Core Viewpoint - XuanZhu Biotechnology Co., Ltd. is attempting to go public on the Hong Kong Stock Exchange after previous attempts to list on the STAR Market were halted. The company specializes in innovative drugs for major diseases such as digestive disorders, tumors, and non-alcoholic fatty liver disease [1]. Financial Performance - The company has been in a continuous loss state, with net profits of -301 million RMB, -556 million RMB, and -65.46 million RMB over the reporting periods. Despite having some cash reserves, the net cash flow from operating activities remains negative, indicating a strong reliance on external funding [4]. - As of March 31, 2025, the company had cash and cash equivalents of 21.09 million RMB and pledged deposits of 30.99 million RMB. However, the prospectus indicates that the company has sufficient working capital to cover over 125% of its costs for at least the next 12 months [4]. R&D Pipeline - XuanZhu currently has 12 drug candidates targeting 18 indications. Ananilazole sodium is the only product that has been commercialized, generating sales of 32.7 million RMB since its global launch in November 2023, which is insufficient to cover its 176 million RMB R&D investment [2][4]. - The company has seen a significant reduction in R&D personnel, decreasing by over 70% from 338 to 88 within three years. This reduction has not been explained in the prospectus but may indicate a shift in focus towards later-stage clinical trials and commercialization [2]. Market Challenges - The company faces challenges in commercializing its pipeline amid intense market competition and pressure from generic drugs and volume-based procurement policies. The success of its R&D pipeline's commercialization will be crucial for its future development [4].