Core Viewpoint - Kewang Pharmaceutical has submitted its prospectus to the Hong Kong Stock Exchange for an IPO, aiming to raise funds despite facing significant operational challenges and financial losses [1][2]. Company Overview - Kewang Pharmaceutical was established in 2017 and focuses on enhancing immune responses against tumors by targeting suppressive factors in the tumor microenvironment [1]. - The company has completed four rounds of financing, raising approximately 1.79 billion yuan, with notable investors including Hillhouse Capital and Tencent [1]. Financial Performance - Kewang Pharmaceutical has not yet commercialized any products and reported revenues of 107 million yuan in 2024, primarily from collaborations and licensing agreements [2]. - Cumulative losses have reached 2.067 billion yuan as of December 31, 2024, with annual losses of 771 million yuan, 853 million yuan, and 88 million yuan from 2022 to 2024 [2]. - The company’s cash reserves have dwindled to 33 million yuan by the end of 2024, insufficient to sustain a year of R&D activities [6]. Research and Development Pipeline - The company’s core products, ES102 and ES104, are both licensed from other firms, raising concerns about Kewang's self-research capabilities [5][6]. - ES102 has shown a low overall response rate (ORR) of 11.1% in clinical trials, which may challenge its clinical value [5]. - ES104 has completed early-phase trials but is similarly licensed, indicating reliance on external innovations [5]. Valuation and Market Position - Kewang's valuation has increased over 30 times from 20 million USD in 2017 to approximately 600 million USD in 2021 [7]. - The company’s market-to-research ratio is around 37 times based on 2024 R&D costs, significantly higher than the median of 15.65 times for similar unprofitable companies listed in Hong Kong [7].