Core Viewpoint - The recent IPOs of two biotech companies, Huazhang Biotechnology and Hansai Aitai, faced significant declines on their debut trading days, indicating a bearish sentiment in the market for innovative drug companies, despite their initial hype and strong subscription rates [1][3][9]. Group 1: IPO Performance - Huazhang Biotechnology's stock fell nearly 30% on its first trading day, while Hansai Aitai's stock opened at 28.9 HKD, down 9.69% from its issue price of 32 HKD, and closed at 17.20 HKD, marking a 46.25% drop [1][3]. - Hansai Aitai's stock experienced a maximum intraday decline of 46.25%, failing to recover significantly by the end of the trading day [1][3]. Group 2: Subscription and Issuance Details - Hansai Aitai's global offering consisted of 18.32 million shares, with a public offering that was oversubscribed by 3074.09 times, resulting in a final allocation of 183.21 million shares, approximately 10% of the total offering [4][5]. - The final issue price was set at the upper limit of the range at 32 HKD, raising a net amount of 531 million HKD [5][6]. Group 3: Market Sentiment and Strategy - Both companies were initially viewed as "big meat" in the market due to their innovative drug offerings, yet their first-day performances fell short of expectations, reflecting a potential shift in investor sentiment towards unprofitable biotech firms [3][9]. - The adoption of the "Mechanism B" strategy, which favors institutional and cornerstone investors, did not yield the expected price stability for either company, as evidenced by their poor debut performances [9][10]. Group 4: Financial Performance and Valuation - Hansai Aitai reported losses of 85.16 million HKD, 117 million HKD, and 87.43 million HKD for the years 2023, 2024, and the first eight months of 2025, respectively [14]. - The company's post-IPO valuation reached 43.52 billion HKD, significantly higher than its pre-IPO valuation of approximately 16.15 billion HKD, raising concerns about its market valuation relative to industry averages [14].

Core Viewpoint - The recent IPOs of Huazhang Biotechnology and Hansai Aitai have faced significant market backlash, with both companies experiencing substantial stock price declines on their first trading days, indicating a potential shift in investor sentiment towards biotech firms, particularly those classified as "unprofitable 18A" [1][3][9]. Group 1: IPO Performance - Huazhang Biotechnology's stock fell nearly 30% on its debut, while Hansai Aitai's stock opened at 28.9 HKD, down 9.69% from its issue price of 32 HKD, and closed at 17.20 HKD, marking a 46.25% drop [1][3]. - Hansai Aitai's IPO was characterized by a high subscription rate of 3074.09 times for the public offering, with only 10% of shares allocated to this segment, reflecting strong initial interest despite the subsequent price drop [3][4]. Group 2: Company Background and Strategy - Hansai Aitai is a biotech company focused on innovative therapies for cancer and autoimmune diseases, utilizing its proprietary VersatiBody platform to develop dual-function or multi-functional molecules [10]. - The company has a rich pipeline, including its lead product HX009, a PD-1/SIRPα dual-function antibody fusion protein, which is currently in various clinical trials [11]. Group 3: Financial Metrics and Valuation - The IPO pricing was set at the upper limit of 32 HKD, raising approximately 5.31 billion HKD, but the post-IPO market valuation of 23.43 billion HKD corresponds to a high price-to-book ratio of 21.77, significantly above the industry average of 4.81 [4][13]. - Financial losses for Hansai Aitai were reported at 85.16 million HKD, 117 million HKD, and 87.43 million HKD for the years 2023, 2024, and the first eight months of 2025, respectively, raising concerns about its valuation amidst ongoing losses [12].