New Risk • May 06
New major risk - Revenue and earnings growth Earnings have declined by 19% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 19% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Apr 30
Full year 2025 earnings released: CN¥0.48 loss per share (vs CN¥0.27 profit in FY 2024) Full year 2025 results: CN¥0.48 loss per share (down from CN¥0.27 profit in FY 2024). Revenue: CN¥187.9m (down 31% from FY 2024). Net loss: CN¥311.4m (down 282% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 28% per year, which means it has not declined as severely as earnings. Announcement • Apr 30
Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 28, 2026 Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 28, 2026, at 13:30 China Standard Time. Location: No. 138, Huaihai Middle Road, Huangpu District, Shanghai China Announcement • Mar 30
Shanghai Hile Bio-Technology Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥5.84, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 34x in the Pharmaceuticals industry in China. Total loss to shareholders of 47% over the past three years. Announcement • Dec 26
Shanghai Hile Bio-Technology Co., Ltd. to Report Fiscal Year 2025 Results on Apr 18, 2026 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report fiscal year 2025 results on Apr 18, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.003 (vs CN¥0.007 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.003 (down from CN¥0.007 in 3Q 2024). Revenue: CN¥40.0m (down 40% from 3Q 2024). Net income: CN¥2.09m (down 59% from 3Q 2024). Profit margin: 5.2% (down from 7.6% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Sep 30
Shanghai Hile Bio-Technology Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Declared Dividend • Jul 14
Dividend increased to CN¥0.078 Dividend of CN¥0.078 is 173% higher than last year. Ex-date: 15th July 2025 Payment date: 15th July 2025 Dividend yield will be 1.0%, which is lower than the industry average of 1.9%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but not covered by cash flows (149% cash payout ratio). The dividend has increased by an average of 6.8% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 71% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 30
Shanghai Hile Bio-Technology Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • May 13
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 149% Dividend yield: 1.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 22
First quarter 2025 earnings released: EPS: CN¥0.02 (vs CN¥0.01 loss in 1Q 2024) First quarter 2025 results: EPS: CN¥0.02 (up from CN¥0.01 loss in 1Q 2024). Revenue: CN¥61.8m (down 12% from 1Q 2024). Net income: CN¥10.9m (up CN¥14.6m from 1Q 2024). Profit margin: 18% (up from net loss in 1Q 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Apr 22
Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 15, 2025 Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 15, 2025, at 13:30 China Standard Time. Location: No. 138, Huaihai Middle Road, Huangpu District, Shanghai China Announcement • Mar 28
Shanghai Hile Bio-Technology Co., Ltd. to Report Q1, 2025 Results on Apr 22, 2025 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 22, 2025 Board Change • Jan 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Junqiang Wang was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Dec 27
Shanghai Hile Bio-Technology Co., Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 Announcement • Nov 12
Shanghai Haoyuan Venture Capital Development Co., Ltd. agreed to acquire 76.07% stake in Yangling Jinhai Biotechnology Co., Ltd. from Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) for approximately CNY 245 million. Shanghai Haoyuan Venture Capital Development Co., Ltd. agreed to acquire 76.07% stake in Yangling Jinhai Biotechnology Co., Ltd. from Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) for approximately CNY 245 million on November 11, 2024. A cash consideration of CNY 1 and of CNY 244.58 million will be paid by Shanghai Haoyuan Venture Capital Development Co., Ltd. As part of consideration, CNY 1 is paid towards common equity and CNY 244.58 million is paid towards non-convertible debt of Yangling Jinhai Biotechnology Co., Ltd.
For the period ending August 31, 2024, Yangling Jinhai Biotechnology Co., Ltd. reported net loss of CNY 24.34 million. As of August 31, 2024, Yangling Jinhai Biotechnology Co., Ltd. reported total assets of CNY 291.78 million and net liabilities of CNY 201.64 million.
