Lingkang Pharma Makes Another Bid for Hong Kong Listing: Accumulated Losses Reach RMB 1.2 Billion, Founder Still 'Cashing Out'

On June 15, 2026, Lingkang Pharma (Zhejiang) Co., Ltd. (hereinafter referred to as 'Lingkang Pharma') submitted a second listing application to the main board of the Hong Kong Stock Exchange. China Securities and CCB International acted as joint sponsors. This move came just six months after its initial filing—the first prospectus expired on June 1, 2026, and the company swiftly refiled just two days later. This seamless transition underscores the biotech firm’s urgent need for capital raising through a public listing.

Founded in 2017, Lingkang Pharma focuses on autoimmune and inflammatory diseases, with core programs centered on small-molecule inhibitors targeting the JAK-STAT signaling pathway. As of the filing date, the company has two lead products (LNK01001 and LNK01004) and seven additional clinical or preclinical candidates.

However, advancing its pipeline has come at the cost of mounting losses. Lingkang Pharma reported net losses of RMB 260 million, RMB 312 million, and RMB 145 million for 2023, 2024, and the first nine months of 2025, respectively. Including losses prior to 2023, the company’s cumulative net loss reached RMB 1.229 billion as of September 30, 2025. The full-year 2024 loss widened to RMB 312 million, up 20.3% year-over-year from 2023, primarily due to a surge in R&D expenses driven by Phase III clinical development of its lead product, LNK01001.

In the first quarter of 2026, Lingkang Pharma recorded its first-ever profit of RMB 24.59 million, with R&D expenses amounting to RMB 321.47 million. However, this return to profitability did not stem from product sales—Lingkang Pharma generated no revenue from commercialized products in either 2024 or 2025. The RMB 386.43 million in revenue recognized in Q1 2026 primarily came from upfront payments and milestone payments under a licensing agreement with BleeckerBio for LNK01006. In other words, Lingkang Pharma remains a clinical-stage biopharmaceutical company with zero product revenue.

In its pipeline, Lynk Therapeutics’ core products are two JAK inhibitors. LNK01001 is an oral, second-generation, highly selective JAK1 inhibitor targeting four indications: rheumatoid arthritis, ankylosing spondylitis, atopic dermatitis, and vitiligo. The company submitted a new drug application for the atopic dermatitis indication in April 2026, which has since been accepted, with approval expected in the second half of 2027—making it the candidate closest to commercialization. The other core product, LNK01004, is a topical, soft, pan-JAK inhibitor that has completed Phase II trials for atopic dermatitis and is scheduled to enter Phase III trials in 2027.

Notably, Lynk Therapeutics has not established its own commercialization team; it has licensed the commercial rights for LNK01001 in China to Simcere Pharmaceutical. Future revenue sharing ratios and marketing timelines will depend entirely on this partner. Moreover, the JAK inhibitor segment has become highly competitive, with multiple domestic products already approved and launched. Lynk Therapeutics’ differentiation strategy and market share potential remain unproven.

Financial pressure is the primary driver behind Lynk Therapeutics’ rush to go public. As of September 30, 2025, the company held only RMB 147 million in cash and cash equivalents, plus RMB 50 million in time deposits—sufficient, by its own estimates, to sustain operations for approximately 12 months. By March 31, 2026, cash and cash equivalents had further declined to RMB 144 million, with net assets shrinking to just RMB 17.615 million.

More concerning to the market is that, despite such tight liquidity, the founding team opted to sell shares and realize gains ahead of the listing filing. In July 2025, founders Wan Zhao-kui and Wang Jun, along with employee stock ownership platform Lingxin Partnership, transferred equity to Taikun Investment and Haibang Zhanyou, with Wan Zhao-kui reportedly realizing approximately RMB 20 million in proceeds. This move has raised external doubts about the founders’ confidence in the company.

In terms of ownership structure, Wan Zhao-kui, Wang Jun, Michael Lawrence Vazquez, Chen Yan, Lingxin Partnership, and Lynk Investment collectively form the single largest shareholder group, holding approximately 34.42% of voting rights in Lynk Therapeutics. The company has no controlling shareholder—a governance structure that has drawn regulatory scrutiny.

In January 2026, China’s Securities Regulatory Commission (CSRC) issued a request for supplementary materials regarding Lynk Therapeutics’ overseas listing filing, requiring the company to explain the pricing and rationale behind all previous capital increases and equity transfers—some of which were conducted at zero consideration. The CSRC asked the company to justify the fairness of these transactions and whether any improper benefit transfers occurred. Additionally, the regulator requested clarification on the basis for determining the absence of a controlling shareholder and the reasonableness of subscription prices paid by newly added shareholders.

Proceeds from this IPO will primarily fund the advancement of core products LNK01001 and LNK01004, upgrade office facilities and R&D equipment, and replenish working capital. However, given cumulative losses of RMB 1.2 billion, continuously dwindling cash reserves, and early monetization by founders, it remains uncertain whether Lynk Therapeutics can successfully secure a listing on the Hong Kong Stock Exchange through this second filing attempt.

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