Core Viewpoint - Xian Xintong Pharmaceutical Research Co., Ltd. (referred to as "Xintong Pharmaceutical") is attempting a second IPO on the Sci-Tech Innovation Board after its previous attempt failed due to the expiration of the registration approval, despite having a core product that has recently been launched. The company remains unprofitable, and its fundraising target has decreased from 12.79 billion to 9 billion yuan [1][6]. Group 1: Company Overview - Xintong Pharmaceutical is a high-tech enterprise focused on drug research and development for over 20 years, specializing in major liver diseases such as hepatitis B, metabolic dysfunction-related fatty liver disease, and liver cancer [3]. - The company has developed into a competitive player in the liver disease new drug development sector, aiming to meet unmet clinical needs with innovative drugs that have independent intellectual property rights [3]. Group 2: IPO History - The first IPO attempt was accepted on December 6, 2021, but faced delays and ultimately failed to issue shares due to the expiration of the registration approval on April 25, 2023 [2][4]. - The current IPO application has been accepted, and the company is again applying under the fifth set of listing standards, which focus on technological advancement and research capabilities rather than short-term financial metrics [4][5]. Group 3: Financial Performance - Xintong Pharmaceutical has not achieved profitability, with net losses projected at -53.87 million yuan for 2022, -62.29 million yuan for 2023, -79.36 million yuan for 2024, and -13.20 million yuan for the first half of 2025, totaling cumulative losses of approximately 346 million yuan [5]. - Revenue figures for the years 2022 to 2025 show minimal growth, with revenues of approximately 1.10 million yuan in 2022, 11.98 million yuan in 2023, 3.02 million yuan in 2024, and 9.77 million yuan in the first half of 2025 [7]. Group 4: Fundraising and Investment - The current IPO aims to raise 9 billion yuan, allocated to new drug research projects (5 billion yuan), the construction of an innovative drug production base (2 billion yuan), and working capital (2 billion yuan) [6]. - Compared to the previous IPO, the fundraising amount has decreased significantly, with the new drug research project seeing a notable reduction in investment [6]. Group 5: Research and Development - R&D expenses have sharply declined, with figures of 53.23 million yuan in 2022, 62.10 million yuan in 2023, and 26.08 million yuan in 2024, with a further drop to 12.69 million yuan in the first half of 2025 [8][9]. - The decrease in R&D spending is attributed to reduced trial costs and the completion of certain clinical phases, which has raised concerns about the potential slowdown in new drug development and core competitiveness [8][9].

Core Viewpoint - Xi'an Xintong Pharmaceutical Research Co., Ltd. (referred to as "Xintong Pharmaceutical") is making a second attempt to list on the Sci-Tech Innovation Board (STAR Market) after its previous IPO registration expired without issuance. The company has core products that have been launched, but it has not yet achieved profitability. The fundraising amount has decreased from 12.79 billion RMB to 9 billion RMB compared to the previous IPO attempt, and there is a significant reduction in R&D expenses expected in 2024 [1][3][6]. Company Overview - Xintong Pharmaceutical is a high-tech enterprise focused on drug research and development for over 20 years, specializing in major liver diseases such as hepatitis B, metabolic dysfunction-related fatty liver disease, and liver cancer [3]. - The company has developed a competitive position in the liver disease new drug development sector and has eight core products for liver disease treatment, with one product already approved for sale [7]. IPO History - The company’s first IPO attempt was accepted on December 6, 2021, but faced delays and ultimately failed to issue shares due to the expiration of the registration approval [3][4]. - The current IPO application has been accepted, and the company aims to meet the fifth listing standard of the Shanghai Stock Exchange, which requires a market value of no less than 40 billion RMB and at least one core product approved for phase II clinical trials [4][5]. Financials - The expected net profits for Xintong Pharmaceutical from 2022 to the first half of 2025 are projected to be negative, with cumulative unabsorbed losses amounting to 34.68 million RMB as of June 2025 [4]. - The company’s operating revenues from 2022 to the first half of 2025 are approximately 1.1 million RMB, 11.98 million RMB, 3.02 million RMB, and 9.77 million RMB, respectively [8]. Fundraising and Use of Proceeds - The company plans to raise 9 billion RMB in this IPO, with allocations of 5 billion RMB for new drug R&D, 2 billion RMB for the construction of an innovative drug production base, and 2 billion RMB for working capital [6]. - Compared to the previous IPO, the funding for new drug R&D has significantly decreased, while the funding for the production base has seen a slight increase [6]. R&D Expenses - R&D expenses for Xintong Pharmaceutical are expected to decline sharply in 2024, with figures of 53.23 million RMB, 62.10 million RMB, and 26.08 million RMB for 2022, 2023, and 2024, respectively [9]. - The decrease in R&D expenses is attributed to reduced trial costs and amortization expenses, which may impact the progress of new drug development and core competitiveness [9][10].

