Nanjing Haina Pharmaceutical Technology Co., Ltd. (Haina Pharma) has submitted its IPO application to the Hong Kong Stock Exchange, with China International Capital Corporation (CICC) as its sole sponsor. Previously, the company had attempted a mainland A-share listing in 2023, aiming to raise RMB 850 million, but withdrew its application in June 2024.

Haina Pharma operates under a hybrid "CXO services + proprietary pipeline" model, carving out a niche in the competitive pharmaceutical outsourcing sector. However, recent financials reveal challenges: while revenue grew from RMB 265 million in 2022 to RMB 425 million in 2024, net profit fell 27% YoY in 2024. The first half of 2025 saw further declines, with revenue and net profit dropping 16.97% and 25.82% YoY to RMB 178 million and RMB 22.08 million, respectively. Management attributed this to reduced CRO service income (RMB 47.5 million decline) and a 45.8% slump in proprietary drug sales.

Gross margins have trended downward from 60.1% in 2022 to 46.0% in 2024, though a rebound to 52.1% in H1 2025 offers cautious optimism. The company’s cash flow position has weakened, with operating cash flow turning negative since 2024 (-RMB 34.57 million), exacerbated by rising receivables (RMB 176 million as of H1 2025) and extended payment cycles (176 days vs. 43 days in 2022).

**Business Model Differentiation** Haina Pharma’s integrated CXO platform spans drug discovery, clinical development, and commercialization, with 398 active projects. Unlike traditional CXO players, it adopts a "self-selected R&D → technology transfer" approach, having inked 67 drug licensing deals, including notable transfers like Omeprazole Sodium Bicarbonate Dry Suspension (I/II) and Levoleucovorin Injection. Proprietary drugs like the Omeprazole formulation (listed in China’s national reimbursement catalog) contribute to revenue diversification.

**Industry Context** China’s CXO market is expanding, with domestic providers capturing 47.8% of outsourcing spending in 2024 (Frost & Sullivan). However, Haina Pharma’s focus on generics—a segment pressured by volume-based procurement policies—places it behind innovators like Sunshine Lake Pharma (RMB 1.078 billion 2024 revenue) and BaiCheng Pharma (RMB 802 million). Structural opportunities exist, such as the 2026 patent expiry of blockbuster drugs like semaglutide, which may boost generic CXO demand.

Investors will scrutinize whether Haina Pharma’s港股 listing can fuel its bid to scale up in a fragmented, policy-sensitive generics CXO landscape.