Core Viewpoint - The Hong Kong stock market has seen a significant shift in the IPO landscape for specialized technology companies, particularly those in AI, semiconductors, and autonomous driving, with no successful IPOs for 18C companies in 2025 despite initial enthusiasm in 2024 [1][9]. Group 1: Market Dynamics - In 2024, 18C specialized technology companies were highly sought after, but by 2025, the market has not seen any completed IPOs among the 12 companies that have submitted applications [1][9]. - The Hong Kong Stock Exchange implemented reforms on September 1, 2024, lowering the minimum market capitalization requirements for 18C companies, with commercialized companies' thresholds reduced from HKD 60 billion to HKD 40 billion, and non-commercialized companies from HKD 100 billion to HKD 80 billion [1][9]. Group 2: Company Performance - Three listed 18C companies have been active in secondary market financing, with Crystal Technology raising HKD 32.2 billion through two rounds of fundraising, significantly exceeding its IPO fundraising scale [4]. - Black Sesame Intelligence has experienced a 31% decline in stock price since its IPO, despite a positive earnings forecast, with actual performance falling short of market expectations [6]. - Yujiang, the smallest company by market capitalization at IPO, has seen its stock price increase by 188%, but its financial performance remains weak, raising concerns about its R&D investment levels [7][8]. Group 3: Financial Metrics - Crystal Technology's R&D expenditure was HKD 4.18 billion in 2024, accounting for 157% of its revenue, while Black Sesame Intelligence's R&D spending was HKD 14.35 billion, representing 302.6% of its revenue [8]. - Yujiang's R&D expenditure was only HKD 0.72 billion in 2024, which is just 19.2% of its revenue, indicating a potential deviation from the core attributes of specialized technology companies [8]. Group 4: IPO Challenges - Despite the lowered thresholds for IPOs, many companies face challenges due to weak fundamentals and unclear commercialization paths, with 9 out of 12 companies only recently meeting the commercialization revenue threshold [11]. - Companies like Xidi Zhijia and Wuyi Vision have submitted their applications again but have not made significant progress, reflecting ongoing regulatory pressures [12].