China

• The post-lock-up liquidity overhang on MiniMax was cleared through a coordinated dual-tranche HKD 16 billion fundraise on July 10, 2026, which provided arbitrageurs the necessary stock borrow to delta-hedge the concurrent HKD 6.5 billion convertible bond, followed by a massive short squeeze driven by the Southbound Stock Connect inclusion.
• MiniMax’s revenue mix has aggressively shifted to B-end enterprise and API services, which accounted for 63.4% of H1 2026 revenue. Despite an ARR reaching US$800 million by late August, gross margins remain constrained at 17.9% due to high GPU compute costs.
• CEO Yan Junjie’s total salary sacrifice and the transfer of 5% of his personal equity stake serve as a crucial governance mechanism to align employee KPIs away from unhedged ARR growth and toward architectural efficiency and path-to-profitability.

• Eoptolink Technology (300502 CH) one of the world’s largest optical transceiver manufacturers, aims to raise over >US$3bn in its H-share listing.
• Eoptolink was one of the global leaders in 2025 in optical modules, with its products being in high demand for data centers.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Construction subcontractor Lotus Horizon (6063 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.
• I expect Lotus will follow in WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exits, triggering an unconditional takeunder. 
• Loss-Making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell companies and reverse takeovers making a comeback?

• We have to admit that brand acquisitions are a sustainable path forward.
• Domestically, the ANTA brand is placing increasing emphasis on online retail.
• Internationally, Anta plans to open 1,000 stores in Southeast Asia.

• Plover Bay compounded because a specialist technology capability, mission-critical customer problem and capital-light model reinforced one another far beyond the original 5G thesis.
• Its less visible advantage was organizational: long-tenured technical leadership, small independent teams and rapid customer feedback enabled adaptation across successive connectivity technologies.
• The next Plover Bay may emerge from any industry where a small, overlooked company combines niche leadership, superior learning speed, attractive economics and a long reinvestment runway.

• Junlebao, a formerly Mengniu-backed Chinese dairy producer, has filed its prospectus with the HKEX. CICC and MS are the joint sponsors.
• We look at the company’s core segments, liquid dairy products and formula.
• We then look at the company’s financial profile, margin pressure, pre-IPO valuation and investor backing.

• Ligent, a Hisense-controlled optical transceiver and optical network terminal maker, has passed the HKEX listing hearing and is seeking a Main Board listing. Citi and CITIC are the joint sponsors.
• We look at the company’s core segments: optical transceivers and optical network terminals.
• We then look at the company’s financial profile, profit rebound, pre-IPO valuation and investor backing.

• Ligent Technologies (LGT HK) is an optical communication and connectivity products provider. It is seeking to raise US$800 million.     
• In 2025, among all specialised optical transceiver manufacturers globally, Ligent ranked 5th in global optical transceiver revenue, with a market share of 4.0%.
• The investment case is bullish as Ligent is a business executing well (share gains, strong growth, improving margins) in an industry benefiting from a structural growth theme.   

• XtalPi (2228 HK) is a pioneer in TechBio and automated scientific research, integrating quantum physics algorithms, artificial intelligence, and high-throughput robotic wet laboratories to accelerate discovery in biopharmaceuticals and advanced materials.
• The company demonstrated a sharp operational inflection in FY2025, with revenue expanding to RMB 870.46M (a >4.5x increase compared to FY2023), gross margins shifting from negative territory to 55.27%, and reported net income reaching RMB 134.21M.
• Trading at a Price-to-Book multiple of 3.1x relative to an industry peer group averaging 4.0x to 6.0x, XtalPi provides institutional investors with a differentiated, high-growth play on industrial-scale laboratory automation and AI-driven scientific discovery.

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• Backlog-Driven Growth Illusion: Zhejiang IPLUSMOBOT’s massive 131.2% revenue growth in 2025 is structurally deceptive. While revenue spiked to 265.5 million RMB, new order growth was nearly flat, growing only 10.2% from 288 million RMB to 318 million RMB. This indicates the business was primarily clearing out a long-standing backlog of unaccepted, historical projects rather than winning new market demand.
• Working Capital & “Circular Trade” Vulnerabilities: The company’s working capital is severely strained by customer concentration and highly unfavorable commercial terms. Its top five customers contribute over 55% of revenue. Most notably, its relationship with Customer F (who is also Supplier F) involves a circular trade where IPLUSMOBOT grants a massive 180-day credit period on sales but is forced to accept a 30-day credit period on procurement, draining cash.
• The 18C Valuation Gap: To successfully list on the HKEX under the Chapter 18C specialist technology rules, IPLUSMOBOT needs to achieve a minimum market capitalization of 4 billion HKD (approximately 3.7 billion RMB). Its last C++ private round in January 2026 valued the company at 2.13 billion RMB, meaning it must secure a 62% valuation markup in a highly skeptical market, all while carrying 3.95 billion RMB in cumulative net losses over the past three and a half years and an ongoing cash-burning operating model.

• We lay out MiniMax’s September liquidity events, from today’s Undertaking (b) unlock through the 21 Sep bond conversion window.
• We review the stock’s post-Connect inclusion trading, including southbound buying, short interest, consensus revisions.
• We assess the overhang associated with the lock up events.

