As a mage, I just want to pursue the truth

Chapter 271 Annual Report of the Fifth Year of Listing (Additional Updates, Please Give Me a Monthly Ticket!!!)
For a listed company, the most important thing in the first quarter is to prepare the financial report and annual report for the whole of last year.

For example, the overall framework of this year's annual plan was completed as early as the third quarter of last year.

The top level will only focus on KPI indicators, and the middle level will be responsible for breaking down the KPI indicators in the annual plan and assigning the work.

2026 is the sixth year after Kechuang Bio's listing, and they will release the 2025 annual report at the beginning of this year.

That is, this is a financial report five years after Ke Chuang Bio's listing. For a company, five years after listing can be said to be a gradual transition from a start-up to maturity.

However, there is no sign of stagnation in the development of Kechuang Biotechnology.

Therefore, shareholders and major investment institutions are very concerned about the annual financial report of CStone Bio in 2025.

Giant companies like Ke Chuang Bio can drive the ups and downs of the entire sector.

Kechuang Biotechnology spans biomedicine, semiconductors, new energy, consumer electronics and other sectors covered by China's core technologies.

Just like when CATL released its financial report that year, it was proved that it did not have the moat in the battery field as imagined, and its stock price plummeted and even brought down the entire sector.

If the performance of Kechuang Biotechnology is lower than expected, the entire market will face the risk of collapse.

Especially upstream and downstream related companies.

"In the upcoming annual report of Sinovation Biotechnology, the most noteworthy points are that Sinovation Future has been controlled by Sinovation Biotechnology, and this part of the income will be incorporated into the earnings of Sinovation Biotechnology.

In addition, the research and development of the innovative drug pipeline has been going on for five years, and it is time to produce results. We will focus on the content about innovative drugs in the annual report.

Will there be any innovative drugs entering the clinical trial stage this year?

Another issue is the research and development progress of the next generation of brain-computer connection technology.

Under the current situation, with the entire smartphone industry on a downward trend, Kechuang Biotechnology will also face direct competition from Neuralink.

This part of income will shrink, and it depends on whether there will be other income to make up for the shrinkage. "

“The market value of Sinovation Bio has always been a mystery. I have always been curious why CATL can enjoy a PE of 200 times, while Sinovation Bio can only enjoy a PE of around 50?

It is obvious that Kechuang Bio's moat is deeper than that of CATL and its technical strength is stronger.

Even for CATL's lithium battery technology, they need to obtain authorization from Kechuang Biotechnology.

The most core graphene coating manufacturing equipment is also in the hands of Ke Chuang Bio.

Why is the PE ratio of Sinovation Biotech, which is obviously more technologically advanced and more powerful, lower than that of CATL? "

Someone on Snowball asked Duan Yongping a question. As a big shot on Snowball for many years, he has always wanted to answer similar questions.

By the way, spread your own investment philosophy.

Therefore, after seeing this, Duan Yongping gave his own answer:
"Because the valuation enjoyed by Sinovation Biotech is somewhat similar to that of BOE and TCL, while CATL enjoys the valuation of new energy."

Similarly, in the valuation of the electronics industry, even with the hot sales of panels, BOE's dynamic price-to-earnings ratio is only around 6, which is terribly low.

"The underlying logic here is that people are not optimistic about China's original scientific research capabilities, or are not optimistic enough about them.

The reason why CATL can enjoy a high PE valuation is that the players in the battery manufacturing industry are only China, Japan and Goryeo, which are the three East Asian countries in the traditional economic concept.

Moreover, China's manufacturing advantages still exist, and the requirements for cutting-edge scientific research are not that high.

The investment community believes that CATL will be able to win this competition. In other words, CATL's competitors are not that strong.

Moreover, CATL has proven its competitiveness over the past decade.

Ke Chuang Bio needs to face competition from high-tech companies in Europe and the United States. Neuralink is just a well-known company. In recent years, there have been more than a thousand brain-computer connection startups in America.

What’s more important is that you can look at CATL’s financial report and find that its annual investment in research and development is only between 2 billion and 3 billion.

Previously, a private placement of shares was carried out to raise funds, raising a total of 45 billion RMB, and then more than 20 billion was used to buy cash financial products.

Kechuang Biotechnology invests hundreds of billions of RMB in research and development every year.

The research and development content of Ke Chuang Bio is at the forefront worldwide. If it cannot continue to advance in technology, it will face the risk of being overtaken.

Investment in scientific research and manufacturing is very dangerous when you cannot maintain a substantial monopoly advantage.

On the contrary, PE reflects that the market currently recognizes CATL's style and logic.

This phenomenon is now facing a change. After the second-generation brain-computer connection VR product of Kechuang Biotechnology came out, we can see that the market value of Kechuang Biotechnology has risen by 25 points so far.

Previously, the PE was less than 40 times, but now it has exceeded 50 times. It can be seen that investment institutions and investors are gradually recognizing that Ke Chuang Bio's absolute leading position in the field of brain-computer connection will not be shaken in the short term.

After this problem is solved, the only problem for Ke Chuang Bio is that they have reached the forefront of technology and need to invest a lot of money in research and development through trial and error.

