Maiwei Bio’s Hong Kong IPO: Cumulative Losses of 4.79 Billion Yuan, Core ADC Product Yet to Hit the Market

ZC Asia has learnt that Maiwei (Shanghai) Biotechnology Co., Ltd. (hereinafter referred to as “Maiwei Bio”, 688062.SH) recently passed the Hong Kong Stock Exchange’s listing hearing and plans to list on the Hong Kong Stock Exchange on 28 April 2026, under the stock code 02493.HK. This innovative pharmaceutical company, which has been listed on the STAR Market for over four years, is seeking to alleviate its long-standing cash flow constraints through fundraising in the Hong Kong market.

According to the prospectus, the price range for Maiwei Bio’s H-share offering has been set at HK$27.64 to HK$30.71 per share, with a proposed global offering of 47.13 million shares. Based on the mid-point of the range, the net proceeds are expected to be approximately HK$1.256 billion. The company has simultaneously secured six cornerstone investors, who have collectively committed to subscribe for US$53 million (approximately HK$415 million). These include Junshi Hong Kong, which has committed US$20 million; Sanjin International, a subsidiary of Guilin Sanjin, which has committed US$15 million; and WuXi Biologics Venture, a subsidiary of WuXi Biologics, which has committed US$3 million.

Regarding the use of proceeds, 56.8% will be allocated to the clinical development of the core product 9MW2821, 17.7% to other oncology and age-related disease pipelines, 15.5% to commercialisation efforts, with the remainder earmarked for working capital.

Annual loss of 970 million yuan, cumulative losses nearing 4.8 billion yuan

Although Maiwei Biologics has four products on the market, its commercialisation capabilities remain in the early stages. The prospectus shows that the company’s revenue in 2025 was 659 million yuan, a year-on-year increase of over 230% and a record high; however, the loss for the period still reached 972 million yuan, the lowest in the past three years. From 2021 to 2025, the cumulative loss amounted to 4.791 billion yuan.

In terms of revenue composition, product sales accounted for only approximately 250 million yuan, representing about 38% of the total, whilst the remaining 60% relied on licensing income. In 2025, Maiwei Biotech entered into three product licensing agreements with Qilu Pharmaceutical and Calico Life Sciences, generating approximately 409 million yuan in licensing revenue, which became the primary source of funding for the period.

Meanwhile, substantial expenditure continues to erode revenue. In 2025, the company’s combined sales, administrative and research and development expenses totalled 1.471 billion yuan, whilst annual revenue stood at just 663 million yuan. R&D expenditure alone amounted to 977 million yuan, with 299 million yuan invested in the single core product, 9MW2821.

Total debt exceeds 3 billion yuan, with operating cash flow remaining negative

Amid persistent losses and substantial investments, Maiwei Bio’s debt levels have risen year on year. As of the end of February 2026, total debt had reached 3.192 billion yuan, compared to 2.219 billion yuan at the end of 2024. Interest expenses for 2024 and 2025 amounted to 58 million yuan and 91 million yuan respectively.

More notably, the company’s net cash flow from operating activities has remained negative since 2018. In 2024, it stood at approximately -956 million yuan, narrowing to -290 million yuan in 2025, thanks to licensing revenue. As at the end of 2025, cash and cash equivalents stood at 1.526 billion yuan, slightly higher than the 1.228 billion yuan recorded at the end of 2024, but still insufficient to cover short-term debt pressures.

Furthermore, other payables and accrued expenses within current liabilities rose from 372 million yuan in 2024 to 703 million yuan by the end of February 2026, including nearly 90 million yuan in employee compensation payable.

The Aftermath of ‘Acquisitions + In-house R&D’: Difficulty in Converting Stagnant Assets

Maiwei Biotech was co-founded by Tang Chunshan, a veteran of the pharmaceutical industry, and Liu Datao, an R&D expert. From its inception, the company adopted an expansion strategy of “M&A plus in-house R&D”. Between 2017 and 2020, it spent over 600 million yuan to acquire seven companies, including Taikang Bio and Puming Bio, rapidly establishing a full industrial chain spanning from R&D to production.

However, the intangible assets generated by these intensive acquisitions proved difficult to convert into revenue in the short term. Coupled with the continuous rise in R&D and sales expenditure, the company found itself operating under “overload”. By 2025, with a total workforce of 1,325, remuneration for sales and management staff alone had driven up expenditure. In 2022, the year of its listing, the total number of employees stood at 1,052; following two years of expansion, the workforce has recently begun to shrink slightly.

Core ADC products face fierce competition; controlling shareholders hold 35% stake

Mivio Biotech pins its hopes on its core product, 9MW2821—an ADC drug targeting Nectin-4. Currently in Phase III clinical trials, its indications include urothelial carcinoma and cervical cancer. It boasts the fastest development progress among similar products in China and has received Fast Track and Orphan Drug designations from the US FDA. However, even if it is successfully launched, it will face strong competition from Anstell’s Sinomab and Rongchang Biopharmaceutical’s Viditiximab, amongst others.

Regarding the shareholding structure, as of the end of 2025, the Langrun Group, controlled by the couple Tang Chunshan and Chen Shanna, held a combined 35.18% stake, making them the company’s actual controllers. Among the executive directors, Tang Chunshan serves as Chairman and Liu Datao as General Manager. It is worth noting that in August 2025, Liu Datao was warned by the China Securities Regulatory Commission (CSRC) and fined 600,000 yuan for engaging in short-term trading within six months of the company’s listing on the STAR Market. The incident triggered a sharp drop in the share price at the time, but did not affect his position.

Faced with cumulative losses of nearly 4.8 billion yuan, interest-bearing debt exceeding 3 billion yuan, and the reality that its core products have yet to be commercialised, it remains to be seen whether Maiwei Bio’s listing in Hong Kong will truly alleviate the financial pressure resulting from its long-term ‘overburdened’ operations.

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.