Editor's note: This article is from WeChat public number "financial magazine" (ID: i-caijing), author: Yang Xiuhong Zhang Jianfeng Wang Ying,.
At the height of summer 2019, all parties in China's capital market are eagerly waiting for a major event to take place - the opening of the gate of the Science and Technology Innovation Board (STB).
On the eve of the opening of the gates of the Science and Innovation Board, the reporter of Finance and Economics conducted an all-round scan of the 148 (including terminated enterprises) Science and Innovation Board enterprises that have been accepted.
Finance and Economics reporter statistics found that the declared enterprises are almost covered by the new generation of information technology and other five major areas, Beijing, Shanghai and other economically developed areas, to become the Science and Technology Innovation Board "Whampoa Military School". R & D investment is large, so that the overall gold content of the Science and Technology Innovation Board is higher than the main board. However, the median net profit of accepted enterprises in 2018 is lower than that of the GEM board for the same period, which also shows that the money-making ability of the science and innovation board is slightly insufficient.
According to the statistics of the "financial" reporter, the total financing scale of the science and technology innovation board is expected to declare enterprises will be more than 100 billion yuan, the average amount of money raised per far more than the GEM. From the perspective of selection criteria, it is expected that the lowest market capitalization "standard one" has become the first choice of more than 80% of the companies. The selection criteria are overly centralized, which is interpreted as failing to reflect the diversified features of the listing criteria of the KIC.
Although the regulator has repeatedly emphasized that "we should be more tolerant to the science and innovation board". However, with the increasing number of declared enterprises, the question also came up. In particular, the absence of some of the star unicorns that the market was eagerly awaiting before, making the Science and Innovation Board highly criticized.
"Currently about 70% filing companies have been redirected from other sectors. As these enterprises have been more fully prepared to land in the capital market, they have been declared faster, but these enterprises may not be 'unicorn' enterprises with higher tech content, which is one of the main reasons for the lack of tech unicorns among the currently declared companies." Wang Chenguang, general manager of Pacific Securities' stock transfer business, told Caijing.
Wang Chenguang believes that another important reason is that many Chinese enterprises are still in the stage of "climbing over the hurdles, running with and running alongside", leading the stage, especially the breakthrough of the key core technology enterprises are relatively few.
The English name "star market" of the Science and Technology Innovation Board (STB) has gathered strategic expectations at the national level and implies the meaning of shining stars. In the future, it is the common expectation of all parties in the market that whether STEM can cultivate an idol + strength star enterprise like Alibaba.
Total fundraising exceeds $100 billion
Although the gates have not yet officially opened, but from the current amount of money to be raised by each, the amount of money absorbed by the Science and Technology Innovation Board is much higher than the GEM.
Wind data show that as of July 15, 148 science and innovation board acceptance of enterprises, to raise a total of 134.889 billion yuan, each company debut average fund-raising 911 million yuan, far more than the GEM 764 companies IPO each average fund-raising 522 million yuan.
Among the companies accepted by the Science and Technology Board, 38 companies proposed to raise 1 billion yuan and above, accounting for 25.67%. In addition, 13 companies proposed to raise more than 2 billion yuan, and a total of 49 companies proposed to raise 200 million-500 million yuan.
And GEM companies IPO fund-raising, the amount of 1 billion yuan and above for 72 companies, accounting for only 9.42%.
From the Science and Technology Innovation Board to raise funds to invest in, biotechnology, software, machinery, electrical equipment, semiconductor products and semiconductor equipment, five major industries are proposed to absorb more than 10 billion yuan, a total amount of 69.049 billion yuan, accounting for the current Science and Technology Innovation Board proposed to raise funds in the proportion of the total amount of 51.19%. Among them, the semiconductor products and semiconductor equipment proposed to raise funds of 20.716 billion yuan, ranking high on the list.
"Financial" reporter statistics found that the semiconductor products and semiconductor equipment in the collection of 1 billion yuan and above, there are nine companies, accounting for more than 1 billion yuan of fund-raising companies proportion as high as 23.68%.
