Hemei Pharmaceutical-B (00054) will sell 55.21 million H shares globally to introduce cornerstone investors such as Guangfa Fund Management and Huitianfu Fund from October 30 to November 4

According to the Zhitong Finance App, Hemei Pharmaceutical-B (00054) will raise shares from October 30, 2026 to November 4, 2026, and plans to sell 55.21 million H shares globally. Of these, the Hong Kong public sale accounts for about 10%, and the international sale accounts for about 90%. The sale price is HK$15.5-18.9 per share, with 100 H shares per lot. It is expected that H shares will start trading on the Stock Exchange at 9:00 a.m. on November 9, 2026 (Monday).

The Group is a biopharmaceutical company dedicated to the discovery and development of self-discovered and self-developed small-molecule drugs for autoimmune diseases and tumors, and has established expertise in developing treatments and chemotherapy for Ps, BD, and IBD. As of the last practical date, the Group has developed a product pipeline containing Mufemilast, a drug approved by the State Drug Administration and five other small molecule drug candidates, covering a variety of indications that have unmet medical needs. These include the autoimmune drug Mufemilast, which has been approved by the State Drug Administration, two drug candidates, and three cancer drug candidates. As of the last practical date, the Group has one drug approved by the NDA, and three other drug candidates have entered phase II or phase III clinical trials, covering a total of nine indications.

The Group has entered into Cornerstone Investment Agreements (hereinafter referred to as Cornerstone Investment Agreements) with Guangfa Fund Management, Guangfa Fund Hong Kong, Huitianfu Hong Kong, and E-Fangda Fund Management (each term and collectively referred to as Cornerstone Investors). Based on this, Cornerstone Investors have agreed to subscribe or induce their designated entities to subscribe for the number of shares in the sale that can be purchased according to the offering price, while complying with certain conditions (adjusted downward to the nearest 100 H-shares in each lot). Commissions, Securities Regulatory Commission transaction levies, joint transactions transaction fee and Treasury transaction levy) (cornerstone placement). Assuming that the offer price is HK$17.3 per share (that is the median of the indicative offer price range), the total number of shares to be purchased by Cornerstone investors will be approximately 13.1552 million shares to be offered.

The Group estimates that, after deducting the underwriting commissions and estimated sale expenses already paid and payable by the Group in the global offering (after taking into account any additional discretionary incentive fees (if any)), the net proceeds from the sale will be approximately HK$889 million (assuming that the offer price is HK$17.30 per offer share (i.e. the median of HK$15.50 per share to HK$18.90 per offer share in the offering price range) and the over-allotment rights have not been exercised). The Group plans to use the net proceeds from this sale for the following purposes: (1) Approximately 55.5% will be used for the development and commercialization of the core product Mufemilast. (2) Approximately 4.5% will be used for Hemay022 (key product) R&D. (3) Approximately 20.0% will be used for Hemay181 (key product) R&D. (4) Approximately 10.0% will be used for other pipeline products - R&D. (5) Approximately 10.0% will be used for general corporate and working capital purposes.

As of the last practical date, Mufemilast has been approved for commercial sale, but it did not generate any product sales revenue during the track record period. The Group incurred operating losses during the track record period. The Group's losses before tax for 2024 and 2025 and the four months ended 2025 and April 30, 2026 were respectively RMB 123 million, RMB 130 million, RMB 51.8 million and RMB 32.4 million. The majority of the Group's losses came from R&D expenses and general and administrative expenses.