Company Name: Bao Pharmaceuticals Co., Ltd.

Date of Prospectus: December 2, 2025

Unlocking Growth in Synthetic Biology: Bao Pharmaceuticals Co., Ltd. Hits Hong Kong Main Board with Landmark Biotech IPO

IPO Snapshot: Bao Pharmaceuticals Co., Ltd. – Key Offer Details

Bao Pharmaceuticals Co., Ltd. is launching its IPO on the Hong Kong Stock Exchange, seeking to establish itself as a leader in synthetic biology-powered biopharmaceutical innovation. The company’s offering is set to attract significant investor attention given its pipeline, sector momentum, and robust cornerstone support.

• IPO Symbol: Not disclosed
• Offer Price: HK\$26.38 per H Share
• Total Offer Size: 37,911,700 Offer Shares
• Hong Kong Public Offering: 3,791,200 H Shares (subject to reallocation)
• International Offering: 34,120,500 H Shares (subject to reallocation)
• Post-IPO Outstanding Shares: 288,069,765 Shares (after share subdivision and before new shares issued for the Global Offering)

Offer Period: Applications open at 9:00 a.m. on December 2, 2025 and close at 11:30 a.m. on December 5, 2025. Listing expected shortly after close of offer window.

Minimum Board Lot: 100 H Shares (Payment: HK\$2,664.60 per lot including all fees)

Use of Proceeds: Growth-Driven Capital Allocation

Proceeds from the offering are earmarked for:

• Research & Development: Substantial investment in ongoing and planned clinical development of core pipeline products (KJ017, KJ103, SJ02) and future candidates.
• Expansion & Manufacturing: Building, upgrading, and expanding manufacturing facilities to meet anticipated demand.
• Global Presence: Funding market entry and commercial launch in new geographies.
• Working Capital: Supporting operational needs and ensuring liquidity.

This allocation signals a strong growth-driven strategy rather than deleveraging.

Placement Breakdown: Public, Institutional, and Cornerstone Tranches

• Hong Kong Public Offering: 3,791,200 H Shares
• International Institutional Offering: 34,120,500 H Shares
• Cornerstone Investors: Allocations within the International Offering, subject to six-month lock-up, with no single cornerstone to become a substantial shareholder.
• Pre-IPO Investors: Subject to 12-month lock-up post-listing (PRC Company Law)
• Employee Allocation: Underlying shares for Pre-IPO Share Incentive Plans already issued pre-listing (no further ESOP dilution)

Investor Participation and Book Quality: Cornerstone Confidence

Cornerstone Investors: Center Laboratories, Fangyuan Capital, Findowin Capital (Aggregate holding: 24.43% of pre-IPO share capital)

Cornerstone Placing: Represents 2.33% of total issued share capital post-IPO. Cornerstone Shares rank pari passu with public shares, counted towards public float.

Lock-up periods: Six months for cornerstone, 12 months for pre-IPO investors.

No pre-listing disposals/sales by early shareholders are disclosed.

Book quality is supported by the presence of sophisticated, sector-specialized investors and robust institutional demand. This suggests strong first-day performance potential, based on allocations and cornerstone participation.

Deal Parties and Offer Structure: Leading Entities Supporting the IPO

Joint Sponsors: Named in the prospectus (CLSA Limited, Haitong International Securities, West Bull Securities, and others)

Global Coordinators, Bookrunners, Lead Managers: CLSA Limited, Haitong International, BOCOM International, CCB International, and others.

Hong Kong Underwriters: Full list includes CLSA Limited, Haitong International, West Bull, BOCOM International, CCB International, Guoyuan, Livermore, Phillip Securities, SDIC, Shenwan Hongyuan, SPDB International, Valuable Capital, Futu Securities, Tiger Brokers [[519]].

Underwriting Arrangements: Fully underwritten on a conditional basis for both Hong Kong and International offerings.

Underwriting Fees: Estimated at HK\$78.6 million (including all commissions and listing expenses, based on offer price) [[529]].

Stabilization/Over-allotment Details: Not disclosed.

Reputational strength of deal parties and full underwriting support as disclosed suggest that listing-day performance is likely to be robust and well-managed.

Company Overview: Synthetic Biology Biotech with Global Aspirations

Business Model: Clinical-stage biotechnology company leveraging synthetic biology to develop recombinant biologic drugs targeting diseases with limited treatment options and complex manufacturing challenges.

Key Products: Core pipeline products KJ017, KJ103, SJ02 (critical for listing eligibility and future growth).

Revenue Streams: Not yet commercial; focus remains on R&D, clinical development, and manufacturing ramp-up.

Customer Segments: Healthcare providers, pharma distributors, hospitals (once commercialized).

Geographies: Headquartered in China, with planned global expansion.

Industry/Sector: Synthetic biology-driven biopharmaceuticals.

Industry Size: Referenced by Frost & Sullivan report (figures not specifically disclosed).

Market Position: Supported by sector-specialized cornerstone investors and strategic pre-IPO placements.

Management Team: Names and experience referenced in the prospectus (see “Directors, Supervisors and Senior Management” section).

