Author: Li Yiru
Source: Business People (ID: biz-leaders)
Recently, there is a company that is about to be listed on the Growth Enterprise Market, called 301047. SZ), which became the highest new stock in the history of A-shares at an issue price of 292.92 yuan.
According to the average increase of 321.11% on the first day of the New Stock Market of the ChiNext Board in July, the shareholders of the winning Yiyi Shenzhou may make a profit of more than 300,000 yuan, and its gross profit margin of 96.88% exceeds the 91.41% of Guizhou Moutai and also makes the company receive more attention.
one
The soaring performance of Yiqiao Shenzhou is due to the new crown pneumonia in 2020.
Yiqiao Shenzhou is a company that produces and sells biological reagents, and its customers are pharmaceutical companies, scientific research institutions and other biological research and development units, and Yiqiao Shenzhou provides experimental biological reagents for these R&D personnel.
After the outbreak of new crown pneumonia, according to the prospectus of Yiqiao Shenzhou, it quickly developed a series of biological reagents such as proteins and antibodies related to the new crown virus, which were purchased by customers at home and abroad in large quantities.
This made Yiqiao Shenzhou's revenue in 2020 increase by 782.77% year-on-year to 1.596 billion yuan, of which the revenue of new coronavirus-related products accounted for 84.07% of the current operating income; the net profit after deducting non-profit was 1.122 billion yuan, a year-on-year surge of 2469.65%.
The gross profit margin of Yiqiao Shenzhou itself is also very high, 83.99% in 2019, and increased to 96.88% in 2020, surpassing the well-known high-margin company Guizhou Moutai.
two
In May this year, Robin Li gave a speech at the first China Biocomputing Conference as the chairman of Batu Biotech.
He mentioned that when he was a programmer on Wall Street in the 90s, he had received an offer from Merck, the world's top pharmaceutical company, and he wanted to work on biocomputing, but was splashed with cold water by his wife Ma Dongmin, a biology major. Ma Dongmin believes that the development of life sciences is not advanced enough for Li Yanhong to play the skills of programmers.
After Baidu became a big company and there was no new story, after Chen Tianqiao and Huang Zheng began to add bricks and tiles to the life sciences, Robin Li led the establishment of Baitu Shengke, planning to invest tens of billions of yuan. "In the most critical areas of life and health, even if the investment is large, the risk is high, and the cycle is long, we must resolutely do it." There is no end in life science, only the best effort. In his speech, Robin Li expressed his deep affection for life sciences and mentioned that he hopes to build a group of pharmaceutical companies that integrate bio-plus-computing technology.
Xie Liangzhi, chairman of Yiqiao Shenzhou, is just the opposite of Robin Li.
Born in Hunan in 1966, Xie Liangzhi entered Dalian University of Technology at the age of 17 to study chemical engineering, received a doctorate in biochemistry from MIT in 1997, and then joined Merck, where Robin Li had wanted to go, the year he graduated, and Robin Li also left Wall Street that year.
But according to media reports, Xie Liangzhi's first ideal is not life sciences, but artificial intelligence, in 1991 he just entered MIT to study computer science, "a program can not be solved, I can not eat, do not sleep." Later, because of the lofty desire to cure diseases and save people, he gave up his deep obsession with AI and transferred to biology.
As a senior engineer and researcher at Merck in the United States, Xie Liangzhi is engaged in the process development of vaccine products, of which 5 years are responsible for the production process of AIDS vaccines, witnessing how Merck puts the best resources into vaccine engineering.
In 2002, he received a call from the Biological Center of the Ministry of Science and Technology of China, and the state organs called on him to return to China to help the industrialization of China's biopharmaceutical field.
Xie Liangzhi returned to China to establish Shenzhou Cell Engineering Company and began to start a business. In the process of developing new drugs, he found business opportunities to provide raw materials for research and development. "The dream of spaceflight depends on rockets, and the dream of biology depends on protein." Xie Liangzhi once used this analogy to explain the importance of protein as an experimental material.
So in 2007, Xie Liangzhi established Beijing Yiqiao Shenzhou Company to separate the reagent business from the biopharmaceutical business, the reagent business for pharmaceutical companies and pharmaceutical research and development units, and the biopharmaceutical business for patients, hospitals and pharmaceutical distributors.
In June last year, Shenzhou Cells, which is engaged in the biopharmaceutical business, was listed on the Science and Technology Innovation Board, becoming the first enterprise in the Beijing Economic Development Zone to be listed on the Science and Technology Innovation Board, with a current market value of 29.3 billion yuan.
If Yiqiao Shenzhou is successfully listed, then Xie Liangzhi will have two listed companies in more than a year. In the 2020 Forbes China Rich List, the Xie Liangzhi family ranked 203rd with a wealth value of 18.35 billion yuan, and it is also the 27th in The List of China's Health Richest People.
three
Xie Liangzhi's commercial success has experienced several key moments.
In 2004, when the Ebola virus appeared in Africa, Xie Liangzhi spent a month and a half making the drug, when the media reported that he gave China a "bullet" to Ebola.
In 2009, when influenza A (H1N1) appeared, Xie Liangzhi's company spent 30 days developing the hemagglutinin protein needed for a influenza A vaccine.
In 2013, China suffered H7N9 avian influenza, after the gene sequence of the virus was announced, Xie Liangzhi's two companies used 12 days and more than 100 people to complete the production of H7N9 hemagglutinin protein, became the mainstream supplier of this type of reagent, and then completed the H7N9 new neutralizing antibody emergency drug from discovery to clinical declaration within 6 months.
By 2020, after the release of the new crown virus sequence, Yiqiao Shenzhou spent 11 days to complete the research and development and production of key proteins of the new crown virus, and then developed a series of new crown virus-related proteins, antibodies and genetic reagents.
The prospectus of Yiqiao Shenzhou also mentioned that the new crown virus has appeared multiple mutated strains, and different strains have different mutation sites, which also put forward new demands for biological reagents. As of March 2021, Yiqiao Shenzhou has developed more than 360 kinds of biological reagents for various types of new coronavirus.
Overseas has always been an important market for Yiqiao Shenzhou, and in 2019 and 2020, Yiqiao Shenzhou's revenue in the US market accounted for 33.65% and 69.41% of its revenue, respectively. Yiqiao Shenzhou made a risk warning for this: the company's related products have not been included in the list of tariff increases in the trade war, but if the Sino-US trade friction intensifies in the future, the company's product tariffs will increase significantly, which may lead to a decline in the price competitiveness of products.
In addition, the number of patents owned by Yiqiao Shenzhou and how strong the research and development strength behind it are are also one of the risks that investors are worried about.
According to the prospectus, Yiqiao Shenzhou only has five patents, and at the same time, its R&D investment has not increased much with the surge in revenue. From 2018 to 2020, its R&D expenses accounted for 16.06%, 12.87% and 1.63% of its operating income, respectively. Compared with other companies in the same industry, the number of patents and R&D investment and the salary of R&D personnel in Yiqiao Shenzhou are significantly lower.
Xie Liangzhi studied under Wang Yiqiao, the "father of international industrial biotechnology", who is a professor at the Massachusetts Institute of Technology, a senior academician of the American Academy of Engineering, and one of the initiators of Yiqiao Shenzhou, and the name Yiqiao Shenzhou should also come from here.
*The title image is a screenshot of the network