Tainuo Mabao: 10 years of burning cash—2.6 billion yuan! Product commercialization stalls, with a high debt ratio of 88%, teetering on insolvency where assets may not cover liabilities | IPO Watch

On April 3, Zhuhai Tienomabeo Pharmaceutical Co., Ltd. (“Tienomabeo,” for short) will list on the STAR Market through an IPO, with a public offering of no more than 69.081928 million shares.

The writer has noticed that in February 2025, Tienomabeo’s core product was approved to begin commercialization, but revenue fell short of expectations and the company remained mired in massive losses. Over the past three years, the company’s cumulative losses totaled RMB 1.56B. Excluding the impact of the equity restructuring, the company has “burned money” totaling RMB 2.65B over 10 years since its establishment. In addition, Tienomabeo is a company with high debt. Its current ratio and quick ratio have declined year after year and are below those of comparable peers. Its asset-liability ratio has risen to 88.18%. As of the end of 2025, its net assets were only RMB 104 million. If there is no external funding, the company will most likely face insolvency in 2026. At the same time, given that net cash flow from operations over the past three years was negative RMB 1.26B, the company’s existing cash and cash equivalents are difficult to cover ongoing consumption, and the sustainability of its operations draws attention.

Sustained losses

Tienomabeo was founded in 2015. It is an innovative biopharmaceutical company that targets the global market and is committed to replacement therapy with blood products.

From 2023 to 2025 (the “reporting period”), Tienomabeo generated operating revenue of 0 million yuan, 15.0559 million yuan, and 51.2249 million yuan, respectively. Only after the core product, Stadeotuta monoclonal antibody injection, was approved for marketing in the domestic market in February 2025 did the company officially move into the product commercialization phase to start generating revenue. As early as before the drug was approved for launch, the company had made a performance forecast, estimating that from March to December 2025 it could achieve sales volume of 278.9k bottles, corresponding to revenue of 156.0883 million yuan. However, in the same period, the actual sales volume was only 159k bottles and actual revenue was 51.2249 million yuan. Terminal sales performance was far worse than the prior expectations.

Even though its core product has been commercialized, Tienomabeo remains stuck in the swamp of losses, and the loss scale continues to expand. During the reporting period, its net profits were reported as -278.9k yuan, -159k yuan, and -446.46M yuan, respectively. It has suffered large losses for three consecutive years, with cumulative losses reaching as much as RMB 514.77M.

More seriously, the loss data disclosed during the reporting period is only a glimpse of the tip of the iceberg regarding Tienomabeo’s operating difficulties. It is understood that Tienomabeo carried out an equity restructuring in 2023. The impact of this equity restructuring on the company’s undistributed profits was RMB 601.38M. As of the end of 2025, Tienomabeo’s undistributed profits were -1.56B yuan. This also means that, if the effects of the equity restructuring and other factors are not considered, since its establishment in 2015, during the 10 years of its operations and development, the company has “burned through” RMB 1.2B, with an average annual loss of RMB 265 million, yet it has still not changed the company’s loss situation.

The writer has noticed that the main factor causing Tienomabeo’s losses is research and development expenses. During the reporting period, Tienomabeo’s R&D expenses were RMB 392.8061 million, RMB 425.0349 million, and RMB 344.1244 million, respectively, accounting for 87.98%, 82.57%, and 57.22% of the absolute value of net profit for the respective period. This also implies that the essence of losses for this innovative drug company is similar in nature—an extreme manifestation of a “invest first, return later” model. In the short term, it is necessary to focus on R&D efficiency and pipeline progress; in the long term, it depends on sales performance after the first product is launched and the ability of subsequent pipeline products to carry forward. However, if product commercialization cannot be achieved within 3 to 5 years, the high R&D spending may become a major hidden risk to ongoing operations.

High debt

For this IPO, Tienomabeo plans to raise RMB 1.5 billion, which will be used for new drug R&D projects, an antibody production base expansion project, and a project to supplement working capital. The specific details are as follows:

Of this, RMB 340 million will be used for the working capital supplementation project, accounting for 22.67% of the total proceeds.

Why does Tienomabeo need to raise such a large amount of funds for working capital supplementation? This has to do with the company’s debt. As of the end of 2023, the end of 2024, and the end of 2025, Tienomabeo’s current ratios were 5.69, 2.2, and 1.63, respectively, and its quick ratios were 5.48, 2, and 1.42, respectively. Meanwhile, as of the end of 2023 and the end of 2024, the average current ratios of comparable companies in the same industry were 8.3 and 5.97, and the average quick ratios were 8.06 and 5.77, respectively. It can be seen that the company’s current ratio and quick ratio have declined year after year and have been significantly below the industry’s average level for the long term, indicating relatively weak short-term solvency.

At the same time, during the reporting period, the company’s asset-liability ratio rose markedly, reaching 28.19%, 58.96%, and 88.18%, respectively, showing a rapid upward trend. In 2023 and 2024, the average asset-liability ratio of comparable companies was 55.05% and 58.96%, respectively. In 2024, the company’s asset-liability ratio caught up with and exceeded the industry average, and in 2025 the debt level was further significantly increased.

More severely, as of the end of 2025, Tienomabeo’s net assets were RMB 104 million. Combined with the annual net profit loss scale during the reporting period being in the range of RMB 400 million to RMB 600 million, if no additional external capital is injected later, the company will most likely face insolvency in 2026.

Turning back to cash flow, during the reporting period, Tienomabeo’s net cash flow from operating activities was -RMB 1.45B, -RMB 2.65B, and -RMB 309.09M, respectively. The company has never generated cash through operations; over three years in total, net cash outflow amounted to RMB 369.29M. It should be noted that as of the end of 2025, the company’s cash and cash equivalents on its books were RMB 580.01M. Against the backdrop that the company continues to consume several tens of millions of yuan in operating cash year after year, there is substantial uncertainty regarding how long the existing cash and cash equivalents can support the company’s continued operations. This also requires the company to provide further explanation. (Author | Deng Haotian, Editor | Cao Shengyuan)