Changchun High tech, which once dominated the capital market with growth hormone, is accelerating its plan to go public in Hong Kong after experiencing a performance slump, attempting to find a new way out in the midst of difficulties.

On September 29th, according to the Hong Kong Stock Exchange, Changchun High Tech Industry (Group) Co., Ltd. (referred to as "Changchun High Tech") from Changchun, Jilin submitted a prospectus to the Hong Kong Stock Exchange, intending to be listed on the main board of Hong Kong. Changchun High Tech was listed on the Shenzhen Stock Exchange on December 18, 1996, and as of the close of trading on September 29, 2025, its total market value was RMB 52.583 billion.

This marks the official launch of the "A+H" dual platform listing journey for the growth hormone Mao, which once created a "myth" in the A-share market.

A pharmaceutical industry analyst from a securities firm told 21st Century Business Herald reporters that the core highlight of Changchun High tech's IPO in Hong Kong is its scarcity as a "platform type leader" in the domestic biopharmaceutical industry. From a fundamental perspective, the company's business has covered five major sub sectors: genetic engineering, biological vaccines, antibody drugs, high-end pharmaceuticals, and modern traditional Chinese medicine, forming a complete industry chain loop of "research and development production commercialization".

For Changchun High tech itself, going public in Hong Kong is not only a broadening of financing channels, but also a key step in its internationalization strategy. The issuance of H-shares will directly bring triple value: funding support to accelerate the realization of R&D pipelines. The research and development cycle of biopharmaceuticals is long and the investment is large. Fundraising from Hong Kong stocks can alleviate cash flow pressure and promote the global multi center clinical and listing process of FIC/BIC products; Enhance international brand influence. As a global capital allocation platform, Hong Kong stocks help attract multinational pharmaceutical companies to cooperate, introduce advanced technologies, and accelerate overseas market expansion; Optimize shareholder structure. Introduce international institutional investors, improve the current investor structure dominated by domestic public offerings, and enhance liquidity and valuation stability. ”The analyst said.

Core business faces challenges

For Changchun High tech, performance fluctuations are currently the most prominent problem facing the company.

According to the prospectus, from 2022 to 2024, Changchun High tech's revenue will be approximately 12.627 billion yuan, 14.566 billion yuan, and 13.466 billion yuan respectively, and will reach 6.603 billion yuan in the first half of 2025. The company's profits for the same period were 4.215 billion yuan, 4.776 billion yuan, and 2.708 billion yuan, respectively. The net profit for the first half of 2025 was 932 million yuan. Of particular note is that in 2024, revenue decreased by 7.55% year-on-year and net profit decreased by 43.01% year-on-year.

As for the reason for the decline in performance, some industry insiders bluntly state that the core reason for the decline in performance is its excessive reliance on growth hormone business.

According to public information, in January 2022, the 11 province alliance led by the Guangdong Provincial Medical Insurance Bureau released a document on the inclusion of recombinant growth hormone in centralized procurement, and Changchun High tech's powder injections entered centralized procurement at a reduced price. In addition, Changchun High tech also involves centralized procurement projects for chemical and biological drugs in Hebei Province, the third batch of drug procurement in Fujian Province, and the fourth batch of drug procurement in Zhejiang Province. Although the final winning price of growth hormone in the 2022 Guangdong Alliance centralized procurement only decreased by 13%, this policy signal has triggered a restructuring of industry valuation. The implementation of centralized procurement policy means that the prices of growth hormone products will be subject to stricter control, which will have a profound impact on the profit model of the entire industry.

In addition to the pressure of centralized procurement, the competitive landscape of the growth hormone market is also intensifying. According to Frost&Sullivan statistics, the growth hormone market in China is experiencing rapid growth. Starting from 4 billion yuan in 2018, this figure surged to 11.6 billion yuan in 2023 within just five years, with a compound annual growth rate of up to 23.9%. This remarkable growth rate has enabled China to surpass the United States and become the world's largest growth hormone market. Especially in the long-term growth hormone market, which started from scratch and achieved leapfrog development, the market size has reached 2.9 billion yuan by 2023, with a compound growth rate of as high as 57.4%.

Behind the seemingly opportunity filled market, there is actually fierce competition. According to consulting firm data, Changchun High tech (under its subsidiary Jinsai Pharmaceutical) holds a 74% market share in the growth hormone market, followed closely by companies such as Anke Biotechnology and Tebao Biotechnology. At present, short acting formulations still occupy 65% of the market share, but long-acting formulations (such as Jinsai Zeng, TransCon hGH, etc.) are seizing the market at a rate of over 50% per year. This trend indicates that long-acting growth hormone products are gradually becoming mainstream in the market.

