New stock news | Youcare Pharmaceutical Group (688658.SH) submits application to Hong Kong Stock Exchange as a biopharmaceutical company involved in four core business models.

According to the disclosure on December 29th by the Hong Kong Stock Exchange, Youcare Pharmaceutical Group Co., Ltd. (referred to as Youcare Pharmaceutical Group (688658.SH)), has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. Company Profile As disclosed in the prospectus, Youcare Pharmaceutical Group is a biopharmaceutical company focused on the research, development, production, and commercialization of four types of therapies: oligonucleotides, messenger RNA (mRNA) vaccines, peptides, and innovative Chinese medicine. The company utilizes a combination of commercialized product portfolio, cross-modality research and development technology platform and capabilities, Good Manufacturing Practice (GMP) certified production system, and a nationwide commercial network to advance candidate products in major therapeutic areas with significant unmet needs and long-term growth potential through differentiated innovation pipelines. Several flagship products of the company have made significant contributions to its revenue and cash flow, providing a financial foundation for continued research and development investment and capacity expansion. Products like Yuetkangtong (Ginkgo Leaf Extract Injection) have a wide coverage in Chinese hospitals, including third and second-tier hospitals, for managing cerebrovascular and peripheral vascular disorders. Ailishi (Sildenafil Citrate Tablets) is used in the Chinese urology and andrology environment for the treatment of male erectile dysfunction. Other key products such as Liweike (Omeprazole Enteric-coated Capsules) and Yuedaning (Metformin Hydrochloride Sustained-release Tablets) further expand the company's coverage in major therapeutic areas. The company also sells cefdinir antibiotics with a wide range of indications. The company's pipeline includes innovative candidate products spanning discovery, pre-clinical, and clinical stages involving four core modes - oligonucleotides, mRNA vaccines, peptides, and innovative Chinese medicines. The company designs its pipeline to address significant unmet needs in major disease areas and supports advancing multiple projects concurrently, with assets positioned in China and potentially developed overseas under appropriate circumstances. Financial Information Revenue The company recorded revenue of approximately RMB 4.521 billion, RMB 4.183 billion, RMB 3.767 billion, and RMB 1.304 billion for the fiscal years 2022, 2023, 2024, and the seven months ending July 31, 2025, respectively. Losses for the Year/Period For the seven months ending July 31, 2025, the company recorded a loss of approximately RMB 1.46 billion, primarily due to: (i) reduced income from the sale of cardiovascular products, mainly attributed to the decrease in the price and sales volume of Yuetkangtong; and (ii) significant investments in marketing and research and development activities. Gross Profit and Gross Margin The company recorded gross profits of approximately RMB 2.871 billion, RMB 2.578 billion, RMB 2.145 billion, and RMB 596 million for the fiscal years 2022, 2023, 2024, and the seven months ending July 31, 2025, respectively. During the same periods, the gross margins were 63.5%, 61.6%, 56.9%, and 45.7%, respectively. Industry Overview Supported by the growing demand for medical care, increasing burden of chronic diseases, and continuous improvement in drug innovation and accessibility, the global and China Meheco Group markets are expected to continue expanding steadily until 2035. As these markets evolve towards higher-value treatments and broader access, the long-term growth prospects remain resilient. In 2024, the top five therapeutic areas globally were digestive and metabolic, anti-tumor/oncology, systemic anti-infective drugs, nervous system, and respiratory system. China's top five therapeutic areas were anti-tumor, digestive and metabolic, blood and hematopoietic organs, systemic anti-infective drugs, and respiratory system. The growth of these markets is driven by strong demand for treatments of tumors, metabolic disorders, blood-related issues, infections, and respiratory system conditions. The cardiovascular system consists of the heart, blood vessels, and cerebral blood vessels. This system maintains blood circulation in the brain and body by transporting oxygen, nutrients, and clearing metabolic waste. The global population affected by cardiovascular diseases is expected to increase from 605 million in 2020 to 633 million in 2024, with a compound annual growth rate of 1.1%, and is projected to reach 717 million by 2035, with a compound annual growth rate of 1.1% from 2024 to 2035. In China, the prevalence of cardiovascular diseases is expected to increase from 129 million in 2020 to 147 million in 2024, with a compound annual growth rate of 3.4%, and is projected to reach 204 million by 2035, with a compound annual growth rate of 3.0% from 2024 to 2035. The global cardiovascular drug market is forecasted to grow from $873 billion in 2020 to $1,065 billion in 2024, with a compound annual growth rate of 5.1%, and is projected to reach $1,655 billion by 2035, with a compound annual growth rate of 4.1% from 2024 to 2035, driven by factors such as aging populations, increasing prevalence of cardiovascular diseases, rising diagnosis and treatment rates, and adoption of more mature and innovative therapies. Board of Directors and Senior Management Information The company's board of directors consists of 11 directors, including seven executive directors and four independent non-executive directors. The directors serve a term of three years and are eligible for re-election upon the expiration of their term. According to relevant Chinese laws and regulations, the term of office for independent non-executive directors shall not exceed six consecutive years. Shareholding Structure Mr. Yu, Ms. Ma Guiying, Mr. Yu Fei, Mr. Yu Pengfei, Mr. Yu Jianming, Ms. Yu Xiaohui, Ms. Zhang Mengyu, Ms. Li Caiyun, Mr. Yu Xiaoming, Fuyang Jing Yue Yongshun, Fuyang Yuda, Heze Hewang, Heze Huilong, Heze Jingrun, Heze Sanrong, Heze Fengsheng, Heze Jinran, and Heze Zhihe ("concerted actors") have been acting in concert since the first day they held shares in the company in exercising their respective rights as shareholders. As of the final practicable date, the concerted actors collectively hold 218,947,562 A-shares of the company, accounting for approximately 49.26% of the voting rights of the company (excluding 5,518,942 shares of treasury A-shares). The concerted actors will become the controlling shareholders after the completion of the [editing]. Intermediary Team Exclusive Sponsor: CITIC SEC (Hong Kong) Limited Industry Consultant: Wisely Industry Consulting Co., Ltd. Company Legal Advisors: Regarding Hong Kong and US law: Cozen O'Connor Hong Kong LLP; Regarding Chinese law: Jingtian & Gongcheng Law Firm Reporting Accountants and Independent Auditors: PwC (Hong Kong) Limited