Zhong Guo Jing Ying Bao·2025-12-17 07:43Core Insights - The launch of the Sci-Tech Innovation Board (STAR Market) has significantly transformed the development ecosystem for China's technology industry, particularly benefiting unprofitable "hard tech" companies by providing a supportive environment for long-term investment and innovation [4][5] - As of November 2025, 57 unprofitable companies have listed on the STAR Market, with 22 of them achieving profitability post-listing [4] - The STAR Market has facilitated substantial revenue growth and reduced losses for companies, with 35 firms in the growth layer reporting a 39% year-on-year revenue increase and a 65% reduction in net losses in the first three quarters of 2025 [4] Company Performance and Growth - ChipLink Integration has raised 11 billion yuan since its listing, with revenue growing from 2 billion yuan before listing to 6.5 billion yuan in 2024, effectively doubling its revenue in three years [7] - CanSino has maintained a research and development (R&D) expenditure of over 30%, which has been crucial for its product development and market expansion, particularly during the COVID-19 pandemic [8][15] - Effort, a robotics company, has seen its sales increase from 2,000 units at the time of listing to 16,000 units in 2024, significantly enhancing its market share and competitiveness [10][16] R&D Investment and Innovation - R&D investment is critical for "hard tech" companies, with ChipLink maintaining a 30% R&D expenditure ratio, significantly higher than the industry average of 10% [13] - CanSino's R&D strategy has allowed it to navigate the "valley of death" in vaccine development, leading to profitability in the third quarter of 2025 [15][18] - Effort has shifted from a "follower" to a "leader" in innovation post-listing, focusing on autonomous innovation and the integration of AI technology into its robotics solutions [16] Path to Profitability - Achieving profitability is seen as a natural progression for unprofitable companies on the STAR Market, with both ChipLink and CanSino projecting profitability milestones in the coming years [17][19] - ChipLink anticipates reaching profitability by 2026, supported by increasing market share and improved operational efficiency [19] - Effort aims to achieve profitability through a dual strategy of scaling growth and enhancing profit margins, leveraging its technological advancements [20] Utilization of Growth Tools - The STAR Market's mechanisms, such as mergers and acquisitions and equity incentives, are vital for the growth of "hard tech" companies [21] - ChipLink's acquisition of a 72.33% stake in a peer company exemplifies the effective use of M&A strategies to enhance growth [21] - Both ChipLink and CanSino emphasize the importance of equity incentives to attract and retain talent, which is crucial for long-term success in the tech sector [22]