Daily Brief China: Pharmaron, SHEIN, Weichai Lovol Intelligent Agricultural Technology, Ziyond Pharmaceutical and more

• China’s CXO sector is growing rapidly, with China’s dominant companies providing critical services to global pharmaceutical companies.  New modalities, particularly GLP-1/TIDES, ADCs, and bispecific antibodies, are structural demand drivers.
• The biggest overhang for the sector, the US BioSecure Act, is overblown due to the US pharma industry’s substantial structural dependency on China’s CXO sector.
• Pharmaron’s investment case rests on three interlocking pillars: an irreplaceable integrated platform, a landmark commercial anchor in the GLP-1 supercycle, and the structural impossibility of a rapid US-China CXO decoupling.

• SHEIN has received formal permission from China’s CSRC to list its shares in Hong Kong
• The IPO could value SHEIN at US$40-50B per reports, about half of its valuation in 2022
• Also: Temu fined 200M Euros for unsafe goods | New EU fee on cheap Chinese imports

• Weichai Lovol is the largest agricultural machinery manufacturer in China, holding a dominant market share in key product segments like tractors and combine harvesters.
• As a core subsidiary of Weichai Power, the company benefits from significant synergies, including access to industry-leading powertrain technology (engines, transmissions), hydraulic systems, and new energy solutions, creating a unique vertically integrated industrial chain.
• The company is strategically focused on intelligent agriculture, developing high-end, smart agricultural machinery and integrated digital platforms to capitalize on China’s push for agricultural modernization and food security. A planned IPO on the Hong Kong Stock Exchange is expected to fund future growth and global expansion.

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• Ziyond Pharmaceutical is a specialized topical dermatology company in China, offering category-leading products. It seeks HKEX listing to fund portfolio, manufacturing, and market expansion.
• Revenue increased from RMB1,030,560 thousand in 2023 to RMB1,323,670 thousand in 2025, with adjusted net profit reaching RMB180,933 thousand in 2025.
• Gross profit margin decreased from 71.8% in 2023 to 66.1% by March 31, 2026, while the debt-to-assets ratio increased to 64.9%.

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