Core Insights - The recent surge in the innovative drug market is reflected in the Hong Kong IPO market, with seven pharmaceutical companies submitting listing applications in June alone [1][3] - The Hong Kong Stock Exchange (HKEX) has implemented various policies to encourage pharmaceutical companies to go public, making it a preferred financing channel for the industry [1][5] Group 1: Companies Submitting IPO Applications - Seven biopharmaceutical companies have submitted applications to list on the Hong Kong Stock Exchange in June, including Changfeng Pharmaceutical and Dongyangguang Pharmaceutical [3][5] - Dongyangguang Pharmaceutical, known for its focus on infection, chronic diseases, and tumor treatment, submitted its application on June 11, 2023, and has experienced significant revenue fluctuations from 3.814 billion yuan in 2022 to 6.386 billion yuan in 2023, and back to 4.019 billion yuan in 2024 [3][5] - Other companies that submitted applications include Xuan Bamboo Biotechnology, Guangzhou Yinnuo Pharmaceutical Group, Nanjing Weili Zhibo Biotechnology, and Hansi Aitai Biotechnology [5] Group 2: Financial Performance and Profitability - Among the seven companies, five reported no profits during the reporting period, indicating a trend of unprofitable innovative drug companies seeking IPOs [6][7] - Hansi Aitai, focusing on precision treatment for cancer and autoimmune diseases, reported losses of approximately 85 million yuan and 117 million yuan for 2023 and 2024, respectively, primarily due to R&D and operational costs [6][7] - Weili Zhibo, established in 2012, reported losses of 362 million yuan, 301 million yuan, and 87 million yuan for 2023, 2024, and the first three months of 2025, respectively, with losses mainly attributed to R&D and administrative expenses [7] Group 3: Market Trends and Regulatory Environment - The innovative drug sector has seen a significant increase, with the Hong Kong innovative drug index rising by 76.83% from April 8 to June 13 [7] - The HKEX has optimized its listing rules to support biopharmaceutical companies, allowing unprofitable firms to go public, which provides crucial funding for R&D [5][7] - Xuan Bamboo Biotechnology, which previously attempted to list on the STAR Market, reported losses of 301 million yuan and 556 million yuan for 2023 and 2024, respectively, due to early-stage commercialization efforts [9][10]