New Stock News | Shandong Linuo Pharmaceutical Packaging (301188.SZ) Files with Hong Kong Stock Exchange, Ranked 9th Among Pharmaceutical Glass Packaging Suppliers in China

According to the disclosure by the Hong Kong Stock Exchange on September 28, Shandong Linuo Pharmaceutical Packaging Co., Ltd. (referred to as: Shandong Linuo Pharmaceutical Packaging, 301188.SZ) has submitted an application for listing to the Main Board of the Hong Kong Stock Exchange, with CMSC International and Ligao Financial Group as its joint sponsors. According to Frost & Sullivan, based on sales revenue in 2025, Shandong Linuo Pharmaceutical Packaging ranks 9th among pharmaceutical glass packaging suppliers in China, with a market share of 2.4%. In addition, according to Frost & Sullivan, in the daily-use heat-resistant glass market, the company ranks first in China and second globally, with market shares of 9.5% and 5.1%, respectively. Company Overview The prospectus shows that Shandong Linuo Pharmaceutical Packaging is a well-known borosilicate specialty glass supplier in China. The company focuses on the development, manufacturing, and sales of borosilicate pharmaceutical glass packaging and daily-use heat-resistant glass, with products applied in the pharmaceutical, biotechnology, food and beverage, and daily household industries. Leveraging the company's R&D capabilities in furnace design and glass melting technology, Shandong Linuo Pharmaceutical Packaging developed China's first hexagonal stepped all-electric glass melting furnace. Shandong Linuo Pharmaceutical Packaging's product portfolio covers (i) pharmaceutical glass packaging, including tubing vials, molded vials, and others such as RTU, PFS, and borosilicate glass tubes; (ii) daily-use heat-resistant glass, including heat-resistant glass tableware, glass turntables, and other heat-resistant glass products; and (iii) others, mainly including sales of surplus raw materials, molds, and scrap. The company's pharmaceutical glass packaging is designed and manufactured according to the relevant product types and applications, and can meet strict technical and quality standards. It generally possesses chemical stability, water resistance, thermal shock resistance, and mechanical strength, supporting its use in the packaging of biologics, vaccines, insulin, contrast agents, injectable drugs, and other pharmaceuticals. The company's daily-use heat-resistant glass generally possesses a low thermal expansion coefficient as well as heat resistance and thermal shock resistance, making it suitable for food storage containers, cookware, microwave turntables, and other daily uses. Shandong Linuo Pharmaceutical Packaging has a diversified customer base covering both domestic and overseas markets. During the track record period, its products were sold to customers in approximately 60 countries and regions across the Americas, Asia, and Europe. The company is committed to continuously improving its existing pharmaceutical glass packaging and daily-use heat-resistant glass products, while focusing on developing new products with higher value-added characteristics and significant market potential. During the track record period, the company launched sterile drug delivery glass packaging products. In recent years, the company has also made strategic investments in the development of glass substrates for semiconductor packaging to drive further business growth. In June 2026, the pilot furnace of the company's Glass New Material Innovation Incubation Center was ignited, and preliminary trial production of glass substrates for semiconductor packaging began. As of the Latest Practicable Date, the company has begun providing samples of its glass substrates to participants in the semiconductor packaging industry for testing. The company has mastered independent technologies across all major stages of borosilicate specialty glass production and has independently developed some of the production processes and equipment used for glass melting, forming, online visual inspection, and sterile packaging. These capabilities support the company's mass production of pharmaceutical glass packaging, including molded and tubing vials, RTU, and PFS that comply with the relevant standards of the Chinese Pharmacopoeia, European Pharmacopoeia, and United States Pharmacopeia, as well as the company's daily-use heat-resistant glass products. Leveraging its expertise in borosilicate glass melting, the company is developing low-expansion glass formulations and ultra-thin, ultra-flat glass substrates for use in semiconductor packaging, and is collaborating with research institutions on trial production, sample testing, and customer validation. As of June 30, 2026, the company's R&D team had 140 members and held 156 patents, including 141 Chinese patents and 15 overseas patents. Financial Information Revenue For the years 2023, 2024, and 2025, and the six months ended June 30, 2026, the company achieved revenue of approximately RMB 947 million, RMB 1,081 million, RMB 981 million, and RMB 673 million, respectively. Gross Profit and Gross Profit Margin For the years 2023, 2024, and 2025, and the six months ended June 30, 2026, the company recorded gross profit of approximately RMB 157 million, RMB 193 million, RMB 197 million, and RMB 144 million, respectively, corresponding to gross profit margins of 16.6%, 17.9%, 20.1%, and 21.4%, respectively. Profit for the Year/Period For the years 2023, 2024, and 2025, and the six months ended June 30, 2026, the company recorded profit for the year/period of approximately RMB 65.918 million, RMB 66.068 million, RMB 39.66 million, and RMB 31.157 million, respectively. Industry Overview The upstream of the pharmaceutical glass packaging industry mainly includes suppliers of glass raw materials, energy, and production equipment. Midstream enterprises produce pharmaceutical glass packaging through glass melting, molding, or the "tube drawing-bottle making" process, and carry out post-processing and testing such as coating, siliconization, cleaning, sterilization, and inspection. The downstream mainly includes pharmaceutical companies and filling service providers. After drug filling, products enter medical institutions through distribution channels and are ultimately used by patients. The global