• We see 39m shares (HK$13.4bn; US$1.7bn; 2.8x ADV) of MiniMax (100 HK) unlocking from the start of trading on 3 September.
• Mainland China investors started buying MiniMax (100 HK) from the inclusion of the stock in the Southbound program and hold 32.8m shares (9.38% of shares out).
• MiniMax (100 HK) could be added to a global index in November and to the Hang Seng China Enterprises Index (HSCEI INDEX) in December.

• Via an accelerated exchange, Swire Pacific (19 HK) is soliciting tenders from its 2027 exchangeable bond holders and, in parallel, placing Cathay (293 HK) shares to fund the bond repurchase.
• Preceding my comments on Swire, are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• SHEIN’s round-trip debut to flat is a float signal, not a price signal. With 95% of shares locked up, near-term price action reflects flow, not fundamentals.
• Three post-listing developments reset the risk picture: a US$494m earnings reversal, France’s live garment levy, and a US$3.5bn recapitalisation outflow.
• ACCUMULATE, FV HK$70 (US$38bn) on ~0.9× LTM EV/Sales — a H&M-level discount reflecting tariff drag, governance concentration, and a 5% free float.

• Southbound investors accumulated 32.8m shares — 9.4% of the company — in four weeks following Stock Connect inclusion, validating our demand thesis and absorbing the July placing overhang entirely.
• The 1H26 interim result delivered revenue up 3.8 times year on year, with the half-year alone exceeding FY2025 full-year revenue; gross margin cleared our 29.7% pre-committed discipline line.
• We maintain BULLISH with FV HK$340 — 18x FY2028E EV/sales of US$700m plus net cash — trim at spot, reload below HK$300, position ahead of the November global index add.

• In 2Q26, Revenue growth accelerated due to the start of Shanghai testing center and TSMC contract.
• We believe the packaging and testing in Singapore will raise revenue in 2027.
• However, we consider the gross margins in the first two quarters to be unrepresentative.

• Beauty services now exceed 90% of revenue, validating the service-led thesis while recent growth suggests the model is still economically relevant.
• Our concerns around moat, disclosure and management remain partly valid, but the accounting deterioration and value-trap outcomes we feared never materialized.
• The biggest lesson is valuation: Water Oasis did not need to become exceptional; it only needed to remain durable enough at a deeply discounted price.

• No Fireworks: In this insight we discuss about Haier Smart Home (6690 HK) ‘s H1 FY2026 financial performance and why there were no fireworks.
• Searching for Growth Everywhere : Given the weak demand in its domestic market, the company is searching for growth in every geography globally.
• Finally, we discuss and conclude our view on H2FY2026 performance of the company.

• Based on the 20-year manufacturing supply chain management experience of Midea, Annto has deeply understood the pain points in manufacturing such as production rhythm, inventory management, and channel distribution.
• A slight decrease in revenue or a slight increase in costs that cannot be passed on could have disproportionately negative impact on Annto’s profitability and could lead to net loss.
• Profit margin of JD Logistics is higher than Annto. The scale of JD Logistics is approximately 10 times of Annto. So, we think Annto’s valuation would be lower than JD Logistics.

• Revenue rose 12.3% to HK$2,896.5m on record plush volumes, but material and Vietnamese labor cost inflation cut gross margin 470bp to 15.4%.
• Net cash of HK$1,406m, 30% of market capitalization, and a flat HK$0.25 interim dividend underpin the payout, while margin repair remains unproven.
• Valuation is appealing at 6.9x P/E, 3.2x EV/EBITDA, 1.0x P/B, 9.0% yield, 15.2% ROE.

• Swire Pacific (19 HK) is raising up to US$612m from a selldown in Cathay Pacific (293 HK) to fund the repurchase of an exchangeable bond due in 2027.
• This follows a prior sell-down in early March 2026, via a club deal and comes ahead of the lockup expiry.
• In this note, we comment on the deal dynamics and run the deal through our ECM framework.

• The changes to the Hang Seng family of indices were announced post market close on 21 August – final capping will use closing prices from the close on 1 September.
• There are 2 adds for the HSI, no constituent changes HSCEI, 1 change for the HSTECH, 5 changes for the HSIII, and 1 change for the HSBIO.
• There are 61 adds and 15 deletes for the Hang Seng Composite Index and that should lead to 54 additions to Southbound Stock Connect from the open on 7 September.

• MiniMax (100 HK), an AI foundation model company, raised around US$700m in its Hong Kong listing in January 2026. A second set of shares are set to be unlocked soon.
• Minimax’s foundation model suite includes large language models, video generation models, and models for speech and music generation.
• In this note, we will talk about the lockup dynamics and possible placement.

• The IPO of Shenzhen Longsys Electronics (9976 HK), a branded independent semiconductor memory product enterprise, does not appear particularly attractive to us.
• Although its EPS CAGR will reach 95.5% for FY25-28, the growth is entirely generated in FY26, as market consensus projects a decline in FY27 and FY28.
• Its FY27 PER of 8x is higher than global peers, and the steep 45.9% discount to the A-share is justified by the uncertain earnings outlook.

• ClubMed, a premium all-inclusive resort operator, has filed its prospectus with the HKEX. BNP Paribas, HSBC, and JPM are the joint sponsors.
• We look at the company’s core segments: Club Med resort operations and vacation scenario services.
• We then look at the company’s financial profile, profit decline, ownership structure and pre-IPO backing.

