Jingze Bio's HKEX IPO Bid Amid Over RMB 200 Million Annual Losses for Two Consecutive Years

Jingze Bio, an auxiliary reproductive and ophthalmic drug R&D company, officially launches its IPO bid on the Hong Kong stock exchange. On June 27, the Hong Kong Stock Exchange's official website showed that Jingze Biopharmaceutical (Hefei) Co., Ltd. (hereinafter referred to as "Jingze Bio") submitted its listing application to the Hong Kong Stock Exchange, with CICC and Guoyuan International as joint sponsors. This biopharmaceutical company, betting on a "dual-high" track, just welcomed the commercial approval of its first core product in April 2025. However, it has incurred net losses exceeding 240 million yuan for two consecutive years, and its existing funds are only sufficient to sustain operations for about five months. Additionally, multiple uncertainties in advancing its R&D pipeline make its IPO journey full of challenges.

Jingze Bio revealed in its prospectus that the company focuses on two high-growth areas: assisted reproduction and ophthalmology. As of June 20, 2025, Jingze Bio is one of the companies in China with a significant number of large-molecule drugs in clinical stages in the fields of assisted reproduction and ophthalmology.

In terms of assisted reproductive drugs, the core product of Jingze Bio, JZB30 (recombinant human follicle-stimulating hormone lyophilized powder injection), was approved for commercialization by the National Medical Products Administration in April 2025. This is the company's first approved product, developed to compete with Gonal-f®, the leading imported drug in the global ovulation induction market. Another major product, JZB33 (recombinant human follicle-stimulating hormone aqueous injection), completed bioequivalence trials and submitted a New Drug Application (NDA) in June 2025.

In the field of ophthalmology, the core product JZB05 (anti-VEGF intravitreal injection) is currently undergoing Phase III clinical trials at more than 40 centers in China. This product is对标to the world's highest-selling ophthalmic drug, aflibercept (Eylea®), which achieved global sales of $9.5 billion in 2024. Jingze Bio expects to complete the Phase III clinical trial of JZB05 and submit an application for market approval in the second half of 2026.

Currently, Jingze Bio has a total of 8 drug candidates. Apart from JZB30, which has been approved, and JZB33, for which an NDA has been submitted, JZB05 is in Phase III clinical trials. JZB32, used for treating symptomatic vitreomacular adhesion, remains in Phase I clinical trials, with several other products at various stages of development.

Financial data shows that Jingze Bio has not yet emerged from its loss-making situation. In 2023 and 2024, the company's net losses were RMB 246 million and RMB 243 million, respectively, with cumulative losses over the two years exceeding RMB 480 million. During the same period, R&D investment was RMB 122 million and RMB 133 million, respectively, accounting for over 70% of total operating expenses.

By the end of 2024, Jingze Bio's net current liabilities reached 1.325 billion yuan, further expanding from 948 million yuan at the end of 2023. Jingze Bio admitted that excluding this IPO fundraising, based solely on the average cash burn rate in 2024, the existing funds would only sustain financial viability for five months.

Notably, as of the end of April 2025, Jingze Bio's net current liabilities increased to 1.401 billion yuan, mainly due to the rise in redemption liabilities and reduced cash, although partially offset by a decrease in interest-bearing bank loans and an increase in inventory. However, liquidity pressure remains prominent.

Jingze Bio's R&D is highly dependent on third parties. The company contracts Contract Research Organizations (CROs) to conduct preclinical studies and some clinical trials, while also relying on third-party manufacturers for production. Zhu Mingjun, a pharmaceuticals industry analyst, told the Beijing Business Journal that this model carries risks, such as the possibility of third parties failing to deliver qualified products on time or affecting R&D progress due to compliance issues. Therefore, striking a balance between in-house R&D and outsourcing partnerships while enhancing core competitiveness and risk management capabilities will be a critical issue for Jingze Bio to address in its future development.

At the commercial level, Jingze Bio has no experience with successfully launching drugs on the market. The prospectus shows that Jingze Bio plans to collaborate with well-known pharmaceutical companies in China to distribute JZB30, while also preparing to build its own sales team. However, forming the team will require significant funding and time, and whether it can cover major reproductive centers and hospitals across China remains uncertain.

The high investment and long cycle characteristics of the biopharmaceutical industry cannot be ignored. Jingze Bio noted in its prospectus that even if a candidate drug is approved, it may not necessarily achieve commercial success, and future losses may continue. Regarding related issues such as commercialization capabilities, a Beijing-based business reporter attempted to contact Shanghai Jingze Biotechnology Co., Ltd. for an interview, but the call had not been answered as of press time.