Analysis of H-Share Listing Financing Strategy and Valuation Impact for Hightide Biopharmaceuticals (300683.SZ)

Based on the in-depth research above, I provide you with a comprehensive analysis report on the financing strategy and valuation impact of Hightide Biopharmaceuticals (300683.SZ)'s H-share listing on the Hong Kong Stock Exchange.

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Wuhan Hightide Biopharmaceutical Co., Ltd. was founded in 2000, and is a ChiNext-listed company focused on the R&D, production and sales of biopharmaceuticals, APIs (active pharmaceutical ingredients) and pharmaceutical intermediates[0]. The company currently has a total market capitalization of approximately USD 3.67 billion (equivalent to approximately RMB 26.7 billion), with main products including JINLUJIE (Mouse Nerve Growth Factor for Injection), Eprenetimab for Injection, Tedizolid Phosphate for Injection, Roxatidine Acetate Hydrochloride for Injection, and Esomeprazole Sodium for Injection, among others[1].

From the perspective of product structure, Hightide Biopharmaceuticals adopts a dual-track development model of “traditional products + innovative drug R&D”. The company’s traditional products are centered on JINLUJIE, which is mainly used in the field of nerve injury repair, with a market share of approximately 35%. Meanwhile, the company is actively laying out innovative drug R&D pipelines, including the anti-tumor drug CPT (in Phase III clinical trial), the autoimmune disease drug STSA-1002 (in Phase I/II clinical trials), and STSA-1005 (in preclinical research stage)[1].

Financial Indicator	Value	Industry Comparison
Price-Earnings Ratio (P/E)	-19.57x	Loss-making status
Price-to-Book Ratio (P/B)	1.64x	Below industry average
Return on Equity (ROE)	-8.03%	Negative earnings
Net Profit Margin	-30.37%	Sustained losses
Current Ratio	4.60	Excellent solvency
Quick Ratio	4.25	Abundant liquidity
Debt Risk Rating	Low Risk	Sound financial position[0]

As can be seen from the financial data, Hightide Biopharmaceuticals is currently in the R&D investment phase and has not yet achieved profitability. The company’s finances exhibit the following characteristics: First, profitability is under pressure, with sustained losses due to high investment in innovative drug R&D and ongoing commercialization processes; second, liquidity status is sound, with both current ratio and quick ratio at high levels and abundant book cash reserves; third, asset-liability ratio is at a low level, with controllable financial risks[0][1].

Reporting Period	Earnings Per Share (EPS)	Operating Revenue (USD million)
Q2 2025	$-0.20	118.39
Q1 2025	$-0.11	156.67
Q4 2024	$-0.23	197.98
Q3 2024	$-0.13	166.37[0]

From the quarterly performance trend, the company’s operating revenue has certain fluctuations, but EPS remains negative, reflecting the industry characteristics of biopharmaceutical enterprises with long R&D cycles and mismatched input and output.

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The core strategic drivers for Hightide Biopharmaceuticals’ planned H-share listing on the Hong Kong Stock Exchange include the following four dimensions:

As Asia’s leading international financial center, the Hong Kong Stock Exchange (HKEX) gathers global institutional investors, and an H-share listing will help enhance the company’s international market visibility and brand influence. Referring to the successful case of Hengrui Medicine’s 2025 HKEX IPO, which raised approximately HK$9.89 billion, an international listing can gain recognition from top cornerstone investors including GIC Private Limited and Hillhouse Capital[2][3].

The refinancing policies in the A-share market have become stricter, while the HKEX market offers a rich variety of financing tools, including placements, convertible bonds, equity-linked notes, etc., providing the company with more flexible capital operation space. In 2025, HKEX IPO activity has increased significantly; since the start of the year, 53 enterprises have listed, with fundraising exceeding HK$120 billion, of which 12 are A-share companies transferring to HKEX, accounting for approximately 70% of the total fundraising[4].

The HKEX market is aligned with international valuation systems, and biopharmaceutical enterprises with international potential may obtain higher valuations. In particular, innovative drug enterprises with differentiated competitive advantages in their R&D pipelines are expected to gain favor from international investors.

An H-share listing will help the company establish an international capital operation platform, facilitating subsequent overseas license-out, NewCo model collaborations, or international mergers and acquisitions[5].