Trina Solar, whose main business is photovoltaic modules, intends to raise 3 billion yuan. Among them, 525 million yuan for tongchuan photovoltaic power generation technology leading base yijun county tianxing 250MWp photovoltaic power generation project; 651 million yuan for crystalline silicon, solar cells and photovoltaic module technology reform and expansion project; 437 million yuan for r&d and information center upgrading and construction project; 1.387 billion yuan to supplement working capital.
Silicon industry, whose net profit after deduction has been in the red in the first quarter of 2016-2019, has now completed the second round of inquiries. The company intends to raise 2.5 billion yuan, of which 1.75 billion yuan will be used for the second phase of the project of technology research and development and industry of 300mm silicon wafers for integrated circuit manufacturing, and 750 million yuan will be used to supplement working capital.
In the biotechnology industry, the companies that proposed to raise more than 1 billion yuan were Huaxi Biological, Keqian Biological and Haohai Biotechnology.
Huaxi Biological is a high-tech enterprise with hyaluronic acid microbial fermentation production technology as the core, and the company's operating income in 2016-2018 was 733 million yuan, 818 million yuan, and 1.263 billion yuan respectively. The company intends to raise a total of 3.154 billion yuan, which will be used for Huaxi Biological R&D center upgrading project, Huaxi Tianjin sodium hyaluronate and related projects, and Huaxi Biological Life and Health Industrial Park project.
Among the five communication equipment companies, two companies raised more than 1 billion yuan. With feature phones and smart phones as the main products of Transn Holdings, the fund-raising 3.011 billion yuan, of which 1.059 billion yuan for the Transn Zhihui Park cell phone manufacturing base project, the rest of the funds were used for the cell phone production base (Chongqing) project, the mobile Internet system platform construction project and other five projects, and to supplement working capital.
Currently, the company with the least amount of money to be raised is tentatively New Digital Network.
New Digital Network, whose main business is programmatic platform placement business, had operating revenues of 268 million yuan, 267 million yuan, and 233 million yuan from 2016 to 2018, respectively. The company intends to raise 251 million yuan for the intelligent big data ad placement analysis system construction project.
In terms of the attributes of the actual controllers, companies applying for the Science and Innovation Board whose actual controllers are individuals raised 80.8 billion yuan, topping the list. Companies with state-owned backgrounds (including local governments, local state-owned enterprises, SASAC, central authorities, and central enterprises) raised a total of 17.944 billion yuan, following closely behind.
Criteria selection on the side of caution
According to statistics, more than 80% of the companies applying for the Science and Technology Innovation Board (STB), choose the lowest market capitalization of the "standard one", seems to be more cautious.
Lancet, whose main business is to provide chip-based solutions in the fields of cloud computing and artificial intelligence, has chosen "Criterion 1" for listing. That is, "Estimated market capitalization of not less than RMB 1 billion, positive net profit in the last two years and cumulative net profit of not less than RMB 50 million, or estimated market capitalization of not less than RMB 1 billion, positive net profit in the last year and operating income of not less than RMB 100 million."
In 2017-2018, the operating revenue of Lancel Technology was 1.227 billion yuan and 1.758 billion yuan, and the net profit was 347 million yuan and 737 million yuan, respectively.
Wind data show that the proposed land record science and technology innovation board to adopt the listing standards of the first 127 companies, accounting for 85.81%.
In the view of Zhang Yulin, sponsor representative of Zhongtai Securities, most enterprises choose standard one, mainly based on a variety of reasons: first, if the KTB enterprise issue inquiry does not reach the market value standard declared at the beginning, the issue will fail. Standard 1 market capitalization standard is not less than 1 billion yuan, for the science and innovation board enterprises is easier to meet, choose standard 1 is more robust; second, standard 1 is closer to the IPO requirements, the first batch of declared enterprises have a considerable portion of the proposed IPO enterprises, and the requirements of standard 1 natural fit.
It is worth noting that more than 22, 51 and 52 companies also met the second, third and fourth sets of listing criteria respectively, but only a few companies chose these three sets of listing criteria, and many companies still chose the first set when they met more than one set of criteria.
