Core Insights - The launch of the "Science and Technology Innovation Growth Layer" marks a significant shift in the Chinese capital market, allowing unprofitable companies to list on the Sci-Tech Innovation Board, focusing on "technological value" rather than short-term profitability [4][5][8] Group 1: New Listings and Fundraising - Xi'an Yicai is the first unprofitable company to initiate an online subscription under the new policy, planning to issue 53.78 million shares at a price of 8.62 yuan per share, aiming to raise approximately 4.636 billion yuan for its silicon industry base project [3][5] - Other unprofitable companies, such as He Yuan Bio and Biobetter, are also moving forward with their listings, indicating a trend of unprofitable tech firms entering the market [3][4] Group 2: Characteristics of New Companies - Xi'an Yicai is a leading player in the 12-inch silicon wafer sector, with projected revenues of approximately 10.55 billion yuan, 14.74 billion yuan, and 21.21 billion yuan from 2022 to 2024, but has incurred cumulative losses of 1.954 billion yuan during the same period [6][7] - He Yuan Bio focuses on plant-based recombinant protein technology, with its core product expected to be approved for sale in 2025, while Biobetter specializes in innovative oncology drugs, with no revenue generated yet [7][8] Group 3: Regulatory Framework and Market Impact - The new regulations allow unprofitable companies to access capital markets, providing essential funding for technological innovation and business expansion [8][9] - The "new and old separation" strategy ensures market stability while promoting inclusivity for tech firms, allowing them to secure funding despite not being profitable [4][9] Group 4: Investor Participation and Limitations - The new issuance rules include differentiated lock-up arrangements for investors, encouraging long-term investment and stabilizing market performance [11][12] - Investors must sign a risk disclosure document before investing in newly registered unprofitable tech companies, highlighting the inherent risks associated with such investments [9][10]

Core Viewpoint - The article discusses the characteristics, applicability, and disclosure requirements of companies in the Sci-Tech Innovation Board's growth tier, emphasizing support for technology-driven firms that are not yet profitable but have significant potential for breakthroughs and commercial success [4][5][6]. Group 1: Characteristics of Sci-Tech Growth Tier Companies - Companies in the Sci-Tech growth tier are defined as technology-oriented firms that have made significant technological breakthroughs, possess broad commercial prospects, and maintain substantial R&D investments, while still being in a pre-profit stage at the time of listing [4]. Group 2: Applicability of Sci-Tech Growth Tier - The growth tier applies to both existing listed companies that have not yet turned a profit since their listing (referred to as "existing companies") and newly registered companies that are also unprofitable at the time of listing (referred to as "incremental companies") [5]. Group 3: Criteria for Removal from Sci-Tech Growth Tier - The removal criteria for incremental companies are based on achieving profitability, specifically: (1) both of the last two years must show positive net profits with a cumulative net profit of no less than 50 million yuan, or (2) the last year must show a positive net profit with revenue of no less than 100 million yuan. Existing companies will be removed upon their first realization of profitability [6]. Group 4: Investor Awareness of Removals - Investors can learn about a company's removal from the growth tier through the annual report, which will include an announcement regarding the removal conditions. Additionally, the stock or depositary receipt will lose its special identifier "U" if removed [8]. Group 5: Trading Considerations for Investors - Investors participating in trading of newly registered growth tier stocks must sign a special risk disclosure document. Existing stocks or depositary receipts are not subject to this requirement [9]. Group 6: Disclosure Requirements for Growth Tier Companies - Companies in the growth tier face stricter disclosure requirements, including the need to explain the reasons for not being profitable and the impact on the company in their annual reports. The lead underwriters are responsible for ongoing supervision and must report on any significant risks or negative events affecting the company's technological innovation and growth prospects [10][11].

