Breaking Down Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Financial Health: Key Insights for Investors

From its 1998 origins as a Shenzhen heparin manufacturer to a cross-border player listed on Shenzhen (ticker 002399) and Hong Kong (9989.HK), Shenzhen Hepalink Pharmaceutical Group has built a vertically integrated empire that spans the heparin industrial chain, CDMO services and innovative drug development, operating in 40+ countries by 2025 and trading at $1.93 per share with a market capitalization of $2.59 billion as of July 21, 2025; backed by co-founders Li Li and Yu Shan and major holders Shenzhen Le Ren Technology (holding 32.31%) and Urumqi Jintian Tuqu (holding 27.81%), Hepalink earns revenue from finished-dose products like heparin and enoxaparin injections, API sales, growing CDMO contracts (CDMO sales reached RMB 1,033.8 million in 2024, up 6.9% YoY) and nascent innovative drug commercialization (notably H1710 clinical trial approval in February 2025), positioning the company for analyst-projected annual earnings growth of 16.5% and revenue growth of 7.9% as it leverages quality, global expansion and R&D to capture multiple pharmaceutical revenue streams

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): Intro

• 1998 - Company established in Shenzhen with core competency in heparin production.
• 2004 - Listed on the Shenzhen Stock Exchange (ticker: 002399).
• 2010 - Diversified into CDMO services for large-molecule biologics (development, clinical supply, commercial manufacturing).
• 2015 - Secondary listing on the Hong Kong Stock Exchange (ticker: 9989.HK).
• 2020 - Strategic pivot into innovative drugs: internal pipelines and partnered programs for novel therapies.
• By 2025 - Global footprint expanded to operations in over 40 countries and regions; diversified product portfolio across heparin, biologics/CDMO and innovative drugs.

• API manufacturing (heparin and other anticoagulants): bulk active pharmaceutical ingredient production, sales to domestic and international generic and branded drug makers.
• Biologics and CDMO services: fee-for-service revenue from contract development and manufacturing for biologic therapeutics (process development, GMP clinical/commercial supply).
• Proprietary innovative drugs: research, clinical development, licensing and potential product sales; revenues from milestone payments, royalties and eventual drug sales.
• Downstream product sales and finished-dosage formulations: domestic and export sales of finished products built on in-house APIs and biologics.

• Dual-listed structure - A-share listing on Shenzhen Stock Exchange (002399) and H-share on Hong Kong Stock Exchange (9989.HK) reflects combination of domestic investor base and international capital access.
• Major shareholders historically include founding management, strategic pharmaceutical investors and institutional funds via the two markets (ownership stakes vary over time with public float on both exchanges).
• Corporate governance follows PRC law for A-shares with HKEX disclosure requirements for the H-share listing, enabling cross-border investor visibility.

• Integrated API and biologics manufacturing - in-house capabilities from raw-material processing for heparin through to GMP biologics suites for clinical and commercial supply.
• CDMO platform - services spanning analytical development, process optimization, formulation, clinical supply and scale-up to commercial volumes for biologics clients.
• Innovative pipeline - internal programs plus partnered clinical-stage assets; strategy blends in-house development with licensing and collaboration deals to de-risk commercialization.

• Scale CDMO capacity to capture biologics outsourcing demand from global biotech and pharma companies.
• Advance internal innovative drug candidates through clinical stages and seek partnering/licensing deals for late-stage development and commercialization.
• Expand regulatory certifications and international supply chains to support sales and exports across >40 countries/regions.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): History

Founded in the 1990s and listed in Hong Kong, Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK) grew from a regional heparin and API manufacturer into an integrated specialty pharmaceutical group with downstream formulation, international distribution and biologics initiatives. Co-founders Mr. Li Li and Mr. Yu Shan remain in leadership roles, ensuring strategic continuity through expansion, M&A and export scaling.

• Core businesses: heparin API and intermediates, finished-dose anticoagulants, anticoagulant raw materials export, generic and specialty injectables, research & development in biologics.
• Geographic footprint: China domestic manufacturing and global exports (Asia, Europe, Americas).
• Key corporate events: public listing, capacity expansions for heparin API, backward integration into raw-material processing, strategic investments in biologics R&D.

