Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 11th April, <a href="https://www.smartkarma.com/entities/shandong-fengxiang-co-ltd-h" target="_blank" data-smartkarma-citation="entities:29164:1" rel="noopener">Shandong Fengxiang (9977 HK)</a> announced a $2.00/share Offer, by way of a pre-conditional Merger by Absorption, from PAG.</li>
<li>Those pre-conditions (NDRC, Ministry of Commerce, and SAFE) have now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0703/2025070301828.pdf" target="_blank" rel="noopener">satisfied</a>.  The Composite Doc is expected to be dispatched no later than 11 July.</li>
<li>This Offer is a Merger by Absorption incorporating a Scheme-like vote. There is no tendering condition. This is done. I estimate payment the second week of September. </li>
</ul>


On the 11th April, Shandong Fengxiang (9977 HK) announced a $2.00/share Offer, by way of a pre-conditional Merger by Absorption, from PAG.
Those pre-conditions (NDRC, Ministry of Commerce, and SAFE) have now been satisfied.  The Composite Doc is expected to be dispatched no later than 11 July.
This Offer is a Merger by Absorption incorporating a Scheme-like vote. There is no tendering condition. This is done. I estimate payment the second week of September. 


Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

<ul>
<li>In an unusual move, the Offeror, PAG, and 59.42% shareholder of <a href="https://www.smartkarma.com/entities/shandong-fengxiang-co-ltd-h" target="_blank" data-smartkarma-citation="entities:29164:1" rel="noopener">Shandong Fengxiang (9977 HK)</a>, has opted not to provide a scrip alternative, despite satisfying conditions to do so. </li>
<li>The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.</li>
<li>Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. </li>
</ul>


In an unusual move, the Offeror, PAG, and 59.42% shareholder of Shandong Fengxiang (9977 HK), has opted not to provide a scrip alternative, despite satisfying conditions to do so. 
The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.
Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. 


Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Tam Jai's performance in recent years has been consistently below expectations. Its fundamentals have undergone negative changes after IPO. Consumers’ preference change may disrupt Tam Jai's business model.</li>
<li>Based on our forecast and the Cancellation Price of HK$1.58/share, P/E will be higher than the industry average. Considering the low trading liquidity and concerns on outlook, HK$1.58/share is acceptable.</li>
<li>The fundamentals/prospects of Tam Jai are different from the situation of Henlius' privatization.We recommend investors not reject the privatization easily because internationalization won’t bring significant positive changes in short term.</li>
</ul>


Tam Jai's performance in recent years has been consistently below expectations. Its fundamentals have undergone negative changes after IPO. Consumers’ preference change may disrupt Tam Jai's business model.
Based on our forecast and the Cancellation Price of HK$1.58/share, P/E will be higher than the industry average. Considering the low trading liquidity and concerns on outlook, HK$1.58/share is acceptable.
The fundamentals/prospects of Tam Jai are different from the situation of Henlius' privatization.We recommend investors not reject the privatization easily because internationalization won’t bring significant positive changes in short term.


Tam Jai International (2217 HK) Privatization - The Offer Price Is Good

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Innovent: ASCO data reinforce IBI363’s potential as a potential nextgeneration IO.</li><li>We view IBI363 as a highly promising candidate in the IOresistant sq-NSCLC space, supported by an impressive mPFS of 7.3 months in monotherapy, which is very competitive compared to other innovative agents. Innovent plans to initiate a Ph3 trial of IBI363 in IOresistant sq-NSCLC in 2H25. In 3L+ CRC, IBI363 has shown superior early efficacy signals and a more favorable safety profile.</li><li>IBI363 mono delivered an ORR of 12.7% and an mOS of 16.1 months—both significantly outperforming fruquintinib. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent: ASCO data reinforce IBI363’s potential as a potential nextgeneration IO.We view IBI363 as a highly promising candidate in the IOresistant sq-NSCLC space, supported by an impressive mPFS of 7.3 months in monotherapy, which is very competitive compared to other innovative agents. Innovent plans to initiate a Ph3 trial of IBI363 in IOresistant sq-NSCLC in 2H25. In 3L+ CRC, IBI363 has shown superior early efficacy signals and a more favorable safety profile.IBI363 mono delivered an ORR of 12.7% and an mOS of 16.1 months—both significantly outperforming fruquintinib. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthcare - ASCO Highlights: Spotlight on Next-Gen IO & ADCs

<ul>
<li>After <a href="https://www.smartkarma.com/entities/goldlion-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12359:1" rel="noopener">Goldlion (533 HK)</a>'s spectacular Scheme fail, <a href="https://www.smartkarma.com/entities/soundwill-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19318:1" rel="noopener">Soundwill  (878 HK)</a> appeared destined to be the next failure as shares dipped hard ahead of the Scheme vote. And fail it did.</li>
<li>Just like for Goldlion, Soundwill's Offer was clearly light. The counter-argument was that terms were, arguably, as good as it gets. And no competing Offer would emerge. Minorities voiced otherwise.</li>
<li>Hong Kong has been the proverbial graveyard for arb deals of late. However, in a positive sense, minorities in Goldlion and Soundwill simply rejected opportunistic Offers. </li>
</ul>


After Goldlion (533 HK)'s spectacular Scheme fail, Soundwill  (878 HK) appeared destined to be the next failure as shares dipped hard ahead of the Scheme vote. And fail it did.
Just like for Goldlion, Soundwill's Offer was clearly light. The counter-argument was that terms were, arguably, as good as it gets. And no competing Offer would emerge. Minorities voiced otherwise.
Hong Kong has been the proverbial graveyard for arb deals of late. However, in a positive sense, minorities in Goldlion and Soundwill simply rejected opportunistic Offers. 


Soundwill (878 HK): Thoughts On The Latest Scheme Fail

China

Shanghai Henlius Biotech, Inc develops and produces drugs. The Company develops and produces monoclonal antibody biosimilar drugs, bio betters, novel monoclonal antibodys, and other drugs. Shanghai Henlius Biotech throughout China.

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Shanghai Henlius Biotech (2696 HK)

Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

This appears done. However this iilliquid - and Hong Kong has seen two failed small-cap Schemes recently. Plus PAG is inviting dissent after...

David Blennerhassett

Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. If illiquid arbs are your...

David Blennerhassett

Tam Jai International (2217 HK) Privatization - The Offer Price Is Good

The Scheme Doc is out. Since the Cancellation Price of HK$1.58 represents a premium of 75.56% over the undisturbed price of HK$0.90 and a premium...

Xinyao (Criss) Wang

Healthcare - ASCO Highlights: Spotlight on Next-Gen IO & ADCs

Innovent: ASCO data reinforce IBI363’s potential as a potential nextgeneration IO. We view IBI363 as a highly promising candidate in the...

CMB International

Soundwill (878 HK): Thoughts On The Latest Scheme Fail

The outcome for Soundwill was not a big surprise. However, expect current and future illiquid small-cap arbs to trade wide(r) if there is a whiff...

David Blennerhassett

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