Willy-Goat B Shareholder Transfers Stake Worth HK$669 Million to Morgan Stanley

A significant stake in Hong Kong-listed biotechnology company Willy-Goat B (HKG: 09887) was transferred into a custody account with Morgan Stanley Hong Kong Securities, a filing with the exchange on September 3 revealed. The deposit involved 9.71 million shares with a total market value of HK$669 million (approximately US$85.6 million).

Details of the Share Movement

According to data from the Hong Kong Stock Exchange, the transfer represents a substantial position in the company. Key details from the disclosure include:

• The total number of shares now held in the Morgan Stanley custody account amounts to 5.05% of Willy-Goat B's total issued share capital.
• The specific shareholder initiating the transfer was not identified in the filing.

This type of transaction is a change in custody rather than a direct sale on the open market. Investors often monitor such movements, as they can sometimes precede activities like share pledging for financing, block trades, or other strategic transactions, though the reason for this specific transfer was not disclosed.

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Company Financial Context

The share movement follows the company's recent report of widening losses amid heavy investment in research. In its latest mid-term results, Willy-Goat B reported a net loss of approximately CNY 222 million (US$30.8 million), a 33.4% increase year-over-year.

During the same period, the company's R&D costs grew by 44.9% to around CNY 191 million (US$26.5 million), while it generated revenue of CNY 36 million (US$5.0 million). As a pre-profit biotech firm listed under the exchange's Chapter 18A rules—indicated by the "-B" in its stock name—such financials reflect a common growth phase focused on product development rather than immediate profitability.