Core Viewpoint - Jinfang Pharmaceutical is preparing for an IPO on the Hong Kong Stock Exchange, aiming to raise funds to support its pipeline development amid significant financial losses and high R&D expenditures [1][2][4]. Financial Performance - The company reported revenues of approximately 1.05 billion yuan in 2022, 740 million yuan in 2023 (a nearly 30% decline), and is expected to return to 1.05 billion yuan in 2024 [2]. - Net losses increased from 275 million yuan in 2022 to 678 million yuan in 2024, with cumulative losses from 2022 to 2024 reaching 1.461 billion yuan [2][3]. - R&D expenses were high, totaling approximately 786 million yuan over the three years, with 2024 showing a decrease in R&D investment to 142 million yuan, indicating financial pressure [2][3]. Product Development and Revenue Sources - The core product GFH925 is set to be approved for non-small cell lung cancer treatment in August 2024, but the company has not generated substantial product sales revenue prior to this [1][3]. - Revenue in 2023 was primarily from licensing agreements, with significant reliance on a single partner, which poses risks due to the volatility of such income [3][4]. - The termination of a licensing agreement with a partner resulted in a future liability of 20 million USD, further straining the company's financial situation [4]. Funding and Investment - The company has completed seven rounds of financing since its establishment, raising approximately 1.421 billion yuan, with notable participation from well-known venture capital firms [6]. - Recent funding rounds have shown valuation pressure, with a decrease in share price from 124.03 yuan to 116.68 yuan, reflecting a cautious investment environment [6][7]. - The presence of "earn-out" clauses in financing agreements indicates investor concerns over risk and the need for the company to meet specific performance metrics to avoid buyback obligations [7]. Future Plans and Strategy - The IPO proceeds are intended to support clinical trials for GFH925 and other pipeline products, indicating a focus on R&D rather than immediate commercialization [5]. - The company plans to monitor cash flow closely and may seek additional financing to ensure operational sustainability over the next 12 months [4][5].