Nanjing Haina Pharmaceutical Technology Co., Ltd. officially submitted its main board listing application to the Hong Kong Stock Exchange on November 7, 2025. This marks the company's third attempt to access capital markets within three years, following a failed ChiNext IPO in 2023 and collapsed merger talks with Chengdu Lead in 2025.

As a 24-year-old integrated pharmaceutical R&D and manufacturing company, Haina Pharma has carved a niche with its "CXO+MAH" business model. However, its prospectus and public market data reveal multiple risks including growth stagnation, declining profitability, and intensifying industry competition.

**Growth Slowdown and Deteriorating Cash Flow** Haina Pharma's revenue growth shows clear signs of fatigue. While revenue grew from RMB265 million in 2022 to RMB425 million in 2024, the growth rate plunged to 3.65% in 2024 from 54.7% in 2023.

In H1 2025, revenue further declined 16.97% YoY to RMB178 million, with net profit dropping 25.82% to RMB22.084 million, presenting an unfavorable "double decline" scenario.

Gross margins slid from 60.1% in 2022 to 46% in 2024, with a partial recovery to 52.1% in H1 2025 still below previous highs. The company attributes margin fluctuations to project stage variations and market competition.

More alarmingly, operating cash flow turned negative - plunging from RMB113 million in 2023 to -RMB34.57 million in 2024, and worsening to -RMB42.451 million in H1 2025. Meanwhile, accounts receivable ballooned from RMB44.676 million in 2022 to RMB176 million in H1 2025, with turnover days extending from 43 to 176 days.

**CXO Dependence and "Multi-Client Development" Model Risks** Haina Pharma heavily relies on CXO services, with contribution rising from 65% to 87.8% during the reporting period, remaining at 78.2% in H1 2025.

This dependence exposes the company to dual risks: price erosion from CXO industry competition and vulnerability to pharmaceutical policy fluctuations.

The company's controversial "multi-client development" model—providing R&D services for the same drug to different clients—accounted for 33% of total revenue (RMB74.78 million) in H1 2023. Sustainability hinges on these drugs avoiding centralized procurement programs, whose expanding coverage is shrinking available drug candidates.

**Small Player in Crowded Market** The generic drug CXO sector faces severe homogenized competition. Industry sources note that generic CRO service fees had already entered a "low-price competition trap" by 2023.

Price wars have intensified dramatically—generic drug research service quotes halved from RMB4-5 million in 2019 to about RMB2 million in 2023, with bioequivalence study prices similarly slashed.

Haina Pharma's RMB178 million H1 2025 revenue pales against industry leader WuXi AppTec's RMB20.8 billion. Even compared to peers like Sunshine Lake and Baichen Pharma, Haina remains disadvantaged.

While Frost & Sullivan ranks Haina second among China's drug technology transfer CXO providers by approved clinical trials and marketing authorizations, whether this niche leadership can sustain long-term growth remains uncertain.

**Unstable Client Base and Related-Party Concerns** Haina Pharma's top five clients changed completely year-over-year from 2022 to H1 2025. Some clients raise eyebrows—Minkang Pharma became the fourth-largest client in 2022 just one year after incorporation, while Haimena Pharma (controlled by Haina's indirect shareholder) began transactions immediately after its 2022 establishment.

Other clients show personnel or equity ties—former employees and indirect shareholders appear in key client leadership. These related-party issues drew regulatory scrutiny during ChiNext review and may resurface in HKEX inquiries.

Pre-IPO, founder Zou Qiaogen controls 45.82% of shares. Other investors include Binjiang Group and Huatai Great Health. The proposed HK IPO fundraising—expected to be more modest than the aborted RMB850 million ChiNext plan—targets R&D, capacity expansion, and general corporate purposes.

While China's CXO market retains growth potential, generic drug CXO faces structural challenges. Investors should watch whether Haina Pharma can overcome industry bottlenecks to achieve sustainable business model optimization.

This third capital market attempt in three years—following failed domestic listing and M&A—faces equally rigorous HK regulatory and market scrutiny.

(Note: This article incorporates AI tools for information synthesis and does not constitute investment advice. Market risks apply.)