The transaction is subject to approval of merger agreement by target board and approval of offer by target shareholders. The deal has been approved by the board. Reported Earnings • Oct 31
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: CN¥66.8m (flat on 3Q 2023). Net income: CN¥5.05m (down 83% from 3Q 2023). Profit margin: 7.6% (down from 45% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Oct 25
WuXi Biologics (Cayman) Inc. (SEHK:2269) completed the acquisition of remaining 30% stake in WuXi Vaccines (Cayman) Inc. from Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718). WuXi Biologics (Cayman) Inc. (SEHK:2269) entered into the Equity Transfer Agreement to acquire remaining 30% stake in WuXi Vaccines (Cayman) Inc. from Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) for approximately $110 million on August 29, 2024. The transaction is subject to the the parties having obtained necessary authorizations and approvals in relation to the Acquisition (including, but not limited to, if applicable, the approvals from the board of directors and shareholders as well as the relevant stock exchanges) and such authorizations and approvals remaining valid, Equity Transfer Agreement and any documents relating to the Acquisition having been duly executed and become effective, there being no material breach of any of the representations, warranties and undertakings by the parties under the Equity Transfer Agreement. As of June 30, 2024, WuXi Vaccines (Cayman) Inc. reported total common equity of $284.27 million. The transaction is expected to complete in 10 days.
WuXi Biologics (Cayman) Inc. (SEHK:2269) completed the acquisition of remaining 30% stake in WuXi Vaccines (Cayman) Inc. from Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) on October 23, 2024. As of August 29, 2024, the sale transaction has been reviewed and approved by the board of directors of the Buyer and Seller. All other necessary decision-making and approval procedures for the transaction has also been completed. Announcement • Sep 30
Shanghai Hile Bio-Technology Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.021 (vs CN¥0.047 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.021 (down from CN¥0.047 in 2Q 2023). Revenue: CN¥37.3m (down 34% from 2Q 2023). Net income: CN¥18.8m (down 38% from 2Q 2023). Profit margin: 51% (down from 54% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Announcement • Jun 28
Shanghai Hile Bio-Technology Co., Ltd. to Report First Half, 2024 Results on Aug 31, 2024 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report first half, 2024 results on Aug 31, 2024 Announcement • May 01
Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 23, 2024 Shanghai Hile Bio-Technology Co., Ltd., Annual General Meeting, May 23, 2024, at 13:30 China Standard Time. Location: 11F, No. 369, Jiangsu Road, Changning District, Shanghai China Reported Earnings • Apr 30
First quarter 2024 earnings released: CN¥0.01 loss per share (vs CN¥0.022 profit in 1Q 2023) First quarter 2024 results: CN¥0.01 loss per share (down from CN¥0.022 profit in 1Q 2023). Revenue: CN¥70.3m (down 1.3% from 1Q 2023). Net loss: CN¥3.72m (down 126% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥7.39, the stock trades at a trailing P/E ratio of 31.1x. Average trailing P/E is 27x in the Pharmaceuticals industry in China. Total loss to shareholders of 52% over the past three years. Announcement • Mar 29
Shanghai Hile Bio-Technology Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥7.21, the stock trades at a trailing P/E ratio of 30.4x. Average trailing P/E is 25x in the Pharmaceuticals industry in China. Total loss to shareholders of 34% over the past three years. Announcement • Dec 30
Shanghai Hile Bio-Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 30, 2024 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 30, 2024 New Risk • Nov 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risk Shareholders have been diluted in the past year (2.2% increase in shares outstanding). New Risk • Nov 02
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥0.052 (vs CN¥0.023 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.052 (up from CN¥0.023 in 3Q 2022). Revenue: CN¥66.7m (down 34% from 3Q 2022). Net income: CN¥30.0m (up 97% from 3Q 2022). Profit margin: 45% (up from 15% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.047 (vs CN¥0.031 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.047 (up from CN¥0.031 in 2Q 2022). Revenue: CN¥56.7m (down 34% from 2Q 2022). Net income: CN¥30.4m (up 55% from 2Q 2022). Profit margin: 54% (up from 23% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. New Risk • Jul 16
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Announcement • Jun 28