As of March 2024, 64 biotech companies have listed via HKEX Chapter 18A rules, with cumulative fundraising of HK$111.118 billion[2]. In 2025, a wave of IPOs by healthcare enterprises has emerged on HKEX; over 20 healthcare enterprises listed on HKEX throughout the year, a number close to the total of the three years from 2022 to 2024[3].

From the perspective of industry development trends, the HKEX biopharmaceutical sector exhibited the following characteristics in 2025:

• Capital concentrates on “head players” and “hard technology”
  : Head enterprises and segment track leaders are favored, while some enterprises face financing difficulties[3]
• Shift from “extensive expansion” to “refined operation”
  : Shift from pursuing the number of pipelines to deepening clinical and commercial value[3]
• Increased valuation differentiation
  : The market has higher requirements for clinical data and is cautious about enterprises lacking clear commercialization paths[3]

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Referring to the H-share listing experience of similar enterprises, the following plan can be considered for Hightide Biopharmaceuticals’ H-share offering:

Offering Element	Recommended Plan	Explanation
Offering Ratio	15%-25% of total share capital	Balance financing scale and shareholder equity dilution
Offering Price	Certain discount based on A-share price	Usually 70%-85% of the A-share price
Fundraising Amount	RMB 1.5-2.6 billion	Adjust dynamically based on market conditions
Cornerstone Investors	Introduce internationally renowned institutions	Enhance market confidence

Based on Hightide Biopharmaceuticals’ current market capitalization of approximately RMB 26.7 billion, the estimated fundraising scale for the H-share IPO is as follows:

Financing Type	Estimated Scale (RMB 100 million)	Proportion
IPO Financing	15-20	Approximately 60%-70%
Subsequent Placements	5-8	Approximately 20%-30%
Convertible Bonds/HCB	3-5	Approximately 10%-20%
Total	23-33	100%

Based on the company’s strategic development needs, it is recommended that the fundraising amount be allocated in the following proportions:

Use Category	Recommended Proportion	Explanation
R&D Investment	30%-35%	Advance clinical trials of core pipelines
Capacity Expansion	20%-25%	Construct GMP-compliant production lines
Market Expansion	15%-20%	Deepen domestic sales channels and lay out overseas markets
Working Capital	15%-20%	Supplement operating capital to ensure daily operations
Debt Repayment	5%-10%	Optimize capital structure

According to industry research, Q1-Q2 2026 is the valuation recovery period for the biopharmaceutical sector, which is a relatively favorable listing window[2]. Hightide Biopharmaceuticals should seize the following time nodes:

Phase	Time Arrangement	Key Matters
Preparation Phase	Months 1-3	Financial audit, legal due diligence, prospectus drafting
Filing Phase	Months 3-5	Filing with the China Securities Regulatory Commission (CSRC) for overseas offering and listing
Review Phase	Months 5-7	Submission to HKEX, hearing
Offering Phase	Months 7-8	Roadshow, pricing, listing and trading

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A/H share valuation differences are affected by multiple factors, including investor structure, liquidity, market mechanisms, etc. The traditional view holds that A-shares have an “institutional premium” relative to H-shares, but new changes have emerged since 2025[4]:

• Premium enterprises such as CATL and Hengrui Medicine experienced a “valuation inversion” after listing on HKEX, with H-shares being more expensive than A-shares[4]
• Currently, 8 out of all 160 A-H dual-listed companies have experienced “valuation inversion”: CATL 31%, Hengrui Medicine 15%, China Merchants Bank 5%, etc.[4]

1. Small offering scale, high investor enthusiasm
   : Currently, the free float market capitalization of CATL’s H-shares is only equivalent to 5.0% of its A-shares, and 4.6% for Hengrui Medicine; the small offering scale concentrates liquidity[4]
2. Ample short-term Hong Kong dollar liquidity
   : HIBOR is at a historically low level (0.3% overnight, 1.0% for 1-month), reducing financing costs[4]
3. Passive capital inflow from index inclusion
   : Rapid inclusion in MSCI brings passive capital allocation[4]
4. Meet foreign capital “aesthetic” standards
   : New economy companies conform to current trends and are favored by foreign capital[4]

