Shenzhen Cell "Relay" Financing: After receiving 900 million yuan in private placement, temporarily idle funds are used for phased wealth management, while planning to issue H-shares | Quick Read Announcement

Sourced from: Caixin Media

Caixin Media April 2 (Reporter Wu Chao) Shenzhou Cell (688520.SH) today announced several resolutions: on one hand, it will conduct cash management for the newly received funds from a private placement to generate investment returns; on the other hand, it has officially initiated a new financing plan for issuing H shares.

The above decisions all come from resolutions examined and approved at the board meeting held today by Shenzhou Cell. According to the “Announcement on Using Temporarily Unused Proceeds for Periodic Cash Management,” the company will use temporarily unused offering proceeds of up to no more than RMB 600 million (including the amount) for periodic cash management, to purchase investment products with high safety, good liquidity, and meeting principal protection requirements (including but not limited to structured deposits, agreement deposits, notice deposits, time deposits, large-denomination certificates of deposit, etc.). The term will not exceed 12 months.

What is worth noting is that this round of proceeds just arrived a little over a week ago. Recently, the company completed its 2025 A-share stock issuance to specific targets. The total amount raised from this private placement is RMB 900 million. After deducting the underwriting fees and other related issuance expenses, the net proceeds are RMB 892 million. All of the proceeds have been fully received as of March 25, 2026 and deposited into a dedicated account for the proceeds, and the actual proceeds will be fully used to supplement working capital.

Meanwhile, the “Notice on the Planning to Issue H-Share Stock and Related Matters for Listing on The Stock Exchange of Hong Kong Limited” released by the company on the same day shows that, in order to build an internationalized capital operations platform and enhance the company’s capital strength and overall competitiveness, and to advance its internationalization strategy in depth, the company plans to issue shares listed overseas (H shares) and apply for listing on the main board of the Hong Kong Stock Exchange. The company will fully consider the interests of existing shareholders and the conditions of capital markets both in and outside the country, and within the validity period of the shareholders’ meeting resolutions, will choose an appropriate timing and issuance window to complete this issuance and listing.

According to the board resolution, the funds raised from issuing H-share stock will mainly be used for new drug R&D projects, the marketing network construction project, and the purpose of supplementing working capital, including but not limited to: clinical development of core pipeline products in development, development of preclinical biologics research platforms, marketing network construction and commercial promotion, daily operating funds and other general corporate purposes, etc.

This intensive capital operations by Shenzhou Cell is not without precedent. The company is in a strategic transformation period. In 2025, it experienced a swing from profit to loss; in the short term, performance is constrained by policy and investment cycle; in the long term, value depends on the pipeline’s commercialization and implementation timeline. The earnings quick report shows that for the full year, the company achieved operating revenue of RMB 1.56 billion, down 37.91% year over year; and attributable net profit recorded a loss of RMB 553 million.

The company said that the decline in performance is affected by multiple factors: the ongoing deepening of the医保控费 policy; the core product Anjia Yin® being reduced in price multiple times; the company’s phase-increased commercial investment leading to a rise in selling expenses; and ongoing parallel pipeline R&D, with multiple projects in the later stages of clinical research, while R&D investment remains at a high level.

(Caixin Media reporter Wu Chao)