Group 1: Company Overview - Xian New Tong Pharmaceutical Research Co., Ltd. focuses on drug development for major liver diseases, including hepatitis B and liver cancer, with 8 core products in its pipeline [1] - Renben Co., Ltd. is the largest comprehensive bearing manufacturing group in China, with over 50,000 product specifications and a presence in over 70 countries [2] - Wolai Intelligent Technology Co., Ltd. specializes in smart manufacturing solutions for emerging industries, particularly in the automotive and semiconductor sectors [2] - Gaokai Technology is engaged in precision fluid control, with products used in semiconductor and consumer electronics industries [3] - Deep Blue Ocean Technology Co., Ltd. develops underwater robotics and solutions for various marine applications, holding 15 core technologies in the field [3] - Tongxin Medical Technology Co., Ltd. is an innovative medical device company focused on advanced heart failure treatments, with its first product approved in China and others in clinical trials [4] Group 2: Product Development and Market Position - New Tong Pharmaceutical has developed a first-class innovative drug, with one product already on the market and others in various clinical trial stages [1] - Renben has maintained the top position in domestic bearing production and sales for 12 consecutive years, nearing the capabilities of the top eight global competitors [2] - Wolai is recognized as a national key "little giant" enterprise, providing comprehensive smart manufacturing solutions [2] - Gaokai's product range includes flow control and precision dispensing systems, catering to the needs of intelligent manufacturing [3] - Deep Blue has established itself as a pioneer in the underwater robotics sector, with a complete product line and significant R&D investment [3] - Tongxin's CH-VAD system is the first fully magnetic levitation left ventricular assist device approved in China, with further innovations in the pipeline [4]

Core Viewpoint - New Tong Pharmaceutical has been accepted for IPO on the Shanghai Stock Exchange's Sci-Tech Innovation Board, focusing on drug development for major liver diseases such as hepatitis B and liver cancer, with a commitment to innovative drugs that meet clinical needs [1][2]. Group 1: IPO Process - This marks New Tong Pharmaceutical's second attempt at an IPO, having previously completed the entire listing process but ultimately failing to enter the issuance stage before the registration approval expired [2]. - The company submitted its IPO application in December 2021, received approval in April 2023, but could not proceed to issuance before the approval's expiration on April 25, 2024 [2]. Group 2: Product Pipeline and Revenue Dependence - Currently, New Tong Pharmaceutical has one approved innovative drug, Mesylate Prefofovir Tablets, which is expected to be commercially dependent in the short term [3]. - The company anticipates that Mesylate Prefofovir Tablets will be included in the national medical insurance directory by 2025 and will start sales at the insurance price in 2026 [3]. - The company faces risks related to potential price reductions of its products after market entry and the possibility of being removed from the medical insurance directory, which could significantly impact market share and revenue [3]. Group 3: Sales and Distribution Risks - New Tong Pharmaceutical employs an exclusive agency distribution model for Mesylate Prefofovir Tablets, leading to high customer concentration and reliance on a single distributor, KGI Securities [4]. - Revenue from KGI Securities and its subsidiaries accounted for 94.09% and 98.83% of total revenue in 2024 and the first half of 2025, respectively [4]. Group 4: Financial Performance - The company has reported negative net profits for several consecutive years, with a cumulative loss of 347 million yuan as of June 2025 [6]. - Revenue figures for recent years show a significant reliance on the single product, with total revenues of 976.70 million yuan in the first half of 2025, compared to 1,197.82 million yuan in 2023 [7]. - The company has a high R&D expense ratio, with R&D expenses exceeding revenue in recent years, indicating a focus on product development despite ongoing losses [7]. Group 5: Intellectual Property Risks - New Tong Pharmaceutical faces risks related to intellectual property, as some patents for its products have expired, potentially exposing them to generic competition [5]. - The company has applied for additional patents to enhance protection but still faces risks associated with the expiration of the five-year monitoring period for innovative drugs [5].