Jiangxi Bio makes renewed bid for Main Board listing as core product revenue exceeds 90% dependency

ZC Asia has learnt that Jiangxi Biological Products Institute Co., Ltd. (hereinafter referred to as ‘Jiangxi Biological’) resubmitted its listing application to the Main Board of the Hong Kong Stock Exchange on 26 October, with China International Capital Corporation Limited and China Merchants Securities International Limited acting as joint sponsors. This marks the company's renewed attempt following its initial filing on 11 April this year.

According to the prospectus, Jiangxi Biological holds a leading position in the tetanus antitoxin market both in China and globally. Frost & Sullivan data indicates that, based on 2024 sales volume, the company commands a 65.8% share of China's human tetanus antitoxin (human TAT) market and a 36.6% share of the global market, ranking first in both sectors.

Financial data indicates Jiangxi BioPharma has achieved steady performance growth in recent years. From 2022 to 2024, the company's revenue increased from RMB 142 million to RMB 221 million, representing a compound annual growth rate (CAGR) of 24.7%. Profit performance during this period was even more impressive, rising significantly from RMB 26.468 million to RMB 75.14 million, with a CAGR of 68.5%.

Notably, Jiangxi Bio exhibits a highly concentrated revenue structure. Data indicates that from 2022 to 2024, sales of human tetanus antitoxin consistently accounted for over 93% of total revenue. By June 2025, this proportion had further risen to 96%, reflecting the company's relatively single-focused business model. The company intends to allocate the raised funds towards candidate product R&D, new facility construction, technological optimisation, and general working capital.

Prior to submitting its listing application, Jiangxi Bio's multiple dividend distributions drew market attention. Disclosures indicate the company paid cumulative dividends of RMB 86 million in 2023, followed by a further RMB 40.1 million in September 2024, bringing total dividends to RMB 126 million. This stands in contrast to the company's cash and cash equivalents balance of RMB 40.605 million as of 30 June 2025.

Regarding its equity structure, Jiangxi Bio exhibits a highly concentrated ownership pattern. The 32-year-old actual controller, Jing Yue, controls approximately 70% of the company's shares through a multi-tiered holding structure. His 25-year-old sister, Jing Ruihua, also holds a portion of the shares and joined the company as an executive director in November 2024.

The prospectus further discloses that Jiangxi Bio incurred administrative penalties during the reporting period. In 2018, regulatory authorities confiscated over 33,000 units of substandard pharmaceutical products from the company, seized illegal gains amounting to RMB 628,100, and imposed a fine of RMB 704,100, totalling penalties and confiscations of RMB 1,332,300. Additionally, during inspections in 2019, regulators identified 13 general defect items on the company's production lines, requiring rectification within a specified timeframe.

Market attention is focused on whether Jiangxi BioPharma will successfully list on the Hong Kong Stock Exchange. As a leading enterprise in the biopharmaceutical sector, the progress of its business structure optimisation and enhancements in corporate governance standards will be key factors scrutinised by investors.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.