As a mage, I just want to pursue the truth

Chapter 145 2022 Annual Financial Report

Lithium metal material patent authorization.

Graphene Coating only sells manufacturing equipment and does not provide patent licensing.

Keep a firm grasp on those with higher technological content, and license patents for those with relatively lower technological content.

This mode of operation was thought up by the senior executives of Kechuang Biotechnology.

They believe that this will maximize the company's interests while ensuring that technology is not leaked.

You can look at my graphene coating structure, but you can't guess our specific implementation path.

Just like everyone knows the underlying principles of lithography machines, but replicating them requires a lot of manpower, material resources and time costs.

In the future, if graphene coatings can continue to be optimized and the technology forms a certain barrier, it will have an absolute monopoly advantage.

If it can achieve the same technological advantage as ASML, Kechuang Bio will have an even deeper moat.

Therefore, Kechuang Biotechnology has bought a piece of land in Gusu and has started recruiting people as a production base for graphene coating equipment.

In 2022, the profit of endorphins alone will be more than billion yuan. There is too much cash on the books of Ke Chuang Bio, and it is a worry that there is too much money and you don’t know how to spend it.

It’s just like MiHoYo had too much money on its books, and then invested in a company whose main business is controlled nuclear fusion, and led the A round of investment.

There was too much liquid funds on the books, so the higher-ups wanted Kechuang Biotechnology to issue a private placement, but Kechuang Biotechnology could not find a reason to do so for a while.

Gao Minghuan has been in the industry for many years and quickly understood Ke Chuang Bio's plan. He thought to himself that this separation method could guarantee the bottom line of Ke Chuang Bio in the next 20 years.

New energy is a major trend, and monopolizing one of the indispensable sub-sectors can at least provide a steady stream of cash flow.

Gao Minghuan thought about endorphins, brain-computer connection and graphene-coated equipment and found that the other party actually monopolized many areas.

He was shocked inside, but he didn't show it on the surface: "LG Chem is willing to pay a high price to lock in your company's graphene coating equipment in advance."

Cheng Gang: "I'm sorry, we have already signed supply agreements with companies such as CATL and BYD. Even if we want to supply to manufacturers such as LG Chem, we have to wait until we have some spare production capacity."

"If there is any follow-up news, I will inform your company as soon as possible."

"Science Biotechnology's annual revenue is close to 2500 billion RMB, of which brain-computer connection revenue accounts for more than the biopharmaceutical business.

Its full-year non-GAAP net profit was approximately RMB 1500 billion, with an average daily profit of RMB 4.1 million. Its net profit growth rate exceeded %, far exceeding expectations, ranking fifth among listed companies.

This is also the first time in the past decade that a non-financial enterprise has entered the top ten of the net profit ranking of Chinese listed companies.”

After the full-year financial report of Kechuang Biotechnology for 2022 was expected to be released, Kechuang Biotechnology, whose market value had been exceeding 2 trillion RMB, once again directly hit the daily limit after opening the next day.

You should know that the market value of CATL, whose net profit is only one-tenth of that of Sino Bio, is 1.1 trillion RMB.

The technological content of Kechuang Bio is higher than that of CATL.

In addition, there have been frequent reports recently that Kechuang Biotechnology has entered the lithium battery industry, which has further contributed to the further rise of Kechuang Biotechnology.

"This is amazing! This is the first time I've seen such an amazing technology company with a net profit of 1500 billion. Monopoly is really profitable."

A net profit of 1500 billion may sound exaggerated, but a set of data will show that it is not the most exaggerated.

China Tobacco's net profit in 2021 was close to 1.3 trillion yuan, and China Investment's net profit for the whole year of 2020 was close to 7000 billion yuan.

"It's not so bad actually. Tencent's full-year net profit this year is 1964 billion RMB, and its market value is only 4 trillion HKD. Kechuang Bio's market value is about trillion to trillion. Those who are shouting about unit prices exceeding yuan can just shout."

The total share capital of Kechuang Bio is 4 million shares, with a unit price of over yuan, which means that the market value exceeds trillion yuan.

One lot costs 100 million, which only institutions can afford.

The target prices of Soochow, CICC, and CITIC Construction Investment are all between 8,000 yuan and 10,000 yuan.

The title of Dongwu is: "I am not afraid of the clouds blocking my view, because I am at the highest level."

A little bit exaggerated.

“The logic of Kechuang Biotechnology is completely different from that of Tencent. They are not the same type of companies. In terms of social traffic, ByteDance competes with Tencent, and in terms of cloud services, Ali, Huawei, and Qiandu compete with Tencent.

Not to mention the gaming sector, where there are so many competitors.

Does Sci-Tech Biotech have any competitors in the field of endorphins and brain-computer connection? Musk's Neuralink can only compete in the mid-range mobile phone market, and its recognition rate is far lower than that of Sci-Tech Biotech.

Kechuang Biotechnology's moat is much deeper than Tencent's. Not to mention that Kechuang Biotechnology still has two favorable production capacities, brain-computer connection VR and new lithium battery materials, that have not been released.

In my opinion, a market value of 4 trillion is not the ceiling for Kechuang Biotechnology, but just a starting point. "

"That's enough. Kechuang Bio is indeed great, but what does it have to do with us retail investors? Can you afford to buy one share?

After working hard to get 500,000 yuan in liquid funds to play around in the Science and Technology Innovation Board, it is only enough to buy one share of scientific and technological innovation biological products.

