Core Viewpoint - The resurgence of interest in 18A companies in the Hong Kong stock market is evident, with institutional investors focusing on biotech firms that meet the criteria for listing under Chapter 18A of the Hong Kong Stock Exchange, which allows unprofitable and revenue-less biotech companies to go public [1][4]. Group 1: Market Trends - The total IPO fundraising in Hong Kong is expected to exceed HKD 200 billion this year, second only to the peak in 2021 when it surpassed HKD 320 billion [1]. - As of December 3, 2023, 13 18A companies listed in Hong Kong have raised over HKD 26 billion [1]. - The average first-day and one-month post-listing gains for new stocks in Hong Kong have reached 38.4% and 40.2% respectively, with 18A companies showing even higher gains of 69.4% and 88.7% [4]. Group 2: Company Performance - Baoyi Pharmaceutical, a notable 18A company, plans to raise approximately HKD 1 billion through its IPO, having already received approval for a new drug prior to its listing [2][11]. - Baoyi Pharmaceutical's revenue has significantly increased, with a reported rise of over HKD 40 million in the first half of the year due to licensing and technical service income [9]. - The company has a robust pipeline with 12 in-development products, including three core products nearing commercialization [2][11]. Group 3: Investment Sentiment - Investors are increasingly favoring 18A companies with commercialized products, as these represent self-sustaining opportunities [3]. - The sentiment among investors is positive, with many experiencing significant returns from investing in 18A companies compared to other sectors [4]. - The number of 18A companies applying for IPOs has nearly doubled in the second half of the year, indicating a strong market demand [6]. Group 4: Competitive Landscape - The competitive environment for 18A companies is intensifying, with over 5,000 such companies established in China, leading to increased scrutiny from investors regarding the quality and pipeline of these firms [21]. - Baoyi Pharmaceutical's innovative products are positioned to compete effectively in the market, with expectations of substantial revenue growth in the coming years [18][23]. Group 5: Future Outlook - The trend of 18A companies going public is expected to continue, driven by pent-up demand and improved market conditions [8][26]. - Baoyi Pharmaceutical is exploring partnerships and innovative business models to enhance its market position and revenue streams [22][24].

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].

Core Viewpoint - The recent performance of Hong Kong IPOs, particularly those classified as 18A companies, has generated significant market anticipation for new listings in this category, with the top five companies showing substantial first-day gains [3][4]. Company Overview - Jinfang Pharmaceutical, established in 2017, is a biopharmaceutical company focused on developing new treatment solutions for oncology and autoimmune diseases. The company has attracted notable venture capital firms such as Shenzhen Capital Group and DCM [6]. Product Pipeline - Jinfang Pharmaceutical has developed a product pipeline that includes eight candidate drugs, with five in clinical development. Two core products, GFH925 and GFH375, are highlighted, with GFH925 being a selective KRAS G12C inhibitor approved for advanced non-small cell lung cancer (NSCLC) in China [7][8]. Commercialization and Partnerships - Jinfang Pharmaceutical has entered into several licensing agreements, including one with Innovent Biologics for GFH925, which grants Innovent full responsibility for the drug's development and commercialization in Greater China. The company retains exclusive rights for development outside of China [9][10][11]. Financial Performance - Despite the commercialization of GFH925, Jinfang Pharmaceutical reported revenues of RMB 73.73 million in 2023 and projected RMB 105 million in 2024, with net losses of RMB 508 million and RMB 678 million for the same years, respectively. The losses are attributed to significant R&D investments [12][14]. R&D Investment - The company emphasizes the need for long-term financial resources for developing high-quality drugs, with R&D costs amounting to RMB 313 million in 2023 and projected RMB 332 million in 2024 [15]. Shareholder Structure - The largest shareholder group of Jinfang Pharmaceutical includes its co-founders and key executives, controlling approximately 25.23% of the issued share capital. The company has raised a total of RMB 1.421 billion through multiple funding rounds [16][18].