Since the beginning of this year, the Hong Kong stock market's innovative drug sector has continued to show a &#34;comeback&#34; trend, accompanied by a sustained rise in refinancing activities.
For example, in the first half of this year, the cumulative refinancing amount in the Hong Kong stock market reached HKD 173.8 billion, a year-on-year increase of 227%, surpassing the total scale for the entire year of 2024. Among them, more than 10 innovative drug companies in the Hong Kong pharmaceutical sector have conducted placement financing. The intensive replenishment of &#34;ammunition&#34; not only reflects the confidence of domestic innovative drug companies in research and development but also showcases their ambition to target global markets and leverage differentiated innovation advantages.
As a pioneering pharmaceutical company holding a significant innovative COVID-19 drug and several pipeline products with License-out potential, SIMCERE PHARMA (02096) has also chosen to conduct placement financing during this critical development period to further consolidate its advantages in the innovative drug sector.
<h2>Optimize Investor Structure, Enhance Long-term Value</h2>
On September 2, prior to the Hong Kong stock market opening, SIMCERE PHARMA announced a placement financing plan, stating that the company intends to place 121 million shares, netting approximately HKD 1.5535 billion.
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From the details of SIMCERE PHARMA's placement financing, its pricing and placement reflect the maturity and professionalism of the company's capital market operations, serving as a key link in balancing the company's financing needs with investor interests.
In terms of pricing benchmarks, the placement price of HKD 12.95 represents a discount of approximately 8.03% compared to the closing price of HKD 14.08 on the day before the placement agreement was signed (September 1, 2025), and a discount of about 6.67% compared to the average closing price of HKD 13.876 over the previous five trading days, which falls within the common discount range of 5%-10% for additional stock offerings in the Hong Kong stock market, indicating a reasonable level.
This dual pricing comparison mechanism takes into account both short-term market fluctuations and mid-term price trends, providing investors with a comprehensive value reference framework.
In terms of placement scale, SIMCERE PHARMA is issuing 121 million new shares. Assuming no other changes in the company's capital after the placement, the placed shares will account for approximately 4.66% of the total expanded issued shares. This scale design not only meets the company's substantial financing needs but also controls the dilution effect of equity within a relatively reasonable range, reflecting the management's consideration of shareholder interests.
According to Zhitong Finance APP, in the current context of strong institutional investor demand in the Hong Kong stock innovative drug sector, SIMCERE PHARMA's placement financing is expected to not only replenish development &#34;ammunition&#34; but also attract participation from numerous top overseas long-term investors, sovereign wealth funds, and strategic investors. These types of investors typically have long investment cycles and high stability, which can provide continuous and stable shareholder support for SIMCERE PHARMA.
From a corporate governance perspective, introducing overseas long-term institutional investors can help optimize the company's shareholder structure, enhance the international level of corporate governance, and lay the foundation for potential overseas capital operations in the future
It is worth mentioning that after the announcement of the placement news, the secondary market reaction exhibited a dual characteristic of short-term volatility and long-term optimism. On one hand, after the market opened on September 2, although the stock price of SIMCERE PHARMA experienced a certain decline, this was a normal manifestation of the dilution effect from the issuance of new shares and market sentiment response; on the other hand, the trading volume of SIMCERE PHARMA's stock exceeded 180 million shares that day, setting a new single-day trading volume record since its listing, demonstrating strong demand from the secondary market for the company's allocation and recognition of its long-term value.
<h2>Accelerating Differentiated Innovation, Biopharma Value Expected to Be Further Validated</h2>
In recent years, SIMCERE PHARMA has undergone rapid transformation, becoming a domestic innovative pharmaceutical company with innovation capabilities, providing global clinical value, and leading in pipeline advancement, with results from its transition from generics to innovation already evident.
According to the latest disclosed mid-term performance for 2025, during the reporting period, SIMCERE PHARMA's revenue increased by 15.1% year-on-year to 3.585 billion yuan, with adjusted net profit of 651 million yuan, a year-on-year increase of 21.1%, exceeding market expectations. This was mainly driven by its innovative drug business.
Currently, the company has launched ten innovative drugs, with innovative drug revenue of 2.776 billion yuan during the period, a year-on-year increase of 26%, accounting for more than 3/4 of total revenue for the first time, reaching 77.4%. In the first half of this year, SIMCERE PHARMA had two innovative drugs approved for market launch, two candidate drugs entering the NDA review stage, and two self-developed clinical stage products achieving innovative overseas licensing, showcasing impressive results from its innovative transformation.
During the period, the company also reached multiple strategic cooperation agreements with international pharmaceutical companies such as AbbVie (ABBV.US), NextCure (NXTC.US), and Idorsia, making progress in the research and development of ADCs, tri-antibodies, and central nervous system drugs, with several key products' global research and overseas clinical progress advancing to critical stages.
It is noteworthy that approximately 90% of the funds raised from SIMCERE PHARMA's placement financing will be used for research and development-related expenses. As innovative drugs have become a key growth engine, SIMCERE PHARMA is using placement financing to reserve more &#34;ammunition&#34; to continue focusing on core areas such as neurology, oncology, autoimmune diseases, and anti-infection, further expanding the global layout of its innovative pipeline, which will help the company &#34;spend more money where it matters,&#34; further validating its Biopharma value and bringing greater returns to investors in the secondary market

02096

SIMCERE PHARMA announced a placement financing plan to issue 121 million shares, expecting to raise approximately HKD 1.5535 billion net. This financing aims to consolidate its advantages in the innovative drug sector, optimize the investor structure, and enhance long-term value. The placement price is HKD 12.95, representing a discount of about 8.03% compared to the previous day's closing price, which is considered reasonable. The Hong Kong stock market's innovative drug sector continues to see a surge in refinancing, reflecting the R&D confidence of domestic innovative pharmaceutical companies and their ambitions for global expansion

SIMCERE PHARMA: Accelerating global value creation, over HKD 1.5 billion placement financing releases long-term investment signals