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].

Core Insights - The National Healthcare Security Administration and the Ministry of Human Resources and Social Security announced the inclusion of 50 Class 1 innovative drugs in the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog (2025) [1] - The drug Mesylate Prefofovir Tablets (brand name: Xinshi Mu) developed by Xi'an Xintong Pharmaceutical Research Co., Ltd. is the only Class 1 innovative drug from Shaanxi Province to be included, effective from January 1, 2026 [1] Group 1: Drug Details - Class 1 innovative drugs are defined as drugs that have not been marketed domestically or internationally, representing the highest level of drug innovation in China's registration classification [1] - Mesylate Prefofovir Tablets are indicated for the treatment of adult chronic hepatitis B, utilizing liver-targeted delivery technology to achieve precise release of active ingredients in the liver [1] - The drug significantly reduces the safety risks associated with kidneys and bones compared to conventional treatment options while effectively inhibiting hepatitis B virus replication [1] Group 2: Market Impact - Clinical research indicates that Mesylate Prefofovir Tablets excel in reducing hepatitis B surface antigen levels, which may enhance clinical cure rates and lower the long-term risks of cirrhosis and liver cancer [2] - The inclusion of this drug in the national medical insurance catalog is expected to rapidly increase its market availability, improving accessibility for a large number of chronic hepatitis B patients in China [2] - The influence of Shaanxi's listed backup enterprises in the capital market is anticipated to expand, with ongoing efforts to enhance support mechanisms for strategic emerging industries like biomedicine [2]

Core Insights - Shaanxi is leveraging its advantages to drive high-quality development through innovation, integrating technological and industrial innovation to build a modern industrial system [1][5] - The province is witnessing a surge in technology-driven enterprises and the transformation of scientific research achievements into marketable products [1][5] Group 1: Technological Innovations - Intelligent non-destructive testing technology developed by Xi'an Shuhua Information Technology Co., Ltd. can detect micro-defects in industrial equipment with a speed 40 times faster than traditional methods, achieving nearly 100% detection rate for defects [2][4] - The company has rapidly become a leader in multi-modal AI quality inspection solutions in the high-end manufacturing sector, supported by strategic partnerships and resource allocation from local initiatives [4][5] Group 2: Policy and Support - Shaanxi is implementing three reform policies to enhance the transformation of scientific achievements into products, focusing on investment, talent, and support for technology-driven enterprises [4][5] - By 2024, Shaanxi will have 201 pilot units for these reforms, with over 10.6 million scientific achievements recorded and 3.6 million successfully transferred to market applications [5] Group 3: Pharmaceutical Innovations - Xi'an New Tong Pharmaceutical Research Co., Ltd. has developed the world's first targeted innovative drug for hepatitis B, marking a significant breakthrough for Shaanxi's pharmaceutical industry [6][7] - The drug has shown superior efficacy compared to existing imported treatments, highlighting the province's potential in biopharmaceutical innovation [7][8] Group 4: Emerging Industries - Shaanxi is focusing on developing strategic emerging industries such as new energy vehicles and solar photovoltaics, aiming to enhance its industrial chain and promote high-quality growth [9][10] - The province's strategic emerging industries have seen rapid growth, contributing to the formation of a modern industrial system [9][10] Group 5: Entrepreneurial Ecosystem - The supportive policies in Shaanxi have fostered a conducive environment for innovation and entrepreneurship, leading to the rapid growth of technology-based enterprises [11][12] - The number of high-tech enterprises in Shaanxi has been growing at over 30% annually, indicating a robust innovation ecosystem [12]