--- title: "Dongyao Pharmaceutical surged 17% in the afternoon, with \"Star Market Strategy\" first predicting explosive growth potential" type: "News" locale: "en" url: "https://longbridge.com/en/news/279742556.md" description: "Dongyao Pharmaceutical (1875) saw its stock price rise over 16% in the afternoon, reaching HKD 5.25. According to Sing Tao Daily, the company is expected to become a new stock that skyrockets due to a change in ownership. WuXi XDC (2268) has made a voluntary offer to acquire all shares of Dongyao Pharmaceutical, with the transaction expected to be completed in the first half of 2026. Dongyao Pharmaceutical plans to leverage WuXi XDC's brand and platform advantages to advance international operations, enhance production capacity and supply chain resilience, while also increasing R&D investment in CDMO to improve competitiveness. The projected operating revenue for 2025 is expected to be RMB 748 million, a decrease of 32%" datetime: "2026-03-19T07:51:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279742556.md) - [en](https://longbridge.com/en/news/279742556.md) - [zh-HK](https://longbridge.com/zh-HK/news/279742556.md) --- # Dongyao Pharmaceutical surged 17% in the afternoon, with "Star Market Strategy" first predicting explosive growth potential Biotechnology stock Dongyao Pharmaceutical (1875) saw its afternoon gains expand, rising over 16% to a high of HKD 5.25. The new column "Star Market Strategy" from Sing Tao Daily, aimed at capturing stock market opportunities for readers, pointed out yesterday (18th) that Dongyao Pharmaceutical is anticipated by the market to become the next stock to surge due to a change in ownership. Related article: Maokai Yao Cai's shares surged sharply after selling, anticipating the third stock to explode due to a change in ownership, backed by a giant enterprise with room for speculative investment. ## Transaction Completion in the First Half of the Year Expected to Release Value "Star Market Strategy" noted yesterday that WUXI XDC (2268) has proposed a voluntary offer to acquire all shares of Dongyao Pharmaceutical, and the transaction has been confirmed. This stock is expected to follow Maokai Kwai Chung (1716) and Yao Cai Securities (1428) as another stock that surges due to a change in ownership. Dongyao Pharmaceutical announced its performance, stating that WUXI XDC's acquisition of Dongyao Pharmaceutical is expected to be completed in the first half of 2026, indicating that "for Dongyao Pharmaceutical, this marks the beginning of a new stage of value release and scale expansion for the company." ## Leveraging WUXI XDC's Brand and Platform Advantages The company also stated that it will take the opportunity to integrate into the Wuxi system, actively consolidating resource advantages and focusing on advancing the following strategic layout, including leveraging WUXI XDC's brand and platform advantages to accelerate the construction of an international operational system, further expanding domestic and international markets, enhancing capacity utilization, strengthening supply chain resilience, efficiently empowering customer project advancement, and achieving dual improvements in scale and efficiency. ## Increasing R&D Investment in CDMO to Enhance Competitiveness At the same time, it will increase R&D investment in CDMO business, focusing on breakthroughs in cutting-edge technologies and key areas, continuously enhancing core competitiveness. It aims to build a multi-level talent development system, creating a professional, high-quality, and versatile team; systematically optimizing management mechanisms and organizational efficiency, strengthening cost control, and striving to improve the gross margin and overall profitability of the CDMO business to achieve sustainable, high-quality development. Dongyao Pharmaceutical's revenue for the fiscal year 2025 is expected to be RMB 748 million, a year-on-year decrease of 32%, with product sales revenue of RMB 487 million, down 44%, mainly due to intensified market competition. The company turned from profit to loss for the entire year, recording a loss of RMB 100 million, compared to a net profit of RMB 34.757 million in the previous year; no dividend will be distributed ### Related Stocks - [02268.HK](https://longbridge.com/en/quote/02268.HK.md) - [01875.HK](https://longbridge.com/en/quote/01875.HK.md) ## Related News & Research - [Scinai Biopharma Services Appoints Eilon Elmalem as Site Head of Yavne CDMO Facility | SCNI Stock News](https://longbridge.com/en/news/287052426.md) - [11:16 ETHaier ist die einzige IoT-Ökosystemmarke der Welt, die acht Jahre in Folge in die Kantar BrandZ Top 100 aufgenommen wurde](https://longbridge.com/en/news/286792596.md) - [11:05 ETThe Church of Jesus Christ of Latter-day Saints Commits $25 Million to the UNICEF-led Child Nutrition Fund](https://longbridge.com/en/news/287088476.md) - [ZAWYA: KIB Group, represented by KIB Invest, acts as Joint Lead Manager in landmark $700mln Sukuk issuance by First Abu Dhabi Bank](https://longbridge.com/en/news/287054139.md) - [16:51 ETBeverly Hills MD ProRetinol Age Rewind x3 Officially Launches: A New Era of Gentle, Slow-Released Retinol Skincare Backed by Plastic Surgeons](https://longbridge.com/en/news/286966075.md)