Hemei Pharmaceutical-B (00054) is conducting a public offering from October 30 to November 4, planning to globally offer 55.21 million H shares and introducing cornerstone investors including GF Fund Management and China Universal Asset Management.

Hemei Pharmaceutical-B (00054) is conducting a public offering from October 30, 2026 to November 4, 2026, planning to globally offer 55.21 million H shares, of which approximately 10% will be offered in Hong Kong and approximately 90% will be offered internationally. The offer price is HK$15.5-18.9 per share, with a board lot of 100 H shares, and the H shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on Monday, November 9, 2026. The Group is a biopharmaceutical company dedicated to the discovery and development of independently discovered and independently developed small molecule drugs targeting autoimmune diseases and oncology, and has established expertise in developing therapeutics and chemotherapies for Ps, BD and IBD. As of the Latest Practicable Date, the Group has developed a product pipeline comprising one NMPA-approved drug, Mufemilast, and five other small molecule drug candidates, covering multiple indications with unmet medical needs. These include the NMPA-approved autoimmune drug Mufemilast, two drug candidates and three oncology drug candidates. As of the Latest Practicable Date, the Group has one drug approved through NDA and three other drug candidates that have entered Phase II or Phase III clinical trials, covering a total of nine indications. The Group has entered into cornerstone investment agreements (each and collectively, the "Cornerstone Investment Agreements") with GF Fund Management, GF Fund Hong Kong, China Universal Fund, China Universal Hong Kong, Fullgoal Fund, Fullgoal Hong Kong and E Fund Management (each and collectively, the "Cornerstone Investors"), pursuant to which the Cornerstone Investors have agreed, subject to certain conditions, to subscribe for or procure their designated entities to subscribe for the relevant number of offer shares that can be subscribed for (rounded down to the nearest board lot of 100 H shares) at the offer price, for an aggregate amount of US$29 million (excluding brokerage commission, SFC transaction levy, Stock Exchange trading fee and AFRC transaction levy) (the "Cornerstone Placing"). Assuming an offer price of HK$17.3 per offer share (being the mid-point of the indicative offer price range), the total number of offer shares to be subscribed for by the Cornerstone Investors will be approximately 13.1552 million offer shares. The Group estimates that, after deducting the underwriting commissions and estimated offering expenses paid and payable by the Group in connection with the Global Offering (taking into account any additional discretionary incentive fees (if any)), the net proceeds from this offering will be approximately HK$879 million (assuming an offer price of HK$17.30 per offer share (being the mid-point of the offer price range of HK$15.50 to HK$18.90 per offer share) and assuming the over-allotment option is not exercised). The Group plans to use the net proceeds from this offering for the following purposes: (1) approximately 55.5% will be used for the research and development and commercialization of the core product Mufemilast. (2) approximately 4.5% will be used for the research and development of Hemay022 (a key product). (3) approximately 20.0% will be used for the research and development of Hemay181 (a key product). (4) approximately 10.0% will be used for the research and development of other pipeline products. (5) approximately 10.0% will be used for general corporate and working capital purposes. As of the Latest Practicable Date, Mufemilast has been approved for commercial sale, but no product sales revenue was generated during the Track Record Period. The Group incurred operating losses during the Track Record Period. The Group's loss before tax for 2024 and 2025 and for the four months ended April 30, 2025 and 2026 was RMB123 million, RMB130 million, RMB51.8 million and RMB32.4 million, respectively. The vast majority of the Group's losses arose from research and development expenses and general and administrative expenses.