Core Viewpoint - The establishment of the Sci-Tech Innovation Board's growth tier allows unprofitable tech companies to access capital markets, marking a significant shift in the valuation system for hard tech firms [1][2]. Group 1: Introduction of Unprofitable Companies - Three unprofitable new stocks—He Yuan Bio, Xi'an Yicai, and Bibet—are set to launch online subscriptions, becoming the first batch of new registered companies in the growth tier of the Sci-Tech Innovation Board [1]. - This marks the return of unprofitable companies to the Sci-Tech Innovation Board after more than two years, following the China Securities Regulatory Commission's announcement in June to establish a growth tier focused on tech firms with significant breakthroughs and commercial potential [1]. Group 2: Valuation System Restructuring - The growth tier provides a new valuation dimension for hard tech companies, replacing short-term profit indicators with metrics like "degree of technological breakthrough" and "commercialization prospects," allowing for the quantification and recognition of technological value in capital markets [1]. - The introduction of professional institutional investors aims to enhance market evaluation of the technological attributes and commercial prospects of these tech firms [1]. Group 3: Resource Allocation Efficiency - Institutional innovations not only reconstruct valuation logic but also enhance resource allocation efficiency, addressing challenges faced by hard tech companies during critical R&D phases and in industry consolidation [2]. - Measures such as allowing unprofitable companies to raise funds from existing shareholders and supporting mergers of listed companies aim to alleviate funding shortages and obstacles in resource integration [2]. Group 4: Risk Management - The growth tier includes a "U" label for risk warning and strengthens investor suitability management, striving to balance support for innovation with risk prevention [2].

Core Viewpoint - The establishment of the Sci-Tech Innovation Board's growth tier marks a significant opportunity for unprofitable tech companies to access capital markets, indicating a shift in the valuation framework for these firms [1][2]. Group 1: Introduction of the Growth Tier - Three unprofitable new stocks—He Yuan Bio, Xi'an Yicai, and Bibet—are set to launch online subscriptions, becoming the first new registered companies in the growth tier of the Sci-Tech Innovation Board [1]. - This is the first time in over two years that unprofitable companies will be welcomed on the Sci-Tech Innovation Board, following the China Securities Regulatory Commission's announcement in June to establish the growth tier [1]. Group 2: Valuation System Restructuring - The growth tier not only opens doors for unprofitable hard tech companies but also reshapes the valuation system for these firms, which have historically struggled to achieve reasonable pricing under traditional profit-oriented valuation frameworks [2]. - The new valuation approach emphasizes "technological breakthroughs" and "commercialization prospects" over short-term profit metrics, allowing for a quantifiable recognition of technological value in the capital market [2]. Group 3: Institutional Support and Resource Allocation - The introduction of seasoned institutional investors aims to enhance market evaluation of tech companies' innovation attributes and commercial potential [2]. - Innovative measures, such as allowing unprofitable companies to raise funds from existing shareholders and supporting mergers of companies listed on the Sci-Tech Innovation Board for less than three years, address funding challenges during critical R&D phases [2]. Group 4: Risk Management and Investor Protection - The growth tier includes a "U" label for risk indication and strengthens investor suitability management, striving to balance innovation support with risk prevention [2].

Core Viewpoint - The establishment of the Sci-Tech Innovation Board's growth tier allows unprofitable tech companies to access capital markets, marking a significant shift in the valuation system for hard tech firms [1][2] Group 1: Introduction of Unprofitable Companies - Three unprofitable new stocks—He Yuan Bio, Xi'an Yicai, and Bibet—are set to launch online subscriptions, becoming the first new registered companies in the growth tier of the Sci-Tech Innovation Board [1] - This marks the return of unprofitable companies to the Sci-Tech Innovation Board after more than two years [1] Group 2: Support for Hard Tech Enterprises - The growth tier aims to support tech companies with significant breakthroughs and promising commercial prospects that are currently unprofitable, providing a pathway for their listing [1] - The establishment of the growth tier reassures hard tech companies in the R&D phase, facilitating their access to capital markets [1] Group 3: Restructuring Valuation System - The growth tier introduces a new valuation dimension for hard tech companies, focusing on "technological breakthrough" and "commercialization prospects" instead of short-term profitability [1] - This shift allows for a more accurate quantification and recognition of technological value in the capital market [1] Group 4: Resource Allocation Efficiency - Institutional innovations not only reconstruct valuation logic but also enhance resource allocation efficiency, addressing funding shortages during critical R&D phases for hard tech companies [2] - Measures such as allowing unprofitable companies to raise funds from existing shareholders and supporting mergers with companies listed for less than three years aim to alleviate obstacles faced by hard tech firms [2] Group 5: Risk Management - The growth tier includes a "U" label for risk warning and strengthens investor suitability management, balancing support for innovation with risk prevention [2]

