Global HMB Leader Jiyuan Group and Power Innovator Shanda Power Highlight Landmark IPO Week on A-Shares Market

A Watershed IPO Week for Specialized Market Leaders

The spotlight shines brightly on China’s capital markets this week with two transformative IPOs poised for subscription. Leading this landmark event is Jiyuan Group – commanding 53.34% of global HMB raw material supply – preparing to list on the Shanghai main board alongside Shandong University Power Group’s debut on the ChiNext board. These public offerings represent major milestones in China’s nutritional supplement and smart grid sectors respectively, bringing specialized market leaders to domestic investors’ portfolios.

Key Offerings at a Glance

• Jiyuan Group IPO: Priced at 10.88 yuan with 25.95x PE ratio
• Shanda Power IPO: Priced at 14.66 yuan with 19.57x PE ratio
• Total capital raising exceeding 11 billion yuan

The dual listings arrive amid healthy momentum in specialized manufacturing IPOs, reflecting sophisticated investor appetite for companies demonstrating technological specialization and robust international positioning. With Jiyuan’s vertical integration model revolutionizing nutrient production and Shanda Power’s innovative grid monitoring solutions gaining traction, this week symbolizes China’s evolving IPO landscape where technical excellence meets global competitive advantage.

Jiyuan Group: The Global HMB Powerhouse

Positioned at the intersection of nutrition science and advanced manufacturing, Jiyuan Group has systematically built unassailable leadership in β-hydroxy-β-methylbutyrate (HMB) production. This leucine metabolite represents one of nutritional science’s breakthrough compounds, clinically proven to enhance protein synthesis while reducing muscle breakdown. Following decades of research validation, HMB now commands multibillion-dollar applications spanning sports nutrition, clinical therapy, and geriatric care.

The Science Behind Market Dominance

What distinguishes Jiyuan isn’t merely production capacity but proprietary biochemical refinement processes securing unparalleled purity levels. The company’s flagship myHMB® boasts USP (United States Pharmacopeia) certification – a pharmaceutical-grade validation currently exclusive in the HMB sector. This enables premium positioning with leading global brands including Abbott Laboratories, Blackmores, and Nutramax, which constitute over 60% of Jiyuan’s B2B revenue.

The Vertical Integration Advantage

Unlike typical ingredient suppliers, Jiyuan engineered comprehensive vertical integration spanning raw material sourcing through finished formulation manufacturing:

• Tai’an facility: Specialized HMB precursor biosynthesis
• Qidong compound: Precision fermentation & extraction
• Zhangjiagang plant: Capsule/tablet formulation

This model ensures consecutive value capture while minimizing contamination risks through controlled production environments. The development pipeline includes combining HMB with complementary muscle health compounds like creatine and branched-chain amino acids for next-generation synergetic formulas.

Financial Trajectory and Strategic Fund Allocation

2023-2025 reporting reveals steadily accelerating operational scale:

• Annual revenue growth: 8.92B yuan (2023) → 10.02B yuan (2024)
• Q1 2025 revenue: 2.65 billion yuan (+17.3% YoY)
• Net margin stabilization between 17.2%-18.3%

IPO Capital Implementation Blueprint

The planned 5.44 billion yuan IPO proceeds target four strategic pillars:

1. Nutritional Health Base Expansion: 2.1 billion yuan allocated to doubling Jiangsu HMB precursor capacity
2. Qidong Formula Upgrades: 1.37 billion yuan automating capsule/tablet lines for specialized demographics
3. R&D Infrastructure: 950 million yuan establishing dedicated biotechnology innovation center
4. Operational Resilience: 1.02 billion yuan reinforcing working capital reserves

The blueprint aligns with aging populations creating muscular atrophy treatment markets growing 12.6% CAGR globally (NutraIngredients Asia). Currently, 85% of Jiyuan’s revenue derives from HMB – the expansion targets reducing concentration to under 65% through diversified polypeptide offerings.

