News on new stocks | Fangtuo Biology plans to list on the Hong Kong Stock Exchange, the China Securities Regulatory Commission requires supplementary explanation on whether there are any related relationships among shareholders holding less than 5% of the shares.

On April 17, the China Securities Regulatory Commission (CSRC) announced the requirements for supplementary materials for overseas issuance and listing disclosure (April 13, 2026 - April 17, 2026). Among them, the CSRC required Frontera Therapeutics to provide explanations on whether there are any related relationships between shareholders holding less than 5% of the shares. According to the disclosure by the Hong Kong Stock Exchange on December 23, 2025, Frontera Therapeutics submitted an application to the main board of the Hong Kong Stock Exchange, with UBS Securities HongKong Limited and HAITONG INT'L Capital Limited as its joint sponsors. The CSRC requested Frontera Therapeutics to provide clarifications on the following matters, have lawyers verify, and provide clear legal opinions: 1. Please explain: (1) whether shareholders holding more than 5% of the issuer have completed foreign exchange registration in accordance with the "Notice on Issues Concerning Foreign Exchange Registration for Domestic Residents' Overseas Financing through Special Purpose Companies and Return Investment" (Document 37), and whether domestic institutional shareholders have complied with domestic regulatory procedures for overseas investments; (2) if the red-chip structure involves acquisitions of domestic entities, please provide information on transaction prices, pricing basis, tax payments, etc., and whether it complies with the regulations on foreign investors acquiring domestic enterprises; (3) if the domestic operating entity has been involved in capital reductions in the past, please explain the transaction prices, pricing basis, fairness, decision-making process, tax payments, whether there is involvement in false capital contributions or capital extraction, and whether it complies with the Company Law and tax-related laws and regulations; (4) provide conclusive opinions on whether the equity structure construction and the return merger process meet the effective conclusions of foreign exchange management, overseas investment, foreign investment, and tax management regulations at the time. 2. Please explain the reasons and rationale for not recognizing any controlling shareholders or actual controllers of the issuer. Explain the reasons and rationale for not recognizing Orb Capital and Creacion as actual controllers despite having actual voting rights and significant influence on company decisions. 3. Please explain whether there are any related relationships between shareholders holding less than 5%, and if so, the shareholding percentages should be combined, and shareholders with more than 5% should be subject to a thorough check. 4. Please explain the composition and positions of equity incentive personnel of the issuer, the relationships between participating personnel and other shareholders, directors, supervisors, senior management, whether individuals who are prohibited by laws, administrative regulations, and national regulations from participating in corporate equity incentives exist, the fairness of entry prices, agreement provisions, decision-making process compliance, standard operation, and provide a clear and conclusive opinion on the legality, compliance, and existence of any transfer of benefits. 5. Please list the main businesses of each domestic operating entity, their specific roles in the overall business layout of the company, their qualifications for relevant business activities, whether the main domestic operating entities and their subsidiaries' business scopes involve restrictions or prohibitions in the negative list for foreign investment access. 6. Please explain: (1) list the number of employees of the issuer and its subsidiaries, including the number and percentage of core technical personnel; (2) provide reasons for a significant number of departures of employees, the percentage of core technical personnel among departing employees, and whether it will have a significant adverse impact on this issuance and listing, and (3) provide a conclusive opinion on whether the past equity changes of the main domestic operating entity were legal and compliant. According to the prospectus, Frontera Therapeutics is a clinical-stage gene therapy company focusing on the development of innovative therapies with an international business layout, aiming to offer safe, effective, and affordable gene therapy solutions for patients worldwide. As of the last feasible date (December 16, 2025), Frontera Therapeutics' product pipeline includes eight self-developed rAAV gene therapy candidates, including (i) two core products, FT-002 (a potential best-in-class candidate for treating X-linked retinitis pigmentosa ("XLRP")) and FT-003 (a potential best-in-class candidate being studied for intravitreal injection treatment of neovascular age-related macular degeneration ("nAMD") and diabetic macular edema ("DME")); (ii) a key product, FT-001 (a gene therapy candidate for treating inherited retinal diseases caused by RPE65 gene biallelic mutations ("IRD") ("RPE65mIRD" or "RPE65-mediated IRD")); and (iii) five other gene therapy candidates in preclinical and early-stage development stages for ophthalmic, cardiovascular, and neurological diseases.