Core Viewpoint - The upcoming IPO of Baiaosaitu (Beijing) Pharmaceutical Technology Co., Ltd. is under scrutiny due to its financial instability, high debt levels, and reliance on related-party transactions, raising concerns about investor acceptance and regulatory approval [1][24][38]. Financial Performance - Baiaosaitu's projected revenues for 2022 to 2024 are 530 million, 710 million, and 980 million CNY, respectively, with net profits of -600 million, -380 million, and 33.54 million CNY [4]. - The company achieved profitability in 2024 primarily through cost-cutting measures, reducing R&D expenses from 699 million CNY in 2022 to 324 million CNY in 2024, and management expenses from 250 million CNY to 180 million CNY [8][9][10]. - Despite a revenue increase, the company has accumulated losses exceeding 1.9 billion CNY from 2020 to 2024, with a net profit margin of only 3.42% in 2024, indicating a structural profitability issue [33][34]. Debt and Control Stability - The controlling shareholders, Shen Yulei and Ni Jian, hold approximately 27.57% of the voting rights and are burdened with around 100 million CNY in debt, which raises concerns about potential conflicts of interest and financial stability [12][13][17]. - The repayment of debts from 2023 to 2028 totals approximately 115 million CNY, with significant reliance on share sales to cover these obligations, posing risks to control stability [16][17][18]. Market and Investor Sentiment - Baiaosaitu's stock price has significantly declined since its Hong Kong listing, reaching a low of 5.6 HKD, which has led to skepticism among potential A-share investors regarding its value [22][23]. - The company's reliance on related-party transactions for revenue, particularly in its antibody development business, raises questions about the authenticity and sustainability of its financial performance [26][29][32]. Regulatory Environment - The current IPO review process is characterized by a "stable game" dynamic, where investor sentiment, regulatory scrutiny, and market conditions interact, potentially affecting Baiaosaitu's chances of a successful listing [38].