Core Viewpoint - The company, Kewang Pharmaceuticals, is facing significant financial challenges as it attempts to go public for the third time, with a history of over 2 billion yuan in losses and only enough cash to sustain operations for three months [1][6]. Financial Challenges - As of the end of 2024, Kewang Pharmaceuticals has only 32.82 million yuan in cash, a drastic decrease of 88% from 270 million yuan the previous year [2][7]. - The company's net debt stands at 2.738 billion yuan, largely due to convertible redeemable preferred shares that require repayment if the IPO is not completed by the deadline, adding substantial cash flow pressure [2][7]. - To alleviate financial strain, the company has implemented drastic measures such as selling production facilities, downsizing its team, and cutting R&D projects, but these efforts have not reversed the situation [2][7]. R&D Pipeline Concerns - Kewang's core product, ES102, is a six-valent OX40 agonist antibody, but its clinical data shows a low objective response rate of 11.1% and a disease control rate of 40.7%, which are not competitive compared to existing treatments [3][8]. - The company has not demonstrated strong in-house R&D capabilities, as its most advanced pipelines are licensed from other companies, and its proprietary technology platform has yet to yield significant clinical assets [3][8]. Market and Valuation Challenges - Kewang's valuation has seen a dramatic increase from 20 million USD in 2017 to 600 million USD in 2021, but it now appears significantly inflated compared to industry standards, with a market-to-research ratio of approximately 37 times, while the median for similar companies is only 15.65 times [4][9]. - The IPO environment has become more stringent, with new regulations requiring companies to demonstrate advanced clinical stages and sufficient commercial potential, posing additional challenges for Kewang [4][9]. Conclusion - Kewang Pharmaceuticals' journey to IPO reflects the broader struggles of Chinese biotech firms in balancing funding, R&D, and market trust, with the current situation presenting not just a developmental issue but a survival challenge [5][10].