Core Viewpoint - The establishment of the Sci-Tech Innovation Board's growth tier allows unprofitable tech companies to access capital markets, marking a significant shift in the valuation system for hard tech firms [1][2]. Group 1: Introduction of Unprofitable Companies - Three unprofitable companies, He Yuan Bio, Xi'an Yicai, and Bibet, have initiated online subscriptions, becoming the first batch of new registered companies in the growth tier of the Sci-Tech Innovation Board [1]. - This marks the return of unprofitable companies to the Sci-Tech Innovation Board after more than two years [1]. Group 2: Valuation System Restructuring - The growth tier aims to support tech companies with significant breakthroughs and promising commercial prospects, despite currently being unprofitable [1]. - The new valuation framework replaces short-term profit metrics with indicators like "degree of technological breakthrough" and "commercialization prospects," allowing for a more accurate assessment of tech value in the capital market [1]. Group 3: Resource Allocation Efficiency - Institutional innovations not only reconstruct valuation logic but also enhance resource allocation efficiency, addressing funding shortages during critical R&D phases for hard tech companies [2]. - Measures such as allowing unprofitable companies to raise funds from existing shareholders and supporting mergers with companies listed for less than three years aim to alleviate obstacles faced by hard tech firms [2]. Group 4: Risk Management - The growth tier includes a "U" label for risk indication and strengthens investor suitability management, striving to balance innovation support with risk prevention [2].

Core Viewpoint - The article discusses the characteristics, applicability, and disclosure requirements of companies in the Sci-Tech Innovation Board's growth tier, emphasizing support for technology-driven firms that are not yet profitable but have significant breakthroughs and commercial potential [4][5][6]. Group 1: Characteristics of Sci-Tech Growth Tier Companies - Companies in the Sci-Tech growth tier are defined as technology-driven firms that have made significant technological breakthroughs, possess broad commercial prospects, and have substantial ongoing R&D investments, while still being in a pre-profit stage at the time of listing [4]. Group 2: Applicability of the Sci-Tech Growth Tier - The growth tier applies to both existing listed companies that have not yet turned a profit since their listing (referred to as "existing companies") and newly registered companies that are also unprofitable at the time of listing (referred to as "incremental companies"). Existing companies are included in the growth tier from the date the "Guidelines for Sci-Tech Growth Tier" are published, while incremental companies are included from their listing date [5]. Group 3: Criteria for Removal from the Sci-Tech Growth Tier - The removal criteria for companies from the growth tier are based on a "new and old distinction." Incremental companies will be removed if they meet the first set of listing standards of the Sci-Tech Board, which includes either having positive net profits for the last two years with a cumulative net profit of no less than 50 million yuan or having a positive net profit in the last year with operating revenue of no less than 100 million yuan. For existing companies, the removal condition remains that they must achieve profitability for the first time after listing [6]. Group 4: Investor Awareness of Removals - Investors can learn about a company's removal from the growth tier through the company's annual report, which will disclose any conditions met for removal. The Shanghai Stock Exchange will also promptly announce the removal. Additionally, investors should check if the stock or depositary receipt's name has lost its special identifier "U," which indicates its growth tier status [8]. Group 5: Trading Considerations for Investors - Investors participating in trading of newly registered growth tier stocks must sign a special risk disclosure document. However, existing Sci-Tech Board stocks or depositary receipts are not subject to this requirement. All companies in the growth tier are unprofitable, and there are stricter disclosure requirements for these companies compared to other listed companies on the Sci-Tech Board [9][10]. Group 6: Disclosure Requirements for Growth Tier Companies - The Shanghai Stock Exchange imposes stricter information disclosure requirements on growth tier companies, particularly in their annual and interim reports. Companies must disclose the reasons for their unprofitability and its impact on the business in a prominent position in their annual report. The sponsoring institutions responsible for continuous supervision must also provide conclusive opinions on the risks associated with the companies [11].

