Sino Biopharmaceutical Announces Acquisition of Up to 55% Stake in Haohao Bio, a Sci-Tech Innovation Board-Listed Leader in Allergy and Autoimmune Diagnostics

On the evening of October 30, Sino Biopharm (1177.HK) announced on the Hong Kong Stock Exchange that it would acquire up to 55% of the shares of Jiangsu HOB Biotech Group Corp., Ltd. (688656.SH), a company listed on the STAR Market, at a price of RMB 33.74 per share through agreement-based transfer and tender offer. Upon completion of the acquisition, HOB Biotech will become Sino Biopharm’s first listed subsidiary in the A-share market. The announcement stated that as a leading enterprise in China’s allergy and autoimmune diagnostics sector, HOB Biotech’s diagnostic business will create synergies with Sino Biopharm’s pharmaceutical operations. The Group is also committed to empowering HOB Biotech through its innovative R&D platform and market capabilities, thereby unlocking synergistic effects and driving sustained growth and expansion.

As a leading innovation research and R&D-driven pharmaceutical group in China, Sino Biopharm holds a dominant position in the four therapeutic areas of oncology, hepatology, respiratory diseases, and surgery/analgesia. In the first half of this year, Sino Biopharm achieved operating revenue of RMB 15.87 billion, representing a year-on-year increase of approximately 11.1%, reaching a record high.

The target company of this acquisition, HOB Biotech, was established in 2009 and listed on the STAR Market of the Shanghai Stock Exchange in January 2021, becoming the first publicly traded company in China specializing in allergen testing. As one of the early enterprises engaged in allergen testing in China, HOB Biotech has long focused on niche segments including allergy diagnostics, autoimmune diagnostics, and desensitization drug development, and has been recognized as a “Specialized, Refined, Differential, and Innovative” (SRDI) enterprise by the Ministry of Industry and Information Technology. In 2023, HOB Biotech reported revenue of RMB 394 million, net profit exceeding RMB 47 million, and annual net cash inflow surpassing RMB 10 million, demonstrating robust operational performance.

According to the announcement by Sino Biopharm, excluding future new businesses, the counterparty has committed that HOB Biotech’s net profit attributable to shareholders for the full year 2024 will be no less than RMB 49.7 million, and its net profit attributable to shareholders for 2025 and 2026 will be no less than RMB 52.18 million and RMB 54.79 million, respectively. It is expected that the consolidation of HOB Biotech into the group’s financial statements will make a positive contribution to Sino Biopharm’s financial performance.

Furthermore, upon completion of the acquisition, Sino Biopharm will nominate the Chairman of the Board, the Chairman of the Supervisory Committee, and all senior executives of HOB Biotech. John Li, the founder of HOB Biotech, has agreed to remain in his position and continue to manage the IVD business and team.

Sino Biopharm’s management stated that the company is confident in the future growth of China’s economy, as well as in the positive vitality and future development of the A-share market. “At the same time, we will deeply empower HOB Biotech, explore cooperation at all levels, and continue to strengthen and expand our business. This move will also help the company broaden its diversified financing channels and expand investor coverage in the A-share market. In the future, the company will continue to dynamically assess market opportunities to maximize shareholder returns.”