As a mage, I just want to pursue the truth

Chapter 44 The True Value of Scientific and Technological Innovation

Due to the listing of brain-computer connection, the main contents of Kechuang Bio's prospectus have to be completely redone.

The most important content in the prospectus is the company's valuation, total share capital and issue price.

Originally, the three underwriters, CICC, CITIC Construction Investment and CITIC Securities, held no less than ten joint meetings with the six major shareholders of Sinovation Bio before finalizing these decisions.

Li Miaomiao attended the meeting as Zheng Li's plenipotentiary representative.

Now we have to start over again.

Since CStone Bio only issues quarterly reports to major shareholders, shareholders like IDG and Temasek hold a very small share of the company and cannot participate in the daily operations of the company. At most, they can participate in the decision-making of the board of directors.

However, since Zheng Li was not in Suzhou, the board of directors rarely met.

The 2020 annual report still states that it is expected that the application and research and development of brain-computer connection devices on mobile phones will be completed in 2021.

The first quarter report has not been received yet, but I didn’t know that Zheng Li’s progress was so fast. In January, he had already signed patent licensing contracts with major manufacturers.

The contract with Da Mi was also signed in the first quarter, but due to a private agreement with Lei Jun, the laboratory testing equipment was provided to Da Mi in advance.

Of course, IDG Capital, Temasek, and Goldman Sachs received the news earlier than the news. They received the news after the patent authorization for brain-computer connection of Ke Chuang Biotechnology was approved.

The news was received too late, and the listing materials had not yet been submitted to the stock exchange, so major shareholders demanded a revaluation of Kechuang Bio.

It is impossible to value it based on the value of a single endorphin now that we have brain-computer connections.

Li Shuyao said, "There is a crucial question. Can I ask about it in advance?"

Li Miaomiao knew that this must be a question that would embarrass her, otherwise Li Shuyao would have asked directly, "Go ahead."

"Will iPhone 13 have a brain-computer connection function? If iPhone 13 has a brain-computer connection function, I really want to change it."

Li Miaomiao: "Tell the truth."

Li Shuyao lowered her head and said, "I just want to know whether Kechuang Bio has signed a contract with Apple, or whether you have reached a cooperation intention now. If it has been reached, the profit forecast for 2021 will be completely different."

Li Miaomiao realized that in some aspects, she had a deeper understanding than her sister, who graduated with a degree in finance and studied for a master's degree at Yenching University.

She has a deeper understanding that experience is the best teacher:

"A few days ago, after the patent registration of Kechuang Bio was completed, I was chatting with Young of IDG Capital, the head of IDG's biopharmaceutical industry investment, and he raised a point."

Li Shuyao was very interested in this kind of chat between big shots. She hadn't realized that Li Miaomiao was also a big shot: "And then?"

Li Miaomiao continued, "What he meant was that from artificially synthesizing endorphins to brain-computer connection, Zheng Li has fully proved that his original development of endorphins was not a flash of genius, but a continuous output."

“Therefore, the valuation of Kechuang Bio cannot be based on the patent licensing of endorphins and brain-computer interface mobile phones.”

"The greatest value of Kechuang Bio lies in Zheng Li. He is only 20 years old and has already completed two patented research and development in the field of biomedicine that can be said to be a monopoly. His future is limitless."

“Science and Technology Innovation Biotechnology should be valued at its source, and we should value it based on Zheng Li’s research and development capabilities.”

Li Shuyao couldn't help but say, "The problem is that this kind of thing can't be valued. In terms of R&D capabilities, how many patents can Zheng Li guarantee that he will be able to develop in the future? And how many of them can be valuable like brain-computer connection and endorphins?"

"This is something that cannot be quantified at all." Li Miaomiao gestured for her to calm down: "So Young proposed that if they did not give up this listing opportunity, IDG Capital would invest in the C round of investment of Sinovation Biotechnology without any reason. As long as Zheng Li is still in Sinovation Biotechnology, even if the investment is in the Z round, IDG will participate in the Z round of investment."

Li Shuyao: "Don't you want to eat alone?"

Li Miaomiao: "Goldman Sachs and Temasek both mean the same thing. They both said that there is no rush to go public. If Sinovation Biotech is short of funds for its research and development, they are willing to participate in the next round of investment, and are unwilling to accept an unreasonable valuation."

"They are willing to wait ten or twenty years until Zheng Li's scientific research capabilities are fully demonstrated before listing."

"That's what Mr. Lei from Rice said, too."

"As the underwriter, Kechuang Bio will fully compensate you for the liquidated damages."

Li Shuyao: "It's not us. I'm just an intern. If you don't go public, I guess the leaders of CICC will not be able to sleep during this period and will be very depressed."

She couldn't help laughing at the thought.

Li Miaomiao continued, "Don't worry, I haven't finished yet. After reporting the situation to Zheng Li, Zheng Li said that it would still be listed this time, but the valuation of the listing does need to be renegotiated."

Li Shuyao asked in confusion: "Since IDG and Goldman Sachs are willing to invest, then Sinovation Bio is not short of money, so why is it in such a hurry to go public?"

"If Zheng Li wants to cash out his stocks, he can just sell some to these investment banks."

Li Miaomiao shook her head and said, "I don't know what Zheng Li is thinking either. Although I think I know him best in the company, I often don't know what he is thinking."

Zheng Li’s idea was very simple. He didn’t need money nor was he short of money. He was about to recover his ability to cast spells, and after that, money would be nothing but waste paper to him.

It doesn’t matter to him whether Ke Chuang Bio goes public earlier or later. Since the contract has been signed, Zheng Li thinks it can go public earlier. An earlier listing can be regarded as a benefit for employees.

Executives and middle managers who have not gone public will not get options, but if the company goes public, they will all be able to get a portion of the shares.

Li Miaomiao sighed and said, "I thought I could watch a show."

"If you don't go public, I won't have to work overtime every day."

Li Miaomiao: "If you don't want to do this job anymore, why don't you just quit? You don't even have to resign during the internship period. Just tell the HR department."

Li Shuyao: "I just want to try my best to see if I can stay in CICC."

Li Miaomiao: "If you want to come to Suzhou's Soochow Securities, I can help you get into the headquarters. If you want to go to IDG Capital, Goldman Sachs, Temasek, etc., I can also help you get an interview opportunity."

"As long as you don't behave too outrageously, you can get in."

Li Shuyao was a little emotional. The social resources her sister had were beyond her imagination. "Thank you. I'll tell you if you need it."

Li Miaomiao saw that the other party was not interested: "So if you only count the value of endorphins and brain-computer connection to value Ke Chuang Bio."

"Such a prospectus will most likely not pass the board of directors."

"The value of brain-computer connection cannot be calculated based solely on the estimated revenue from patent licensing. What is more important about brain-computer connection technology is its broad application space in the future."

(End of this chapter)