• Ligent Technologies (LGT HK) is looking to raise about US$800m in its upcoming Hong Kong IPO.
• It develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
• In this note, we look at the company’s PHIP update.

• Shenzhen Longsys Electronics (9976 HK) is a branded independent memory product company. It is seeking to raise US$798 million.     
• It designs controllers/firmware, back-end manufacturing (packaging/testing/assembly), and sells memory products (embedded storage, SSDs, mobile storage, DIMMs).
• The investment case is bearish as Longsys is a fundamentally commoditised, cyclical, cash-burning company, currently riding an exceptional AI-driven up-cycle.

• August’s sleepy performance gives way to a historically challenging September backdrop, although macro conditions may overwhelm the usual seasonal patterns.
• CSI300 and Kospi offer sharply contrasting historical September vol premium patterns, making both assets particularly interesting this month.
• Potential hedging opportunities emerge with historical September behaviour placing Kospi and HSI firmly among the markets worth watching.

• Transwarp Technology (688031 CH) , an AI infrastructure software provider, aims to raise around US$100m in its H-share listing.
• Transwarp Technology (Shanghai) Co (TTC) is an AI infrastructure software provider in China.
• In this note, we talk about the company’s updates in its PHIP.

• The Strategic Illusion of Vertical Integration: Ligent Technologies markets a “full-stack” model of self-researched optical chips and module assembly, but its optical chip division is a severe operational drag. The segment suffered deeply negative gross margins of -157.4% in 2024 and -121.0% in 2025 due to low yields on high-speed Electrabsorptive Modulated Lasers (EMLs) and high fixed asset depreciation, forcing Ligent to rely on external suppliers like Broadcom and Lumentum for high-end modules.
• Aggressive Pricing Driving Margin Erosion: To capture market share, Ligent has adopted a “price-for-volume” strategy, offering datacom optical modules at an average selling price (ASP) roughly one-third of market leaders like Zhongji Innolight. While this fueled a revenue surge to RMB 8.35 billion in 2025, it structurally degraded their datacom optical module gross margins from 28.9% in 2023 to 24.4% in 2025, demonstrating weak pricing power and limited operating leverage.
• Geopolitical Capital Imperative: The primary driver behind Ligent’s pending Hong Kong IPO—which cleared its listing hearing on August 31, 2026—is to fund a localized geopolitical hedge. Facing an extreme customer concentration risk where the top five customers account for over 70% of revenue, Ligent must rapidly deploy capital to build localized assembly lines in the United States and Southeast Asia by late 2026 to bypass trade barriers and remain viable for Western hyperscalers.

• Baidu (9888 HK) converts from a Secondary Listing to an HKEX Dual-Primary Listing on 1 September. That should lead to Southbound Stock Connect inclusion from the open on 7 September.
• Baidu (9888 HK) should be added to the CSI Hong Kong Connect Internet Index at the close on 18 September. That will add to the Southbound buying.
• Passive trackers of the HSI INDEX, HSCEI INDEX, HSTECH INDEX and HSIII Index will buy Baidu (9888 HK) at the December rebalance due to an increase in free float.

• The September 2026 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 28th August 2026.
• There will be five changes for the STAR 50 index and ten changes for the STAR 100 index.
• We expect one-way flows of approximately US$1.8bn and US$593mn for the STAR 50 and STAR 100 index rebal events, respectively.

• On the 5th June, Continental Aerospace Technologies (232 HK) (CAT) confirmed an SPA to sell its core business, potentially leading to a cash distribution (HK$0.419-HK$0.436/share), and subsequent winding up.
• The SPA requires reg approvals and a Scheme-like vote. 46.4% of the register is supportive. Additional dividends expected from the sale of property. And any leftover funds. 
• The Circular is now out. The SGM is the 21st September. With payment of the special/property dividend (on or before) the 12th October. “Surplus cash” distribution is expected shortly thereafter.

• Longsys, a branded memory-module maker, launched its IPO to raise USD 800m through an A+H listing. CITIC and Citi are the deal sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.

• The Continental Aerospace Technologies (232 HK) IFA opines that the terms of the sale of the revenue-generating business to Arcline and the disposal of the property are fair and reasonable. 
• The proceeds from the Arcline sale (HK$0.4238 to HK$0.4350 per share), the property sale (HK$0.0073), and the remaining cash (HK$0.062) total between HK$0.493 and HK$0.504.
• Despite the emergence of new substantial shareholders, the SGM vote will pass. At the last close, the gross spread for the minimum and maximum offers was 3.8% and 6.2%, respectively.

• Mech-Mind raised HKD 2,200.2m (USD 280.6m) in net proceeds from its global offering and will list on the HKEX on Tuesday, 1 September 2026.
• In our previous notes, we looked at the company’s fundamentals, deal terms and peer valuation.
• In this note, we provide an update for the IPO before its trading debut.

• SHEIN raised HKD 13,214m (USD 1,686m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, September 1, 2026.
• In our previous notes, we looked at the company’s fundamentals and the deal terms.
• In this note, we provide an update for the IPO before its trading debut.

