[HK IPO Subscription] Wangshan Wangshui + Joyson Electronics + Pony.ai + WeRide Subscription Strategy

1. Wangshan Wangshui-W

   Wangshan Wangshui was established in 2013 as a biopharmaceutical company dedicated to discovering, acquiring, developing, and commercializing small molecule drugs in our strategic therapeutic areas, namely neuropsychiatry and reproductive health. We have acquired and developed two core products, LV232 and TPN171. LV232 is a dual-target serotonin transporter/serotonin 3 receptor modulator for the treatment of major depressive disorder. TPN171 is an inhibitor for the treatment of erectile dysfunction. We also have four drug candidates in clinical stages and three in preclinical stages.

The company began its IPO on October 28, with an offer price range of HKD 32-34 per share, 200 shares per lot, and a minimum subscription of HKD 6,868.57. The market cap is estimated at HKD 5.363-5.698 billion, with 17.5978 million shares issued. It belongs to the pharmaceutical industry, with a greenshoe option and no cornerstone investors.

The sponsor is CITIC Securities, the top sponsor with a first-day gain rate of 88.88% for projects sponsored in the past two years, indicating a very high success rate.

   The company's revenue for 2023-2024 was RMB 200 million and RMB 11.832 million, respectively, with a year-on-year revenue growth of -94.07% in 2024. Net profit for 2023-2024 was RMB 6.427 million and RMB -218 million, respectively, with a year-on-year net profit growth of -3486.39% in 2024.

The 2023 revenue of RMB 200 million mainly relied on the external licensing income of the anti-COVID-19 drug VV116. In 2024, revenue plummeted to RMB 11.832 million, primarily due to the completion of VV116-related milestones and rights transfers, as well as the shrinking demand for COVID-19 treatment post-pandemic. The ED treatment drug (Angweida) approved in July 2025 will find it difficult to shoulder the revenue burden in the short term.

Based on the median offer price, the market cap is HKD 5.531 billion, issuing HKD 581 million, representing 10.5% of the total. With no cornerstone investors, the entire HKD 581 million is floating.

   This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering allocation of 10% and no clawback mechanism, but it can be reallocated to the public offering up to 15%.

   The current subscription multiple is 68.94x, indicating decent subscription interest. With the release of funds from other new listings, the final subscription interest is expected to improve.

Subscription Strategy:

Wangshan Wangshui is committed to treating diseases in neuropsychiatry and reproductive health. The sponsor is CITIC Securities, the top sponsor with a very high success rate. The floating shares amount to HKD 581 million, making the lottery probability relatively low. The initial public offering allocation is 10% with no clawback mechanism. The current subscription multiple is 68.94x, showing decent interest. The company is still in a loss-making phase, and its domestically developed Viagra-like drug (Angweida) was only approved for market launch in July 2025. Short-term performance is indeed unimpressive, but with Mechanism B and the auspicious name "Wangshan Wangshui," it's worth a small participation!

2. Joyson Electronics

   The company is a provider of intelligent automotive technology solutions, offering advanced products and solutions in key areas of the automotive parts industry. Our business focuses on the R&D, manufacturing, and sales of automotive parts. In 2024, we ranked 41st globally in the automotive parts industry and, according to Frost & Sullivan, were the second-largest supplier of automotive passive safety products in China and globally by revenue.

The company began its IPO on October 28, with an offer price of ≤HKD 23.6 per share, 500 shares per lot, and a minimum subscription of HKD 11,919.01. The market cap is ≤HKD 36.598 billion, with 155 million shares issued. It belongs to the digital solutions services industry and has a greenshoe option.

The sponsors are BOCI and UBS. CICC's first-day gain rate for projects sponsored in the past two years is 61.22%, while UBS's is 71.42%. Overall, the sponsors' performance is decent.

   There are seven cornerstone investors, including JSC, Ningbo Xinzhi, Jump Trading, Zhongding Capital VIII, China Post Wealth Management, Vandi, and Fidelidade, with a total subscription amount of USD 107.1 million, accounting for 22.73% of the total issuance—a moderate cornerstone ratio.

   The company's revenue for 2022-2024 was RMB 49.793 billion, RMB 55.728 billion, and RMB 55.864 billion, respectively, with a year-on-year revenue growth of 0.24% in 2024. Net profit for 2022-2024 was RMB 233 million, RMB 1.24 billion, and RMB 1.326 billion, respectively, with a year-on-year net profit growth of 6.95% in 2024.

At the upper limit of the offer price, the market cap is HKD 36.598 billion, issuing HKD 3.658 billion, representing 10% of the total. With cornerstone investors locking in 22.73%, the floating shares amount to HKD 2.827 billion—a relatively large float.

   This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering allocation of 10% and no clawback mechanism, but it can be reallocated to the public offering up to 15%.

Joyson Electronics is already listed on the A-share market, and this is a secondary listing in Hong Kong. The current A-share price is RMB 34.05, equivalent to HKD 37.27, while the upper limit of the H-share offer price is HKD 23.6, representing a discount of approximately 36.68% for H-shares compared to A-shares—a decent discount, leaving some room for H-shares.

   The current subscription multiple is 3x, indicating weak subscription interest. With the release of funds from other new listings, the final subscription interest is expected to improve slightly.

Subscription Strategy:

   The company is the second-largest supplier of automotive passive safety products in China and globally. The sponsors are BOCI and UBS, with decent overall performance. Seven cornerstone investors subscribed to a total of USD 107.1 million, accounting for 22.73% of the total issuance—a moderate cornerstone ratio. The 2024 net profit grew by 6.95% year-on-year, indicating relatively stable performance. The floating shares amount to HKD 2.827 billion—a relatively large float, implying a higher lottery probability. The H-shares are discounted by approximately 36.68% compared to A-shares, leaving some room for H-shares. The current subscription multiple is 3x, indicating weak interest. Today, Joyson's A-shares performed well, so the risk of breaking the issue price is low. I plan to participate modestly!

3. Pony.ai-W

   Pony.ai is a leader in the large-scale commercialization of autonomous driving mobility, being the only L4 autonomous driving technology company as of the latest practicable date to have obtained all available and required regulatory permits to provide public autonomous driving mobility services in four Tier 1 cities in China. As of the same date, it operates a fleet of over 720 self-owned autonomous taxis. It is also the first company in China to receive approval in December 2024 for L4 unmanned autonomous truck platoon testing on interprovincial highways, operating a fleet of over 170 self-owned and leased autonomous trucks as of the latest practicable date.

The company began its IPO on October 28, with an offer price of ≤HKD 180 per share, 100 shares per lot, and a minimum subscription of HKD 18,181.54. The market cap is ≤HKD 76.905 billion, with 41.9557 million shares issued. It belongs to the digital solutions services industry and has a greenshoe option.

The sponsors are Goldman Sachs Asia, BofA Securities, Deutsche Bank, and Huatai Hong Kong. Goldman Sachs Asia's first-day gain rate for projects sponsored in the past two years is 66.66%, while Huatai Hong Kong's is 50%. BofA Securities and Deutsche Bank have sponsored fewer projects in recent years, but overall sponsor performance is acceptable.

   There are five cornerstone investors, including Eastspring, Ghisallo, Athos, Hel Ved, and Ocean Arete, with a total subscription amount of USD 120 million, accounting for 12.34% of the total issuance—a low cornerstone ratio.

   The company's revenue for 2022-2024 was RMB 683.86 billion, RMB 718.99 billion, and RMB 750.25 billion, respectively, with a year-on-year revenue growth of 4.35% in 2024. Net profit for 2022-2024 was RMB -148 million, RMB -125 million, and RMB -275 million, respectively, with a year-on-year net profit growth of -119.43% in 2024.

At the upper limit of the offer price, the market cap is HKD 76.905 billion, issuing HKD 7.552 billion, representing 9.82% of the total. With cornerstone investors locking in 12.34%, the floating shares amount to HKD 6.62 billion—a very large float.

   This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering allocation of 10% and no clawback mechanism, but it can be reallocated to the public offering up to 15%.

Pony.ai is already listed on the U.S. stock market, and this is a secondary listing in Hong Kong. The current U.S. stock price is USD 21.87, equivalent to HKD 169.93, while the upper limit of the H-share offer price is HKD 180, representing a premium of 5.59% for H-shares compared to U.S. shares—currently, there seems to be no room for gains, but the final pricing remains to be seen.