pharmaceutical glass packaging market size decreased from RMB 78.2 billion in 2021 to RMB 74.3 billion in 2025, with a compound annual growth rate of -1.3%. During this period, global public health emergencies drove a phased increase in demand for vaccine and related injectable packaging, and the market size of pharmaceutical glass packaging reached RMB 84.8 billion in 2023; thereafter, as related demand returned to normal and pharmaceutical companies digested inventory, the market size declined. The global market size is expected to grow to RMB 86.9 billion by 2030, with a compound annual growth rate of 3.2% during the forecast period. In the future, global population aging, the development of biologics and high-value injectables, and improved drug accessibility in emerging markets will continue to drive demand for pharmaceutical glass packaging. The China pharmaceutical glass packaging market size decreased from RMB 15.7 billion in 2021 to RMB 14.0 billion in 2025, with a compound annual growth rate of -2.8%. During this period, especially in 2024 and 2025, some traditional pharmaceutical glass products experienced declines in both sales volume and price. Centralized volume-based procurement and broader medical insurance cost control measures increased the cost pressure on pharmaceutical companies, further prompting them to exercise stricter control over packaging procurement costs and inventory management. These factors, combined with intensified competition in the standardized product market, drove overall market contraction; although the substitution of medium borosilicate materials continued to advance, it has not yet fully offset the decline in the scale of traditional products. The China market size is expected to grow to RMB 17.5 billion by 2030, with a compound annual growth rate of 4.6% during the forecast period. In the future, the continued advancement of consistency evaluation and the upgrading of pharmaceutical packaging materials will accelerate the substitution of traditional materials by medium borosilicate glass; at the same time, the development of innovative drugs, biologics, and precision drug delivery products will further drive demand for high-value pharmaceutical glass packaging. The upstream of the daily-use heat-resistant glass industry chain mainly includes raw materials such as quartz sand, borax, and boric acid, as well as suppliers of energy, manufacturing equipment, and molds; midstream enterprises produce heat-resistant glass products of different specifications through batching and melting, pressing or blow molding, and post-processing and testing; the downstream mainly includes daily consumer goods brand owners, home appliance manufacturers, and retail distribution channels, with products ultimately used in households and commercial scenarios such as catering. The global daily-use heat-resistant glass market size increased from RMB 10.1 billion in 2021 to RMB 11.8 billion in 2025, with a compound annual growth rate of 3.9%. During this period, glass products gradually replaced some plastic and metal kitchenware due to characteristics such as not easily absorbing odors, being easy to clean, and being reusable; in 2024, affected by inventory adjustments in European and American consumer goods, the market declined in the short term and then resumed growth. The global market size is expected to further grow to RMB 15.0 billion by 2030, with a compound annual growth rate of 4.8% during the forecast period. In the future, product upgrades and quality improvements in European and American markets, as well as increased penetration of heat-resistant kitchenware in emerging markets such as Asia and Latin America, will jointly drive global market growth. The China daily-use heat-resistant glass market size increased from RMB 3.7 billion in 2021 to RMB 4.1 billion in 2025, with a compound annual growth rate of 2.6%. During this period, market growth mainly came from increased demand for borosilicate glass products, but competition in standardized kitchenware products and price pressure limited overall growth. The China market size is expected to further grow to RMB 5.3 billion by 2030, with a compound annual growth rate of 4.9% during the forecast period. In the future, growth in the China market will come more from product structure upgrading, as high borosilicate glass will further extend to complex shapes, lightweight products, and high-precision home appliance components, driving increases in product value-added and market size; during the same period, the traditional soda-lime glass market is expected to remain generally stable. Board of Directors Information The Board of Directors will consist of eight directors, including two executive directors, two non-executive directors, and four independent non-executive directors. Directors shall serve a term of three years and shall be subject to re-election upon the expiry of their respective terms. Shareholding Structure Mr. Gao Yuankun holds 25.75% through Linuo Investment Holding, the employee incentive platform Hongdao New Energy holds 1.56%, and other A-share shareholders collectively hold 72.69%. As of the Latest Practicable Date, Linuo Investment Holding is held as to 78.87% by Linuo Group, and Linuo Group is held as to 80% by Mr. Gao. Under the Securities and Futures Ordinance, Linuo Group and Mr. Gao are each deemed to have an interest in the shares held by Linuo Investment Holding. As of the Latest Practicable Date, 53,930,000 A-shares held by Linuo Investment Holding have been pledged to certain commercial banks in China as collateral. Ms. Chen Lianna is the spouse of Mr. Gao. Under the Securities and Futures Ordinance, Ms. Chen Lianna is deemed to have an interest in the shares controlled by Mr. Gao. Intermediary Team Joint Sponsors: CMSC (Hong Kong) Limited, Ligao Corporate Finance Limited Company Legal Advisors: As to Hong Kong law: Han Kun Law Offices LLP; as to PRC law: Zhong Lun Law Firm Joint Sponsors' Legal Advisors: As to Hong Kong law and U.S. law: Reed Smith Richards Butler LLP; as to PRC law: Beijing Shihui Law Firm Independent Auditor and Reporting Accountant: Tianjian International Certified Public Accountants Limited Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Compliance Advisor: Ligao Corporate Finance Limited