Factor	Impact Degree	Explanation
Brand Internationalization	+15%-20%	Endorsement from international capital markets enhances brand value
Liquidity Improvement	+10%-15%	New HKEX financing channel added
Investor Diversification	+5%-10%	Attract international institutional investors
Financing Channel Diversification	+10%-15%	More diversified refinancing tools

Factor	Impact Degree	Explanation
Increased Compliance Costs	-3%-5%	Dual supervision leads to higher compliance costs
Information Disclosure Requirements	-2%-3%	More stringent information disclosure requirements
Market Cognition Bias	-5%-10%	International investors’ cognition of the company needs to be cultivated

Based on the above analysis, the comprehensive valuation impact of Hightide Biopharmaceuticals’ H-share listing is expected to be as follows:

• Short-term (within 6 months after listing)
  : A certain valuation discount may be faced, with an estimated discount rate of 5%-15%, mainly due to insufficient cognition of the company by international investors and selling pressure from increased free float
• Medium-term (6-12 months after listing)
  : With deepening investor cognition and catalysis from clinical progress, the valuation discount is expected to narrow to 0-5%
• Long-term (more than 1 year after listing)
  : If positive progress is made in core pipelines, a valuation premium may be achieved, with an estimated premium rate of 5%-20%

For unprofitable biopharmaceutical enterprises, the following combination of valuation methods is recommended:

Valuation Method	Applicability	Recommended Weight
DCF Discount Method	Cash flow forecast of core pipelines	30%-40%
Risk-Adjusted NPV	Adjustment for clinical success rate	25%-35%
Comparable Company Valuation	Price-to-R&D ratio, Price-to-Sales ratio	20%-25%
Transaction Case Method	Reference to historical BD transactions	10%-15%

Parameter	Optimistic Assumption	Base Case Assumption	Conservative Assumption
CPT Launch Probability	65%	50%	35%
CPT Peak Sales (RMB 100 million)	15	10	5
STSA-1002 Launch Probability	45%	30%	15%
WACC	10%	12%	15%

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According to the latest regulatory requirements, an H-share listing requires filing with the CSRC for overseas offering and listing. From December 2025 to January 2026, the CSRC has issued supplementary material requirements to multiple planned listing enterprises, covering multiple aspects such as equity changes, new shareholders, and business compliance[6][7].

HKEX’s review of biopharmaceutical enterprises is becoming increasingly strict, especially under Chapter 18A rules, with key focus on the following aspects:

• Clinical data quality of core products
• Feasibility demonstration of commercialization paths
• Working capital coverage ratio (must reach over 125%)
• Thoroughness of the Commercialization Path Statement[2]

In the second half of 2021, the broken issuance rate of HKEX Chapter 18A companies exceeded 80%[2], and multiple new stocks also broke on their first day of trading in late 2025[3]. Hightide Biopharmaceuticals needs to fully assess market risks and select an appropriate offering window.

The HKEX market is greatly affected by macroeconomics, liquidity and international situations, and valuation volatility may be higher than that of A-shares.

Biopharmaceutical R&D has high uncertainty, and clinical trial failure may lead to revaluation of pipeline value.

After a drug is launched, it faces multiple challenges such as market competition, medical insurance access, and sales promotion.

Risk Type	Response Strategy
Approval Risk	Communicate with regulatory authorities in advance to ensure complete and compliant filing materials
Market Risk	Introduce high-quality cornerstone investors and select an appropriate offering window
Valuation Risk	Fully demonstrate the value of R&D pipelines and strengthen investor relations management
R&D Risk	Diversify pipeline layout to reduce dependence on a single pipeline
Commercialization Risk	Lay out sales channels in advance and build a commercialization team

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Phase	Time Node	Core Tasks
Decision Phase	Q1 2026	General meeting of shareholders approves the listing resolution
Preparation Phase	Q1-Q2 2026	Select sponsors and intermediary teams
Filing Phase	Q2-Q3 2026	Complete filing with the CSRC
Review Phase	Q3-Q4 2026	Submission to HKEX and hearing
Offering Phase	Q4 2026	Roadshow, pricing and listing

