高瓴控股的明星公司，卖了

Core Viewpoint - The article discusses the landmark reverse merger case of "Jiahua Biotech" with "Yiteng Pharmaceutical," marking the first reverse merger of an unprofitable biotech company under the Hong Kong Stock Exchange's 18A rule [3][21]. Group 1: Merger Details - Jiahua Biotech submitted its listing application to the Hong Kong Stock Exchange, initiating the reverse merger process with Yiteng Pharmaceutical, which is backed by Sequoia Capital [3][4]. - The merger will result in Yiteng Pharmaceutical holding a 77.43% stake in the new entity, named Yiteng Jiahua Pharmaceutical Group Limited, while Jiahua's original shareholders will hold 22.57% [4]. - The acquisition is valued at $677 million, with Jiahua Biotech receiving approximately 18.21 billion new shares as payment, which is favorable for the cash-strapped company [4][20]. Group 2: Company Background - Jiahua Biotech, founded in 2007, was one of the first domestic biotech companies focusing on oncology and autoimmune drug development, achieving a peak market value of 14 billion HKD [7][10]. - The company underwent multiple funding rounds before its IPO, with significant investments from Hillhouse Capital, leading to a 1247 times oversubscription during its IPO [8][9]. - Despite initial success, Jiahua's stock price fell nearly 30% shortly after its IPO, and the company faced significant challenges in drug development, resulting in zero revenue and a net loss of 674 million CNY in 2023 [10][12]. Group 3: Yiteng Pharmaceutical's Strengths - In contrast, Yiteng Pharmaceutical has demonstrated strong commercialization capabilities, reporting revenues of 2.074 billion CNY and a net profit of 306 million CNY in 2022 [12][13]. - The company has a history of successful product commercialization and a robust sales network, which positions it well for sustainable growth [13][20]. - Yiteng's approach of prioritizing cash flow before research and development has contributed to its financial stability, although it has faced challenges in its IPO attempts [14][15]. Group 4: Market Context - The merger occurs against a backdrop of declining IPO activity for 18A companies, with only 4 successful listings projected for 2024 [21][22]. - The article highlights a significant 75% failure rate for 18A companies in the secondary market, prompting many biotech firms to explore mergers and acquisitions as a survival strategy [23]. - The merger between Yiteng and Jiahua is seen as a potential catalyst for future reverse mergers in the Hong Kong market, as several companies with market values below 1 billion HKD may seek similar opportunities [23].