• SHEIN Global Holdings (625 HK) (SHEIN), a global online fashion and lifestyle company, raised around US$1.7bn in its Hong Kong listing.
• Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
• We have looked at the company’s past performance and provided our thoughts on valuations in our previous notes. In this note, we talk about the trading dynamics.

• Shenzhen Longsys Electronics (301308 CH) (SLE), a branded independent semiconductor memory product enterprise, is looking to raise around US$800m in its H-share listing.
• SLE designs, develops, manufactures and sells a comprehensive portfolio of memory products for edge AI and traditional consumer, enterprise and industrial applications.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Yangtze Memory Technologies (YMTC CH) is getting ready to complete its IPO on the Shanghai Stock Exchange in late 2026/early 2027, aiming to raise about $4.9 billion.
• Implied valuation of YMTC is up to 330 billion yuan. However, there have been reports about implied valuation of YMTC closer to the 1 trillion yuan ($149 billion).
• Based on CXMT’s P/S of 19.6x and using YMTC’s estimated annual sales of 188.2 billion yuan in 2026, this suggests market cap of 3.7 trillion yuan ($548 billion) for YMTC. 

• CSI announced five ADDs and five DELETEs for the STAR50 Sep 2026 review, matching all five of our DELETE calls and two of our five ADD calls.
• Raytron Technology, Sichuan Huafeng Technology, Beijing E-Town Semiconductor, Arashi Vision, and SJ Semiconductor enter on 14 Sep 2026, replacing Cathay Biotech, AVIC Chengdu UAS, EverDisplay Optronics, Bestechnic, and APT Medical.
• All five ADDs fell in the ten days before the announcement. Historically, ADDs with that pattern opened higher at the post-announcement open and then lost ground into implementation.

• CXMT’s H1-2026 results beat IPO guidance by roughly 25–36%, with R&D up 87% YoY and four DRAM process nodes now in mass production — the growth story remains fully intact.
• Spot at RMB58.60 implies 23x FY26E and 20x FY27E EPS — a scarcity premium the STAR Market’s thin free float can sustain longer than fundamentals justify.
• We maintain our BEARISH stance but raise our fair value to RMB31.40, based on an 12x China-specific multiple band applied to upgraded FY26E/FY27E EPS.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, SHEIN Global Holdings (625 HK) and Momenta Global (6880 HK) are set to list this week. 
• On the placement front, deals continued to flow in across the region, throughout the week.

• A month into SHEIN’s IPO process, its near-term (FY26) growth prospects are downbeat
• Here we present an array of FY27e PERs based on a range of top-line, OPM% estimates
• Objective is to show combinations of revenue growth, margin that make SHEIN cheap-ish

• Nanjing Novlead Biotechnology, incorporated in 2018, operates in the gas-based cardiopulmonary device market, focusing on inhaled nitric oxide (iNO) therapy. Its Core Product, iNOwill, was approved by NMPA in 2022.
• The company has five approved products and five product candidates, holding 85 patents and 196 registered trademarks as of the Latest Practicable Date.
• Revenue was RMB63,207 thousand in 2025, with a gross profit margin of 55.9% and a loss of RMB(95,271) thousand for the year.

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• CXMT Corporation (688825 CH) beats its prospectus forecast in 1H26 earnings, posting net profit of Rmb77.6bn. In 2Q26, it made Rmb52.8bn. 
• Demand outlook will stay encouraging in 2H26, and the market consensus appears conservative now. This means upside potential for earnings forecasts.
• While at 22x FY26 PER, CXMT looks expensive, its high 3-year EPS CAGR justifies it. Moreover, its 0.05x PEG is below the sector average.  

• CATL’s BESS revenue surged 87.5% YoY to RMB53.26bn in H1 2026, now 19.23% of sales — the mix shift the market still prices as a battery cyclical.
• RMB17bn deployed into AI data centers, hydropower, and robotics turns CATL into an equity holder in the demand for its own BESS hardware.
• BULLISH, FV HK$770 (3750 HK) — basis: SOTP blending core battery PE re-rating with unpriced AI-grid infrastructure optionality and RMB40bn buyback-cancellation support.

• Shenzhen Capchem Technology Co., Ltd. is a PRC-based provider of electronic chemicals and functional materials, specializing in battery chemicals. The company aims to optimize its capital structure and enhance core.
• The company is ranked second largest battery electrolyte provider globally in 2025 and first for capacitor chemicals by revenue from 2020 to 2025.
• For the six months ended June 30, 2026, revenue was RMB7,455,314 thousand and profit for the period was RMB998,900 thousand.

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• Medcaptain Medical launched Hongkong IPO to raise nearly HK$ 600M. They are a global medical device provider supplying life support products, minimally invasive intervention products, and in vitro diagnostics products.
• Medcaptain intends to use the proceeds for research and development, expand production capacity, enhance their sales & marketing capabilities, for strategic investments, upgrade IT infrastructure and for general corporate purpose.
• The valuation that they are seeking, seems relatively steep, but fundamentally worth for long term investors. The company needs to scale up the operations further, but that will take time.

