On December 23, Recbio (HKEX: 02179) announced that its founder Liu Yong resigned as chairman, citing reasons to "enhance corporate governance" and "devote more time to other commitments." Despite stepping down from the board leadership, Liu remains actively involved as an executive director and general manager, overseeing daily operations. The company confirmed no disagreements between Liu and the board, with no additional matters requiring shareholder attention.
The board elected Xu Haoyu, chairman and president of Yangtze River Pharmaceutical Group, as Recbio’s new chairman. Xu will serve as a non-executive director without receiving compensation beyond approved remuneration for specific services.
Recbio’s ties with Yangtze River Pharma trace back to its 2022 Hong Kong IPO, where Yangtze River Pharma participated as a cornerstone investor alongside Harvest International and Sequoia China, collectively subscribing to over 50% of the offering. Xu Haoyu even delivered a speech at Recbio’s listing ceremony. Pre-IPO, the two firms signed a strategic agreement covering R&D, clinical studies, and global commercialization.
In November last year, their collaboration deepened as Recbio issued up to 142 million domestic shares to Yangtze River Pharma, raising approximately RMB 800 million to advance its recombinant shingles vaccine pipeline and bolster working capital. Post-transaction, Yangtze River Pharma and its Hong Kong entity will hold a 24.88% stake, becoming Recbio’s largest shareholder, displacing Liu Yong.
On December 18, Recbio confirmed completion of the share issuance, with shares duly registered by China Securities Depository and Clearing Corporation.
Disclosures reveal Xu Haoyu’s multifaceted stake in Recbio: his spouse Zhu Yuqing holds 99% of Shanghai Tecui Enterprise Management, which controls Taizhou Xinchuanlü Enterprise Partnership—a holder of 1.07 million Recbio H-shares. Zhu also directly owns 3.16 million H-shares, attributing indirect interests to Xu. Additionally, Yangtze River (Hong Kong) and Yangtze River Pharma hold 12.62 million H-shares and 143 million domestic shares, respectively. As chairman of both entities and beneficiary of 90% and 51% control, Xu is deemed interested in these holdings.
Following the 2021 passing of Yangtze River Pharma’s patriarch Xu Jingren, his son Xu Haoyu steered the company toward new directions, diverging from its traditional "no IPO, no M&A, no unfamiliar sectors" ethos. Under Xu Haoyu, Yangtze River Pharma has invested in innovative drug firms like Recbio and Binhuibio while expanding its own pipeline.
According to Menet data, Yangtze River Pharma now has 25 novel drugs (excluding approved ones or new indications) in clinical-stage development, including 16 chemical drugs, eight traditional Chinese medicines, and one biologic. Over 80% are Class 1 innovations, with six in Phase III or beyond.
Xu Haoyu’s appointment as Recbio’s chairman signals Yangtze River Pharma’s escalating commitment to innovative drugs, transitioning from an early-stage investor to a controlling stakeholder. Founded in 2012, Recbio focuses on novel vaccines like recombinant shingles (REC610, Phase III in China) and HPV (REC603, Phase III), plus a bivalent respiratory syncytial virus vaccine nearing clinical trials.
Recbio’s 2025 interim report showed no commercialized products except a partnered COVID-19 vaccine, with H1 revenue of RMB 10.9 million (primarily from licensing) and a net loss of RMB 341 million. R&D spending surged 46% YoY to RMB 300 million, leaving cash reserves at RMB 106 million as of June 30, 2025.
Comments