New stock news | Xinji Pharmaceuticals plans to list on the Hong Kong stock exchange. The China Securities Regulatory Commission requires additional clarification on the reasons and rationale for the lack of substantial business activities in 4 of the company's 7 subsidiaries.

On May 22, the China Securities Regulatory Commission announced the disclosure requirements for supplementary materials for overseas issuance and listing (May 18, 2026 - May 22, 2026). The CSRC required Xinji Pharmaceuticals to provide explanations for the lack of substantive operations in 4 out of 7 of its subsidiaries, as well as the status of shares held by shareholders participating in the "full circulation" regarding pledges, freezes, or other defects. According to the Hong Kong Stock Exchange disclosure on December 24, Guangzhou Xinji Pharmaceutical Co., Ltd. (referred to as Xinji Pharmaceutical) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Guotai Haitong as its exclusive sponsor. The CSRC requested Xinji Pharmaceuticals to provide explanations on the following matters, and instructed lawyers to provide clear legal opinions: 1. Please explain: (1) whether the prices of new shareholders entering the company in the past 12 months are fair and reasonable, and whether there is any conclusion on the existence of interest transmission; (2) whether the implementation of employee stock incentives is legal and compliant, and whether there is any conclusion on the existence of interest transmission; (3) the impact of special shareholder rights arrangements on control, and whether there have been changes in control before and after listing; (4) further explanation of the criteria for identifying controlling shareholders and actual controllers according to the "Regulatory Rules Application Guidelines - Overseas Issuance and Listing Class No. 2". 2. Please explain: (1) the situation of state-owned shareholders handling state-owned stock identification; (2) the company's record as the consignee of customs import and export goods, further explaining the situation of cross-border business involved and whether the necessary qualifications and licenses have been obtained; (3) whether the company has obtained the necessary qualifications and licenses for business involving the use of hazardous chemicals and the disposal of hazardous waste; (4) the reasons for lack of substantive operations in 4 out of 7 of the company's subsidiaries. 3. Please explain whether the shares held by shareholders participating in the "full circulation" are subject to pledges, freezes, or other defects. The prospectus shows that Xinji Pharmaceuticals was founded in 2007 and is an innovative-driven pharmaceutical technology enterprise in the clinical stage, headquartered in Guangzhou, China. The company has internally developed two core technology platforms: (i) soluble microneedle formulation technology platform, and (ii) nasal inhalation formulation technology platform. Using these two platforms, the company has developed two core products and three other pipeline products. Xinji Pharmaceuticals' first core product, Dexmedetomidine Hydrochloride Microneedle Patch, has been developed for preoperative sedation in pediatric and adult patients.