Group 1 - The Hong Kong IPO market has cooled significantly, shifting from strong gains to frequent failures, breaking the myth of guaranteed profits from new listings [2] - Zhongwei New Materials (02579.HK) listed on November 17, 2025, with its stock price falling to 32.14 HKD, down 5.47% from the issue price of 34 HKD [2] - The company raised approximately 34.33 billion HKD by issuing 104 million shares, but the subscription was lukewarm, with only 27.9 times for the public offering and 4.08 times for the international offering [2] Group 2 - In the first ten months of the year, the Hong Kong IPO market was buoyant, with an average first-day return of 38.3%, and only 21.25% of the 80 new listings experienced a drop on their first day [2] - However, in November, the market sentiment turned cautious due to a high number of new listings consuming market funds and some new stocks being overpriced, leading to a sharp increase in the first-day failure rate to 50% [2] - Notable companies like WeRide (00800.HK) and Pony.ai (02026.HK) also faced first-day declines, with significant drops in their stock prices since listing [2] Group 3 - Zhongwei New Materials is facing dual challenges from a declining industry outlook and concerns about its fundamentals [4] - The domestic new energy battery materials industry has entered a cyclical downturn, shifting from a high-growth phase to one under performance pressure, altering valuation logic [4] - Despite a revenue increase to 21.32 billion RMB in the first half of 2025, the company's net profit has been declining since 2024, with a 17.33% drop in net profit reported in Q3 2025 despite an 18.84% revenue growth [4]