The major shareholders led by the founders have continuously reduced their holdings, making the shareholding structure of Watson Bio become very decentralized. According to the data of Tianyancha, the company is still in a state without an actual controller.
On October 28, Yunnan Watson Bio disclosed the company's third quarterly report. According to the data, the company's revenue in the third quarter was 779 million yuan, down 21.53% year-on-year, net profit was 45.1745 million yuan, down 87.92% year-on-year, and deducted non-net profit of 144 million yuan, down 61.34% year-on-year.
Revenue in the first three quarters reached 2.129 billion yuan, an increase of 35.90% year-on-year, net profit was only 364 million yuan, down 16.33% year-on-year, and non-net profit was 384 million yuan, down 10.96% year-on-year.
On October 29, Watson Bio opened down 5%, and as of the close, it finally closed at 55 yuan / share, down 4.96%.
Earnings fell short of expectations
According to the third quarter report of Watson Biology, the decline in performance in the third quarter is due to the sharp rise in management research and development expenses and the compression of many profit margins. According to the data, the management expenses and research and development expenses of Watson Bio in the third quarter reached 202 million yuan and 335 million yuan respectively, an increase of 54.52% and 118.19% respectively year-on-year.
For the substantial increase in management and research and development expenses, Watson Bio said that it was mainly due to the company's new stock option incentive sharing expenses and other matters granted in 2020 compared with the same period last year, and increased investment in research and development of vaccine product projects.
According to public information, Yunnan Watson Biotechnology Co., Ltd. (hereinafter referred to as Watson Biotechnology) is a high-tech biopharmaceutical enterprise specializing in the research and development, production and sales of biotechnological drugs such as human vaccines. The main independent vaccine products produced and sold are: 13-valent pneumococcal polysaccharide conjugate vaccine (vials and pre-potting type), 23-valent pneumococcal polysaccharide vaccine (vials and pre-potting), Haemophilus influenzae type b conjugate vaccine (vials and pre-potting type), group A group C meningococcal polysaccharide conjugate vaccine, ACYW135 meningococcal polysaccharide vaccine, group A group C meningococcal polysaccharide vaccine and adsorbed acellular diphtheria combined vaccine a total of 7 products (10 specifications). At present, Watson Bio has two major vaccine reserve varieties of 13-valent pneumonia conjugate vaccine and HPV vaccine.
On January 10, 2020, Watson Bio received the "Drug Registration Approval" for the 13-valent pneumonia conjugate vaccine issued by the State Food and Drug Administration, and the first batch of products was approved on March 30, and the first dose of vaccination was achieved on April 22.
Due to the launch of the 13-valent pneumonia conjugate vaccine, the performance of Watson Bio has increased significantly in 2020. The data shows that the revenue in 2020 is mainly based on the 13-valent pneumococcal polysaccharide conjugate vaccine, with revenue reaching 1.658 billion yuan, accounting for 56.42%, and the gross profit margin reaching 94.32%; followed by the 23-valent pneumococcal polysaccharide vaccine, with revenue reaching 688 million yuan, accounting for 23.40%, and the gross profit margin is 89.02%.
In 2019, the performance source of Watson Bio basically came from the 23-valent pneumococcal polysaccharide vaccine, and its revenue reached 520 million yuan, accounting for 46.44%, and the gross profit margin was 92.77%.
Although Watson Bio began to put into vaccine production, relevant data show that the four major pharmaceutical giants of GSK, Merck, Pfizer and Sanofi still occupy about 80% of the global vaccine market share.
According to the investment platform, the work of the phase III clinical trial of the new crown mRNA vaccine international multi-center of Watson Bio is continuing to advance as planned, and it is currently a fast-moving enterprise. In addition to Watson Biologics, Aibo Biotech is also about to launch Phase III clinical trials; Fosun Pharma's mRNA covid-19 vaccine BNT162b2, which is currently authorized for emergency use in Hong Kong, China, and domestic research and development is in Phase II clinical trials. In addition, Tibet Pharmaceutical/Si microbiology, Lizhu Group/Zhuhai Van Lida are in a state where clinical phase I is or will be launched.
In the highly competitive market for covid-19 vaccines, there are still some companies whose vaccines have been put into the market and started production, although the current epidemic situation is still unstable, but there are no longer a few domestic companies that carry out research and development of new crown vaccines. From this point of view, Watson Bio is still facing a lot of pressure.
The actual controller is absent
According to the news of Tianyancha, in the past two years, Li Yunchun, chairman of Watson Biology, has reduced his holdings all the way, and the shareholding ratio has dropped from 20.06% to the current 2.28%, with a cash amount of billions of yuan.
On September 26 this year, Watson Biotech issued an announcement that due to the voluntary exercise of options in the 2018 stock option incentive plan, its total share capital increased, resulting in a passive decrease in the proportion of shares held by shareholder Mr. Liu Junhui and his spouse (consistent actor) Ms. Huang Jing, holding a total of 79.0155 million shares of the company, accounting for 4.99% of the company's total share capital.
The continuous reduction of the major shareholders of Watson Bio, led by the founder, has made the company's shareholding structure very decentralized. According to the data of Tianyancha, the company is currently in a state without an actual controller.
According to the latest data from Tianyancha, Watson Bio's current shareholding ratio of 10 major shareholders is all below 5%. At present, there are only three shareholders holding more than 2% of the shares, of which Liu Junhui holds 4.74%, Hong Kong Securities Clearing Company Limited holds 2.78%, and Li Yunchun holds 2.28%.
Previously, Watson Bio also received a regulatory letter from the Shenzhen Stock Exchange for "selling cheaply" subsidiaries.
It is reported that on December 4 last year, Watson Bio transferred 32.60% of the equity of Shanghai Zerun for 1.140 billion yuan. As the target of the transaction, Shanghai Zerun, founded in 2003, has been continuously increased by Watson Biotech through multiple rounds of equity changes since 2013. As of December 4 this year, Watson Bio has held 65.14% of the equity of Shanghai Zerun. Watson's continuous increase in Shanghai Zerun actually values the bivalent and nine-valent HPV vaccines it has been developing for many years.
Such a product with market prospects, Watson Bio wants to sell the equity of related business, which has also triggered strong dissatisfaction in the market for Watson Bio. In the end, the company canceled the deal. However, for this transaction, Watson Bio also received a letter of concern from the Shenzhen Stock Exchange, asking for clarification on whether there are issues between the company and the management team of Shanghai Zerun that affect the development of Shanghai Zerun due to insufficient incentives.
For the current broad market for bivalent vaccines, on October 19, investors asked questions about the current production of Watson biological divalent HPV vaccines on the interactive platform. Watson Bio replied that the design annual production capacity of the bivalent HPV vaccine production line that the company has built is about 15 million doses, and the relevant work for the declaration and production of the bivalent HPV vaccine is continuously promoted in accordance with the declaration procedure, and is currently in the review stage.
In addition, since August this year, the secondary market of Watson Bio is also "declining". On August 5, the stock price of Watson Biotech rose to 96.73 yuan / share, and as of today's close, it has fallen to 53.31 yuan / share, a decline of 44.88%.
Source: Oriental Fortune Network
The reporter sent an interview letter to the enterprise on the research and development progress of the new crown vaccine, and as of press time, he did not receive a reply from the enterprise.
Trainee reporter Hu Xinyu
Edited by Wang Liying
Editor-in-Charge Sun Xiao