This company is not for retail investors to make money, only institutions buy and sell, just watching it rise, the daily trading volume is ridiculously small. "

"When will Kechuang Bio be split? If it is not split, the investors will not be able to enjoy the benefits of the company's development. We also want to grow with this great company!"

A stock split means splitting the stock 1 times. This is done when the stock price is too high to be traded. About 10 years ago, there was a stock called Yuyuan Shopping Mall, whose market value rose from 30 yuan to 800 yuan.

(As for whether Yuyuan Shopping Mall was split, I really don’t remember)
"I took a look and found that Kechuang Bio's R&D investment in the first three quarters reached 600 billion RMB. I estimate that most of it was spent on brain-computer connection chips.

Whether it is the R&D center in England or the massive poaching in the field of AI chips this year, the president of Cambrian has publicly called for not poaching R&D teams from domestic competitors, but poaching from foreign R&D teams.

There is no way to avoid it. All domestic AI companies have been poached.

From this incident, we can see that even with such high revenue and such a deep moat, Kechuang Bio still invests a lot of money in research and development.

This shows the enterprising spirit of the company's management. Zheng Li is only in his twenties now, and his strong enterprising spirit can last for at least twenty years.

Coupled with its top research talent, I am very optimistic about the future development of Kechuang Bio.

There is only one problem, it is too expensive. This is not the problem of Sinovation Biotech, but my problem. ”

After the announcement of Ke Chuang Bio's 2022 annual report, it attracted heated discussions in the capital market.

A net profit of 1500 billion is very high, but there are companies with higher net profits ahead of them.

However, the only two domestic companies that have achieved such high net profits are Tencent and Ali.

The only one that maintains a growth trend is Tencent. It has been in a growth trend. Although the growth rate has slowed down, it is still growing.

阿狸2019年全年净利润在1633亿rmb，2020年全年净利润在1512亿rmb，等到了2021年全年净利润只有711亿rmb。

It is precisely because of the negative growth that Ali’s market value fell from 5 trillion HKD to below 1 trillion HKD.

As a rising star, Kechuang Bio's net profit exceeded 1500 billion RMB in just four years.

The net profit growth has remained above 100% year after year, and the secondary market is extremely optimistic.

Retail investors want to buy but cannot, and dare not buy because it is too expensive, one lot costs 50.

Domestic institutions and European and American investment institutions have been increasing their holdings and scrambling to buy shares.

Technology creates wealth, but creating wealth in this way still has a significant impact on Chinese entrepreneurs.

The impact it brought to the industry is comparable to that when Alipay helped Tianhong sell Yu'ebao. It directly transformed from an unknown small fund company into the largest fund company. The scale of Yu'ebao alone exceeded one trillion.

Influenced by this, angel investors in China prefer R&D-based enterprises rather than Internet companies.

Internet companies have had an increasingly difficult time in the past two years. Even Ali could not avoid a sharp drop in net profit, not to mention start-ups.

It is becoming increasingly difficult to rely on subsidies to attract a large number of users, expand the scale, and then go public to raise money.

“How can I see the full-year financial report of Sinovation Biotechnology in 2022?”

Since the company has money and does not need to rely on exploiting grassroots employees to make profits, Ke Chuang Bio basically does not require overtime, and performance appraisals do not take into account your working hours.

In addition, Ke Chuang Bio's recruitment over the years has been very friendly to graduates of biology, materials science, and chemistry, accounting for three of the four major key majors.

Ke Chuang Bio not only recruits a lot of people, but also offers a lot, and of course the requirements are also high.

Therefore, issues related to scientific and technological innovation and biology have always been highly discussed on Zhihu.

“Thank you for the invitation. As a PhD in biology who just joined Sci-Tech Biotech through campus recruitment this year, let me talk about why Sci-Tech Biotech can achieve such high profits.

First of all, Ke Chuang Bio's R&D team is very large. The R&D team of Suzhou R&D Center has more than 3,000 people, more than one-third of whom are PhDs.

There are about a thousand people in Jiangcheng, about a thousand people in Lion City, and about eight hundred people in the R&D center in England.

The proportion of PhDs in Singapore and England is 50%, and the proportion of PhDs in Jiangcheng is similar to that in Suzhou.

Ke Chuang Bio spends nearly 30 billion yuan on labor costs every year.

The treatment given to R&D personnel is comparable to that of programmers in large companies. Their working hours far exceed ours. We basically don't have to work overtime, let alone work long and short weeks.

The research atmosphere is very good. No matter what direction you have an idea in, you can find people in the internal system who have the corresponding direction to discuss with you. Of course, this is limited to the biology field that I am engaged in.

Currently, the main source of profit for Kechuang Bio is still Mr. Zheng’s research and development results, endorphins and brain-computer connection.

The brain-computer connection is mainly followed by the R&D team in Lion City, because Mr. Zheng himself is also in Lion City. Whether it is brain-computer connection with mobile phones or brain-computer connection with VR, all R&D tasks are placed in Lion City.

The R&D centers in Gusu and Jiangcheng are mainly focused on optimizing the industrial production process of endorphins, and have currently reduced costs by 20%.

Our other main focus is on the research and development of innovative drugs. Currently, our two domestic R&D centers have a total of 13 innovative drug pipelines underway.

It is a shame that innovative drugs have not yet generated any profits.

The R&D center in England mainly produces AI chips and AI algorithms. It is said that this R&D center will be allocated to Kechuang Semiconductor in the future. Kechuang Semiconductor is a subsidiary established only last year, mainly engaged in brain-computer connection chips.

Our investment in scientific research is absolutely very high, second only to Huawei’s. ”

(End of this chapter)