Core Viewpoint - The resurgence of the 18A IPO trend in the Hong Kong stock market is driven by improved market conditions and the increasing quality of biotech companies seeking to go public, particularly those with commercialized products and advanced clinical pipelines [1][4][7]. Summary by Sections 18A Companies and Market Trends - The Hong Kong stock exchange's Chapter 18A allows unprofitable and revenue-less biotech companies to list, leading to a renewed interest from institutional investors in 18A companies [1]. - The total IPO fundraising in Hong Kong is expected to exceed HKD 200 billion this year, with 13 18A companies raising over HKD 26 billion as of December 3 [1][2]. - The average first-day and one-month post-listing gains for new stocks in Hong Kong reached 38.4% and 40.2%, respectively, with 18A companies outperforming at 69.4% and 88.7% [4]. Specific Company Insights: Baoji Pharmaceutical - Baoji Pharmaceutical, established in 2019, is set to raise approximately HKD 1 billion through its IPO, with a share price of HKD 26.38 [2]. - The company has a diverse product pipeline, including 12 in-development products, with one new drug already approved for market [2][10]. - Baoji's revenue has significantly increased due to licensing and technical service income, with reported revenues of CNY 6.93 million, CNY 6.16 million, and CNY 41.99 million for 2023, 2024, and the first half of 2025, respectively [10][14]. Investment Sentiment and Future Outlook - Investors are increasingly favoring 18A companies with commercialized products, as evidenced by the strong performance of Baoji and others in the market [3][7]. - The number of 18A companies applying for IPOs has nearly doubled in the second half of the year, indicating a robust market sentiment [6]. - Baoji's innovative products, such as the long-acting recombinant follicle-stimulating hormone, are expected to generate significant revenue, with projections of CNY 300 million, CNY 500 million, and CNY 1 billion in 2026, 2027, and 2028, respectively [17]. Competitive Landscape - The competitive environment for 18A companies is intensifying, with a focus on clinical trial advancements and commercialization timelines [7][12]. - Baoji's strategy includes exploring partnerships with antibody drug companies, enhancing its market position and revenue potential [21][22]. - The company aims to leverage its platform for both direct-to-consumer and business-to-business opportunities, ensuring a diversified revenue stream [22]. Entrepreneurial Insights - The founder of Baoji, Liu Yanjun, emphasizes the importance of having a clear revenue generation strategy and the ability to adapt to market changes, particularly in the fast-evolving biotech landscape [20][23]. - The company has successfully navigated funding challenges during the pandemic, raising over CNY 10 billion since its inception, which has allowed it to maintain a strong focus on research and development [23][24].