Group 1: Key Developments in the Sci-Tech Innovation Board - He Yuan Bio, the first company to initiate the issuance of shares in the newly established Sci-Tech Growth Layer, started subscription on October 14 [1] - He Yuan Bio is the first company to receive registration approval after the re-launch of the fifth listing standard for the Sci-Tech Innovation Board [1] - The company has implemented a differentiated lock-up and allocation arrangement for offline issuance, with a minimum overall lock-up ratio of 40% [1] Group 2: Financial Performance of He Yuan Bio - He Yuan Bio's projected revenues for 2022, 2023, and 2024 are 13.40 million, 24.26 million, and 25.22 million respectively, with year-on-year growth rates of -47.49%, 81.08%, and 3.92% [1] - The company's net profit attributable to shareholders for the same years is projected to be -143.58 million, -186.96 million, and -151.37 million, with year-on-year changes of -7.12%, -30.22%, and 19.04% [1] Group 3: Other Companies in the Sci-Tech Growth Layer - Xi'an Yicai is the first unprofitable company accepted by the Shanghai Stock Exchange after the release of the "Eight Articles" for the Sci-Tech Innovation Board, focusing on the research, production, and sales of 12-inch silicon wafers [2] - The company is projected to be the largest 12-inch silicon wafer manufacturer in mainland China and the sixth globally, with a market share of approximately 6% in monthly shipments and 7% in production capacity by the end of 2024 [2] - Biobetter, another company under the fifth listing standard, has its core product BEBT-908 approved for market, while other products are still in development [2] Group 4: Valuation Methods for Unprofitable Companies - The valuation of unprofitable companies cannot be assessed using traditional methods, and alternative approaches such as the option pricing model, price-to-sales ratio, and discounted cash flow methods are recommended to capture future growth potential [2] Group 5: Trading System Updates - Some brokerage firms have completed the optimization of trading apps, with the Sci-Tech Growth Layer stock identification feature now online [3] - Stocks in the Sci-Tech Growth Layer will have a "U" added to their abbreviations, while existing stocks will have a "成1" label indicating they are part of the growth layer [3]

Group 1 - The core viewpoint of the news is the launch of the first batch of companies under the newly established Sci-Tech Growth Layer, with Wuhan Heyuan Biotechnology Co., Ltd. being the first to initiate its subscription [1][2] - Heyuan Biotechnology is a biopharmaceutical company that has multiple drugs in the research and development phase and is issuing 89.4514 million shares [1] - Other companies, Xi'an Yicai and Bibete, will also start their subscription this week, with Xi'an Yicai being a leading domestic 12-inch semiconductor silicon wafer company and Bibete focusing on major diseases such as tumors and autoimmune diseases [1] Group 2 - The establishment of the Sci-Tech Growth Layer was announced by the China Securities Regulatory Commission in June, aimed at supporting technology-driven companies that have significant breakthroughs and broad commercial prospects but are currently unprofitable [2] - A total of 32 existing unprofitable companies have automatically entered the Sci-Tech Growth Layer, and newly registered unprofitable companies will also enter upon listing [2] - Companies in the Sci-Tech Growth Layer will have a special identifier "U" in their stock abbreviation to enhance risk disclosure [2]

