Sky9 Capital Portfolio Company XtalPi Listed on Hong Kong Stock Exchange

On June 13, Sky9 Capital portfolio company QuantumPharm Inc. (hereinafter referred to as “XtalPi”), an innovative research platform company powered by artificial intelligence (AI) and robotics, was officially listed on the main board of the Hong Kong Stock Exchange with the stock code 2228. The issue price was HKD 5.28 per share, raising net funds of approximately HKD 896 million.

Since its inception, XtalPi has deeply integrated algorithms and automation, transforming the world on a microscopic level with a new generation of intelligent and automated technology platforms and solutions. This drives the upgrade and high-quality development of the pharmaceutical and material science industries. The company has become a pioneer in the field of AI for Science and an important partner in academic and industrial innovation, trusted by over 300 enterprises and research clients. Its business has successfully expanded into high-value-added industries such as agricultural technology, new chemicals, energy, and cosmetics.

XtalPi was founded in 2015 by three MIT postdoctoral physicists, Shuhao Wen, Jian Ma, and Lipeng Lai. Before founding XtalPi, they were researchers specializing in theoretical physics at MIT. Despite their academic backgrounds, they shared a common entrepreneurial vision. They eventually chose crystal structure prediction for drug development as their first direction, leading to the establishment of XtalPi. Over nine years, they built a team of over 500 researchers and technical experts, including around 124 Ph.D. holders in AI, Physics, Chemistry, Biology, Pharmaceutical Chemistry, Organic Chemistry, Physical Chemistry, Biochemistry, and Computational Biology.

Sky9 Capital Founding Partner Ron Cao, also an MIT graduate in Electrical Engineering and Computer Science, intuitively believed in the interdisciplinary founding team’s potential to harness AI and computing platforms to create a different type of pharmaceutical company. Three years later, XtalPi became Sky9 Capital’s first IPO company in the biotech field.

Ron Cao stated: “XtalPi is a pioneer in the domestic AI-driven drug development field and the first hard tech company to be listed under the 18C rule. As XtalPi’s investor, today is an exciting and honorable moment for me and the Sky9 Capital team. Since its founding nine years ago, the company has adhered to a technology-driven philosophy, committed to accelerating drug discovery and development through AI and robotics. During the COVID-19 pandemic, XtalPi actively took part in the development of antiviral drugs, significantly contributing to the fight against the pandemic. We look forward to the company continuing its exceptional innovation and market competitiveness in the future, further applying AI and robotics in drug R&D to bring more treatment options and hope to patients.”

18C Provides a Broader Stage for Tech Companies

The listing of XtalPi is significant for both the industry and capital markets—it is the “first AI drug stock” and the “first 18C stock.” This milestone represents the entry of the domestic pharmaceutical industry into a new era of capitalization.

Chapter 18C of the Hong Kong Stock Exchange’s Listing Rules, which came into effect at the end of March last year, aims to facilitate the listing of specialized technology companies in emerging and innovative industries in Hong Kong. However, this rule requires high technological attributes, and only a few specialized technology companies have applied for listing under this mechanism. XtalPi’s successful listing marks the first fruitful achievement of this policy and sets an example for other high-potential but unprofitable biotech companies.

Primary market investors are also excited that 18C provides a stable and clear financing environment for high-potential technology companies. As this mechanism matures, we are confident that more companies will utilize it to enter the capital market, accelerating their R&D and commercialization processes. Investors will also reap returns by investing in more non-commercialized technology companies, promoting technological innovation and industry development, forming a virtuous cycle ecosystem.

It is understood that several Sky9 Capital portfolio companies are preparing for listing under the 18C rule. At this historic moment, we look forward to more tech companies stepping onto this broader stage soon.

Valuing Interdisciplinary Talent to Harness the Infinite Potential of AI+

Sky9 Capital began investing in biotech in 2019. The rich domestic pool of research talent, high-quality industrial chain capabilities, and increasingly efficient clinical transformation processes make us believe that China is becoming fertile ground for world-class biotech companies. The broad overseas market also enhances Chinese biotech companies’ globalization paths. Therefore, we focus on biotech as a key investment area and have invested in several leading companies in the global market.

We focus on founders with research backgrounds and commercialization capabilities, including domestic and international scientists, top laboratory teams, and serial successful entrepreneurs.

In terms of sub-themes, we look for opportunities with synergies in other fields and high growth potential. The former includes AI/computing-driven drug/therapy research and development. We invested in companies such as XtalPi (AI + robotics-driven drug discovery), Xbiome (AI + microbiome), ReviR Therapeutics (AI + small molecules), neoX and Signet (AI + biology). The latter refers to new drug modalities and first-in-class drug products. Under this theme, our investments include RootPath (cell therapy), Genemagic (gene therapy for neurodegenerative diseases), Leaderna Therapeutics (siRNA drugs for chronic diseases), and Full-Life Technologies (radionuclide-conjugated drugs).

With solid research capabilities and interdisciplinary technical synergies, XtalPi’s founding team of three postdoctoral fellows studying physics fit the founder traits that Sky9 Capital prioritizes. Moreover, originating from MIT, XtalPi naturally possesses a global gene.

AI technology has created frictionless and scalable productivity. This innovation spans industries from consumer internet to enterprise services, environmental technology to autonomous driving. XtalPi has brought outstanding practice to the biotech industry, showcasing AI’s vast potential in drug development. In the future, AI is expected to play an important role in more biotech fields, including gene editing, proteomics, and clinical trial design.

Looking ahead, we believe XtalPi will continue to explore new areas, contributing to global health progress. Sky9 Capital also looks forward to working with more innovative talents, jointly promoting technological innovation and advancing the application and development of cutting-edge technologies in medical and life sciences.