Intermediary Institution	Responsibilities
Joint Sponsors	2-3 (recommended to include 1 international investment bank)
Domestic Lawyers	Legal due diligence and A-share compliance
Overseas Lawyers	Legal documents for HKEX listing
Accounting Firm	Financial audit and internal control audit
Industry Consultant	Industry chapters of prospectus and pipeline evaluation

After the H-share listing, the company can consider the following capital operations:

1. Subsequent Placements
   : Utilize the flexible refinancing policies of the HKEX market to conduct placements at an appropriate time
2. Convertible Bond Issuance
   : Provide low-cost capital for R&D investment
3. Equity Incentives
   : Use HKEX equity incentive tools to attract international talents
4. BD Collaborations
   : Use the HKEX listing platform to promote international license-out collaborations
5. NewCo Model
   : Learn from the experience of Hengrui Medicine’s USD 6 billion blockbuster transaction with Heracles[5]

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Hightide Biopharmaceuticals’ H-share listing on the HKEX is a strategically significant capital operation, with multi-dimensional positive impacts on the company’s development:

: The H-share listing will significantly enhance the company’s international brand image and lay the foundation for subsequent international strategies. Referring to successful cases such as Hengrui Medicine and WuXi AppTec, an HKEX listing can gain recognition and capital support from top international investors.

: The HKEX market offers richer financing tools and more flexible financing policies, with an expected fundraising amount of RMB 1.5-3 billion, which will effectively support the company’s R&D investment and business development in the next 3-5 years.

: A 5%-15% valuation discount may be faced in the short term, but in the medium to long term, with deepening international investor cognition and catalysis from clinical progress, the valuation discount is expected to narrow or even turn into a premium.

1. Approval Uncertainty
   : Filing with the CSRC and review by HKEX are required, with uncertainties in timing and results
2. Market Volatility Risk
   : The HKEX market is affected by multiple factors, and the selection of the offering window is crucial
3. R&D Risk
   : Clinical trials of core pipelines may fail, which may affect the company’s valuation
4. Liquidity Risk
   : The liquidity of H-shares may be low in the initial stage, affecting stock price performance

For existing A-share shareholders, the H-share listing may face a certain degree of dilution in the short term, but from a medium to long-term perspective, the expansion of financing channels and the establishment of an international platform will help enhance the company’s value. Recommendations:

• Support the company’s H-share listing plan
  and seize the current favorable capital market window
• Pay attention to the clinical progress of core pipelines
  , especially the Phase III clinical data of CPT
• Track the offering pricing of H-shares
  and evaluate primary market investment opportunities

Overall, Hightide Biopharmaceuticals’ H-share listing is a capital operation in line with the company’s long-term strategic development. Against the background of valuation recovery in the HKEX pharmaceutical sector and increased IPO activity, it has favorable implementation conditions. It is recommended that the company accelerate listing preparation work and complete the listing during the favorable window of Q1-Q2 2026.

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[0] Jinling API - Company Overview and Financial Data of Hightide Biopharmaceuticals (300683.SZ)

[1] Jinling API - Financial Analysis Report of Hightide Biopharmaceuticals (300683.SZ)

[2] Lichen China - 2026 Biopharmaceutical Enterprise Listing Strategy (https://www.lichenzx.com/news-detail/115.html)

[3] Sina Finance - HKEX Sparks “Pharmaceutical Boom”, Enterprises Await “Winter to Spring” (https://m.thepaper.cn/newsDetail_forward_32375725)

[4] CICC - 125% is the “Invisible Floor” of the Current A-H Premium (https://wallstreetcn.com/articles/3753051)

[5] KPMG - Biotech Innovation Leaders 50 · KPMG China Enterprise Report (https://assets.kpmg.com/content/dam/kpmg/cn/pdf/zh/2025/10/kpmg-china-biotech50-3rd-edition.pdf)

[6] Eastmoney - Planned HKEX Listing, Tiannong Group Questioned (https://finance.eastmoney.com/a/202601133617075285.html)

[7] Sina Finance - Sanhuan Group (300408.SZ) Plans HKEX Listing, CSRC Requests Supplementary Explanation (https://finance.sina.com.cn/stock/hkstock/ggscyd/2026-01-19/doc-inhhvmxv7968263.shtml)

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January 21, 2026

This report is for reference only and does not constitute investment advice. Investors should make prudent decisions based on their own risk tolerance.