Core Viewpoint - The first batch of stocks from the Sci-Tech Innovation Growth Layer is available for subscription starting today, with three new stocks scheduled for this week: Heyuan Bio (Tuesday), Xi'an Yicai (Thursday), and Bibet (Friday) [1] Group 1: Subscription Requirements - Investors must open a specific trading permission for the Sci-Tech Innovation Growth Layer through their brokerage app to participate in new stock subscriptions [1][3] - The requirements for opening this permission are the same as those for the Sci-Tech Board, which include having 500,000 yuan in funds and two years of investment experience [1][3] - Investors who have not opened the Sci-Tech Board permission must first do so and then sign a "Risk Disclosure Statement for the Sci-Tech Innovation Growth Layer" [1][3] Group 2: Investor Protection Measures - The regulatory body emphasizes investor protection by requiring investors to sign a risk disclosure statement before participating in the new stock subscriptions [3] - The risk disclosure statement includes warnings about the uncertainties related to revenue and profitability for companies in the growth layer, which may not yet be profitable [7][8] - The Sci-Tech Innovation Growth Layer has a mechanism for adjusting its listings, which may affect stock prices [8] Group 3: Current Participation and Statistics - As of mid-September, 4.75 million investors have opened trading permissions for the Sci-Tech Innovation Growth Layer [6] - There are currently 32 existing companies in the Sci-Tech Innovation Growth Layer that have not yet achieved profitability [9] Group 4: Identification of Growth Layer Stocks - Stocks in the Sci-Tech Innovation Growth Layer will have a "U" designation in their abbreviated names to help investors identify them [10] - New registered stocks will be labeled as "成" to indicate they are part of the new growth layer, while existing stocks will have a "成1" label [10] Group 5: Investment Considerations - Investors are advised to approach investments in the Sci-Tech Innovation Growth Layer with caution, as these companies face high uncertainty regarding profitability and market volatility [11]

Core Viewpoint - The first batch of stocks from the Sci-Tech Innovation Growth Layer is available for subscription, with three new stocks being offered this week: Heyuan Bio (Tuesday), Xi'an Yicai (Thursday), and Bibet (Friday) [1] Group 1: Subscription Requirements - Investors must open a specific trading permission for the Sci-Tech Innovation Growth Layer to participate in new stock subscriptions and trading [3] - The conditions for opening this permission are the same as those for the Sci-Tech Board, requiring 500,000 yuan in funds and two years of investment experience [1][3] - Investors who have not opened the Sci-Tech Board permission must sign a "Risk Disclosure Statement" for the Sci-Tech Innovation Growth Layer before participating [3] Group 2: Current Participation and Statistics - As of mid-September, 4.75 million investors have opened trading permissions for the Sci-Tech Innovation Growth Layer [6] Group 3: Risk Disclosure - The "Risk Disclosure Statement" for the Sci-Tech Innovation Growth Layer includes nine key points, highlighting the risks associated with investing in companies that are currently unprofitable and may face significant uncertainties in revenue and profitability [7][8] - The statement emphasizes the importance of understanding the adjustment mechanism for the Sci-Tech Innovation Growth Layer, which includes a "new and old separation" policy for companies transitioning out of this layer based on profitability criteria [8] Group 4: Identification of Growth Layer Stocks - Stocks from the Sci-Tech Innovation Growth Layer will be marked with a "U" identifier to help investors easily recognize them [10] - New registered stocks will have an additional label indicating they are part of the new registration process [10][11] Group 5: Investor Caution - Investors are advised to approach the subscription of new stocks in the Sci-Tech Innovation Growth Layer with caution, considering the high growth potential but also the significant risks associated with profitability uncertainty and market volatility [12]

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 (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 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 Sci-Tech Growth Tier - The removal criteria for companies from the growth tier are based on a "new-old distinction." Incremental companies will be removed if they meet the first set of listing standards, 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 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 annual report, where companies will disclose their compliance with the removal conditions. 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, which is a "U" added to indicate 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 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, and the lead underwriters are responsible for ongoing supervision and must provide conclusive opinions on the risks involved [11].