Ownership Structure

• Shenzhen Le Ren Technology Co., Ltd. - 32.31% (largest shareholder)
• Urumqi Jintian Tuqu Equity Investment Partnership (L.P.) - 27.81%
• HKSCC Nominees Limited - 15.00%
• Public investors & institutional shareholders - remaining ~24.88%

Mission

Deliver safe, reliable anticoagulant APIs and finished products while advancing pharmaceutical innovation and global access to critical medicines; maintain supply-chain integrity and regulatory compliance across manufacturing and export operations.

How It Works & Makes Money

• API production: manufacturing and selling heparin and other APIs to domestic and international pharmaceutical firms - primary revenue driver.
• Finished-dose sales: revenue from branded and generic anticoagulant formulations sold through hospital and distributor channels.
• Export-driven margins: scale advantages from large-volume exports and long-term supply contracts improve gross margins.
• R&D and biologics: investment in biologic candidates and specialty injectables aimed at higher-margin future revenue streams.
• Vertical integration: upstream control of raw materials and processing reduces input cost volatility and supports margin stability.

Further investor context: Exploring Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Investor Profile: Who's Buying and Why?

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): Ownership Structure

• Mission: bring safe and effective therapies and services to patients worldwide, addressing unmet medical needs.
• Innovation: focus on developing and commercializing highly differentiated innovative drugs.
• Quality: ensure products meet stringent international standards and GMP requirements.
• Global expansion: aim to provide accessible healthcare solutions across regions through partnerships and local operations.
• Integrity: maintain transparent and ethical business practices in clinical trials, manufacturing, and commercialization.
• Collaboration: work with global partners-academic, biotech and commercial-to accelerate patient access to therapies.

• Major strategic/controlling shareholder(s): typically founders, executive-related holding vehicles, and strategic investors that exert control over corporate direction.
• Institutional shareholders: asset managers, mutual funds and sovereign/institutional investors holding significant blocks through Hong Kong listings.
• Public float: retail and other public shareholders trading on the Hong Kong Stock Exchange under ticker 9989.HK.

• Founder and strategic shareholders provide long-term orientation for heavy R&D investment cycles common in biotech.
• Institutional participation supplies capital, governance discipline and credibility for international regulatory engagement.
• Public float delivers market liquidity and access to capital markets for licensing, M&A and global expansion.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): Mission and Values

• Primary segments: heparin industrial chain, CDMO (recombinant biomacromolecules & gene therapy), and innovative drug development.
• Vertical integration spans raw-material sourcing, API and finished-dose manufacturing, quality control, and distribution.
• R&D-led strategy: in-house development, acquisitions, and partnerships to populate the pipeline and extend product lifecycles.

• Heparin industrial chain: end‑to‑end operations from research, raw material procurement (including validated animal- and synthetic-sourcing routes), API production, formulation and global sales to hospitals and distributors.
• CDMO services: contract development and manufacturing organization work focused on recombinant proteins, monoclonal-like biomacromolecules and gene therapy vectors - offering process development, GMP manufacturing, analytics and fill/finish.
• Innovative drugs: in‑licensing, internal discovery and clinical development targeting anticoagulation, oncology and rare disease indications; commercialization via Hepalink's sales channels or partner co-promotion/licensing.
• Quality & compliance: multi‑site GMP facilities, in-house QC labs and regulatory teams to support both domestic and export markets (including EU/US/Asia registrations).
• Revenue drivers: bulk heparin pricing and volumes, growing higher-margin CDMO contracts, milestone/license revenues and eventual product sales from novel approvals.

• Vertical integration reduces exposure to feedstock disruptions (critical for heparin) and allows margin capture across API-to-FDF stages.
• CDMO capability leverages existing GMP infrastructure and regulatory know‑how to convert excess capacity into higher-margin contract business.
• Cross-segment synergies: analytical, regulatory and manufacturing platforms are shared across heparin and biologics activities to accelerate development and lower unit cost.
• Geographic diversification of sales and supply partners mitigates single-market reliance; exports support foreign-currency revenue.

• Commodity sales: bulk heparin APIs and formulations sold to hospitals, distributors and other manufacturers; pricing driven by feedstock supply and global demand for anticoagulants.
• CDMO contracts: fee-for-service income (process development, clinical and commercial manufacturing) and longer-term supply agreements with biotech/pharma clients.
• Innovative-drug commercialization: product sales once approved, plus upfronts, milestones and royalties from licensing deals for assets out‑licensed to partners.
• Service margin expansion: shifting production mix from commodity APIs to specialized biologics and gene therapy processes increases blended margins.