"Centralized procurement will have a profound impact on the growth hormone market. In the case of intense competition for indications, centralized procurement will screen out manufacturers who are willing to produce and sell at the lowest price. Therefore, the decline of industry profit margin and the change of market competition pattern are inevitable." In an interview with the 21st Century Economic Report, the industry analysts mentioned above pointed out that in the level of commercial layout, given that the existing growth hormone sales rely heavily on the out of hospital market (accounting for more than 60%), building differentiated DTP pharmacies and Internet medical channels will become the key. Manufacturers need to respond to market changes brought about by centralized procurement policies through innovative sales models and channel expansion, ensuring competitiveness in a fiercely competitive market.

In addition, the company's vaccine business is also experiencing setbacks. Changchun Baike Biotechnology, a subsidiary of Changchun Gaoxin, reported significant changes in several key financial indicators in the first quarter of 2025. During the reporting period, Changchun Baike Biotechnology's operating revenue was 162 million yuan, a decrease of 39.96% compared to the same period last year's 270 million yuan. The net profit attributable to shareholders of the listed company was 1.0643 million yuan, a significant decrease of 98.24% compared to 60.5651 million yuan in the same period last year. The company stated that the main reason for the decline in performance is the year-on-year decrease in sales revenue of herpes zoster vaccine, as well as the company's layout of new sales channels, increased promotion and publicity efforts, and increased investment in sales expenses.

Therefore, Changchun High tech urgently needs to find a breakthrough path.

What is the prospect of going public in Hong Kong?

The dilemma of Changchun High tech reflects the path dependence risk of pharmaceutical companies on a single explosive product. When policies and markets undergo sudden changes, the myth of 'lying down and winning' will eventually be shattered. At present, for Changchun High tech, the path to breaking the deadlock lies in promoting its plan to go public in Hong Kong.

Therefore, on June 30th of this year, Changchun High tech held the 10th meeting of the 11th Board of Directors and approved the proposal to initiate preparations for the H-share listing. Just three months later, the company officially submitted its listing application to the Hong Kong Stock Exchange, and the progress was quite rapid. The company stated that its listing in Hong Kong is "to deepen its global strategic layout, accelerate its internationalization process, enhance its overseas financing capabilities, and further enhance its international brand image.

At present, the overseas revenue scale of Changchun High tech is still very small, only 130 million yuan in 2024. The company plans to continuously expand its existing export product categories and expand overseas commercial and academic activities, but lacks heavyweight product support. From the perspective of the Hong Kong stock market environment, the number of mainland biopharmaceutical companies going public in Hong Kong has increased recently. According to Wind data, as of September 16th, a total of 77 biotechnology companies listed under the Chapter 18A system have raised approximately HKD 129.822 billion in initial public offerings, with a total market value of approximately HKD 170 trillion, covering areas such as antibodies, small molecules, vaccines, innovative medical devices, surgical robots, and cell therapy.

Can listing in Hong Kong really be a permanent solution? Regarding this, the aforementioned analyst pointed out to the 21st Century Business Herald reporter that although the fundamentals are solid, Changchun High tech's listing in Hong Kong still faces multiple challenges and needs to focus on tracking the following risks: on the one hand, liquidity and valuation pressure of Hong Kong stocks. The overall sentiment of the biotechnology sector in the Hong Kong stock market is cautious, with a high rate of new stock issuances. Although Changchun High tech is a leading enterprise, if the market environment is sluggish, the valuation of H-share issuance may be lower than that of A-shares, and it may face the pressure of "AH discount" in the short term. Attention should be paid to the pricing strategy of the sponsor CITIC Securities International.

On the other hand, focus on the uncertainty of research and commercialization. Despite abundant pipeline reserves, the failure rate of innovative drug research and development is high, and the results of Phase III clinical trials, regulatory approvals (such as NDA approval rates), and the pace of commercialization may all affect performance expectations. For example, among the 15 Class 1 innovative drugs, if the progress of the core varieties falls short of expectations, it may lead to fluctuations in market confidence.

In addition, pay attention to industry policies and competitive landscape. The biopharmaceutical industry is significantly affected by medical insurance cost control and centralized procurement policies, while the vaccine sector is facing competition iteration. The intensifying competition among international giants in the fields of genetic engineering and antibody drugs may squeeze market share.

The listing of Changchun High tech in Hong Kong is a key leap for its transition from a 'regional leader' to a 'global biopharmaceutical platform'. In the short term, financing and brand empowerment are clear, and long-term value depends on the pipeline's ability to cash in and expand into the international market. "The above analyst pointed out that for investors, it is necessary to balance 'high growth' and 'potential volatility', and focus on subsequent IPO pricing, pipeline key nodes, and industry policy changes.

Going public in Hong Kong may provide a lifeline, but without reshaping the product matrix and improving innovation efficiency, the patience of the capital market may be even more cruel than centralized procurement and price reduction. However, it can also be confirmed that if Changchun Gaoxin successfully lands on the Hong Kong stock market, it will help the company introduce international investors, accelerate innovation research and development, and expand international business.

Source: 21st Century Business Herald