Core Viewpoint - He Mei Pharmaceutical is seeking to list on the Hong Kong Stock Exchange under the 18A chapter, aiming to attract capital for its development of small molecule drugs targeting autoimmune diseases and tumors, despite currently having no revenue or profit [1][3]. Group 1: Company Overview - He Mei Pharmaceutical was established in 2002 and focuses on developing small molecule drugs for autoimmune diseases and tumors, with a strong position in the industry [1]. - The company is developing seven small molecule drug candidates, all in clinical stages, and relies on government subsidies and financing for sustainable operations [1][3]. Group 2: Financial Performance - In 2023 and 2024, He Mei Pharmaceutical reported other income of approximately 4.05 million and 5.298 million RMB, respectively, primarily from government subsidies [3][4]. - The company incurred losses of approximately 156 million and 123 million RMB in the same periods, with significant expenditures in research and development [3][4]. Group 3: Product Pipeline - The core product, Mufemilast, is a novel small molecule PDE4B inhibitor, currently undergoing critical clinical trials for various indications, including psoriasis and Behçet's disease [5][6]. - Mufemilast is positioned as a unique drug with a dual mechanism of action, potentially reducing central nervous system side effects [6][7]. Group 4: Market Potential - The psoriasis drug market in China is projected to grow from 13.9 billion RMB in 2023 to 89.4 billion RMB by 2032, with a compound annual growth rate of 59.1% from 2023 to 2032 [7]. - He Mei Pharmaceutical is preparing for comprehensive clinical development of Mufemilast across eight major indications, indicating a strategic approach to capture market share [10][11]. Group 5: Competitive Landscape - The market for psoriasis treatments is becoming increasingly competitive, with major pharmaceutical companies also developing small molecule targeted therapies [10]. - He Mei Pharmaceutical's limited industry influence and recognition may pose challenges in differentiating its products in a crowded market [10][11].