• ClubMed Lifestyle Group is a global premium vacation lifestyle group, anchored by its Club Med brand, operating premium all-inclusive resorts and providing asset-light vacation scenario services worldwide.
• The group operated 69 premium resorts globally and had a sales network spanning over 40 countries, with revenue increasing to EUR1,948.5 million in 2025.
• Revenue was EUR1,948,546 in 2025, with net liabilities of EUR171.9 million as of June 30, 2026, and profit decreased from EUR68,768 in 2023 to EUR10,917 in 2025.

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• Transwarp Technology (Shanghai) Co., Ltd. is a leading AI infrastructure software provider in China, selling products and services to enterprise and government customers.
• Transwarp is the largest independent AI infrastructure software provider in China, serving over 1,800 customers, with repeat purchases averaging over 70% of revenue.
• Revenue was 447,069 RMB’000 in 2025, with a gross profit of 236,010 RMB’000. The company recorded net losses throughout the Track Record Period.

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• Dizal Pharmaceutical is a commercial-stage biopharmaceutical company focused on oncology and hematological diseases, with two commercialized products and a pipeline.
• ZEGFROVY® is the world’s first small molecule EGFR TKI approved for lung cancer with EGFR exon20ins mutations.
• Revenue was RMB801,136 thousand in 2025 and RMB522,693 thousand for the six months ended June 30, 2026.

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• Chinese domestic and outbound air travel activity rebounded sharply in July – why?
• If we’re right about the reasons for July’s recovery in traffic, bounce likely to be short-lived
• We expect platform Trip.com to confirm a weak outlook when it reports Q226 results

• The company is a leading integrated marketing service provider in China, offering a comprehensive portfolio including IP-based brand marketing and celebrity marketing services.
• The company was the fifth largest integrated marketing service provider in China by revenue in 2025, with a revenue CAGR of 15.8% from 2023 to 2025.
• Revenue was 8,371,848 in 2025, with a gross profit of 362,014 and profit for the year of 95,876 in the same year.

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• STAR Market IPO and Financial Peak: YMTC’s historic RMB 33 billion STAR Market IPO application comes at a cyclical peak, with 1Q26 net profit reaching RMB 33.38 billion and gross margins surging to 76.77% on the back of rising NAND contract prices and high capacity utilization.
• Xtacking 4.0 and Density-Cost Trade-off: Mass production of 267-layer NAND under the Xtacking 4.0 architecture delivers industry-leading bit density by separating logic and memory array. However, this process requires bonding two separate wafers, resulting in a structurally higher baseline manufacturing cost that requires high yield rates to remain competitive.
• The Domestic Substitution Penalty: While YMTC’s Phase III fab has cleared a 50% domestic equipment threshold, reliance on localized etching and lithography workarounds imposes a persistent yield and throughput penalty of 5% to 10% compared to Western tool baselines.

• No Superiority Over Xofluza: While Zenshine’s core product, sebaloxavir marboxil (ZX-7101A), boasts a 37.4% placebo-adjusted reduction in Time to Alleviation of Symptoms (TTAS), cross-trial comparison indicates its clinical efficacy is class-consistent rather than superior to Roche’s Xofluza. Its true differentiation is commercial: it is the only PA CEN inhibitor with a dedicated Chinese adolescent Phase 3 trial, and it features an improved safety profile of only 0.3% gastrointestinal adverse events.
• High Strategic Concentration on Jumpcan: Zenshine has mitigated its lack of commercial expertise and preserved cash by outsourcing 100% of its mainland China sales, marketing, and distribution to Jumpcan Pharmaceutical under an exclusive August 2023 agreement. This creates extreme customer concentration and cedes significant gross margin, but it is a necessary survival mechanism to avoid a ruinous SG&A burn rate.
• Severely Constrained Capital Runway: As of Zenshine’s August 26, 2026 Hong Kong listing application, the company is walking a tightrope with a 2025 net loss of RMB 209.3 million and net liabilities of RMB 1.11 billion as of June 30, 2026. The planned USD 100 million IPO proceeds are ear-marked almost entirely for the early-stage oncology pipeline (such as the PI3Kδ/γ inhibitor ZX-101A), leaving the influenza franchise completely dependent on Jumpcan’s near-term sales execution to generate royalty inflows.

• ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.
• With just over two months remaining in the reference period, there is still room for the expected ADDs/DELs to change.

• CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen and Beijing Exchanges.
• In this insight, we take a look at the potential ADDs and DELs for the semiannual index rebal event in December 2026.
• We expect 5 ADDs/DELs and we currently estimate one-way flow to be US$408mn.

• Management believes Data Center revenue could exceed 20% of total company revenue in 2027.
• The discussion around Smart Power Stage (SPS) products was one of the most encouraging aspects of the call.
• Automotive Business Entering a New Growth Phase: Growth is being supported by a combination of new customers, new product categories, and geographic expansion.

• Record H1 revenue of HK$2,032m, up 10.8%, with Europe now 53.8% of group sales and gross margin at 58.1%, the highest in the model’s semi-annual history.
• Margin gain looks structural, not currency-driven: net FX swung HK$38m against the group, yet net margin still rose to 18.4% due to digital mix and automation.
• Trading at 10.1x FY26e P/E, 6.3x EV/EBITDA, 3.0% yield, 21.5% ROE. Upside from debt repayment, further buybacks, and more acquisitions. 

