Daily Brief China: SHEIN Global Holdings, Hunan Junxin Environmental Protection, Suzhou Zelgen Biopharmaceuticals and more

• A weekly summary of key developments in ECM and Event-Driven names that I track in Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India, and Chinese ADRs.
• ECM developments: SHEIN Global Holdings (SHEIN HK) and GCash (Mynt) (GCASH PM) IPOs.
• Event-Driven developments: Kakaku.com Inc (2371 JP), Austal Ltd (ASB AU), Betmakers Technology Group (BET AU), Cleanaway Waste Management (CWY AU), Cygnus Metals (CY5 AU), FleetPartners Group (FPR AU). 

• Hunan Junxin Environmental Protection Co., Ltd. provides specialized solutions in integrated waste treatment and resource utilization, operating green energy and environmental services projects. Its Changsha Environmental Protection Industrial Park is.
• Its Changsha Environmental Protection Industrial Park is among China’s largest, and it ranked first in 2025 for on-grid electricity generated per ton of waste.
• In FY2025, revenue was 2,730,708 and profit for the year was 994,018. Gross profit margin decreased from 51.2% (2023) to 41.5% (2024).

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• H1 2026 Paper Profitability is Unreconstructedly Transitory: While Suzhou Zelgen Biopharmaceuticals reported its first-ever half-year net profit of RMB 640 million on RMB 1.205 billion in revenue, RMB 655 million (representing 54.4% of the total) was derived from AbbVie’s one-off upfront licensing payment for ZG006. The core organic business remains structurally unprofitable and heavily weighed down by a 57.42% sales expense rate.
• Commercial Tailwinds Diverge sharply by Asset: Donafenib (Zepsun) has captured a stable 26.8% of the Chinese first-line hepatocellular carcinoma small-molecule market, but its premium price of RMB 3,000/box after National Reimbursement Drug List (NRDL) cuts struggles against ultra-cheap Volume-Based Procurement (VBP) generics of Lenvatinib. Meanwhile, the success of Jaktinib (Zepuping) hinges entirely on expanding beyond its niche bone marrow fibrosis indication into broader autoimmune markets like severe alopecia areata.
• Capital Offloading via Global Out-Licensing is the Survivable Path: With 29 active clinical trials across 10 drug candidates, Zelgen’s cumulative R&D spend of RMB 1.314 billion from 2023 to 2025 created severe capital constraints. The strategic decision to out-license ex-China rights for ZG006 to AbbVie for $100 million upfront and up to $1.075 billion in milestones is a highly efficient blueprint for preserving local cash reserves to fund high-stakes domestic trials for ZG005.