Haisco Pharmaceutical updates on SZSE private placement review

Haisco Pharmaceutical Group's application for a private placement of shares has undergone review by the SZSE, leading to an audit inquiry letter. In response, the company, along with CITIC Securities Company Limited, Beijing Zhonglun Law Firm, and ShineWing Certified Public Accountants, has submitted a revised reply report to address the questions raised. This update includes financial data and other information updated to the first three quarters of 2025.

The reply report details Haisco's revenue trends, profitability, and financial position. The company reported increasing revenue, with its innovative drug product, HSK3486 (propofol injection), being a significant contributor. In 2023 and 2024, government subsidies significantly increased due to industrial development funds from Shannan City, Tibet Autonomous Region. The report also addresses the necessity and reasonableness of the financing given the company's financial status, including its currency funds, asset-liability ratio, working capital needs, interest-bearing debt, and bank credit.

The proposed private placement aims to raise not more than CNY 136,525.67m, with CNY 96,525.67m allocated to new drug R&D and CNY 40,000.00m for working capital. The company emphasizes its "asset-light, high R&D investment" characteristics, with fixed asset impairment provisions evaluated as sufficient. All six R&D pipeline products involved in the offering are in mid-to-late clinical development and have achieved key milestones. These projects do not involve new product or pipeline development.