HK Stock Connect Insight | LONGBIO-B (01779.HK) proposes amendments to the articles of association for review at the EGM on October 30; southbound holding ratio rises to 3.48%

NewTimeSpace News: LongBio Pharma (Suzhou) Co., Ltd. (01779.HK) announced on October 9 that the Board proposed amendments to Articles 3, 6 and 20 of its articles of association to reflect changes in the Company's registered share capital and shareholding structure after the over-allotment option was exercised in full, and further proposed amending Article 69 to adopt wording more appropriate to applicable domestic laws and regulations.

Following the amendments, registered share capital would increase from RMB74.19315 million to RMB76.3221 million and total shares from 74,193,150 to 76,322,100, of which H shares would increase from 72,930,268 to 75,059,218, while domestic unlisted shares would remain unchanged at 1,262,882. The related resolutions must be tabled at an extraordinary general meeting to be held at 4:00 p.m. on October 30 (Friday) in Shanghai for approval by special resolution, and the Company will suspend registration of transfers of shares from October 27 to October 30. The amendments will only take effect upon approval, and the existing articles of association remain valid until then.

In the market, the shares have seen notably increased volatility recently. The company's H shares have been included in the eligible securities lists for the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect since September 7, 2026. From October 13 to October 20, closing prices were HKD89.75, HKD84.55, HKD72.40, HKD74.40 and HKD73.80 respectively, with a single-day decline of 14.37% on October 15. On October 16, the intraday high spiked to HKD110.70, briefly triggering the market volatility control mechanism and triggering a five-minute cooling-off period, with the day's trading range reaching 53.31%, making it the most actively traded session in nearly a month. As of 13:45 on October 21, the shares traded at HKD71.50, down 3.12% from the previous trading day's close of HKD73.80.

On southbound holdings, according to Choice data, on September 9, the first disclosure day after inclusion in Stock Connect, the number of shares held through Stock Connect was 862,250, representing 1.14% of shares, with holdings worth HKD98,555,175. Southbound holdings then continued to rise, with a net addition of 413,000 shares on September 23 taking holdings to 2,356,850 shares, or 3.13%, and rising further to 2,515,000 shares, or 3.34%, on September 30. Between October 8 and October 20, southbound holdings fluctuated narrowly around 2.6 million shares, standing at 2,616,150 shares on October 16 and rising further to 2,621,050 shares, or 3.48%, on October 20, an increase of 2.34 percentage points from September 9.

On fundamentals, the Company is a clinical-stage biopharmaceutical company that has not yet obtained approval for product sales and therefore recorded no revenue from product sales during the reporting period, with gross margin not applicable. According to the2026 interim results presented in Renminbi, for the six months ended June 30, other income and gains were RMB3.401 million, compared with RMB879,000 in the same period a year earlier, an increase of 286.9%, mainly from bank interest income of RMB2.5 million and government grants of RMB400,000. Research and development costs were RMB108 million, up60.8% from RMB67.291 million a year earlier, accounting for 8.49% of total assets of RMB1.274 billion as of period end. Administrative expenses were RMB24.622 million, up 117.0% from RMB11.349 million. Loss for the period and total comprehensive loss was RMB135 million, compared with a loss of RMB94 million in the same period a year earlier, an increase of 43.1%. As of June 30, the Company had cash and cash equivalents of RMB904 million and time deposits of RMB304 million, current assets of RMB1.236 billion and net assets of RMB1.127 billion, up 702.2% from RMB141 million at the end of 2025, while the current ratio rose from 2.4 to 9.0.

On the pipeline, the biologics licence application for the core product LP-003 for seasonal allergic rhinitis was accepted by the National Medical Products Administration in August 2026, and the clinical trial application for the peanut allergy indication was approved by the US Food and Drug Administration in July. The lead product LP-005 is a bifunctional complement fusion protein targeting C3b and C5, and its Phase II expansion trial for paroxysmal nocturnal haemoglobinuria as well as Phase II trials for complement-mediated kidney disease and severe periodontitis have all been initiated. In addition, according to the Company's allotment results announcement, 14 cornerstone investors hold a combined 7.0904 million H shares, with the lock-up period expiring on December 4, 2026 and the shares becoming tradable from December 7, representing subscription amounts of approximately HKD681 million at the issue price of HKD96.06.