Focus on the STAR Market: A Survey of Sci-Tech Enterprises in Suzhou Industrial Park—Some Are Charging Ahead, While Others Remain on the Fences

　　Since its launch, the STAR Market has received applications from a total of 65 companies, including five from Suzhou Industrial Park—among them Jiangsu Beiren Robot System Co., Ltd., one of the earliest batch accepted on March 22, as well as Hejian Chip Manufacturing (Suzhou) Co., Ltd. Meanwhile, Borei Pharmaceutical, affectionately known as "B Village," recently submitted its listing application as well. A reporter from First Finance recently visited Suzhou Industrial Park to "get a firsthand look" at these innovative enterprises and is now sharing their insights with you.

　　When first arriving, the park’s most immediate impression is its vastness. According to official data, Suzhou Industrial Park covers an administrative area of 278 square kilometers—equivalent to three Gusu districts combined. Driving from Suzhou North Station to the International Science and Technology Park in Suzhou Industrial Park spans nearly 20 kilometers, taking just over 30 minutes by car.
　　"A PE/VC professional close to the park noted that, as of now, around 10 to 15 companies in Suzhou Industrial Park are reportedly planning to list on the STAR Market—but these remain only at the planning stage. 'The STAR Market has been launched at a remarkably rapid pace, making the idea of an IPO in China feel much more attainable for innovative startups than it did before. Yet, despite this newfound proximity, companies should remember that going public is just the beginning of their journey to success.'"
　　However, many companies have chosen to wait and see for now. A company official from within the park told reporters that they expect to submit their application in the second half of next year. For now, the company plans to first undertake a shareholding reform before selecting a brokerage firm that best suits their needs. When it comes to choosing a broker, the company is being particularly cautious. "While top-tier brokers claim to have clear advantages," he noted, "we’ve also noticed that several other firms are actively preparing applications. Ultimately, we’ll need to weigh factors like the brokerage team’s expertise and the level of support they can provide to our business."

　　 From "Landlord" to "House Manager"

　　According to Wind data, Suzhou currently has 110 A-share listed companies.
　　For Suzhou Industrial Park, which recently celebrated its 25th anniversary, nurturing a publicly listed company hasn’t been easy. According to an incomplete count by our reporter, the park currently hosts 5,000 innovative technology enterprises, among which 21 are listed companies—both domestic and international.
　　The arrival of the STAR Market has undoubtedly given numerous science and technology enterprises in Suzhou Industrial Park a much-needed boost of hope.
　　Currently, Suzhou Industrial Park has primarily developed and operates three major industrial parks: Suzhou Biomedical Industry Park (referred to as "BioBAY"), Suzhou Nano City, and Suzhou International Science and Technology Park. These parks serve as the core hubs for the park's growth in three emerging industries: biomedicine, nanotechnology and its applications, and artificial intelligence.
　　In addition to providing office spaces for businesses, Suzhou Industrial Park also serves multiple roles.
　　During their visit, reporters discovered that, in addition to the roadshow center, BioBAY is also constructing a space on one of its floors to serve as branch offices for various industry funds.
　　According to relevant staff, this office space is part of the BioCAPTICAL Business Center, which is currently still under preparation and is expected to open in the second half of the year. At that time, several domestic and international investment firms will set up branch offices within the center.
　　In addition to helping unlisted companies within the park secure funding, Suzhou Industrial Park also provides ongoing services for companies that have already gone public. A source close to the International Science and Technology Park noted that the park currently hosts 600 enterprises in total, five of which have successfully been nurtured into publicly listed companies.
　　"Some companies ‘graduate’ from the International Science Park once they go public. Suzhou Industrial Park will then offer new land plots to these firms that are looking to expand their footprint. Despite this transition, these publicly listed companies will continue to benefit from the park’s comprehensive services and receive support in areas such as land use," she explained.
　　Innovative enterprise Zhongji Xuchuang (300308.SZ), which relocated from the International Science and Technology Park, went public in 2017 through a restructuring process. As one of the "graduates," it was previously known as Suzhou Xuchuang Technology Co., Ltd. Upon returning to China, the company’s founder, Liu Sheng, secured the first-ever angel investment fund from Suzhou Industrial Park—thanks to his compelling business plan.
　　As the representative of the "graduates," Zhongji Xuchuang offered three pieces of advice to the innovative companies currently still based in the park:
　　First, stay informed about industry trends and policy developments, leveraging the industrial park's advantages in fostering industry clusters, as well as its relatively robust policy support system, to promptly adjust your business strategy as needed.
　　Additionally, fully leverage the human resource advantages brought about by industrial park development, building a high-level R&D and management team while attracting highly skilled, young manufacturing and production personnel.
　　Finally, leveraging the industrial park’s various enterprise incubation and venture capital platforms, we will introduce strategic investments aligned with our own business development needs.
　　Currently, in addition to the five companies already accepted by the Shanghai Stock Exchange, Suzhou Industrial Park Lingzhi Software Co., Ltd. has also entered the pre-IPO guidance phase, according to publicly available information, with the STAR Market as its target listing board.
　　A reporter from First Finance also learned from informed sources that a data-focused company within the park, which recently withdrew its application from the ChiNext Board, is now considering "reapplying with renewed ambition" to the STAR Market.

