Daily Brief China: Shenzhen Salubris Pharmaceuticals, Vatai Holdings, Bilibili, SHEIN Global Holdings and more

• A leading Chinese pharmaceutical company focused on the CKM sector, engaged in R&D, production, and sales of pharmaceuticals and medical devices. It seeks a primary HKEX listing, having been listed.
• The company ranked second in China’s in-hospital cardiovascular drug sales with 11.3% market share in 2025. Total revenue increased to RMB4,352.7 million in 2025.
• Gross profit was 3,247,584 RMB’000 and profit for the year was 652,784 RMB’000 in 2025. Total assets reached 11,297,803 RMB’000 as of December 31, 2025.

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• Vatai Holdings Limited is an AI-empowered global platform providing cross-border e-commerce compliance services, seeking a primary listing on HKEX. According to CIC, it was the largest provider globally and in.
• Vatai Holdings was the largest cross-border e-commerce compliance service provider globally and in China in 2025, holding 21.5% market share in China.
• Revenue was RMB528,476 and profit for the year was RMB97,175 in 2025. Net cash from operating activities was RMB269,110.

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• Tencent’s restructuring of its Bilibili holding—selling US$400 million in Class Z shares while subscribing to US$200 million of the new convertible senior notes—is a strategic hedging play rather than a retreat. It reduces Tencent’s direct equity exposure while maintaining an anchor position, helping Bilibili execute a US$300 million concurrent buyback to neutralize immediate float pressure and manage capital tax-efficiently offshore.
• Bilibili’s monetization engine has structurally pivoted to advertising, which grew 28% year-over-year in Q2 2026 to RMB 3.13 billion, overtaking Value-Added Services (VAS) as its largest revenue segment. This growth is driven by AI-powered search and multi-scenario ad distribution, though the platform faces a rigid ~10% ad-load ceiling to preserve its core user community.
• The gaming segment remains highly volatile and is shifting away from high-risk in-house R&D toward low-capex publishing. The 14% year-over-year decline in mobile game revenue to RMB 1.39 billion in Q2 2026—due to a tough comparison base from the breakout success of San Guo: Mou Ding Tian Xia—underscores the unpredictability of first-party pipelines and the structural stability of licensed, casual IPs.

• Four days into life as a publicly-traded company, SHEIN shares are down more than 21%
• If OP margin remains depressed in FY27, it appears SHEIN is still trading ~18x forward EPS
• However, even a modest OP margin lift next year implies a PER of just 11-14x