Shandong University Power: Electrifying the Smart Grid Sector

Parallel to Jiyuan’s biochemical advancement, Shanda Power brings specialized intelligence to China’s accelerating grid modernization. As power transmission shifts toward automation and decentralized integration, the company provides essential monitoring electronics detecting faults nanoseconds faster than conventional systems.

Core Technologies Addressing Critical Infrastructure Needs

The company’s proprietary MSS-based sensors overcome nationwide grid vulnerabilities. Their key innovation lies in phasor measurement algorithms enabling:

• Real-time harmonic distortion detection
• Substation synchronization within 15 nanoseconds
• Predictive grid failure analytics through AI implementation

Deployment spans transmission corridors nationally with state grid endorsements validating solution robustness. Notably, industrial monitor installations reduce unplanned outages by over 70% per National Energy Administration case studies.

Financial Growth Metrics and Capital Utilization Strategy

Operational acceleration mirrors technological traction:

• Revenue expansion: 5.49B yuan (2023) → 6.58B yuan (2024)
• Gross margin improvement from 31.7% to 34.9%
• Substantial defense/resilience contracts boosting sector diversification

IPO Deployment Across Emerging Vertical Segments

The 5.97 billion yuan funding program strategically develops adjacency opportunities:

1. Grid Analytics Enhancement: 1.8B yuan scaling ML-enabled diagnostic platforms
2. EV Infrastructure: 1.25B yuan developing bidirectional charging systems
3. Microgrid Integration: 980M yuan implementing rural distributed solar storage

This positions Shanda at energy transformation convergence points as battery storage installations forecast 22% compound growth nationally (China Energy Storage Alliance).

The STAR Horizon: Beixin Life Sciences’ Approaching Review

Alongside imminent listings, STAR Market prepares consideration of Beixin Life Sciences – a cardiovascular diagnostics innovator seeking approval via Chapter 5 criteria valuing innovation over profitability thresholds. Its uniqueness lies in dual coronary assessment solutions revolutionizing interventions:

Cardiovascular Diagnostics Through Dual Pathways

• Ivus60™ Imaging: Pioneering high-frequency (60MHz) intravascular ultrasound delivering 0.03mm resolution
• TruePhysio® FFR: Fractional flow measurement validated against invasive hemodynamic assessment

Commercially, this positions Beixin advantageously against Abbott’s Dragon Fly™ and Phillips’ Navius systems lacking integrated functionality. Pending approval would mark China’s first domestically developed IVUS/FFR combo platform – a solution clinically proven decreasing unnecessary stent placements by up to 34% (BEECLIFF trial).

Investment Implications and Sector Considerations

The converging narratives within this IPO period reveal three strategic patterns:

1. Global Competitiveness: Companies leveraging specialized technologies achieving international benchmarks
2. Demographic Alignment: Solutions calibrated toward urban aging populations and health needs
3. Innovation Premiums: Markets rewarding true IP differentiation beyond commoditized manufacturing

The subscription path requires discerning examination beyond headline metrics: While Shanda Power presents sharper earnings growth (22.3% 2025E vs Jiyuan’s 15.6%), Jiyuan demonstrates less cyclical end-market exposure and deeper intellectual property protections. Both offer diversification benefits relative to predominantly digital-focused listings.

Navigating Public Markets With Technical Excellence

This week crystallizes China’s industrial advancement – sophisticated companies transcending commodity status through chemistry, engineering, and healthcare innovation. Investors should scrutinize three fundamentals:

• The durability of technological specialization against competition
• Downstream integration capability preserving margins
• R&D conversion efficiency validating future pipelines

Specialized manufacturers now contribute over 43% of new A-share IPO volume – a structural shift demanding investor adaptation. Beyond subscription mechanics, study these companies’ role within China’s innovation ecosystem. Consult portfolios strategically balancing core industries allocations with emerging technology exposure. Monitor Beixin Life’s precedent-setting STAR Market evaluation – where approval could reshape how breakthrough biotech valuations occur domestically.

Chinese equities’ internationalization journey gains sophisticated new participants this week where smart capital meets specialist excellence.