Shanghai Hile Bio-Technology Co., Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.022 (vs CN¥0.016 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.022 (up from CN¥0.016 in 1Q 2022). Revenue: CN¥71.2m (down 16% from 1Q 2022). Net income: CN¥14.2m (up 34% from 1Q 2022). Profit margin: 20% (up from 13% in 1Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 8 new directors. 2 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Chairman of the Supervisory Board Fan Hong Xu is the most experienced director on the board, commencing their role in 2021. Independent Director Yan Gu was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Buying Opportunity • Oct 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be CN¥12.49, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.031 (vs CN¥0.02 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.031 (up from CN¥0.02 in 2Q 2021). Revenue: CN¥85.9m (up 28% from 2Q 2021). Net income: CN¥19.7m (up 53% from 2Q 2021). Profit margin: 23% (up from 19% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • May 04
Third quarter 2021 earnings released: EPS: CN¥0.016 (vs CN¥0.008 in 3Q 2020) Third quarter 2021 results: EPS: CN¥0.016 (up from CN¥0.008 in 3Q 2020). Revenue: CN¥99.2m (up 29% from 3Q 2020). Net income: CN¥10.3m (up 103% from 3Q 2020). Profit margin: 10% (up from 6.6% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 3 independent directors (8 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 29
Second quarter 2021 earnings released: EPS CN¥0.02 (vs CN¥0.007 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥67.1m (up 8.2% from 2Q 2020). Net income: CN¥12.8m (up CN¥17.2m from 2Q 2020). Profit margin: 19% (up from net loss in 2Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 114 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.021 (vs CN¥0.009 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥101.1m (up 78% from 1Q 2020). Net income: CN¥13.4m (up 122% from 1Q 2020). Profit margin: 13% (up from 11% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 119 percentage points per year, which is a significant difference in performance. Announcement • Mar 18
Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) intends to acquire 40% stake in Yangling Jinhai Biotechnology Co., Ltd. from Biogenesis Bago S.A. and Biogénesis Bagó Uruguay S.A. for CNY 56 million. Shanghai Hile Bio-Technology Co., Ltd. (SHSE:603718) intends to acquire 40% stake in Yangling Jinhai Biotechnology Co., Ltd. from Biogenesis Bago S.A. and Biogénesis Bagó Uruguay S.A. for CNY 56 million on March 15, 2021. Upon completion, Biogenesis Bago and Biogénesis Bagó Uruguay will no longer hold any shares in Yangling Jinhai. In a related transaction, Shanghai Hile Bio-Technology and Shanghai Runling Investment Partnership plan to invest CNY 85 million in Yangling Jinhai through a private placement transaction. Post completion of all transactions, Shanghai Hile Bio-Technology’s shareholding will increase from 55% stake to 76.07% stake in Yangling Jinhai. For the year ended December 31, 2020, Yangling Jinhai had total assets of CNY 390 million, owner's equity of CNY -241 million, revenues of CNY 54 million, operational profit of CNY 43 million and net loss of CNY 90 million. The transaction has been deliberated and approved at the 23rd meeting of the third Board of Directors of Shanghai Hile Bio-Technology held on March 15, 2021. The transaction is expected to be completed no later than May 31, 2021. Is New 90 Day High Low • Mar 15
New 90-day high: CN¥14.32 The company is up 8.0% from a price of CN¥13.30 on 15 December 2020. Outperformed the Chinese market which is flat over the last 90 days. Exceeded the Pharmaceuticals industry, which is down 4.0% over the same period. Is New 90 Day High Low • Feb 01
New 90-day low: CN¥10.11 The company is down 51% from its price of CN¥20.59 on 03 November 2020. The Chinese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is flat over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥11.48 The company is down 52% from its price of CN¥23.94 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 1.0% over the same period. Is New 90 Day High Low • Dec 24
New 90-day low: CN¥12.75 The company is down 49% from its price of CN¥25.23 on 25 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is flat over the same period. Is New 90 Day High Low • Nov 24
New 90-day low: CN¥15.95 The company is down 49% from its price of CN¥31.02 on 26 August 2020. The Chinese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 10.0% over the same period. Is New 90 Day High Low • Nov 05
New 90-day low: CN¥20.39 The company is down 55% from its price of CN¥44.98 on 07 August 2020. The Chinese market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 12% over the same period. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥4.47m, with losses widening by 173% from the prior year. Total revenue was CN¥256.9m over the last 12 months, down 6.7% from the prior year. Announcement • Jul 18
Shanghai Hile Bio-Technology Co., Ltd. to Report First Half, 2020 Results on Aug 31, 2020 Shanghai Hile Bio-Technology Co., Ltd. announced that they will report first half, 2020 results on Aug 31, 2020 