Brand Strength & Competitive Advantage: Strong research pipeline, proprietary manufacturing, sector credibility through investor base.

Financial Health: Revenue, Profit, and Capital Structure

Note: Company is pre-revenue, focused on R&D and pipeline development. Historical net losses reflect development-stage status, with significant equity funding from pre-IPO investors [[37]], [[450]], [[565]].

Trends, Timing & Environment: Sector Momentum and IPO Timing

Sector Trends: Synthetic biology and biopharmaceuticals are experiencing global momentum, with demand drivers rooted in unmet medical needs and manufacturing complexity.

Timing of IPO: Offer period December 2-5, 2025. Listing scheduled shortly after close of application window [[11]].

Economic Environment: Sector highlighted for innovation; macro indicators referenced in Frost & Sullivan report (details not enumerated in prospectus).

Recent Developments: Multi-round pre-IPO financing; share subdivision prior to listing (one Share of RMB1.00 split into five Shares of RMB0.20 each) [[261]].

IPO timing aligns with favorable sector sentiment and robust investor demand as evidenced by cornerstone and institutional participation.

Risk Factors: Key Exposures for Investors

• Clinical and Commercialization Risk: Core products (KJ017, KJ103, SJ02) may not achieve successful development or market launch; substantial R&D expenses expected [[16]], [[80]].
• Financial Risk: Ongoing losses, reliance on additional capital raises, and negative cash flow typical for pre-commercial biotech [[37]].
• Regulatory Risk: Extensive government regulation and approval timelines [[80]].
• Intellectual Property Risk: Reliance on proprietary technology and IP security [[80]].
• Operational Risk: Dependency on third parties for manufacturing, supply chain, and commercialization [[80]].
• Market & Liquidity Risk: Lock-up periods on key tranches may affect short-term liquidity and trade volume [[149]].
• Macro/Geopolitical Risk: Exposure to changes in regulatory regimes and economic conditions in China and globally.

Risk quantification: Net loss for 2024 was RMB364.4 million, indicating high ongoing development costs [[37]].

Growth Strategy: Pipeline, Expansion, and Globalization

• Pipeline Expansion: Significant R&D investment in core products and next-generation biologics.
• Manufacturing Expansion: Capex allocation for facility upgrades and expansion.
• Global Presence: Proceeds earmarked for market entry and commercialization in new jurisdictions.
• No major M&A or disposals during the track record period.
• Talent Acquisition: Planned increases in headcount to support growth trajectory [[424]].

Timeline: Ongoing, with pipeline and expansion plans aligned to capital raise and regulatory milestones.

Ownership and Lock-Up Structure: Shareholders, Promoters, and Incentive Platforms

• Pre-IPO Investors: Center Laboratories, Fangyuan Capital, Findowin Capital (aggregate 24.43% of capital). All pre-IPO investors subject to 12-month lock-up post-listing [[45]], [[263]].
• Cornerstone Investors: Six-month lock-up from listing date [[280]].
• Employee Incentives: Pre-IPO Share Incentive Plans fully allocated pre-listing; no further ESOP dilution post-IPO [[719]].
• Promoters: 42 original shareholders pre-conversion to joint stock company [[725]].

Valuation and Peer Comparison

Valuation Metrics: Post-money valuations across pre-IPO rounds:

No peer company metrics or sector P/E, EV/EBITDA, ROE, or sector performance tables are disclosed.

Research and Opinions

Industry Report: Frost & Sullivan report commissioned by the company, referenced for market sizing and sector outlook.

Analyst Coverage and Price Targets: Not disclosed.

IPO Allotment Result

Final subscription outcomes by tranche: Not disclosed.

Listing Outlook: Substantial Growth Prospects and Robust First-Day Demand

Based on the disclosed factors:

• Strong cornerstone and institutional demand underpins book quality.
• Full underwriting by reputable banks and sponsors supports smooth listing.
• Growth-driven use of proceeds and sector momentum position the company for long-term upside.
• Lock-up structures and limited pre-listing disposals suggest stable share supply in the short term.
• Risks are typical for pre-commercial biotech, but investor confidence is strong as evidenced by allocations.

Based strictly on prospectus data, the IPO appears worth subscribing for investors seeking exposure to high-growth biotech. First-day trading is likely to be robust, with potential for significant upside above the offer price, barring unforeseen sector volatility.

Prospectus Access: Where to Find Official Information

Prospectus Website: www.hkexnews.hk and www.baopharma.com

How to Apply: Application Channels and Timeline

• Application Channels: White Form eIPO service (www.eipo.com.hk) for investors seeking physical H Share certificates; HKSCC EIPO channel via broker/custodian for electronic application.
• Eligibility: Applicants must be 18 years or older and have a Hong Kong address for White Form eIPO.
• Application Dates: Open 9:00 a.m. December 2, 2025; close 11:30 a.m. December 5, 2025. Latest time for payment is 12:00 noon December 5, 2025.
• Application Steps: Complete online submission and payment via designated platform or broker, following terms set out in the prospectus.