HK IPO Subscription: Analysis and Strategy for Hua Ren Bio-B (02396.HK)!
$B&K CORP-B(02396.HK)$IMPRESSION DHP(02695.HK) $NANHUA FUTURES(02691.HK) $BENQ HOLDING(02581.HK)
Basic Information:
Subscription Period: December 12 - December 17, results on the 18th, grey market on the 19th, listing on the 22nd;
Issue Price: 38.2-51.0
Minimum Subscription Fee: 10302.88
1 Lot: 200 shares
Global Offering: 17.6488 million shares
Cornerstone: None
Greenshoe: Yes, stabilized by CLSA
Sponsors: Huatai and CITIC
Allocation Mechanism: Mechanism B, 10% clawback
Huaren Biology was established in 2012, headquartered in Qingdao, Shandong, China, and is a biopharmaceutical company focused on developing protein-based drugs. The company is dedicated to developing protein drugs for indications with medical needs and market opportunities, with a primary focus on discovering, developing, and commercializing wound healing therapies.
The company has a pipeline of ten candidate products covering various indications such as fresh wounds, pressure ulcers, and radiation ulcers. It has also established early-stage innovative technology platforms such as mRNA and ASO, demonstrating comprehensive R&D capabilities.
Its core business revolves around platelet-derived growth factors, with a strategic focus on the wound healing field, particularly the PDGF-based technology platform.
In terms of business model, Huaren Biology is a typical innovation-driven biopharmaceutical company, currently relying mainly on shareholder funding and private financing, with no revenue from product commercialization yet.
The company has two core products: Pro1011 and Pro1012.
Pro1011 is used to treat burns and scalds, and it is the fastest-developing PDGF candidate drug for burn treatment in China.
Pro1012 is used to treat diabetic foot ulcers and is currently in Phase II clinical trials.
The company expects Pro1011 (for burns) to be launched in China in 2027. For Pro1012, the company plans to launch it in China in 2030.
Financial Performance:
Huaren Biology is still in the product development stage and has not yet achieved commercial sales.
Revenue in 2023 was RMB 472,000, dropping to RMB 261,000 in 2024. As of the first nine months of 2025, the company has not generated any revenue.
R&D expenses in 2023 were RMB 39.915 million, increasing to RMB 91.326 million in 2024, and reaching RMB 61.219 million in the first nine months of 2025.
Net loss in 2023 was RMB 105.2 million, expanding to RMB 212.3 million in 2024. As of the first nine months of 2025, the net loss was RMB 134.5 million.
The company expects net losses to continue expanding in the future, mainly due to increased R&D investment and the absence of commercial revenue in the short term. As of September 30, 2025, the company had cash of RMB 7.4 million and operating cash flow of RMB 5.9 million.
Use of Proceeds:
Approximately 61.8% will be used to fund the continued clinical development and commercialization of core products Pro1011 and Pro1012;
Approximately 18.8% will be used to enhance R&D capabilities by purchasing specialized equipment and instruments;
Approximately 6.3% will be used to cover preclinical R&D expenses for PDGF products for other indications outside the core products; approximately 3.1% will be used to cover related expenses for preclinical R&D activities for Mes201, Oli101, and Oli201;
Approximately 10.0% will be used for working capital and general corporate purposes.
Huaren Biology-B adopts Mechanism B, 10% clawback;global offering of 17.6488 million shares, Hong Kong offering of 1.765 million shares, one lot is 200 shares, totaling 8,825 lots;Tail A subscription requires HK$460,000 in principal, Tail B subscription requires HK$510,000 in principal;current popularity is less than 500 times, conflicting with Impression Dahongpao, Nanhua Futures,BenQ Medical Center, Easy Health, Hansi Aita-B, and Nubikan funds,which will disperse capital arrangements; the final estimate is around 2,000 times.Sponsored by Huatai and CITIC, no cornerstone, with greenshoe, Huatai is average, CITIC is decent.
Whether to subscribe to Huaren Biology-B depends on whether it can successfully develop, and whether you believe it can succeed. According to existing information, the earliest results will be available in Q1 2026. PDGF has broad prospects, although PDGF drugs in China have not yet been commercialized, Tianjin Tianshili Pharmaceuticals' PDGFBB candidate drug entered Phase III clinical trials in 2014, indicating some market competition. Even after approval, it will take some time to gain traction.
If included in the Stock Connect, a doubling in price is expected, but it depends on market support. The pricing range has a 33% spread, and it's unclear how much water is left. In the long run, this sector is promising.
Huaren Biology-B conflicts with Impression Dahongpao, Nanhua Futures, BenQ Medical Center, Easy Health, Hansi Aita-B, and Nubikan funds, which will disperse capital arrangements;
Among the four new stocks—Impression Dahongpao, Nanhua Futures, BenQ Medical Center, and Huaren Biology-B,only subscribe to Impression Dahongpao!!!
Hansi Aita-B and Nubikan (wait until Zhihui Mining funds are released before subscribing)
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