　　 Considerations for Biopharmaceutical Companies

　　It is understood that BioBAY has attracted more than 430 innovative enterprises, spanning three key sectors: new drug development, advanced medical devices, and biotechnology. Notably, five of these companies have already gone public on overseas capital markets, while an additional 20 firms have either completed or are currently preparing for shareholding reform as part of their IPO preparations.
　　According to relevant staff from BioBAY, under the Hong Kong Stock Exchange's fast-track listing program for revenue-free biopharmaceutical companies, 29 innovative biotech firms in the park currently meet the eligibility criteria, with an additional eight companies expected to become eligible within the next three years. Notably, while Innovent Biologics and CSPC Pharmaceutical Group have already listed on the HKEX, Asymchem Laboratories has already submitted its IPO application to the exchange.
　　A source close to BioBAY revealed to reporters that, in addition to Borui Pharmaceutical—whose application has already been accepted by the Shanghai Stock Exchange—another innovative medical device company is set to submit its prospectus to the STAR Market soon.
　　Yu Qiang, CEO of Shengshitaike (Suzhou) Co., Ltd. from BioBAY, believes that the STAR Market’s ambition to become China’s Nasdaq is a truly commendable goal. "Innovative companies inherently come with long development cycles, high risks, and potentially high rewards—especially true for biopharmaceutical firms. From the perspective of fostering innovative drug development, securing financial support allows companies to complete the critical loop of innovation-driven R&D. This, in turn, paves the way for the successful implementation of the nation’s initiative to create new medicines—a vital step toward safeguarding public health—following significant reforms in policies and talent cultivation."
　　Yu Qiang recalls an interview from 2012, when he was still wondering when Chinese capital would finally join forces with entrepreneurs to dance the waltz together. Back then, domestic pharmaceutical companies were still stepping in—albeit reluctantly—to take on some of the riskier roles in new drug development.
　　Yu Qiang described the STAR Market as "fast-paced, policy-flexible, and accurately positioned." He added, "The policies crafted by financial professionals are remarkably well-considered, especially in light of China's current realities."
　　As a leader in the pharmaceutical industry, Yu Qiang also has some suggestions for the STAR Market. He believes that certain issues may need to be adjusted appropriately based on practical experience moving forward.
　　"For instance, the fifth set of standards specifically designed for biopharmaceutical companies that aren’t yet profitable raises a key issue: a valuation of 4 billion yuan. Since these companies are still unprofitable, yet their valuations remain exceptionally high, this scenario introduces three significant risks," he explained. "First, some firms—whose primary goal may be to cash out upon going public rather than raising capital for growth—could artificially inflate their valuations simply to make the IPO more attractive. Second, there’s a risk that certain companies might engage in unnecessary, highly strategic maneuvers like mergers and acquisitions just to meet the listing criteria, thereby straying from their original business objectives. Finally, Yu Qiang pointed out that the STAR Market boasts a relatively stringent delisting system, which ironically creates a conflict with the 4-billion-yuan valuation threshold, posing considerable risks for retail investors."
　　He believes that if the aforementioned issues can be effectively addressed, both the attractiveness and success rate of biopharmaceutical companies on the STAR Market will significantly increase—aligning perfectly with the original purpose for establishing the STAR Market.

Source: Caixin

Authors: Yuan Ziyi, Zhang Yuankuo