Hanbang Technology’s IPO: A Strategic Play in the Chromatography Market

Jiangsu Hanbon Science & Technology (hereafter "Hanbang Technology") has emerged as a key player in the global chromatography industry, leveraging its expertise in biopharmaceutical purification equipment to secure a prime listing on the Shanghai Stock Exchange’s Science and Technology Innovation Board. While rumors of a 2025 IPO with 22 million shares circulate, the company’s 2024 IPO—approved in February and finalized in March—already signals its ambition to dominate a market valued at $7.8 billion by 2030. This article examines Hanbang’s strengths, financial trajectory, and the opportunities driving its growth.

A Niche Leader in Chromatography Solutions

Hanbang Technology, founded in 1998, specializes in chromatography systems critical to drug development, particularly for biologics like antibodies, vaccines, and mRNA therapies. Its product portfolio includes:
- Liquid Chromatography Separation Equipment: Used in the purification of insulin analogs, GLP-1 drugs, and CBD extracts.
- Oligonucleotide Synthesizers: Supporting the production of small nucleic acid drugs, such as those used in cancer therapies and gene editing.
- Supercritical Fluid Chromatography (SFC): An eco-friendly alternative to traditional solvent-based systems, reducing costs by up to 30%.

The company’s 400+ patents, including breakthroughs in ultrafiltration and back-pressure valve technology, underscore its R&D prowess. By 2023, Hanbang had exported products to 20+ countries, with a strategic focus on European and North American markets.

Financial Momentum: From Survival to Scale

Hanbang’s financial performance paints a picture of rapid growth:

Year	Revenue (RMB million)	Net Profit (RMB million)	YoY Growth (Net Profit)
2021	321	4.86	N/A
2022	482	38.56	700%
2023	619	51.5	34%

The company’s 28% revenue growth in 2023 and 34% net profit increase reflect strong demand for its purification systems, driven by rising biopharma R&D spending. In H1 2024, Hanbang reported RMB329 million in revenue, putting it on track to exceed RMB650 million annually—a 68% jump from 2021.

The IPO: Raising Capital for Global Ambitions

Hanbang’s IPO, RMB598 million in size, funds three strategic projects:
1. Production of 1,000 units of liquid chromatography equipment (targeting biopharma manufacturers).
2. R&D center expansion to accelerate innovation in SFC and AI-driven purification systems.
3. Manufacturing of 2,000 lab instruments for academic and clinical research.

These initiatives aim to double production capacity by 2025, enabling Hanbang to capture a larger share of the $7.8 billion chromatography market. The company’s focus on GMP-compliant systems—a must for FDA and EMA approvals—positions it to serve major players in mRNA vaccines and cell therapy, sectors expected to grow at 15% CAGR through 2030.

Risks and Market Challenges

Despite its promise, Hanbang faces hurdles:
- High R&D Costs: The company spent 12% of revenue on R&D in 2023, a necessary investment but one that could pressure margins.
- Regulatory Hurdles: Entering markets like the U.S. requires navigating stringent FDA guidelines, which could delay revenue growth.
- Competitor Intensity: Global rivals like Danaher (owner of Thermo Fisher) and Shimadzu dominate the market, though Hanbang’s cost advantages in manufacturing may help it carve a niche.

Conclusion: A Bets on Biopharma’s Future

Hanbang Technology’s IPO represents a strategic move to capitalize on the $7.8 billion chromatography market, fueled by the biopharma industry’s shift toward complex drugs like mRNA vaccines and gene therapies. With a 34% net profit growth in 2023 and plans to double production capacity, the company is well-positioned to meet demand from drug developers racing to commercialize next-gen therapies.

While the 22-million-share figure cited in some reports may stem from confusion with its 2024 offering or a subsidiary’s activities, Hanbang’s fundamentals are clear: its IP portfolio, strong financials, and global expansion plans make it a compelling play on a sector poised for exponential growth. Investors seeking exposure to the biopharma supply chain would be wise to monitor Hanbang’s post-IPO performance closely.

In a market where 85% of biopharma companies report purification as a critical bottleneck, Hanbang’s expertise could translate into sustained outperformance—a bet worth considering for long-term investors.