New Era Securities said that since there are cases in which issuance is terminated because the market capitalization is not expected to reach the threshold during the inquiry process of the Cochise Board, enterprises and sponsors tend to choose the first set of criteria with the lowest market capitalization requirement out of prudence.
An investment banker told the Caijing reporter that most companies choose standard one, in addition to ensuring that the issue goes smoothly, the first set of standards has lower financial requirements, which is conducive to the company's ability to increase the issue price, with a better arbitrage space.
Has been issued by the completion of the Huaxing source of the issue price of 24.26 yuan per share, after the issue of the total share capital of 400 million shares, the issue of the price-earnings ratio of 41.08 times, according to this calculation, its market value of up to 9.7 billion yuan, far more than the "expected market value of not less than 1 billion yuan," the standard.
Societe Generale Securities financial analyst Master Huifang told the "financial" reporter that the vast majority of enterprises choose a lower risk standard one is out of the psychology of stability. With the improvement of the pricing ability of the brokerage firms' investment banks, more enterprises can be expected to choose other listing criteria in the future.
Currently, all five sets of listing criteria on the KTC are available for companies to choose from, with 11 choosing Criterion IV.
Based on the Company's operating revenue of RMB3.041 billion realized in FY2018, and in conjunction with the external equity financing during the reporting period, and the secondary market valuation of comparable A-share listed companies, Rongbai Science and Technology (688005.SH) chose to apply the fourth listing criterion, i.e., the estimated market capitalization is not less than RMB3.0 billion, and the operating revenue of the most recent year is not less than RMB300 million.
In accordance with the Rongbai technology issue 45 million shares, to raise 1.6 billion yuan, the company's issue price per share of 35.56 yuan, its total share capital after the issue of 443 million shares, such as the successful issuance of the company's market value of about 15.7 billion yuan, but also far more than its choice of "market value standards".
Tianzhun Technology, which has been registered and effective, has chosen the listing criteria of an estimated market capitalization of not less than RMB 2 billion, an operating income of not less than RMB 300 million in the most recent year, and a cumulative amount of cash flow generated from operating activities of not less than RMB 100 million in the most recent three years.
The data show that Tianzhun Technology's operating income in 2018 was 508 million yuan, and the amount of cash flow from operating activities accumulated to 165 million yuan from 2016 to 2018.
Currently, there is UXTech, which has opted for Special Voting Rights Listing Criterion II. According to the regulations, the issuer has a voting rights differential arrangement and intends to apply the listing criteria of "estimated market capitalization of not less than RMB 5 billion and operating revenue of not less than RMB 500 million for the most recent year".
On March 17, 2019, UXD set up special voting shares in which each Class A share has five times the number of voting rights as each Class B share has, with each Class A share having the same number of voting rights.
The total share capital of the company is 364 million yuan, of which 98 million are A shares and 266 million are B shares. By virtue of the special voting rights, Ji Xinhua, Mo Xianfeng and Huakun, although only owning 13.9633%, 6.4357% and 6.4357% shares of the company, have 33.67%, 15.52% and 15.52% of voting rights, respectively, and have become the common actual controllers of UXD.
In contrast, CR Microelectronics and Nine Intelligence chose the red chip listing criteria II.
CR Microelectronics is a company established under the laws of the Cayman Islands, which is a red-chip enterprise not yet listed overseas as stipulated in the Notice of the General Office of the State Council Transmitting Certain Opinions of the Securities and Futures Commission on Carrying Out the Pilot Pilot Issue of Shares or Depository Receipts by Innovative Enterprises within the Territory (Guo Ban Fa [2018] No. 21), and therefore the Company has chosen the criteria of "estimated market capitalization of not less than RMB5 billion, and and the revenue of the latest year is not less than RMB500 million".
Five sectors dominate
The Science and Technology Creation Board (STB), as its name suggests, is about science and technology innovation. According to the positioning of the Science and Technology Innovation Board, scientific and technological innovation enterprises that are in line with national strategies, breakthroughs in key core technologies, and are highly recognized by the market will be prioritized and recommended. It mainly includes six major fields, which are new generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, and bio-industry.