This is an investment that no one could have anticipated. We can only hope that Zheng Li can lead the R&D team to choose the right direction as much as possible.

Of course, I continue to be optimistic about Science and Technology Biotechnology. I bought it when Science and Technology Biotechnology was listed that year, and have continued to buy it until today. Basically, I will increase my holdings at every stage bottom.

Zheng Li is an entrepreneur whom I admire very much. He is able to focus all his energy on scientific research and then find someone he completely trusts to help him manage the company.

This is extremely rare, that at Zheng Li's age, he can restrain his desires, and have no desire for power or enjoyment, and yet he lives a life like an ascetic monk even though he is worth hundreds of billions.

I used to suspect whether Zheng Li was pretending. Later, when I returned to China, I talked with Lei Jun and the executives of Ke Chuang Bio several times, and then I realized that Zheng Li was really as the rumors said.

I am optimistic about the business model of Kechuang Biotechnology. If China wants to achieve industrial upgrading, it must have companies like Kechuang Biotechnology.

Kechuang Biotechnology will play a very critical role in China's industrial upgrading. I also admire the founder of Kechuang Biotechnology, so I will continue to hold it.

Unless the business model of Sinovation Biotech changes, or Zheng Li leaves Sinovation Biotech.”

Not only Duan Yongping has been increasing his holdings in Science and Technology Biotechnology, but basically foreign institutions have also been increasing their holdings.

Instead, it was Chinese local funds and securities firms that reduced their holdings.

"In 2025, Kechuang Bio's annual operating income will exceed 2102.8 billion RMB, and its net profit attributable to the parent company will be billion RMB."

Kechuang Bio's full-year net profit in 2025 can be said to be slightly above expectations.

In a research report written for CStone Biotechnology by a securities firm three years ago, it was estimated that CStone Biotechnology's net profit attributable to shareholders of the parent company in 2025 would be 2085.2 billion yuan.

Before the financial report came out this year, major investment institutions and investors estimated it to be around 200 billion RMB.

"The full-year financial report of Sinovation Biotechnology has finally been released. As the most watched company on the Science and Technology Innovation Board, the financial report of Sinovation Biotechnology can be said to have given the entire market a reassurance.

The big brother is fine, and the younger brothers can continue to have fun by following the music and dancing.

There are many highlights in the entire financial report, but some hidden worries are also looming.

First of all, both the revenue and profit of Kechuang Bio exceeded expectations.

However, the overall smartphone industry is facing a decline, and part of the market for brain-computer interface phones has been squeezed out by Neuralink. The revenue decline in this area is quite obvious, exceeding 10%.

The revenue from brain-computer connection VR, endorphin production and sales and patent licensing, and lithium battery segment all met or exceeded expectations.

What I am most concerned about is that it mentions that brain-computer connected VR will undergo another update and iteration this year, and then Ke Chuang may be listed separately in the future to raise funds.

In its financial report, Kechuang Bio said that in order to improve its core competitiveness, Kechuang Future plans to raise funds through an independent listing, and it is expected that the funds raised will be invested in the development and design of VR chips.

The reasons are very sufficient, and regulators and the market should also buy into it. This is a high probability event.

In addition, the technological iteration of brain-computer connected VR has exceeded expectations. I originally thought that the second generation would come out at the end of last year, and the next technological iteration should have to wait until next year.

If this is the case, the incremental market share of brain-computer connected VR will be able to fill the gap left by brain-computer connected mobile phones.

Then there is the research and development of innovative drugs. Two drugs will enter the clinical trial stage this year and are expected to be approved and marketed between the end of this year and the first half of next year.

The names of these two drugs are too professional. I need to wait for professionals to answer questions about the market size and profit situation.

But at least this is a good signal. The more than five years of investment by Sinovation Biopharma in the field of innovative drugs is finally seeing results.

Instead of relying on just one endorphin to conquer the world.

At the same time, the application of brain-computer connection technology in medical devices can form the two legs of Ke Chuang Biotechnology in the field of biomedicine together with innovative drugs.

I am also most concerned about the breakthroughs made by Ke Chuang Bio in innovative drugs.

There is another disadvantage. After I carefully read the annual report, I found that if America and the Europa League had not imposed a total antitrust fine of more than 2 billion euros on Sinovation Biotechnology last year.

The net profit attributable to shareholders of Kechuang Biotechnology this year should increase by more than 20 billion RMB.

This is an uncontrollable risk for Ke Chuang Bio. Given the nature of European and American countries, their antitrust fines cannot be stopped once they start.

Companies like Google pay fines almost every year, which is equivalent to an indirect tax.

It is very likely that Ke Chuang Bio will also face a similar situation, which is a hidden danger in the future.

Overall, this financial report exceeded expectations, and it makes me even more excited about the future of Sinovation Biotech.”

After the 2025 annual report of Ke Chuang Bio came out, there were various interpretations on the market.

Most people are optimistic. The sharp rise in Science and Technology Biotechnology on the first trading day after the annual report came out also reflects the market's optimistic sentiment.

Today I updated a total of 6,000 words, which is an extra 2,000 words. If you have monthly tickets, please give me a monthly ticket~
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(End of this chapter)