Baili Tianheng's Earnings Turnaround: Shrinking Revenue from Partnerships, High R&D Growth Turning Profit into Loss, Betting on Hong Kong Stocks to Raise Funds and Overcome Difficulties

Securities Star Liu Fengru

Focus on innovative pharmaceutical companies in the tumor large-molecule treatment field, Baili Tianheng (688506.SH), which once achieved a performance turnaround through a significant partnership with BMS. In 2024, revenue and net profit experienced explosive growth. However, this high performance only lasted one year, and by 2025, the company faced a “half” revenue and a shift from profit to loss, mainly due to a sharp decline in partnership income and continued increases in R&D investment.

Securities Star notes that alongside these dramatic performance fluctuations is Baili Tianheng’s turbulent H-share IPO journey. After passing the Hong Kong Stock Exchange hearing in 2025, the listing was suspended due to “current market conditions.” Even after raising billions of yuan through private placements, the company still struggled to fill its funding gap. Under heavy financial pressure, Baili Tianheng decided in 2026 to extend the validity of its H-share listing resolution and continue efforts to “refill the blood” through the H-share market.

Performance Fluctuations: Revenue Surge Followed by Profit Collapse and Loss

Founded in 1996, Baili Tianheng was listed on the STAR Market in January 2023. It is a company focused on cutting-edge global biopharmaceuticals, primarily addressing unmet clinical needs in tumor large-molecule treatments (ADC/GNC/ARC). The company possesses leading global innovation R&D capabilities, clinical development, and large-scale production and supply capacity. Currently, it has two main business segments: innovative biologics and chemical drug formulations, with innovative biologics as the core focus.

By the end of 2023, Baili Tianheng’s wholly owned subsidiary SystImmune reached a global strategic cooperation agreement with BMS regarding the development and commercialization rights of BL-B01D1. Under the agreement, BMS will pay SystImmune an upfront payment of $800 million, with a potential total transaction value of up to $8.4 billion.

This major partnership directly drove a stunning turnaround in Baili Tianheng’s 2024 performance: revenue soared by 936.31% year-over-year to 5.823 billion yuan, and net profit attributable to shareholders skyrocketed by 575.02% to 3.708 billion yuan. However, this profit recovery lasted only one year, and Baili Tianheng’s performance again took a turn.

According to the 2025 performance forecast, the company’s full-year revenue was 2.52 billion yuan, down 56.72% year-over-year; net profit attributable to shareholders fell 128.34% to a loss of 1.051 billion yuan; after deducting non-recurring gains and losses, net loss was 1.167 billion yuan, a decrease of 132.1% year-over-year.

Regarding the sharp decline in performance, Baili Tianheng stated that two main factors contributed: first, the smooth progress of cooperation with BMS on iza-bren (EGFR×HER3 bispecific antibody ADC), with the milestone for the global Phase II/III clinical trial IZABRIGHT-Breast01 reached, resulting in the receipt of the first milestone payment of $250 million and recognition of related income. In the same period last year, the company received BMS’s irrevocable, non-deductible upfront payment of $800 million for the iza-bren cooperation, which was recognized as intellectual property income. The decline in revenue during the reporting period was mainly because the income recognized from last year’s upfront payment was higher than the milestone income recognized this year; second, to accelerate product pipeline R&D and consolidate its leading position, the company increased R&D investment significantly, which dragged down profit performance.

Securities Star observes that, impacted by negative performance news, Baili Tianheng’s stock price has come under significant pressure, with continuous declines in recent trading days, hitting a low of 245.87 yuan per share on March 3.

Post-Hearing H-Share IPO Stalls; Continued Efforts Under Massive Funding Needs

Besides the dramatic fluctuations in operational performance, Baili Tianheng’s capital deployment actions have also attracted attention, especially its progressing plans for Hong Kong listing, which have experienced many twists and turns.

In July 2024, Baili Tianheng submitted an application for listing on the Hong Kong Stock Exchange. After failing to pass the hearing within six months, the company re-submitted its application on January 21, 2025, and again on September 29, 2025. In October last year, Baili Tianheng passed the hearing for listing on the Main Board of HKEX.

According to the original plan, Baili Tianheng was to launch the H-share Hong Kong public offering from November 7 to November 12, 2025, with 7.7708 million international offering shares, accounting for about 90% of the global offering, and was scheduled to list on the H-share market on November 17. However, the company announced the suspension of the listing due to “current market conditions,” and its dual “A+H” listing plan was officially abandoned.

Analysts pointed out that the core reason for delaying the H-share listing was a mismatch between the company’s pricing strategy and the market environment at the time. It was reported that Baili Tianheng planned to issue H-shares at HKD 347.5 to HKD 389 per share, while the A-share price was about CNY 370 per share, with no significant discount for the H-shares. Additionally, the IPO set a high minimum investment threshold of nearly HKD 40,000 per lot, which also affected market enthusiasm.

Regarding the suspension, Baili Tianheng stated that the decision to delay the global offering would not impact its existing operations, and the company would continue to focus on developing and expanding its core business.

Despite the setback in its initial Hong Kong listing plan, Baili Tianheng has not given up on entering the H-share market amid the biotech IPO boom. On February 10, 2026, the company announced that its first extraordinary general meeting in 2026 had approved the extension of the validity of the resolution related to issuing H-shares and listing, indicating continued efforts to pursue Hong Kong listing.

As of the 2025 annual report, the company had 17 innovative drugs in clinical trials, including 6 in global clinical trials; it is conducting over 100 innovative drug clinical trials worldwide, including more than 90 domestically (including 17 Phase III registration trials) and 10 overseas (including 3 global Phase II/III registration trials).

Notably, the NDA applications for two indications of its core product iza-bren (EGFR×HER3 bispecific antibody ADC)—locally advanced or metastatic nasopharyngeal carcinoma and recurrent or metastatic esophageal squamous cell carcinoma—have been accepted by the National Medical Products Administration (NMPA) and included in the priority review process. While the innovative drug pipeline has made key progress, subsequent R&D and commercialization still require substantial funding.

To address funding gaps, Baili Tianheng completed a private placement of 3.764 billion yuan in September 2025, but this financing still fell short of the company’s ongoing R&D and operational needs, which also motivated its continued push for Hong Kong listing. (This article first published by Securities Star, author: Liu Fengru)