With the "light medical beauty" and other information related to medical beauty breaking into the lives of beauty lovers, a number of stocks associated with it are also rising in the capital market. The medical beauty track, which is deeply loved by capital, has also made a number of medical beauty companies move the heart of listing.
Recently, the reporter learned that after the dressing company Shi Erjia, which mainly focuses on "medical beauty masks", submitted a prospectus to the Shenzhen Stock Exchange, its IPO review status has been changed to "suspended", mainly because the financial report is not updated in a timely manner. With the State Food and Drug Administration strengthening the review of "medical beauty masks", many enterprises that previously focused on "mechanical masks" have also been eliminated in this round of sand panning. Will Shi Erjia "make a comeback" and join the camp of medical beauty listed companies?
Gross profit margin of more than 90% over Moutai
The suspension of the listing progress of ShiErjia is due to the fact that the financial information has not been updated in time, and the "medical beauty mask peer" Chuanger Bio, which previously sprinted with Shi Erjia for IPO, has applied to The Beijing Stock Exchange for listing on January 5 after dreaming of breaking the science and technology innovation board at the end of 2021.
On December 31, 2021, before the suspension of the IPO, the State Drug Administration also issued a revised explanation of the "First Class Medical Device Product Catalog", and the latest regulations deleted keywords such as "medical cold compress, medical cold pack headband, medical cold pack eye mask, cold pack gel" in terms of product name examples, and clearly required that the name of "product name example" in the catalog be used directly when filing such products. After searching for Shi Erjia, the reporter can find that the outer packaging of such masks is also printed with the above related words. It also allows a group of consumers to "sit and wait" for ShiErjia to clear the warehouse to "pick up leaks".
It is understood that ShiErjia' predecessor was CeFC Pharmaceutical in Heilongjiang Province, and because of the capture of market trends and huge consumer demand, it began to carry out the research and development of "medical sodium hyaluronate repair patch", and in 2017, it divested its pharmaceutical business and operated the Shierjia brand.
However, according to its prospectus, since its inception, Shierjia mainly plays a role in sales and promotion in the production process, before February 2021, Shirjia's main business products are from external procurement, of which the finished products purchased from Kazakhstan Sanlian are the mainstay, in February 2021, Harbin Sanlian increased its capital with 100% of the equity of Beixing Pharmaceutical, after the completion of the capital increase, Harbin Sanlian held 5.00% of the equity of Shierjia, and the North Star Pharmaceutical industry that was previously responsible for production in Kazakhstan Sanlian also changed owners to Shierjia. Since then, the products purchased by Shierjia have been transferred to the company's own production, and this share swap has also brought 566 million yuan of goodwill liabilities to Shierjia.
According to the prospectus, it currently has a total of 34 products, including medical dressings, water emulsion essences, sprays, freeze-dried powders, gel cleansing products. From 2018 to the end of March 2021, Shierjia achieved revenue of 373 million yuan, 1.342 billion yuan, 1.585 billion yuan and 347 million yuan, and the net profit attributable to the parent company was 200 million yuan, 661 million yuan, 648 million yuan and 173 million yuan, respectively. It can be seen that in more than 3 years, Shierjia's revenue ability has improved tremendously, and the net profit margin of Shirjia has also been maintained at more than 40% all year round.
According to Frost & Sullivan's analysis report, in 2020, the sales of Shirjia patch products were the first in the market for patch professional skin care products, accounting for 21.3%; of which medical device dressing products accounted for 25.9%, ranking first in the market; cosmetic products accounted for 16.6%, ranking second in the market.
For comparison, in 2020, the gross profit margins of Shirjia, Bethany and Bloomage Bio were 94.95%, 76.28% and 81.41% respectively. In 2020, the gross profit margin of Moutai was 91.41%, and the gross profit margin of Shi Erjia has caught up with Moutai.
In the view of Shen Meng, executive director of Chanson Capital, "The high gross profit margin is related to the low operating cost, that is, the product appreciation rate of the main business is high, but if it deviates significantly from the industry average, it means that its product appreciation ability is strong, that is, it can convert the cheaper cost into a finished product with a higher price." ”
Rapid marketing research and development is only two people
In the case that the cost of main business is lower than that of peers, how high is the gold content of medical beauty masks?
In Shirjia's prospectus, there is a surprising value. As of the end of March 2021, there were 291 people in Shierjia, of which there were only 2 R&D personnel in many enterprises, accounting for 0.69% of the total number of employees. It is precisely for this reason that the research and development capabilities of Shirjia have been questioned by the market.
At the same time, the R&D investment value of Shierjia is also surprising, from 2018 to the end of March 2021, Shierjia's R&D investment was 307,800 yuan, 603,900 yuan, 1,479,700 yuan and 132,000 yuan, accounting for 0.08%, 0.04%, 0.09% and 0.04% of the operating income, respectively. With less than 1% of the year's research and development investment, people are suspicious of the technology company's technical capabilities.
Compared with bloomage biotech's R&D expense rate of 5.3% and Bethany's 2.27%, Shirjia's R&D expense rate is also extremely low.
In addition, from the research and development results, the data shows that as of the prospectus submitted in September 2021, Shirjia has only 1 authorized patent, which is the patent it applied for in 2017 for its packaging box. Compared with the same industry, as of the end of 2020, the number of patents of Bethany and Bloomage Bio was 50 and 341 respectively.
R&D investment and R&D personnel are far lower than their peers have also aroused market concern about the existence of "water injection" in its technical content. Shen Meng pointed out to the reporter:"There is a correlation between the technical level and the number of R&D personnel and the number of patents, but there is no causality, whether it has a technical level, but also depends on the degree of contribution of the relevant technology to the product value-added rate." That is to say, although the R & D team is small, it can convert cheap raw materials into high-priced goods, and this technical level is very high. ”
Interestingly, compared with the investment in research and development costs, Shirjia pays more attention to brand promotion. According to the prospectus, from 2019 to the end of March 2021, the company's image promotion expenses were 18.6241 million yuan, 69.0783 million yuan and 3.1845 million yuan, respectively, with a trend of increasing year by year. For the gradually rising publicity and promotion costs, Shi Erjia said in the prospectus: "The main ones are the company's brand image endorsement expenditure and advertising expenditure such as variety shows, film and television drama titles. ”
It is understood that Shi Erjia has signed Yuan Shanshan and Deng Lun for brand endorsement, and has successively titled and sponsored "Flowers and Flowers 2&3", "Wife's Romantic Trip 4", "Who is the Treasure Singer", Golden Eagle Theater and other variety shows and film and television theaters.
In addition to image promotion, the overall sales expenses of Shierjia are also increasing year by year, increasing by 150 million yuan in 2020 compared with 2019. In the prospectus, Shi Erjia intends to raise about 1.896 billion yuan, of which 654 million yuan is used for "production base construction project", 885 million yuan is used for "brand marketing promotion project", 56.91 million yuan is used for "R&D and quality testing center construction project" and 300 million yuan is used to supplement working capital.
Compared with hundreds of thousands of research and development expenses, hundreds of millions of yuan used for marketing and promotion have put a veil on whether Shi Erjia can keep the market in the future. In view of the progress of the listing, the excessive proportion of sales expenses and the doubts of the outside world about its research and development capabilities, the reporter of China Times called his phone and did not connect, and then sent an interview question through email, but did not receive a reply as of press time.
Responsible Editor: Huang Xingli Editor-in-Chief: Han Feng
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