New Stock News | Stone Pharmaceuticals Innovation (300765.SZ) Submits Application to Hong Kong Stock Exchange to Become the World's Largest Chemical Synthesis Caffeine Producer

According to the disclosure by the Hong Kong Stock Exchange on December 10, Shiyao Innovation Pharmaceutical Co., Ltd. (referred to as Shiyao Innovation, 300765.SZ) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. According to the prospectus, the company focuses on the research and development, production, and commercialization of biopharmaceuticals, functional ingredients, and health foods. The company continues to focus on the field of health: A key player in innovative therapies. In 2024, the company acquired controlling interest in Jushi Biologics, expanding its main business to the biopharmaceutical industry, marking a critical step in the company's strategic transformation. The company focuses on developing differentiated multi-technology pathway innovative therapies targeting different points. Currently, it has accumulated strong technological capabilities in the fields of antibody drugs, antibody-drug conjugates (ADCs), and mRNA vaccines. The company strategically focuses on disease areas with significant unmet clinical needs and growth potential, including oncology, autoimmune diseases, and infectious diseases. In the second half of 2024, the company began commercializing two antibody drugs: the innovative drug Enshu Xin (anti-PD-1 monoclonal antibody) and China's first omalizumab biosimilar Enyi Tan. In the field of mRNA vaccines, the company's products, Dun Tai (according to Frost Sullivan, the first domestically developed COVID-19 mRNA vaccine) and Dun Tai 2 (a bivalent COVID-19 mRNA vaccine targeting the XBB.1.5 and other mainstream variants), were included in emergency use in China in 2023. As of the latest practicable date (December 1, 2025), the company has 15 investigational drugs in clinical or late-stage development, including 9 ADC investigational drugs and 1 mRNA vaccine. The world's largest caffeine manufacturer. Since its establishment in 2006, the company has focused on the research and production of high-quality caffeine. The company mainly produces caffeine used as a food additive in functional beverages. According to Frost Sullivan, from 2020 to 2024, in terms of revenue and shipment volume, the company has maintained its position as the world's largest producer of synthetic caffeine. As of the latest practicable date, the company's products are sold in 65 countries and regions around the world, with the main markets being North America and Europe. With stable product quality, cost advantages from scale production, and a sound supply chain system, the company has established solid cooperation relationships with leading customers in the international beverage industry, such as The Coca-Cola Company (since 2006), PepsiCo, Inc. (since 2007), and Red Bull GmbH (since 2008). A diverse matrix of health food products. In 2016, the company strategically expanded its main business to the health food industry. To meet the diverse health needs of consumers, the company has launched a rich and comprehensive portfolio of health food products, providing support for key health areas such as immune enhancement, bone density improvement, antioxidant support, mineral supplementation, and relief of visual fatigue. The trademark Guoweikang has been recognized as a well-known trademark in China, and the company's health food sales network covers nearly 200 chain pharmacies nationwide. A leader in functional ingredients. In 2022, the company acquired 100% equity of Shiyao Shengxue. While consolidating its leading position in the caffeine field, the company has expanded its product range to include other functional ingredients such as acarbose and anhydrous glucose, which are used as active pharmaceutical ingredients or food additives. For example, acarbose, as an -glucosidase inhibitor, can effectively manage postprandial blood glucose levels by delaying carbohydrate absorption. According to Frost Sullivan, from 2020 to 2024, in terms of revenue and shipment volume, the company has been one of the largest domestically certified acarbose active pharmaceutical ingredient (API) manufacturers in China. Looking ahead, the company believes its core competitiveness lies in its strong pipeline of investigational drugs, advanced technology platform, excellent production capacity and quality control systems, and strategic global deployment. Financial Information Revenue For the fiscal years 2022, 2023, 2024, and the seven months ended July 31, 2025, the company's revenues were approximately RMB 2.838 billion, RMB 2.539 billion, RMB 1.981 billion, and RMB 1.241 billion, respectively. Profit For the fiscal years 2022, 2023, 2024, and the seven months ended July 31, 2025, the company's profits