China Economic Network Beijing, December 20, 2019 Today, Hangzhou Baicheng Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Baicheng Pharmaceutical", 301096.SZ) was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. As of today's close, Baicheng Pharmaceutical reported 101.08 yuan, an increase of 26.98%, a turnover of 1.869 billion yuan, an amplitude of 25.15%, a turnover rate of 71.25%, and a total market value of 10.933 billion yuan.
Baicheng Pharmaceutical is a comprehensive pharmaceutical technology research and development enterprise with pharmaceutical research as the core, which adopts the two-line development strategy of "entrusted R&D service + R&D technology achievement transformation", mainly providing drug R&D services and R&D technology achievement transformation for various pharmaceutical enterprises and pharmaceutical R&D investment enterprises.
As of the date of the listing announcement, the controlling shareholders and actual controllers of Baicheng Pharmaceutical are Shao Chunneng and Lou Jinfang. Shao Chunneng directly holds 24.96% of the total share capital of the company before the issuance, and controls 4.07%, 1.02% and 0.65% of the total share capital of the company before the issuance by controlling Shaoxing Baizhong, Baijun Investment and Fuyu Investment respectively; Lou Jinfang directly holds 16.64% of the total share capital of the company before the issuance, and Shao Chunneng and Lou Jinfang jointly control 47.34% of the total share capital of the company before the issuance.
The main questions raised by Baicheng Pharmaceutical at its first meeting on June 9, 2021, the 30th Review Meeting of the GEM Listing Committee in 2021:
1. The representative of the issuer is requested to: (1) further explain the specific basis for recognizing revenue according to the "time period method" in light of the ownership and transfer of assets formed at each node in the performance process and the economic benefits brought to the customer; (2) supplement the basis for selecting milestones to meet the actual performance progress; (3) explain whether the relevant internal control system is sound and effectively implemented. Sponsor representatives are invited to explain the verification process and give a clear opinion.
2. The representative of the issuer is requested to explain: (1) the reasons and rationality of the purchase price of the issuer's clinical trial service base being lower than that of comparable companies in the same industry; (2) whether there are significant differences between the cost composition of clinical service business and comparable companies in the same industry; (3) the process of determining cooperative relations with major cooperative hospitals, and whether there are other interest arrangements. Ask the sponsor's representative for a clear opinion.
Baicheng Pharmaceutical was listed on the ChiNext board of the Shenzhen Stock Exchange this time, publicly issued 27.0417 million shares, accounting for 25.00% of the total share capital after the issuance, the shares issued this time are all new shares, the shareholders of the company do not publicly offer shares, the issue price is 79.60 yuan / share, the sponsor institution (the lead underwriter) is Guojin Securities, and the sponsor representatives are Yu Bo and Geng Xudong. The total amount of funds raised by Baicheng Pharmaceutical in this new share issuance was 2.153 billion yuan, and after deducting the issuance expenses, the actual net amount of funds raised was 1.863 billion yuan.
The net proceeds raised by Baicheng Pharmaceutical were 1.213 billion yuan more than originally planned. According to the prospectus disclosed by Baicheng Pharmaceutical on December 15, 2021, the company intends to raise 651 million yuan, all of which will be used for the headquarters and R&D center project of Hangzhou Baicheng Pharmaceutical Technology Co., Ltd.
The total cost of the offering was RMB289 million, and its China Gold Securities Co., Ltd. received an underwriting sponsorship fee of RMB262 million.
In 2018, 2019 and 2020, the operating income of Baicheng Pharmaceutical was 82.1221 million yuan, 156 million yuan and 207 million yuan, respectively; the net profit attributable to the owners of the parent company was 11.0417 million yuan, 44.3979 million yuan and 57.4037 million yuan, respectively; the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 7.3702 million yuan, 42.2521 million yuan and 54.8657 million yuan, respectively Net cash flow from operating activities was RMB45.3635 million, RMB71.4653 million and RMB54.3601 million.
From January to September 2021, Baicheng Pharmaceutical achieved operating income of 222 million yuan, an increase of 77.40% over the same period of the previous year; net profit attributable to shareholders of the parent company of 64.5188 million yuan, an increase of 208.88% over the same period of the previous year; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses of 63.2319 million yuan, an increase of 158.10% over the same period of the previous year; and net cash flow from operating activities was 61.9866 million yuan, an increase of 268.20% over the same period of the previous year.
Baicheng Pharmaceutical expects operating income of 335 million yuan to 370 million yuan in 2021, an increase of 61.64% to 78.53% year-on-year; net profit attributable to shareholders of the parent company is expected to be 99 million yuan to 110 million yuan, an increase of 72.46% to 91.63% year-on-year; and net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses is expected to be 90 million yuan to 100 million yuan, an increase of 64.04% to 82.26% year-on-year.