FAST NEWS: CStone says CEO to boost company holdings

The latest: CStone Pharmaceuticals (2616.HK) on Tuesday announced that its CEO Jason Yang plans to buy up to HK$5 million ($640,000) worth of the company’s shares in the open market over the next six months.

Looking up: Yang indicated that he would hold the newly purchased shares for the medium- to long-term, and that he had no current intention to sell during the 12 months after buying them.

Take Note: Yang plans to increase his shareholding either with his own or self-raised funds, but has yet to commence his actual purchases, which will be subject to market conditions.

Digging Deeper: Founded in 2015 and listed in Hong Kong in 2019, CStone has four drugs on the market for the treatment of non-small cell lung cancer, gastrointestinal tumors and acute myeloid leukemia. It began earning revenue from those drugs in 2021. The company’s revenue nearly doubled year-on-year to 480 million yuan in 2022, but its annual net loss amounted to 900 million yuan due to huge R&D and selling expenses. Its situation improved in the first half of this year as its net loss narrowed by 42% to 210 million yuan.

Market Reaction: CStone’s shares fell on Wednesday, closing down 1.8% at HK$1.66 by the midday break. The stock now trades at the lower end of its 52-week range.

Translation by A. Au

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