Daily Brief China: SHEIN Global Holdings, Shenzhen Longsys Electronics, WuXi XDC, Innovent Biologics, MiniMax, Alibaba, Changhong Jiahua, ZhongAn Information Technology (Shenzhen), Shanghai Eigencomm Technologies and more

• SHEIN Global Holdings (625 HK), a global online fashion and lifestyle company, has launched an HKEx IPO to raise up to US$1.8 billion.
• I discussed the IPO in SHEIN Global IPO: The Bull Case, SHEIN Global IPO: The Bear Case and SHEIN Global IPO: Valuation First-Look 
• I have revised lower my forecasts following the 1H trading update. Shein is fairly valued at the IPO price range, leaving little to no upside for investors. 

• Longsys, a branded memory-module maker, is seeking an A+H listing. CITIC and Citi are the joint sponsors.
• We look at the company’s four core segments: embedded storage, SSDs, mobile storage and DIMM.
• We discuss our preliminary thoughts on the company’s valuation based on the A-H premium.

• WuXi AppTec (2359 HK) is looking to raise around US$300m via selling some of its stake in WuXi XDC (2268 HK).
• Wuxi AppTec has sold a number of times before, although all the past secondary deals since 2025 haven’t done much.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• 1H26 represents another strong set of results (robust topline growth + operating leverage). Innovent unveiled a new 2030 revenue target RMB35-40bn, implying 16-20% 4-year CAGR (using our 2026E revenue estimates).
• 2H26/Early 2027 catalysts: 1) IBI363: pivotal data (melanoma) and PoC data (1L NSCLC, 1L GC) in ESMO; 2) IBI354: ovarian cancer data and NDA filing; 3) mazdutide: Glory-3 readout…
• 1H26 results call focus on: 1) growth drivers for 2030 revenue target, 2) 2H26 outlook, 3) key data readouts for 2H26/early 2027. See inside for P&L analysis and pipeline updates.

• MiniMax’s 1H26 total revenue is 4X its 1H25 revenue, lower than 5X we expected.
• The company actively expanded its B2B business outside mainland China.
• MiniMax overcame all costs except for research and development expense.

• Alibaba Group is making one of the largest AI financing bets in China, raising roughly $10.2 billion through a new share placement just as its artificial intelligence business begins showing meaningful commercial traction.
• The deal involves 710 million new shares, representing roughly 3.7% of Alibaba’s existing issued share capital, and comes after a quarter in which heavy technology investment pushed GAAP net income down about 75% and free cash flow deeply negative.
• Yet the story is far from uniformly bearish.

• Shattered Margin Model: The termination of the US de minimis exemption in May 2025 and the EU’s July 2026 low-value customs fee have structurally altered SHEIN’s unit economics. Fulfillment costs escalated to 47.7% of net revenue in Q1 2026, a compression that triggered a $99 million net loss and exposed the limits of direct-from-China air-freight logistics.
• Aggressive Tax Siphoning & Structural Risks: Transfer pricing mechanisms routing up to 84% of local revenues (such as £1.72 billion of SHEIN UK’s £2.05 billion sales) back to the Singapore parent Roadget Business Pte. Ltd. as “purchasing costs” have drawn heavy audit exposure. While reducing the effective tax rate to an average of 9.4% from 2021 to 2023, this aggressive structure restricts cash fungibility and creates massive back-tax liabilities as Western jurisdictions clamp down.
• Plan C Governance Restructuring: The sudden step-down of Executive Chairman Donald Tang in July 2026 and the consolidation of power under founder Sky Xu signals a retreat to a defensive, Beijing-aligned stance. By settling for a Hong Kong IPO at a $27 billion valuation—70% below its 2022 peak—SHEIN is being priced as a low-margin, politically exposed retailer rather than a high-flying tech platform.

• For those who came in late, I expected ENN (2688 HK)‘s Offer to get up. I was wrong. For all intent and purpose, I’m also wrong on Changhong (3991 HK).
• Changhong is trading 50% below terms and 34% below the undisturbed price of HK$0.92/share. A peer basket is down 5% (the median) since the Offer was announced last September.
• 1H26 financials were solid. Changhong has added net cash of $1.4bn since the Offer was announced. If small, illiquid stocks are your bag, Changhong’s share price is unduly beaten up.

• Zhongan Information, an enterprise AI solutions provider, has filed its prospectus with the HKEX. ICBC International and Guolian International are the joint sponsors.
• We look at the company’s core segments: intelligent marketing and intelligent operation management.
• We then look at the company’s financial profile, profit turnaround, pre-IPO valuation and investor backing.

• Shanghai Eigencomm Technologies is a fabless provider of cellular IoT chips, ranking third globally with a 3.9% market share. It focuses on R&D and commercialization, outsourcing manufacturing.
• The company’s NB-IoT chip achieved top global shipment ranking (2022-2024), and its Cat.1bis chip ranked second globally in 2024.
• Revenue was RMB552,404 thousand in 2024, and gross profit margin declined from 22.3% (2024) to 7.8% (6M 2026).

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