Daily Brief China: Bilibili, Ligent Technologies, Ascentage Pharma, Hang Seng Index, Lotus Horizon, Shenzhen Longli Technology Co and more

• Tencent (700 HK) aims to raise around US$400m via selling some of its stake in Bilibili (9626 HK) in HK.
• At the same time, the company will issue CB, along with a delta placement, and buyback some shares.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• 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.
• Our prior note covered the company’s business, financials and pre-IPO investor backing.
• This note compares Ligent with listed peers from a financial, operating and valuation perspective.

• Ascentage Pharma (6855 HK) reported revenue of RMB 302.2M in 1Q26 (up 29% YoY), from the sales of pharmaceutical products, commercialization rights income from Innovent Suzhou and service income.
• R&D cost will continue to tread on a higher trajectory. Company will continue to advance enrolment in the trials and actively advance inclusion of Lisaftoclax in China’s NRDL in 2026.
• Building on the differentiated clinical profile of both products, Ascentage is well positioned to accelerate market penetration and prepare for potential new indication approvals and upcoming NRDL inclusion opportunities.

• A late-week rebound changed the tone after a soggy start with single stock option volumes following suit.
• The debut of 625 drew attention as both the shares and newly listed options began trading during a difficult week.
• Financials separated themselves from the broader market as performance across the rest of the optionable universe remained weak.

• Imminent Unconditional Takeunder: Lotus Horizon’s current trading halt (effective September 3, 2026) is highly likely the prelude to a classic shell-sale exit by the controlling shareholder, Platinum Lotus, structured as an unconditional takeunder at a massive discount (over 90%) to the pre-halt market price of HK$1.14.
• Extremely Inflated Valuation: The stock’s pre-halt valuation of 18.14x P/B (HK$2.28 billion market cap versus HK$125.66 million in net tangible assets) is a speculative bubble detached from fundamentals. A realistic transaction value for the clean listing shell would price the equity at a minor premium to net assets (HK$0.063 per share), rather than the inflated trading multiple.
• Formidable Regulatory Hurdles: For the SFC and HKEX to lift the trading suspension, the incoming buyer must navigate rigorous anti-backdoor listing rules under HKEX Listing Rule 14.54. Any prompt attempt to inject new assets or pivot the business will be classified as a Reverse Takeover (RTO), triggering a lengthy and demanding new listing application process.

• Shenzhen Longli Technology Co., Ltd. (300752 CH) is a leading Chinese designer and manufacturer of LED backlight display modules, aggressively transitioning from commoditized consumer electronics into high-value automotive Mini-LED backlights and advanced LIPO (Light Integrated Package Optics) encapsulation technologies under its ‘1+2+N’ strategic blueprint.
• Financial performance demonstrates an ongoing operational turnaround, with full-year revenue expanding from RMB 1,024.17M in 2023 to RMB 1,559.20M in 2025 (a 3-year CAGR of 7.68%), while net income expanded at a 3-year CAGR of 29.75% to RMB 60.88M in 2025, supported by stable gross margins of 14.06% and Q1 2026 revenue of RMB 367.76M.
• Despite positive long-term secular tailwinds in automotive smart cockpits, near-term valuation remains elevated at a trailing P/E of 78.0x and P/B of 2.9x (EV/Sales of 2.3x), reflecting heavy ongoing capital expenditure on the Xiamen and Huizhou smart manufacturing bases and free cash flow volatility (-RMB 105.45M in 2025).

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