• The death of the de minimis exemption has broken the pure cross-border e-commerce air-freight model.US customs codification in June 2026 and the EU’s July 2026 removal of the €150 threshold have forced a pivot to localized warehousing. This structural shift is the primary driver behind Shein’s massive valuation reset to $26.5 billion—down nearly 73% from its 2022 peak—and its $99 million net loss in Q1 2026.
• Temu’s pivot to the semi-managed model is a survival mechanism, not an optimization strategy. By forcing merchants to hold inventory in local overseas warehouses, Temu shifts inventory and tariff risks off its own balance sheet. However, this model reduces product variety (SKU tail), slows merchant onboarding, and compressed Temu’s global monthly active users (MAUs) by 11% year-over-year in July 2026 as high-friction logistics impacted user experience.
• PDD Holdings is hoarding a RMB 456.4 billion cash pile to fund a massive domestic and international structural transition. Instead of returning capital to shareholders, PDD is channeling resources into “Xin Pin Mu” (新拼木)—a RMB 100 billion three-year initiative launched in early 2026 to vertically integrate supply chains and build first-party self-operated brands. This capital allocation strategy aims to defensive-proof PDD against Alibaba and Douyin domestically while transitioning Temu from a price-driven marketplace to a value-driven brand platform.

• Zenshine Pharmaceuticals, founded in 2018, is a commercial-stage biopharmaceutical company developing therapeutics for viral infectious diseases, oncology, and inflammatory disorders. Its core product, sebaloxavir marboxil tablets, received NMPA approval.
• Zenshine’s core product, sebaloxavir marboxil tablets, was approved for adult influenza in July 2025 and adolescent influenza in June 2026.
• The company reported a loss of RMB209,268 thousand in 2025 and net liabilities of RMB(1,105,421) thousand as of June 30, 2026.

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• The proposed spin-off of TCL Electronics’ photovoltaic business (announced August 24, 2026) is a structural margin-enhancement play. While the PV segment drove massive topline growth (HK$21.06 billion in fiscal year 2025, or 18.4% of total revenue), its 8.6% gross margin severely diluted the core display business’s 16.5% gross margin. The transaction, structured as a distribution in specie, offloads a capital-intensive, working-capital-heavy residential solar operation onto its own listing.
• The HK$5.61 billion AeroWell acquisition (announced July 15, 2026) highlights severe governance friction and minority shareholder dilution. Sourced via connected parties, the transaction dilutes public shareholders by 12.6% through the issuance of 362.9 million new shares at HK$15.00 per share. The market’s negative reaction—causing an 11% share price drop on July 16, 2026—was driven by concerns that the transaction primarily served as a highly liquid exit for private equity backer CPE Group (which secured an estimated 170% ROI on its stake) rather than an immediately accretive consolidation of the air conditioning business.
• The Bravia Inc joint venture with Sony (announced March 31, 2026) represents a major consolidation that could propel TCL past Samsung as the world’s largest TV brand by volume. Sourcing panels through parent-controlled CSOT, the joint venture combines Sony’s high-end brand equity with TCL’s low-cost supply chain, giving the group a combined global shipment share of 16.7%, just ahead of Samsung’s 16.2%. However, realizing synergies depends on TCL’s ability to absorb significant restructuring and severance liabilities while winding down Sony’s underutilized legacy assembly plants in Malaysia and Japan.

• Viomi Technology released its first-half 2026 financial results, which showed that the company continues to be affected by the consumer spending slowdown in China and by demand pulled forward in 2025 due to national subsidies.
• Several major appliance manufacturers in China have reported similar 40-55% declines in year-over-year sales, and Viomi was not immune to the weak operating environment.
• We anticipate that the company will expand into new international markets in 2026, but we assume the market in China will remain challenging.

• Ugreen’s core growth has shifted from commoditized charging accessories to high-margin consumer Network Attached Storage (NAS), with its storage product segment reaching 1.23 billion CNY in 2025 (up 213.2% YoY) and 770 million CNY in H1 2026. This product-mix shift, alongside a 63.9 million CNY US tariff refund, drove gross margins to a record 38.4% in H1 2026.
• The company is facing severe working capital stress, characterized by negative operating cash flows of -35.33 million CNY in 2025 and -70.01 million CNY in H1 2026. This “dry income” is driven by aggressive stock-up requirements for the overseas expansion of complex products like NAS and a relaxation of credit terms for international distributors, pushing inventory turnover to 112.1 days in H1 2026.
• Unlike premium leader Anker, which maintains gross margins above 43% and invests heavily in R&D (2.89 billion CNY or 9.48% of revenue in 2025), Ugreen remains structurally reliant on marketing spend and outsourced ODM manufacturing. Ugreen’s sales expense rate remains high at 20.56% in H1 2026, while its R&D rate stands at just 6.26%, reflecting its historical positioning as a fast-following, lower-priced alternative to Anker.

• The Divergent Realities of Chinese Corporate Information Providers: The structural contrast between the failure of China E-Information Technology (delisted in 2023) and the commercial success of Sublime China Information (which filed for its second HKEX IPO on August 25, 2026) highlights that value in China’s corporate data market is concentrated strictly in proprietary, transactional, and workflow-embedded datasets, whereas generic online training and public-regulatory education platforms possess negligible pricing power.
• Severe Governance and Capital Allocation Risks in the GEM Space: China E-Information’s collapse was fundamentally a governance failure, culminating in the HKEX’s March 18, 2025 disciplinary actions against eight former directors. These directors authorized 97.0 million HKD in unauthorized, uncollateralized lending transactions that represented 66.0% of the company’s total assets, leading to an ultimate write-down of 84.0% of those receivables.
• Intensifying Regulatory Scrutiny on Cross-Border Data Flows: Industry leaders like Sublime China Information (301299.SZ) face growing compliance hurdles. The CSRC’s March 2026 regulatory inquiry specifically demanded detailed disclosures regarding whether its data collection methodologies violate China’s Data Security Law or involve the transmission of sensitive, industrial-grade data to foreign third parties.

• Baidu announced on 27 Aug 2026 following the EGM and before market open that its dual-primary listing takes effect on 1 Sep 2026.
• Baidu clears the two WVR first-inclusion thresholds for both market cap and turnover.
• All five prior conversions saw positive 10-day returns and positive 10-day southbound inflows after Connect ADD.

• Unitree still trades at 3.9x its IPO price after a strong post-listing move, so we estimate the index ADD timeline below.
• Unitree’s since-listing average total market cap has fallen to 7th on the STAR Market, missing fast-entry thresholds by 8% to 9%.
• Earliest windows are Dec 2026 for STAR50, Aug 2027 for SSE A Share, Dec 2027 for CSI 300, and Jan 2028 for Connect. 

• On the 24th August 2026 , TCL Electronics (1070 HK), a global consumer electronics play, announced the spin-off of its photovoltaic business segment by way of distribution in specie.
• 1Q26 photovoltaic revs were HK$4.8bn, ~16.4% of group revenue, compared to 18% and 13% in FY25 and FY25. Given lower margins, its % contribution to the bottom line is smaller.
• Other significant developments include the Sony Corp (6758 JP) home-entertainment business JV; and the recent HK$5.6bn air-conditioning acquisition.

• Medcaptain Medical Technology (MEDT HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• Medcaptain Medical Technology (MMT) is a global medical solution provider specializing in life support, minimally invasive intervention, and in-vitro diagnostics.
• In the previous note, we looked at the company’s past performance. In this note, we talk about its PHIP updates.

• Dream International 1st Half Results confirm our positive stance. Demand for the product is growing driven by the “kidult” market.
• Revenue grew 12%, growing across all 3 products: Stuffed Toys was the main growth driver, with both Plastic Figures and Tarapulin registering growth though lower.
• Margins weakened across all 3 products, leading to 24% decline in net profit.

• In this insight we discuss about Yadea (1585 HK) ‘s acquisition of Jinjian Technology.
• We further discuss about the contours of the transaction and the implied valuation.
• Finally, we present our view on this transaction and why it is beneficial for Yadea.

• The proposed HK$1.223 per share privatization of Changhong Jiahua (3991.HK) by Hongtu Investment has effectively collapsed. While Mianyang City SASAC approved the transaction, the Sichuan Provincial Development and Reform Commission (DRC) and Department of Commerce have stalled the process with queries regarding valuation and state-asset preservation. With the September 20, 2026 Long Stop Date rapidly approaching, satisfying the remaining State Administration of Foreign Exchange (SAFE) pre-conditions is mathematically impossible.
• Working capital is severely constrained by a massive, unresolved legal dispute with Suning Procurement Center. Although Changhong Jiahua won a first-instance judgment ordering Suning to pay RMB 720.47 million in product costs and RMB 124.61 million in capital occupancy losses, Suning’s appeal to the Jiangsu Higher People’s Court has locked up over RMB 845 million in legal limbo. This frozen capital is nearly equivalent to the company’s entire market capitalization of HK$900 million.
• Capital allocation remains heavily subservient to the parent company, Sichuan Changhong Electric (600839.SH). Despite generating HK$43.83 billion in FY2025 revenue and adding HK$1.4 billion in net cash since the privatization offer was announced, the board recommended paying zero dividends for FY2025. This cash is functionally trapped onshore within the parent company’s cash-pooling framework to support parent liquidity, offering no protection or return to minority offshore shareholders.

• The power- (electricity-) hungry AI leaves us to dig deeper in the value chain and enter Harbin Electric (1133 HK) , 1 of 3 largest heavy power makers in China.
• Harbin benefits from Chinese government decarbonization policies from the high-margin equipment and EPC contacts. 
• Despite the run-up in the share price, it is mostly caused by earnings growth rather than purely multiple expansion—now trades at 13x PER vs 20x PER before. 

• Orient Overseas (International) (316 HK)‘s 23.7% decline in earnings in 1H26 is uninspiring, but market spot freight rates suggest an upturn in 2H26.
• Its vessels on the vast majority of long-haul routes are fully loaded, and its load factor in 2Q26 has reversed four consecutive quarters of YoY decline – a positive sign.  
• There is an earnings upgrade potential as 2H26 can easily pass the US$1bn mark. We are positive on OOIL but still prefer SITC International (1308 HK). 

• Ugreen Group Limited is a global consumer technology company with a diversified portfolio across charging, office, audio/visual, and storage products.
• Ugreen Group ranked first in Chinese mainland and global consumer technology extension products market by shipment volume in 2025.
• Gross profit margin was 38.4% and current ratio was 3.4 as of June 30, 2026.

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• 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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• Mech Mind launched Hongkong IPO to raise nearly HK$ 2.4B. They provide intelligent robot components, with their products deployed in equipment used in end customers’ production and operational processes.
• Mech Mind intends to use the proceeds for research and development, enrich product portfolio, expand global presence, expand production capacity and for general corporate purpose.
• Technological prowess, R&D and production capabilities and supply chain efficiency of the company does make this issue fundamentally worth for investors with a long-term investment horizon.

• Alibaba (9988 HK) dropped 9.4% following its HKD 80bn placement, although the capital raising represents only 3.6% of market capitalisation and will fund AI investment.
• One-Month implied volatility stands at 42.3%, in its 67th percentile, creating elevated—but not extreme—premium income opportunities.
• September short puts offer premiums ranging from 1.3% to 4.1%, with lower strikes providing greater downside protection and higher strikes offering greater tactical returns.

• In this insight, we discuss the key reasons which led Yadea (1585 HK) to poor results in H1FY2026.
• We also discuss the outlook for H22026 and key risks to it.
• Finally, we discuss on valuation and our view on the company.

• Total revenue grew by 16% YoY and tea revenue grow by 30% in 1H26.
• The gross margin is about 61%, only next to Coca-Cola.
• We believe the stock has an upside of 28% for the year end 2027.

• Longsys’ record-breaking H1 2026 net profit of RMB 10.58 billion is a transient “inventory dividend” driven by low-cost stockpiles meeting peak market contract prices; as memory price growth slows to 10–15% in Q3 2026, the company faces a severe margin compression risk in 2027 as cheap inventory is fully depleted.
• The massive operating cash outflow of RMB 3.15 billion in H1 2026 reflects a structural working capital squeeze, driven by a 439% increase in wafer prepayments demanded by top-tier foundries to secure allocation, forcing Longsys to seek a $500 million H-share listing in Hong Kong as a critical funding lifeline to manage its $1.2 billion net debt.
• While vertical integration via the 70% acquisition of Powertech Technology Suzhou (rebranded as Longforce Suzhou) has successfully scaled local assembly, Longsys’ proprietary controller technology remains low-to-mid tier compared to Phison, and their strategic joint venture with Kingston has stalled, limiting their win/loss ratio in stickier Tier-1 enterprise accounts.

• Forms Syntron has been deeply involved in core projects of Hong Kong’s digital financial infrastructure.The Company has established a profound trust barrier within the Hong Kong digital financial regulatory framework.
• Improvement in gross margin and quarterly fluctuations coexist. Revenue recognition method that combines material cost estimation with project-based system leads to a phased imbalance in revenue rhythm and profit distribution.
• The valuation of the fintech/software services sector in the Hong Kong stock market is significantly lower than that in the A-share market. A neutral scenario could be P/E of 30-35x.

• Zylox Tonbridge Medical (2190 HK) achieved a revenue of RMB 632M, up 31% YoY, primarily attributable to the high sales growth of both neurovascular and peripheral vascular interventional devices segments. 
• In 1H26, Zylox achieved success in international business with a revenue of RMB 70.6M, up 349%, primarily from Europe, Asian and Latin American regions.
• The global growth prospects will provide the required positive impetus going forward. We feel the stock has ample room for growth and value appreciation left within.

• Shenzhen Longsys Electronics (LNGS HK / 301308 SZ) is the world’s second-largest independent semiconductor memory enterprise and China’s largest, holding a 1.2% global memory product market share across comprehensive NAND Flash and DRAM product lines.
• The company possesses a defensible multi-brand architecture—FORESEE (global B2B/industrial), Lexar (tier-1 global consumer retail), and Zilia (market leader in Latin America)—underpinned by vertically integrated in-house controller IC design, proprietary firmware, and advanced System-in-Package (SiP) backend manufacturing capabilities.
• Benefiting from the structural upcycle in memory pricing, accelerating AI edge device penetration, and enterprise SSD/server DRAM adoption, Longsys has demonstrated explosive earnings expansion (1H 2026 revenue of RMB 24.09B, up 136.3% YoY, with net profit attributable to shareholders reaching RMB 10.58B), while its dual A+H listing enhances global capital access and supply chain internationalization.

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• 1H26 revenue up 37% YoY to RMB3.7bn and adjusted net profit was up 37% YoY to RMB1.0bn. Revenue mix (Pre/Post-IND) remained stable. 51 newly signed iCMC projects (record-high).
• 1H26 results call: management takeaways focus on 1) GPM outlook, 2) Singapore site utilisation ramp-up, 3) BioDlink integration, 4) commentary on project funnel, backlog growth, and 2026 guidance.
• At ~HK$78, the stock is currently trading at ~45/37x 2026E P/E (per our back-of-envelop estimates on IFRS and adjusted EPS basis). See inside for call takeaways and financial analysis.

• Higher memory costs remain the primary storyline in the world of consumer electronics.
• Higher memory costs and supply disruptions have led to price increases from many consumer electronics OEMs. Higher prices for new handsets have negatively impacted demand for new devices but have increased demand in the secondary market, where ATRenew operates.
• ATRenew continues to explore new business lines and service models to increase brand awareness and increase the percentage of customer spending it can capture.