were approximately RMB 294 million, RMB 126 million, -RMB 304 million, and -RMB 226 million, respectively. Gross Margin For the fiscal years 2022, 2023, 2024, and the seven months ended July 31, 2025, the company's gross margins were approximately 46.8%, 45.6%, 41.8%, and 38.3%, respectively. Industry Overview In recent years, both the global and China Meheco Group markets have shown significant growth and are expected to maintain rapid growth in the next decade. The global pharmaceutical market is projected to reach USD 20.639 trillion by 2030 and USD 26.493 trillion by 2035, with a compound annual growth rate of 5.0% from 2024 to 2030 and 5.1% from 2030 to 2035. The China Meheco Group market is also showing strong growth, with its market size expected to increase from RMB 1.6297 trillion in 2024 to RMB 2.1297 trillion in 2030 and RMB 3.1034 trillion in 2035, with compound annual growth rates of 4.6% from 2024 to 2030 and 7.8% from 2030 to 2035. In recent years, the global oncology drug market has expanded significantly, from USD 143.5 billion in 2019 to USD 253.3 billion in 2024, with a compound annual growth rate of 12.0%. It is further expected to grow to USD 452.5 billion in 2030 and USD 702.7 billion in 2035, with compound annual growth rates of 10.2% from 2024 to 2030 and 9.2% from 2030 to 2035. The Chinese oncology drug market has also grown from RMB 182.7 billion in 2019 to RMB 258.2 billion in 2024, with a compound annual growth rate of 7.2%, and is expected to expand further to RMB 527.3 billion in 2030 and RMB 1.042 trillion in 2035, with compound annual growth rates of 12.6% from 2024 to 2030 and 14.6% from 2030 to 2035. The global antibody drug market has grown from USD 163.8 billion in 2019 to USD 254.3 billion in 2024, with a compound annual growth rate of 9.2%. Driven by increasing medical demand and the expansion of innovative antibody research and development pipelines, the market is expected to further expand to USD 457.9 billion in 2030 and USD 675.7 billion in 2035, with compound annual growth rates of 10.3% from 2024 to 2030 and 8.1% from 2030 to 2035. Growth is expected to be led by new generations of antibodies, particularly bispecific and multispecific antibodies (market size expected to increase from USD 13.4 billion in 2024 to USD 251.9 billion in 2035) and ADCs (market size expected to increase from USD 14.1 billion in 2024 to USD 122.7 billion in 2035). The Chinese antibody drug market has rapidly grown from RMB 28.8 billion in 2019 to RMB 131.2 billion in 2024, with a compound annual growth rate of 35.4%. Over the next decade, with more antibody drugs included in the national medical insurance drug catalog, improved accessibility of biosimilars, and the listing of innovative antibody products, the Chinese antibody drug market is expected to grow from RMB 131.2 billion in 2024 to RMB 396.4 billion in 2030, with compound annual growth rate of 20.2%, and further increase to RMB 830.2 billion in 2035, with a compound annual growth rate of 15.9%. By product type, monoclonal antibodies are expected to remain the largest segment market, while bispecific and multispecific antibodies and ADCs are expected to achieve faster growth. In particular, the Chinese ADC market is expected to expand significantly from RMB 3.9 billion in 2024 to RMB 66.2 billion in 2030 and RMB 158.6 billion in 2035, with compound annual growth rates of 60.1% from 2024 to 2030 and 19.1% from 2030 to 2035. Board of Directors Information The company's board of directors consists of 10 directors, including 3 executive directors, 2 non-executive directors, and 5 independent non-executive directors. Equity Structure As of the latest practicable date, the company's controlling shareholders, En Bipu Pharmaceuticals, collectively hold 1,048,645,506 A shares, accounting for approximately 75.30% of the company's total issued shares (excluding 12,000,225 A shares repurchased and held in the company's stock repurchase account). Among them, about 74.47% of the issued shares are directly held, and about 0.83% of the issued shares are indirectly held through its wholly-owned subsidiary, Shiyao Ouyi Pharmaceuticals. En Bipu Pharmaceuticals is owned 45.94% by Jiaxi and 54.06% by CSPC PHARMA. Jiaxi is wholly-owned by Kangri, which is wholly-owned by CSPC PHARMA. Therefore, En Bipu Pharmaceuticals, Shiyao Ouyi Pharmaceuticals, Kangri, Jiaxi, and CSPC PHARMA form a controlling shareholder group. Intermediary Team Exclusive Sponsor: CITIC SEC (H.K.) Limited; Legal Advisors: Jiali (Hong Kong) Law Firm, Hai Run Tian Rui Law Firm; Exclusive Sponsor and Compiling Legal Advisors: Zhou Junxuan Law Firm and Tongshang Law Firm, Tongshang Law Firm; Auditors and Reporting Accountants: DeloitteGuang Huang Chen Fang Accountants; Industry Advisors: Frost Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch.