---
title: "HJ SCIENCE's debut on the Hong Kong stock market was lukewarm, with the stock price falling below the issue price on the first day of listing. Junshi Bioscience is one of the shareholders"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290532888.md"
description: "HJ SCIENCE went public on the main board of the Hong Kong Stock Exchange on June 23, with an issue price of HKD 81.80. Due to the lack of product commercialization, ongoing losses, and high valuation, the stock price plummeted over 50% on its first day of trading, closing at HKD 35.26, with a total market capitalization of less than HKD 3 billion. Industry insiders pointed out that the investment logic in the Hong Kong stock 18A sector has shifted, with funds placing greater emphasis on cash flow and commercialization certainty, rather than merely pipeline stories, leading to a correction in high valuation expectations and a drop below the issue price"
datetime: "2026-06-23T08:25:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290532888.md)
  - [en](https://longbridge.com/en/news/290532888.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290532888.md)
---

# HJ SCIENCE's debut on the Hong Kong stock market was lukewarm, with the stock price falling below the issue price on the first day of listing. Junshi Bioscience is one of the shareholders

**"Science and Technology Innovation Board Daily" June 23 news (Reporter Shi Shiyun)** Today, HJ SCIENCE (Chengdu) Technology Co., Ltd. (hereinafter referred to as "HJ SCIENCE", 06132.HK) officially listed on the main board of the Hong Kong Stock Exchange.

According to the information disclosed by HJ SCIENCE, its Hong Kong IPO issue price is HKD 81.80 per share, with the number of shares for public offering in Hong Kong accounting for 10.00% of the total global offering, which was subscribed 2007.60 times. The final number of shares for international offering is 12.24 million shares, accounting for 90.00% of the total global offering, with a subscription rate of 7 times.

The net proceeds from HJ SCIENCE's IPO are approximately HKD 1.0187 billion, of which about 80.6% will be used for clinical research and development of pipeline products, 9.4% for enhancing the R&D platform, 5.0% for building a commercialization team, and the remaining approximately 5.0% for general operations.

However, on the first day of listing, HJ SCIENCE encountered a drop in share price. As of the time of writing, HJ SCIENCE is trading at HKD 35.26 per share, a decline of over 50% from the issue price, with a total market value of less than HKD 3 billion.

Industry insiders who have long focused on the innovative drug sector told "Science and Technology Innovation Board Daily" reporters that the primary contradiction behind HJ SCIENCE's significant drop lies in the severe mismatch between the issue pricing and the company's fundamentals.

This insider believes that HJ SCIENCE currently has no products that have achieved commercialization, with all revenue coming from early pipeline licensing collaborations, continuous large losses for two consecutive years, and ongoing cash outflows from operations. The clinical advancement and commercialization timelines of the pipeline also have high uncertainty. However, the valuation during the issuance phase corresponds to extremely high price-to-sales and price-to-research ratios, significantly higher than comparable clinical-stage biotech companies in the Hong Kong stock market. Coupled with the prior surge in stock price during the dark market trading phase and the concentration of shares at high levels, profit-taking concentrated outflows after listing, leading to a significant decline after the opening as funds voted with their feet to correct the previously high pricing expectations.

"At the same time, the investment logic of the current Hong Kong stock 18A sector has changed. **Funds are no longer simply paying high valuations for pipeline stories, but are placing more emphasis on cash flow, clinical landing pace, and commercialization certainty.** Even if the company has a quality cornerstone investor lineup and a green shoe mechanism to stabilize prices, **it is still difficult to reverse the market's cautious attitude towards high-valuation unprofitable innovative drug companies.**" said the aforementioned insider.

▌ **Core products face fierce competition**

HJ SCIENCE was established in 2017 and is a clinical-stage biotech company dedicated to developing therapies for autoimmune, metabolic, and oncology diseases.

The prospectus shows that HJ SCIENCE has three core products: HJ787, HJ178, and HJ891, all of which are self-developed Class 1 innovative drugs targeting autoimmune, metabolic, and oncology fields, respectively. At the same time, HJ SCIENCE also has a clinical-stage candidate drug, FGFR4 inhibitor HJ197, for the treatment of hepatocellular carcinoma, as well as five other preclinical candidate drugs: HJ356, HJ093, HJ199, HJ198, and HJ086 
As of now, **HJ SCIENCE has not yet commercialized any products, and its focus is on the three core products currently under research.**

Among them, HJ787 is a selective TYK2 inhibitor, and it is the only topical selective TYK2 inhibitor in clinical development in China. HJ SCIENCE is developing it for the treatment of autoimmune diseases such as mild to moderate atopic dermatitis (AD), common acne (AV), neurodermatitis (ND), and psoriasis (Ps).

Currently, HJ787 is in Phase II clinical trials for AD, and a Phase IIa clinical trial for AV has been completed, with plans to initiate Phase IIb clinical trials in the second half of this year.

HJ SCIENCE has high hopes for HJ787, stating that it is the priority project among all development projects, with an R&D investment of 27.98 million yuan planned for 2025. At present, no TYK2 inhibitors have been approved in China for the treatment of AD, and if HJ787 is successfully approved later, it will fill the treatment gap in this niche area.

However, HJ787 faces several competitors starting from the same starting line. Data shows that 26 candidate drugs targeting the JAK family have been registered in China for the treatment of AD, among which 9 are TYK2 inhibitors, including 3 selectively targeting TYK2 and 6 targeting TYK2 and other JAK family members.

In its risk warning, HJ SCIENCE also admits that HJ787 will compete with a range of AD, AV, and ND therapies approved in China, including JAK inhibitors, PDE-4 inhibitors, and corticosteroids, some of which have been included in the national medical insurance catalog and are widely used in clinical practice. HJ SCIENCE believes that large pharmaceutical companies have established treatment practices, physician familiarity, and medical insurance reimbursement scopes, which may pose market entry barriers for new entrants.

Another core product, HJ178, enters the currently most crowded metabolic track. According to HJ SCIENCE, HJ178 is an oral GLP-1/GIP dual-target drug that can be used to treat type 2 diabetes and obesity by simultaneously increasing GLP-1 secretion and reducing GIP secretion. It claims that compared to existing injectable GLP-1 therapies, long-term use of this product can safely lower blood sugar, improve time in range (TIR) for glucose, and aid in weight loss, without causing vomiting or mental-related adverse reactions.

It sounds like HJ178 has a differentiated advantage with its oral + GLP-1/GIP dual mechanism, but it must be noted that the domestic GLP-1 track is already very crowded, including Novo Nordisk's semaglutide, Eli Lilly's tirzepatide, Innovent Biologics' mazdutide, XW Pharma's enogratide, Huadong Medicine's liraglutide, and Renhui Biotech's benaglutide, all of which have been approved for dual indications of type 2 diabetes and weight loss At the same time, there are 5 oral GLP-1 related therapy candidates in China that are currently in Phase II or later stages of clinical development, indicating a fierce level of market competition.

The prospectus of HJ SCIENCE shows that the company plans to submit IND applications for obesity indications to the National Medical Products Administration and the FDA simultaneously in October 2026, and submit an IND application for type 2 diabetes indications to the FDA in December 2026. This means that HJ178 is at least 3 to 5 years away from commercialization, and whether it can seize the market window remains uncertain. In this regard, HJ SCIENCE also reminds that even if HJ178 demonstrates differentiated clinical advantages, doctors' prescribing habits, existing treatment pathways, and medical insurance reimbursement factors may still favor mature therapies.

HJ891 is a KRAS G12C inhibitor used for the treatment of non-small cell lung cancer (NSCLC) with KRAS G12C mutations, currently entering Phase II clinical stage. The unique selling point of HJ891 lies in its lung-targeted pharmacokinetic characteristics, meaning the drug can accumulate in lung tissue, reducing exposure levels in the liver and kidneys, thereby decreasing the risk of liver toxicity. However, whether this differentiation can translate into real clinical advantages still requires validation from later clinical data.

It is worth mentioning that the KRAS G12C field is also highly competitive, with four KRAS G12C inhibitors already approved in China: Furazolidone, Goserelin, Glofitamab, and Sotorasib. Additionally, 17 KRAS G12C targeted candidates for treating solid tumors have been registered with the China National Medical Products Administration, of which 9 are in Phase II or later clinical development stages.

▌ **Losses Exceed 300 Million in the Past Two Years**

**Due to no products being approved for sales revenue, HJ SCIENCE is currently in a continuous loss stage.**

Financial data shows that in 2024 and 2025, HJ SCIENCE's revenues are projected to be 1.8 million yuan and 12.982 million yuan, respectively. Although last year's revenue achieved a year-on-year growth of 621%, it all came from licensing agreements with Junshi Biosciences and Junze Chuangyao. The net losses during the same period were 202 million yuan and 135 million yuan, with R&D expenditures of 75 million yuan and 110 million yuan, respectively.

Now let's take a look at HJ SCIENCE's cash on hand. **As of the end of April this year, the company's cash and cash equivalents amounted to 4.9 million yuan,** with financial assets measured at fair value and their changes included in current profit and loss totaling 322.1 million yuan, bringing the total to approximately 327 million yuan. HJ SCIENCE has made a calculation of its "survival period," estimating that if the average cash consumption rate in the future reaches 2.3 times that of 2025, based on the current cash and related financial assets held, the company's funds can only support 18 months of operations. If 10% of the net proceeds from this listing are used for daily operations and general corporate expenses, the fund's sustainability period can be extended to 23 months; If the net amount raised from this listing is fully accounted for, the existing funds combined with the raised funds can support the company's operations for 69 months.

Regarding the controlling shareholders, before the IPO, the founder of HJ SCIENCE, Ji Jianxin, Chengdu Wenshao, and Suzhou Jishitang formed a group of controlling shareholders, holding a total of approximately 57.50% of the shares. After the IPO, Ji Jianxin's direct shareholding ratio is 16.88%, Chengdu Wenshao holds 27.14%, and Suzhou Jishitang holds 2.85%, with the controlling shareholders collectively controlling 46.87% of the company's equity.

It is also necessary to mention Ji Jianxin's personal background. At 50 years old, before founding HJ SCIENCE, Ji Jianxin joined Chengdu Diaao Pharmaceutical Group Co., Ltd. in June 2007 and held multiple positions from June 2007 to November 2016, with the last position being Executive Vice President. Since January 2017, Ji Jianxin has also served as a member of the Investment Decision-Making Committee of the Chinese Academy of Sciences Venture Capital, mainly responsible for reviewing major investment matters and voting on them.

According to the prospectus, HJ SCIENCE was not solely founded by Ji Jianxin but was co-funded by him and his Lanzhou University alumnus Yuan Hao, with the two holding 85% and 15% of the shares, respectively. Nine months after the company's establishment, Yuan Hao transferred his shares and completely exited due to personal development plans.

In terms of financing, HJ SCIENCE has completed six rounds of financing to date, backed by investment institutions such as State Investment Shanghai, Junlian Xinkang, Wuxi Runyuan, Kezhuan Fund, and Xiamen Jianfa. **Innovative pharmaceutical company Junshi Bioscience is also one of the shareholders**, holding 2.1% before the IPO and 1.71% after the IPO. The post-investment valuation after HJ SCIENCE's latest round of financing is 2.7 billion yuan.

For this IPO, HJ SCIENCE also introduced six institutions as cornerstone investors, including Ruiyuan Fund, Kaibo, LBC HK, Sage Partners, Panjing Fund, and Taikang Life, collectively subscribing to 6.2278 million shares, involving an investment of 65 million USD (approximately 509 million HKD). Among them, Ruiyuan Fund and Kaibo each subscribed for 25 million USD, LBC HK subscribed for 5 million USD, Sage Partners subscribed for 4 million USD, and Panjing Fund and Taikang Life each subscribed for 3 million USD

### Related Stocks

- [06132.HK](https://longbridge.com/en/quote/06132.HK.md)
- [01877.HK](https://longbridge.com/en/quote/01877.HK.md)
- [688180.CN](https://longbridge.com/en/quote/688180.CN.md)
- [NVO.US](https://longbridge.com/en/quote/NVO.US.md)
- [LLY.US](https://longbridge.com/en/quote/LLY.US.md)
- [01801.HK](https://longbridge.com/en/quote/01801.HK.md)
- [000963.CN](https://longbridge.com/en/quote/000963.CN.md)

## Related News & Research

- [HUTCHMED says Phase II fanregratinib trial in FGFR2-altered bile duct cancer posts 42.5% response rate](https://longbridge.com/en/news/290751439.md)
- [REG - Sareum Holdings PLC - Publication of Phase 1 data on SDC-1801 in BJCP](https://longbridge.com/en/news/290407115.md)
- [Coiled Therapeutics: AO-252 delivers promising clinical results and commercial potential as the only clinical-stage TACC3 inhibitor](https://longbridge.com/en/news/290784764.md)
- [Yidu Tech chair Gong Yingying speaks at Summer Davos panel on faster drug access](https://longbridge.com/en/news/290672323.md)
- [ZAWYA: SEHA’s Tawam Hospital to host the UAE and region’s first certified workshop on low-dose radiotherapy for benign diseases](https://longbridge.com/en/news/290536060.md)