HK Stock Connect Insight | TYK MEDICINES-B (02410.HK): Cut from the Stock Connect list on Sept 7, southbound stake falls from 36.50% to 28.39%

NewTimeSpace News: On 20 September, TYK Medicines-B (02410.HK) published an announcement on the lapse of the subscription agreement for the issue of H shares under the general mandate. The agreement had covered the allotment and issue of 63,222,744 H shares to Qilu Pharmaceutical's designated subscriber at a subscription price of HK7.30 per share, for aggregate cash consideration of about HK462 million or RMB400 million in equivalent terms. As certain conditions precedent had not been satisfied or waived by the revised long stop date, the two parties mutually agreed not to extend it further, and the subscription agreement lapsed at the end of 20 September.

The company said the licence and cooperation agreement and the supply and commercialisation agreement would continue to be observed by both parties, and that the Board considered the lapse would not have any material adverse effect on the Group's business operations and financial position, adding that both parties retained the intention to proceed with a share subscription, with details still under negotiation.

In the Hong Kong market, the shares of TYK Medicines-B have retreated noticeably since early September. The stock closed at HK4.410 on 7 September, and traded as low as HK2.410 intraday on 14 September. As of the close on 2 November, the shares stood at HK$2.860, down 7.29%.

On southbound holdings, the company was removed from the Stock Connect list effective 7 September 2026 following changes to the Hang Seng Composite Index review results. The Hong Kong Exchange CCASS shareholding records show that southbound holdings kept declining both before and after the removal: the Shanghai and Shenzhen Stock Connect seats together held 134.49 million shares on 21 August and rose to a period high of 138.73 million shares on 7 September, the effective date of the removal, before gradually falling back to 107.91 million shares on 30 October.

On fundamentals, the most recent results are the interim results for the six months ended 30 June 2026, reported in renminbi. Revenue was nil, while other income and gains amounted to RMB142 million, mainly from a RMB129 million gain on the deemed disposal of a subsidiary and government grants relating to interest-free financing; R&D costs were RMB94.943 million, up 7.0% year on year, mainly from higher staff costs; administrative expenses were RMB62.554 million, up 61.3%, mainly from increased financing adviser fees; and loss for the period narrowed to RMB26.882 million from RMB114.065 million a year earlier, a 76.4% reduction, with loss attributable to owners of the parent of RMB24.897 million and basic and diluted loss per share of RMB0.07. As at end-June, the Group held cash and bank balances of RMB202 million, 45.0% below the RMB367 million at the end of 2025, with net assets of RMB261 million at the period end. The RMB700 million in aggregate upfront payments under the licence and cooperation agreement and the supply and commercialisation agreement reached with Qilu Pharmaceutical on 21 July comprises a cash technology licence upfront payment and a share subscription payment, the share subscription leg being the H share subscription that lapsed on 20 September as described above.