On June 17, Capital State learned that the IPO of Beijing Innot Biotechnology Co., Ltd. (hereinafter referred to as "Innot") on the Science and Technology Innovation Board was accepted by the Shanghai Stock Exchange.
Image source: The official website of the Shanghai Stock Exchange
The company is a focus on POCT rapid diagnosis products research and development, production and sales of high-tech biomedical enterprises, during the reporting period, the company's products to respiratory pathogen detection, while covering eugenics, gastrointestinal, hepatitis and other testing areas.
Image source: Company prospectus
According to financial data, the company's revenue in 2018, 2019 and 2020 was 78.8257 million yuan, 138 million yuan and 1.034 billion yuan, respectively; The corresponding net profit for the same period was 16.9672 million yuan, 23.7405 million yuan and 569 million yuan, respectively.
In light of the listing conditions stipulated in the Listing Rules of the Star Market, the issuer selects the specific listing criteria as follows: the expected market value is not less than RMB1 billion, the net profit in the last two years is positive and the cumulative net profit is not less than RMB50 million; Or the expected market value is not less than RMB1 billion, the net profit in the most recent year is positive and the operating income is not less than RMB100 million.
The proposed fundraising of 1.209 billion yuan is used for the in vitro diagnostic product research and development and industrialization project (Phase I), in vitro diagnostic product research and development project, marketing and service network construction project, information platform construction project, and supplementary working capital.
As of the date of signing of this Prospectus, the number of shares of the Company directly held by a single shareholder of the Issuer has not exceeded 30% of the total share capital of the Company, and the Issuer has no controlling shareholder. Ye Fengguang and Zhang Xiujie are the actual controllers of the issuer.
In addition to the actual controller of the issuer, the other shareholders who hold more than 5% of the shares of the issuer are Insys Shengtuo, Inshinda, Tianhang Feituo, Sequoia Zhisheng, Suzhou Xinjianyuan and Daan Jinghan.
Capital State noted that Innote benefited from the sudden increase in the performance of the epidemic in 2020, and admitted that it faced the risk of unsustainable performance growth brought about by the new crown epidemic.
In 2020, the new coronavirus epidemic broke out around the world, and the company responded quickly, passing the emergency channel approval of the State Food and Drug Administration on February 22, 2020, obtaining the registration certificate of the first batch of new coronavirus antibody detection kits in China, and obtaining multiple access permits such as the US emergency use authorization EUA abroad. With the rapid spread of the new crown epidemic around the world, the market demand for the company's new crown testing products has increased significantly, and the sales of the company's new crown products reached 917.0038 million yuan in 2020, accounting for 88.72% of the main business income in 2020. Driven by the revenue of new crown testing products, the company's main business income in 2020 reached 1,033,558,700 yuan, an increase of 648.90% over 2019.
However, the significant growth in corporate performance brought about by the current round of the new crown epidemic has unsustainable risks: on the one hand, there is uncertainty about the duration of the new crown epidemic, although the World Health Organization declared that "the new crown epidemic constitutes a public health emergency of international concern", the epidemic is expected to last a long time and requires a long-term response, but the current global new crown virus related vaccines and drugs are being closely developed and have made some progress, If the new crown vaccination is fully popularized or the research and development of special drugs used to treat new crown pneumonia is successful, the epidemic situation is effectively controlled globally, and the sales of the company's new crown testing products may decline; On the other hand, the company has obtained the first batch of domestic new crown antibody test kit registration certificate, which has a certain first-mover advantage, but at present, many domestic and international manufacturers have obtained the registration certificate of new crown virus related testing products, and the market competition has intensified, which may lead to a further decline in the unit price of new crown testing products.
In addition, in order to further enhance the ability of new crown virus detection, control medical costs, and achieve "due diligence", many regions in China have successively introduced centralized procurement policies for new crown testing products, if the scope of centralized procurement of new crown products continues to expand in the future, and the collection and procurement efforts are further strengthened, the company's new crown products face the risk of unit price decline, gross profit margin reduction, and profit margin reduction. In summary, there is an unsustainable risk of significant growth in issuers' performance due to the COVID-19 pandemic.
In addition, the issuer features joint testing, and the existing products focus on the field of respiratory pathogen detection. Although as of the date of signing of this prospectus, the company has obtained 64 medical device registration / filing certificates, and built 6 major technical platforms, with products based on a variety of testing methodologies, but from the perspective of the testing field, the company's main business income is mainly composed of respiratory products, during the reporting period, the company's respiratory series product revenue accounted for 79.85%, 89.60% and 99.36% of the main business income, accounting for a relatively high proportion, and the product types are concentrated.
If there are significant adverse changes in the market environment for respiratory pathogen detection in the future, or the company cannot complete the market promotion of the existing respiratory series products as expected, it will lead to a decline in the company's revenue and the slow sale of inventory goods, which will adversely affect the company's operations.
During the reporting period, the gross profit margin of the company's main business was 80.04%, 82.03% and 89.35%, and the gross profit margin was at a high level, on the one hand, due to the company's accumulation over the years, it has established certain product advantages and brand recognition in the field of respiratory pathogen detection, has a number of domestic exclusive varieties, and has certain comparative advantages in the subdivision of respiratory pathogen detection; On the other hand, it is due to the relatively high proportion of sales of new crown products with high gross profits in 2020. If adverse changes occur in the future market environment, supply chain, cost management, or the company can not continue to maintain the competitiveness of products in the industry, or the company's proportion of new crown products sales declines, there is a risk that the company's gross profit margin may decline.
In March 2018, the National Health Commission and other 6 ministries and commissions jointly issued the "Notice on Consolidating and Deepening the Comprehensive Reform of Public Hospitals by Consolidating and Eliminating the Achievements of Supplementing Medicine with Medicine", proposing to continue to deepen the reform of the field of pharmaceutical consumables, implement the classified centralized procurement of high-value medical consumables, and gradually implement the "two-invoice system" for the purchase and sale of high-value medical consumables. In July 2019, the General Office of the State Council issued the "Reform Plan for the Governance of High-value Medical Consumables", which formulated a reform plan for key issues such as inflated prices and excessive use of high-value medical consumables, and some regions have introduced targeted reform measures such as quantity procurement according to the plan. If measures such as the "two-invoice system" and volume procurement are promoted to the field of in vitro diagnostic reagents in the future, it will have a certain impact on the promotion method, selling price, sales cost, gross profit margin, etc. of the issuer's in vitro diagnostic products. If the company fails to comply with the direction of medical reform and formulate relevant countermeasures in a timely manner, it may face the risk of a decline in the company's performance.
This article originated from Capital State