BAO PHARMA-B (02659) plans to implement full H-share circulation to enhance market value discovery function.

Since listing on the Hong Kong Stock Exchange on December 10th, BAO PHARMA-B (02659) has surged over 200% within 14 trading days. Recently, the company announced that it has submitted filing materials to the China Securities Regulatory Commission for the planned implementation of H-share full circulation by December 30, 2025, to convert a total of 63.1163 million unlisted shares of the company into H-shares (accounting for approximately 19.36% of the total number of shares issued on the announcement date). It is understood that Hong Kong full circulation refers to converting non-circulating domestic shares (or non-tradable shares) in the Hong Kong stock market into circulating shares, thereby enabling all shares to freely trade on the HKEX. Under this mechanism, the company is expected to benefit in several ways. Firstly, after full circulation, more shares of the company can be traded in the secondary market, increasing the overall market liquidity of the Hong Kong stock market. High liquidity is conducive to attracting more institutional investors, such as funds, pension funds, and other major players, as large transactions are easier to execute, and the impact on stock prices may be minimized. Secondly, all shares can be freely traded, allowing the stock price to better reflect the true value of the company and reducing valuation deviations caused by non-circulating shares. Furthermore, the company's market capitalization is expected to increase significantly after full circulation, potentially gaining favor from large well-known indices such as FTSE Russell, MSCI, etc., which place importance on market capitalization. Moreover, the company's governance and transparency are expected to be improved after full circulation. The shares of original domestic shareholders (such as major shareholders, strategic investors, etc.) can be traded in the market, linking their wealth directly to the company's stock price, motivating investors to focus on the company's long-term value and governance structure.