Group 1 - He Yuan Bio is the first company to initiate the issuance process after the resumption of the fifth listing standard on the Sci-Tech Innovation Board, marking a significant milestone in the new registration of companies in the Sci-Tech Growth Layer [1] - The company has not yet achieved profitability, with projected revenues of 13.40 million yuan, 24.26 million yuan, and 25.22 million yuan for 2022, 2023, and 2024 respectively, showing year-on-year changes of -47.49%, 81.08%, and 3.92% [2] - The net profit attributable to the parent company for the same years is projected to be -143.58 million yuan, -186.96 million yuan, and -151.37 million yuan, with year-on-year changes of -7.12%, -30.22%, and 19.04% [2] Group 2 - Xi'an Yicai is the first unprofitable company accepted by the Shanghai Stock Exchange after the release of the "Eight Articles of the Sci-Tech Board," focusing on the research, production, and sales of 12-inch silicon wafers [2] - The company is projected to be the largest 12-inch silicon wafer manufacturer in mainland China and the sixth globally by the end of 2024, with a monthly average shipment volume and production capacity accounting for approximately 6% and 7% of the global total, respectively [2] - Biobetter, another company adopting the fifth listing standard, has its core product BEBT-908 approved for market release, while other products are still in the research phase and the company is currently unprofitable [2] Group 3 - The valuation of unprofitable companies cannot be calculated using traditional methods; alternative valuation methods include the option pricing model, price-to-sales ratio, and discounted cash flow analysis to capture future growth potential [3] - The China Securities Regulatory Commission announced the resumption of the fifth listing standard for unprofitable companies on June 18, expanding the scope and introducing a trial for professional institutional investors [3] - As of September 17, 475,000 investors have opened trading permissions for the Sci-Tech Growth Layer, with all relevant regulatory rules implemented following the announcement of the "1+6" reform policy [3] Group 4 - Some brokerage firms have completed the optimization of trading apps, with special identifiers for stocks in the Sci-Tech Growth Layer now online [4] - Stocks in this layer will have a "U" added to their abbreviations, while existing stocks will have a "成1" label indicating they are part of the Sci-Tech Growth Layer [4] - Newly registered stocks will have a "成" label, indicating they are newly registered in the Sci-Tech Growth Layer [4]

Core Viewpoint - The article discusses the significant progress in the Sci-Tech Innovation Board's growth tier, with three unprofitable companies set to begin their subscription process this week, marking the first batch of new listings in this tier [1]. Group 1: Upcoming Listings - Three unprofitable companies, He Yuan Bio, Xi'an Yicai, and Bibet, will start their subscription process this week, with specific dates for each company [2]. - He Yuan Bio is a biopharmaceutical company with multiple drugs in the R&D stage and has not yet turned a profit. The company plans to issue 89.45 million shares, with a maximum subscription limit of 14,000 shares, requiring a market value of 140,000 yuan in the Shanghai market for top-tier subscriptions [3]. - Xi'an Yicai is a leading domestic semiconductor materials company, also unprofitable, planning to issue 537.8 million shares with a maximum subscription limit of 53,500 shares, requiring a market value of 535,000 yuan for top-tier subscriptions. The company is a major supplier of 12-inch silicon wafers in China [3]. - Bibet is another biopharmaceutical company with its core product BEBT-908 approved for listing, while other products are still in development. The company plans to issue 90 million shares, with a maximum subscription limit of 14,000 shares, requiring a market value of 140,000 yuan for top-tier subscriptions [4]. Group 2: Other Companies in the Pipeline - At least ten other unprofitable companies are waiting for their listings, including Bei Xin Life, which focuses on cardiovascular disease diagnostics and has submitted its registration [6]. - Si Zhe Rui, a comprehensive surgical robot company, has also submitted its registration and is awaiting approval. The company is developing various surgical robots across multiple specialties [6]. - Mo Er Thread has passed the listing committee meeting and is waiting for regulatory approval. The company focuses on GPU development and has launched several GPU architectures [7]. Group 3: Growth Tier Overview - The Sci-Tech Innovation Board's growth tier was officially established in June 2023, allowing 32 existing unprofitable companies to automatically enter this tier. New unprofitable companies will also enter upon listing [8]. - The delisting conditions for existing companies remain unchanged, while new companies face stricter delisting criteria to encourage rapid technological development and market expansion [8]. - Some brokerage firms have updated their trading apps to include special indicators for growth tier stocks, enhancing clarity for investors regarding the market tier of these stocks [8].

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 Innovation Board Growth Tier Companies - Companies in the 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 the 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 the 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 revenues of no less than 100 million yuan. Existing companies will be removed upon their first profitability after listing [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 any significant risks or negative events affecting the company's technological innovation and growth prospects [10][11].

