Cash. Net Operating Cash Outflows Were RMB 143 Million In 2023, RMB 145.6 Million In 2024, And RMB 88.7 Million For The Six Months Ended June 30, 2024. For The Six Months Ended June 30, 2025, Net Operating Cash Inflows Were RMB 101.7 Million, Mainly Attributable To Income From The Licensing Agreement With Qilu.

As Of June 30, 2025, The Company Recorded Net Liabilities Of RMB 1.286 Billion And Current Liabilities Of RMB 1.313 Billion. As The Company Advances Candidates Through Clinical Development, Regulatory Review, Manufacturing, And Commercialization, Operating Activities May From Time To Time Generate Net Cash Outflows.

Mingyu Pharmaceutical Indicated That It May Need To Raise Additional Capital Through Public Or Private Equity Offerings, Debt Financing, Or Partnerships, Though Such Funding May Not Be Available On Acceptable Terms Or At All. The Company’s Net Liability Position Exposes It To Liquidity Risks, Potentially Requiring External Financing Such As Debt Issuance Or Bank Loans. Such Financing May Include Restrictive Covenants Limiting The Company’s Ability To Incur Additional Debt, Issue Equity, Acquire Intellectual Property, Or Conduct Operations, Potentially Reducing Business Flexibility. Equity Issuance Could Dilute Shareholders’ Stakes, While New Debt Could Impose Fixed Repayment Obligations, Increasing Liquidity Pressure.

No Controlling Shareholder Post‑Listing: As Of The Latest Practicable Date, The Single Largest Shareholder Group—Including Cao Guoqing, His Spouse Geng Mei, Mingde Group Holdings, And Radiance C LLC—Was Able To Exercise Approximately 36.27% Of Voting Rights. In Accordance With Listing Rules, The Company Will Have No Controlling Shareholder After Listing. The Prospectus Also Highlights Risks Relating To Drug Commercialization And Ongoing Losses.

Mingyu Pharmaceutical Emphasized That It Heavily Relies On The Successful Clinical Development, Regulatory Approval, And Commercialization Of Its Candidates. Failure To Achieve These Objectives, Or Significant Delays Or Cost Overruns, Could Materially And Adversely Affect Its Business, Financial Condition, Operating Results, And Prospects.

If The Company’s Candidates Fail To Demonstrate Safety And Efficacy To The Satisfaction Of Regulators Or Fail To Produce Satisfactory Results, Additional Costs May Be Incurred, Development And Commercialization May Be Delayed, Or Ultimately Not Completed.

Clinical Drug Development Is Highly Time‑Consuming And Costly, With Inherent Uncertainties, And The Company May Ultimately Be Unable To Commercialize Its Candidates. Biopharmaceuticals Are Subject To Stringent Regulation Across Research, Development, Manufacturing, And Commercialization. Non‑Compliance With Applicable Laws And Regulations Could Negatively Impact The Company’s Business And Operations.

When Developing Or Promoting Candidates As Combination Therapies, The Company May Face Safety, Efficacy, Or Regulatory Challenges. Approval Processes Of The National Medical Products Administration, The U.S. Food And Drug Administration, And Other Similar Regulators Are Complex And May Evolve Over Time. Failure To Secure Timely Regulatory Approval In Target Markets Could Have A Significant And Material Impact On The Business.

Currently, The Company Relies On Third Parties To Manufacture Candidates For Clinical Development And May Continue To Rely On Them For Initial Commercial‑Scale Production After Approval. If These Third Parties Fail To Deliver Sufficient Quantities Of High‑Quality Products, The Company’s Business Could Be Adversely Affected.