As a mage, I just want to pursue the truth

Chapter 43 Prospectus

A company's first public offering is also known as an IPO (Initial Public Offerings).

The materials required for domestic IPOs include the prospectus, the company's annual report (and quarterly report), which includes the company's three major financial statement data, historical "research report materials" on the company by securities research institutes and investment banks, and all announcements issued by the company.

Ke Chuang Bio was established very recently, so the annual and quarterly reports are relatively easy to prepare and the materials are also very clear.

The most important of these materials is the prospectus, which mainly contains:
How many shares do you want to issue and what percentage of the company's total share capital?

The rules for listing on the domestic Science and Technology Innovation Board are that publicly issued shares account for more than 25% of the company's total shares; if the company's total share capital exceeds RMB 4 million, the proportion of publicly issued shares must be more than 10%.

The total share capital of Kechuang Bio is far more than RMB 4 million, so the proportion of publicly issued shares is at least %.

The second is the company's risk situation, including financial risks, talent risks, R&D investment risks, business expansion risks, team stability risks, etc.

The original prospectus of Kechuang Biotechnology stated that the proportion of R&D investment was extremely high, and there was no guarantee that the R&D investment would have the expected return. The brokerage firm wrote this as the biggest risk.

This has to change now. After the brain-computer connection technology comes out, the biggest risk is the risk of antitrust investigation. It may be better in China, but America will almost certainly conduct an antitrust investigation on you.

The prospectus also includes financial data for the most recent year and the company's expected future operating conditions.

Ke Chuang Bio's products are limited, namely endorphins, which are relatively easy to predict.

Due to the epidemic and the widespread use of endorphins due to their effect in reducing addiction, the current situation is that as much endorphins as production capacity can be sold, so the future expected operating income is also relatively easy to predict.

However, Ke Chuang Bio has launched brain-computer connection technology, and it still charges according to the production volume of mobile phone companies, which is not easy to calculate.

Only the highest-end products of each manufacturer will use brain-computer connection technology, and it is difficult to estimate the specific patent licensing fees.

Because Li Shuyao and Li Miaomiao are sisters, CICC gave this part of the work to her.

China's Science and Technology Innovation Board was officially launched in 19. Its goal is to provide a special listing board for high-tech enterprises.

Therefore, there is a very important part in the prospectus, which roughly includes the issuer's technological advancement, model innovation, R&D technology industrialization status and future development strategy.

Originally, CICC wanted to write it according to the template of a biopharmaceutical company, which is easy.

As a result, there are only a few companies in China that are doing brain-computer connection, and even fewer listed companies are doing this.

The technological advancement is indeed very advanced, but the problem is that CICC has to restate it.

The brokerage firm originally wrote about this:

"The company's main core technology is the "industrial production process of α-endorphin", which is a large-scale production technology for long-chain organic compounds. The technology won the first prize of the National Science and Technology Achievement Award. The successful development of this technology marks that the company has overcome a problem that no one has ever solved before, filling the gap in the field of analgesics at home and abroad, and leading the high-end substitution in the field of analgesics.

At the beginning of its establishment, Kechuang Biopharma set the goal of becoming a world-class biopharmaceutical company, which must have top-notch R&D capabilities and a rich drug R&D pipeline. The company was not satisfied with the results of α-endorphin, but continued to introduce talents. In just two years, 479 doctors and 928 masters were introduced, and the R&D team was composed entirely of doctors and masters.

In addition to the optimization of the industrial production process of α-endorphin, from the perspective of drug therapy, the company has also deployed a series of innovative biopharmaceutical products for malignant tumors, including inhibitory and lethal targeted antibody drugs (for example, EGFR monoclonal antibody SCT200 and its second-generation product SCT210 used to treat a variety of solid tumors), tumor vascular inhibitor targeted antibodies (for example, VEGF monoclonal antibody SCT510 and its second-generation product SCT520F used to treat a variety of solid tumors).

The company adheres to the following product development strategies:

The company does not simply pursue R&D speed as the primary goal in its early R&D. Instead, it takes the development of biological drugs that can solve the accessibility of biological drugs, meet clinical drug needs and have potential differentiated market competitiveness as the core goal, and steadily advances the R&D progress of the product pipeline;
Taking into account the breadth, depth and R&D speed of the product pipeline: The company's product pipeline is independently developed based on the company's aforementioned overall R&D strategy, its own technical capabilities and advantages. The company's product pipeline includes biological drugs that are designed to expand drug accessibility and meet urgent clinical needs, including innovative products for future multi-variety combination drug reserves. "

The researchers at the securities firms wrote a lot of things with great enthusiasm, but once the brain-computer connection came out, all of it was ruined and had to be rewritten.

Kechuang Bio is a completely R&D-oriented enterprise, and Cheng Gang has no say in R&D.

The most ridiculous part is the industrialization of R&D technology and future development strategy. They are not clear about the development direction of Ke Chuang Bio's future industrialization of brain-computer connection technology.

CICC and CITIC Securities were tortured by the unclear future development strategy of Sci-Tech Bio. They went to find Cheng Gang, who said he wanted to ask Mr. Zheng.

The two brothers from CITIC and CICC asked if they could find Mr. Zheng directly to have a talk. There are many things they don’t understand. Cheng Gang said that he couldn’t even meet Mr. Zheng, and these were trivial matters to him and he would not meet with them.

Each time the information had to be transferred several times, and finally Zheng Li agreed to communicate with them via email. Each time Zheng Li's reply email was too hardcore, so much so that even a PhD in biology from CICC's investment banking department had to spend a long time reading it before he could understand it.

There is no shortage of PhDs in various disciplines in the core departments of securities firms.

The main business model of Ke Chuang Bio and the main content of its products or services must also be completely rebuilt.

Li Shuyao: "The workload has been astonishingly heavy recently. My workload is no longer that of an intern, but of a regular employee."

“The problem is that I’m getting paid as an intern!”

Li Miaomiao consoled him, "When you come to Gusu, I'll treat you to a feast. There's no limit."

Li Shuyao enviously said, "You are so happy. Zheng Li will not treat you unfairly after Kechuang Biotechnology goes public. You will be financially free immediately."

"How much market value of shares can you get?"

Li Miaomiao: "I don't know. You haven't even produced the prospectus yet. How can I know the share capital and the number of shares issued?"

"We can only proceed with the subsequent procedures after you have prepared the prospectus."

Thanks Feng Yunxu for the reward!
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(End of this chapter)