Investment Rating - The report does not explicitly state an investment rating for the company, but it discusses the potential for investment opportunities based on the new listing and market conditions. Core Insights - The report highlights that He Yuan Bio is the first company to be listed under the new Sci-Tech Growth Tier, which is designed to support unprofitable tech companies. This tier allows both newly listed and existing unprofitable companies to be included, with specific conditions for exit [10][11]. - He Yuan Bio has set up a tiered lock-up scheme for its shares, with different lock-up ratios and periods aimed at attracting long-term investors. The lock-up ratios are 70% for 9 months, 45% for 6 months, and 10% for 6 months for different tiers [24][25]. - The report anticipates that the market will favor the A2 tier, predicting a significant potential return on investment based on various market scenarios [5][41]. Summary by Sections 1. Introduction of the Sci-Tech Growth Tier - The introduction of the Sci-Tech Growth Tier aims to incentivize long-term capital investment in unprofitable tech companies, with He Yuan Bio being the first to launch under this framework [10][11]. 2. He Yuan Bio's Lock-Up Scheme - He Yuan Bio has established a three-tier lock-up scheme for its shares, with A1 (70%, 9 months), A2 (45%, 6 months), and A3/B (10%, 6 months) [24][25]. - The report discusses the expected subscription rates for each tier, with A2 likely to be the most popular among investors [5][41]. 3. Market Dynamics and Expected Returns - The report outlines various market scenarios and their impact on subscription rates and potential returns, indicating that the A1 tier could yield returns significantly higher than traditional models [36][41]. - It estimates that the expected return for a 2 billion scale A/B class product participating in profitable IPOs would be 2.88% for A class and 2.54% for B class [49][50]. 4. Historical Performance of Unprofitable IPOs - Historical data indicates that unprofitable companies listed on the Sci-Tech board have a 30%-40% chance of experiencing a price drop within the first 6 to 9 months post-IPO [15][19].

Core Viewpoint - Wuhan Heyuan Biotechnology Co., Ltd. has officially launched its issuance work by disclosing its prospectus, issuance arrangements, and preliminary inquiry announcement on the Shanghai Stock Exchange, marking a significant step in the "1+6" reform of the Sci-Tech Innovation Board [1][3]. Group 1: Company Overview - Heyuan Biotechnology is the first company to initiate the issuance process among the newly registered enterprises in the Sci-Tech Growth Layer, following the resumption of the fifth set of standards for the Sci-Tech Innovation Board [5]. - The company has developed a globally pioneering "rice-derived hematopoiesis" technology, which has received support from the national "Major New Drug Creation" technology major project [6]. - Heyuan's self-developed innovative drug, recombinant human albumin injection (from rice), was approved for market release by the National Medical Products Administration in July, aiming to reduce China's long-term reliance on imported human serum albumin [6]. Group 2: Market Context - The issuance of Heyuan Biotechnology is a reflection of the implementation of the "1+6" reform on the Sci-Tech Innovation Board, enhancing the system's inclusiveness and adaptability for high-quality technology enterprises [6]. - The company is the first to adopt differentiated lock-up and allocation arrangements for offline issuance, with a minimum overall lock-up ratio of 40% and three tiers of differentiated lock-up levels for investors [6]. - The Shanghai Stock Exchange has revised its issuance and underwriting rules, allowing unprofitable companies to adopt agreed lock-up methods, encouraging professional institutions to play a larger role in new stock pricing [6][10]. Group 3: Industry Developments - Since the announcement of the "1+6" reform policy in June, the Sci-Tech Innovation Board has received IPO applications from 15 new companies, including four unprofitable enterprises [7]. - Currently, three unprofitable companies have received IPO registration approval, with two of them adhering to the fifth set of standards [8]. - The technical systems of the Shanghai Stock Exchange have completed full network testing, and preparations for the issuance of new registered enterprises in the Sci-Tech Growth Layer are underway [9].