• R&D hubs and manufacturing investments target recombinant biomacromolecules, viral vector/Gene therapy, and synthetic heparinoid development.
• CapEx is allocated to new GMP suites and analytical labs to support rising CDMO demand and planned commercial launches.
• Strategic M&A and licensing are used to acquire late‑stage assets or complementary technologies to accelerate the innovative-drug pipeline.

• Increase CDMO share of revenue to lift overall margins.
• Advance clinical programs to commercialization and monetize via sales or licensing.
• Continue vertical integration to secure feedstock and optimize unit economics.
• Expand international registrations and customer base to diversify revenue streams.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): How It Works

• Upstream API manufacturing: large-scale production of heparin and enoxaparin sodium APIs for internal use and third-party supply.
• Finished-dose formulations: manufacture and sale of injectable heparin and enoxaparin products across hospital and retail channels.
• CDMO and contract manufacturing: R&D, process development, clinical/batch manufacturing and regulatory support for biologics and complex injectables.
• Innovative drug commercialization: licensing, registration and sales of newly developed therapies emerging from internal R&D or partnerships.
• Global commercialization and export: direct entry into Europe, North America and other markets through regulatory approvals, local distributors and partnerships.

• API sales: Hepalink supplies both crude heparin and refined APIs (e.g., enoxaparin sodium) to other pharmaceutical manufacturers, capturing margin on high-volume, specialty anticoagulant APIs.
• Finished-dose sales: the company sells injectable heparin/enoxaparin and other parenteral products to hospitals and wholesalers; finished-dose products typically carry higher gross margins than bulk API.
• CDMO services: fee-based revenue from biologics and complex injectable development and contract manufacturing, growing as global biotech partners outsource manufacturing.
• Innovative medicines: revenues from new drug launches and licensing deals; these products can scale over time and command premium pricing.
• Geographic diversification: export revenues and local-market sales in Europe/US increase pricing power and reduce dependence on a single market/regulatory regime.

• Raw-material sourcing and quality control: securing animal-sourced heparin precursors and converting them into pharmacopeial-grade API is capital- and labor-intensive but creates high entry barriers.
• Scale economics: large-volume API and finished-dose production reduces unit costs; capacity utilization materially affects margins.
• R&D and regulatory investment: CDMO capability and innovative drug development require upfront R&D spend and regulatory filing costs, with revenue realization lagging investment.
• Pricing mix: branded or patented innovative products and specialized CDMO projects command higher margins than commoditized bulk heparin sales.

• Domestic hospitals and distributors - primary channel for finished-dose injectables in China.
• International distributors and direct tender wins - key for Europe/US finished-dose and API exports.
• Pharmaceutical companies and biotech firms - customers for API supply and CDMO services.
• Licensing partners and joint ventures - routes for commercializing innovative therapeutics in overseas markets.

• Capacity expansion in API and sterile injectable lines to meet rising global demand for anticoagulants and biologics manufacturing.
• Regulatory approvals and filings in Europe/US to unlock higher-margin markets and hospital tender opportunities.
• Investments in CDMO infrastructure to capture outsourced biologics manufacturing and development fees.
• Pipeline advancement and partnerships to commercialize novel therapies and capture royalty/licensing income.

Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (9989.HK): How It Makes Money

• Leading position in the global heparin market with vertical integration from raw materials to finished products.
• Commercial presence in over 40 countries, supporting global market share and export revenues.
• CDMO business expanding: sales ~RMB 1,033.8 million in 2024, +6.9% YoY.
• Innovative drug pipeline advancing-H1710 injection cleared for clinical trials in February 2025.
• Analyst consensus: annual EPS growth ≈16.5% and revenue CAGR ≈7.9% in coming years.

• Heparin/API and derivatives: high-margin core business supported by upstream control of raw materials and quality compliance.
• Finished-dose products: branded and generic formulations sold domestically and exported.
• CDMO services: fee-for-service and development partnerships; recurring revenues from contract pipelines (RMB 1,033.8m in 2024).
• Innovative drugs: R&D investment with potential high upside upon successful clinical progress and approvals (H1710 in trials as of Feb 2025).
• Geographic expansion: sales mix diversification via >40-country presence reduces single-market risk.