Core Viewpoint - The first batch of newly registered companies in the Sci-Tech Innovation Growth Sector is set to debut, with three companies, He Yuan Bio, Xi'an Yicai, and Biobetter, expected to be included despite currently being unprofitable [1][2][3] Group 1: Company Details - He Yuan Bio is the first company to initiate the issuance process under the fifth set of standards for the Sci-Tech Innovation Board, focusing on innovative drug development with eight drugs in its pipeline [2][3] - Biobetter has one innovative drug product approved for market and several others in various clinical trial phases, also adhering to the fifth set of standards [2] - Xi'an Yicai, a leading manufacturer of 12-inch silicon wafers, is the first unprofitable company to be accepted and approved under the fourth set of standards [3] Group 2: Financial Performance - As of the first half of 2025, He Yuan Bio, Biobetter, and Xi'an Yicai reported losses of approximately 81.63 million, 73.89 million, and 340 million respectively [3] Group 3: Issuance and Subscription Details - The subscription limits for online purchases are set at 53,500 shares for Xi'an Yicai and 14,000 shares for Biobetter, with corresponding market value requirements of 535,000 and 140,000 respectively [1] - He Yuan Bio's online issuance saw over 3.35 million investors participating, with an initial subscription rate of about 0.036% and a final rate of approximately 0.054% after adjustments [6] Group 4: Regulatory Changes - The new issuance rules allow for differentiated lock-up and allocation arrangements for unprofitable companies, encouraging institutional investors to play a larger role in pricing [4][5] - New registered stocks in the Sci-Tech Innovation Growth Sector will be marked with a special identifier "U" to distinguish them from existing stocks [7]

Group 1 - The core point of the article is the introduction of the first batch of newly registered stocks in the Sci-Tech Innovation Growth Layer, with companies like He Yuan Bio, Xi'an Yicai, and Biobetter set to launch their online subscriptions [1][2][3] - He Yuan Bio is the first company to initiate the issuance process among the new registered companies, focusing on innovative drug development with eight drugs in its pipeline [3][4] - Xi'an Yicai is recognized as the first unprofitable company to be accepted and approved under the "Eight Guidelines" of the Sci-Tech Innovation Board, specializing in 12-inch silicon wafers [4] Group 2 - All three companies are currently in a loss-making state, with losses reported for the first half of 2025: He Yuan Bio at 81.63 million yuan, Biobetter at 73.89 million yuan, and Xi'an Yicai at 340 million yuan [4] - The new registered unprofitable companies will be included in the Sci-Tech Innovation Growth Layer from the date of their listing, following the guidelines set by the Shanghai Stock Exchange [4] Group 3 - The three companies are the first to adopt differentiated lock-up and allocation arrangements for offline issuance, encouraging professional institutions to play a larger role in the pricing of new stock issuances [6][7] - He Yuan Bio has set a minimum lock-up ratio of 70% for the highest lock-up tier, while Xi'an Yicai and Biobetter have similar tiered lock-up arrangements [6][7] Group 4 - Over 5 million investors have opened trading permissions for the Sci-Tech Innovation Growth Layer, with 3.36 million participating in He Yuan Bio's online subscription, resulting in an initial winning rate of approximately 0.036% [9][8] - New registered stocks in the Sci-Tech Innovation Growth Layer will have a special identifier "U" added to their stock names for differentiation [10]

Core Viewpoint - The article discusses the first batch of newly registered companies entering the Sci-Tech Innovation Growth Tier, highlighting their current unprofitable status and the implications for investors and the market [1][3]. Group 1: Newly Registered Companies - Three companies, He Yuan Bio, Xi'an Yicai, and Biobetter, are set to enter the Sci-Tech Innovation Growth Tier, with their respective issuance prices and subscription limits detailed [1][4]. - As of the prospectus disclosure date, all three companies are unprofitable, with losses reported for the first half of 2025: He Yuan Bio at 81.63 million yuan, Biobetter at 73.89 million yuan, and Xi'an Yicai at 340 million yuan [5]. Group 2: Listing Standards and Approval - He Yuan Bio and Biobetter are listed under the fifth set of standards, while Xi'an Yicai follows the fourth set. He Yuan Bio is noted as the first company to initiate the issuance process after the reactivation of the fifth set of standards [4]. - Xi'an Yicai is recognized as the first unprofitable company to be accepted and approved under the "Eight Articles of Sci-Tech Innovation Board" [4]. Group 3: Subscription and Investor Participation - He Yuan Bio's online issuance saw approximately 3.36 million effective subscription accounts, with an initial winning rate of about 0.036%, which increased to approximately 0.054% after a mechanism was triggered due to high subscription multiples [10][11]. - As of September 22, 500 million investors have opened trading permissions for the Sci-Tech Innovation Growth Tier, with special identifiers added to distinguish new registered stocks [12]. Group 4: Lock-up and Allocation Arrangements - The three companies are the first to adopt differentiated lock-up and allocation arrangements for offline issuance, encouraging professional institutions to play a larger role in new stock pricing [7][8]. - Specific lock-up ratios and periods are set for each company, with He Yuan Bio having a maximum lock-up ratio of 70% for the highest subscription tier [7].