A company's first public offering, also known as IPO (Initial Public Offerings).
The materials that need to be prepared for a domestic IPO include a prospectus, the company's annual report (and quarterly report), which includes the company's three major financial statement data, historical "research report information" on the company by securities research institutes and investment banks, and the company's published All announcements.
Kechuang Biotechnology has only been established for a short period of time, so the annual and quarterly reports are relatively easy to prepare and the materials are very clear.
The most important of these materials is the prospectus. The main contents of the prospectus are:
How many shares do you want to issue and what percentage of the company’s total share capital do you want to issue?
Among them, the rules for listing on the domestic Science and Technology Innovation Board are that the publicly issued shares must account for more than 25% of the company's total shares; if the company's total share capital exceeds RMB 400 million, the publicly issued shares must account for more than 10%.
The total share capital of Kechuang Biotech is well over 400 million yuan, so the proportion of publicly issued shares is at least 10%.
The second is the company's risk profile, including financial risks, talent risks, R&D investment risks, business expansion risks, team stability risks, etc.
This item in the original prospectus of Kechuang Biotechnology stated that R&D investment accounts for a very high proportion, which may not guarantee the expected return on R&D investment. Brokerages wrote this item as the biggest risk.
Now we have to change. After the brain-computer connection technology comes out, the biggest risk is the risk of antitrust investigation. It may be better in China, but American will almost 100% conduct an antitrust investigation against you.
The prospectus also includes financial data for the most recent year and the company's expected future operations.
Kechuang Biotech has a single product, only endorphins, which is relatively easy to predict.
Due to the epidemic and the widespread use of endorphins to reduce addiction, the current situation is that endorphins can be sold as much as the production capacity, so the expected operating income in the future is relatively easy to predict.
However, Kechuang Biotechnology has launched brain-computer connection technology, and still charges according to the production volume of mobile phone companies, which is not easy to calculate.
Each manufacturer only has the most high-end products with brain-computer connection technology. It is very troublesome to estimate the specific patent licensing fee.
Because Li Shuyao and Li Miaomiao are sisters, CICC gave this part of the work to her.
Huaguo's Science and Technology Innovation Board was only officially launched in 19 years, and its goal is to prepare a board specifically for the listing of high-tech enterprises.
Therefore, there is a very important piece of content in the prospectus, which generally includes the issuer's technological advancement, model innovation, industrialization of R&D technology, and future development strategy.
Originally, CICC wanted to write according to the template of the biomedical company. It was simple.
As a result, we have developed a brain-computer connection. There are only a few companies in China that do this, and even fewer listed companies do this.
The technological advancement is quite advanced, but the problem is that CICC has to restate it.
What the broker originally wrote about this issue is:
“The main core technology currently owned by the company is the “industrial production process of α-endorphin.” This technology is a large-scale production technology for long-chain organic compounds.
This technology won the first prize for national scientific and technological achievements. The successful research and development of this technology marks that the company has overcome a problem that has never been solved before, filled the domestic and foreign gaps in the field of analgesics, and led the high-end substitution in the field of analgesics.
Since its establishment, Kechuang Biotech has set its development goal to become a world-class biopharmaceutical company. A world-class biopharmaceutical company must have top R&D capabilities and a rich drug R&D pipeline. The company is not satisfied with the results of α-endorphin, but continues to introduce talents. In just two years, it has introduced 479 PhDs and 928 masters. The R&D team is entirely composed of PhDs and masters.
At present, in addition to optimizing the industrial production process of α-endorphin, from the perspective of drug treatment, the company has deployed inhibitory and killing targeted antibody drugs for malignant tumors (for example, EGFR for the treatment of various solid tumors A series of innovative products in the field of biopharmaceuticals such as monoclonal antibody SCT200 and its second-generation product SCT210), tumor vascular inhibitor-targeted antibodies (for example, VEGF monoclonal antibody SCT510 and its second-generation product SCT520F, which are used to treat a variety of solid tumors).
The company adheres to the following product research and development strategies:
Not simply pursuing R&D speed as the primary goal: The company's early R&D does not simply pursue R&D speed as its goal, but rather aims to develop products that can solve the problem of accessibility of biological drugs, meet clinical drug needs, and have potential differentiated market competitiveness. With biopharmaceuticals as the core goal, we will steadily advance the research and development progress of our product pipeline;
Taking into account the breadth, depth and research and development speed of the product pipeline: the company's product pipeline is independently developed based on the company's aforementioned overall research and development strategy, its own technical capabilities and advantages. The company's product pipeline includes products aimed at expanding drug accessibility and meeting urgent clinical needs. Biological drug varieties, including innovative varieties for future multi-variety combination drug reserve..."
The researchers at the securities firm wrote a lot of words in a eloquent manner, but once the brain-computer connection came out, they were all broken and had to be rewritten.
Kechuang Biotechnology is a company completely oriented by R&D, and Cheng Gang has nothing to say about R&D.
The most ridiculous part is the industrialization of R&D technology and future development strategy. They don’t know the development direction of Kechuang Biotech’s future technology industrialization of brain-computer connection.
Even more unclear about the future development strategy of Kechuang Biotechnology, CICC and CITIC Securities were tortured. They approached Cheng Gang, and Cheng Gang said he wanted to ask Director Zheng.
CITIC and CICC were in a dilemma and asked if we could talk to Director Zheng directly. There were many things we didn’t understand. Cheng Gang said that he couldn’t even see Director Zheng. These were trivial matters to Director Zheng and he would not see you.
Each time the message had to be forwarded several times, Zheng Li finally agreed to communicate with them via email. Every time Zheng Li responded to the email, it was so hard-core that even a PhD in biology from the CICC Investment Banking Department had to read it for a long time to understand it.
There will be no shortage of PhDs in various disciplines in the core departments of securities firms.
The main business model, products or services of Kechuang Biotechnology must also be completely overhauled.
Li Shuyao: "The workload recently has been really staggering. The intensity of my work is no longer that of an intern, it is already that of their regular employees."
“The problem is I’m getting paid as an intern!”
Li Miaomiao consoled her, "When you come to Gusu, I'll treat you to a big dinner. There's no upper limit."
Li Shuyao said with envy: "You are so happy. Zheng Li cannot treat you badly because Kechuang Biotech is listed. He will immediately gain wealth and freedom."
"Approximately how much market value of shares can you get?"
Li Miaomiao: "I don't know. You haven't produced the prospectus yet. How do I know how much the share capital is and how many shares are issued?"
"We can only proceed with the follow-up process after you prepare the prospectus."