   The current subscription multiple is 3.62x, indicating weak subscription interest. It's understandable—if U.S. shares are cheaper now, one might as well buy U.S. shares.

Subscription Strategy:

Pony.ai is a leader in the large-scale commercialization of autonomous driving mobility. The sponsors are Goldman Sachs Asia, BofA Securities, Deutsche Bank, and Huatai Hong Kong, with acceptable overall performance. Five cornerstone investors subscribed to a total of USD 120 million, accounting for 12.34% of the total issuance—a low cornerstone ratio. The company is still in a loss-making phase, and the floating shares amount to HKD 6.62 billion—a very large float. The current subscription multiple is 3.62x, indicating weak interest. Pony.ai is already listed on the U.S. stock market, and this is a secondary listing in Hong Kong. The H-shares are at a 5.59% premium compared to U.S. shares, leaving no room for gains currently, but the final pricing remains to be seen. Interested friends can gamble on the final pricing, but cautious friends should skip it. I plan to skip it for now!

4. WeRide-W

   WeRide is a global pioneer in the L4 autonomous driving field. As of the latest practicable date, our deployed autonomous driving products and solutions cover over 30 cities in 11 countries, including China, the UAE, Saudi Arabia, Switzerland, France, Singapore, and Japan. According to CIC data, in 2024, WeRide ranked second globally by revenue generated from urban road L4 and above autonomous driving, capturing a 21.8% market share.

The company began its IPO on October 28, with an offer price of ≤HKD 35 per share, 100 shares per lot, and a minimum subscription of HKD 3,535.3. The market cap is ≤HKD 35.932 billion, with 88.25 million shares issued. It belongs to the digital solutions services industry and has a greenshoe option but no cornerstone investors.

The sponsors are CICC and Morgan Stanley. CICC's first-day gain rate for projects sponsored in the past two years is 61.22%, while Morgan Stanley's is 84.61%. Overall, the sponsors' performance is decent.

   The company's revenue for 2022-2024 was RMB 528 million, RMB 402 million, and RMB 361 million, respectively, with a year-on-year revenue growth of -10.13% in 2024. Net profit for 2022-2024 was RMB -1.298 billion, RMB -1.949 billion, and RMB -2.517 billion, respectively, with a year-on-year net profit growth of -29.13% in 2024.

At the upper limit of the offer price, the market cap is HKD 35.932 billion, issuing HKD 3.089 billion, representing 8.6% of the total. With no cornerstone investors, the entire HKD 3.089 billion is floating—a relatively large float.

   This issuance adopts Mechanism A's 18C clawback mechanism, with an initial Hong Kong public offering allocation of 5%. If the subscription multiple is 10x or more but less than 50x, the allocation increases to 10%; if 50x or more, it increases to 20%.

WeRide is already listed on the U.S. stock market, and this is a secondary listing in Hong Kong. The current U.S. stock price is USD 11.72, equivalent to HKD 91.07. One U.S. share is equivalent to 30.36 HKD after the split, while the upper limit of the H-share offer price is HKD 35, representing a premium for H-shares compared to U.S. shares—currently, there seems to be no room for gains, but the final pricing remains to be seen. The current subscription multiple is 10.6x, indicating moderate interest.

Subscription Strategy:

WeRide is a global pioneer in the L4 autonomous driving field, ranking second globally by revenue from L4 and above autonomous driving. The sponsors are CICC and Morgan Stanley, with decent overall performance. The company is still in a loss-making phase, and the floating shares amount to HKD 3.089 billion—a relatively large float. WeRide is already listed on the U.S. stock market, and this is a secondary listing in Hong Kong. One U.S. share is equivalent to 30.36 HKD, while the upper limit of the H-share offer price is HKD 35, representing a premium for H-shares—currently, there seems to be no room for gains, but the final pricing remains to be seen. The current subscription multiple is 10.6x, indicating moderate interest. I plan to skip this one!

Summary: Among today's four new listings, I will subscribe to Wangshan Wangshui and Joyson Electronics, skipping WeRide and Pony.ai.

My comments represent personal views only and do not constitute any investment advice. The stock market carries risks; invest with caution!

Follow me: Retail Investor Lao Yu

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