According to the statistics of the reporter of "Finance and Economy", on July 8, with the debut of the declaration of Yihuatong, which focuses on the research and development and industrialization of hydrogen fuel cell engine systems, it filled the blank of the previous Sci-Tech Board declaration of enterprises in the new energy sector. The above six industries collectively declared for the Science and Technology Innovation Board, almost including all companies.
Among them, 63 are in the field of new-generation information technology, 34 in the field of biomedical industry, 25 in the field of high-end equipment, 16 in the field of new materials, and 6 in the field of energy conservation and environmental protection. In addition, there are two enterprises belonging to other fields.
Among the above fields, the largest number of enterprises are in the field of new-generation information technology, accounting for about half of the enterprises currently accepted by the Science and Technology Innovation Board (STB). These enterprises are mainly involved in subsectors such as electronic core industry, Internet and cloud computing, big data services, emerging software and new information technology services, artificial intelligence, and next-generation information network industry, all of which are involved in the current cutting-edge science and technology industries.
In the ranking of the new generation of information technology field, emerging software and new information technology services and electronic core industry occupy the top two positions with 20 and 22 respectively.
"The creation of the Science and Technology Innovation Board (STIB) has enriched the capital supply channels for the new-generation information technology industry, and the first of the six categories of enterprises supported by the STIB is the electronic information industry, and the market positioning of the STIB to serve 'hard-core science and technology' enterprises is also in line with the characteristics of the electronic information industry, which naturally attracts the attention of many high-quality Electronic information enterprises will naturally attract the attention of many high-quality enterprises, and it is only reasonable that they will declare enthusiastically." Zhang Yulin, sponsor representative of Zhongtai Securities, told the reporter of Caijing.
In the electronic core industry, and the ship chip has completed the third round of inquiries, which is mainly engaged in 12-inch and 8-inch wafer R & D and manufacturing business, and the products are mainly used in communications, computers, consumer electronics, automotive electronics and other fields. Although the net profit data after deduction is not satisfactory, and even a huge loss of 146 million yuan in 2018, it ranked fourth among wafer foundries in 2017, highlighting the company's industry position.
"One of the reasons why the new generation of information technology field accounts for a higher percentage is that the industry includes electronics, communications, computers, the Internet and other TMT industries, the largest number of subsectors, and the main board TMT accounted for a higher percentage." Huaxin Securities researcher, head of the electronics industry rights and interests group Xu Peng told the "financial" reporter, another reason is that the industry represents the future direction of development, policy support is stronger, the enterprise growth is faster.
Industrial securities financial analyst Master Huifang also told the "financial" reporter, science and technology innovation board focuses on providing a listing platform for technological innovation rather than model innovation enterprises. tmt is still a sunrise industry, the future development of the space, technology iteration is fast, is the main reason for the high percentage.
In the field of high-end equipment, Century Space, which has entered the registration submission process, is an independent remote sensing satellite operation and control and geospatial information big data service provider for Chinese and global customers, with the main products of satellite remote sensing big data products and comprehensive application services of spatial information. 2016-2018, the company's operating revenues were respectively 287 million yuan, 463 million yuan and 604 million yuan.
Due to the main business supported by national policies and the attributes of high-tech enterprises, Century Space has received a larger amount of government subsidies and enjoyed a larger amount of taxes. During the same period, the amount of government subsidies obtained by the company was 17,858,300 yuan, 24,949,500 yuan and 22,140,600 yuan, accounting for 187.44%, 84.58% and 60.36% of the total profit respectively.
A former investment bank executives also said to the "financial" reporter, the above six industries belong to the national policy to support the industry, it is easier to obtain funding favor, coupled with the industry's originality, technology, strong characteristics of technology to create relatively easy to produce results.
From the perspective of regional distribution, the characteristics of the Cochuang Board's declared companies concentrated in the economic development regions are more obvious. Beijing and Jiangsu, etc., have become the main output places of the declared companies.
Wind data statistics show that Sci-Tech's declared companies are distributed in 19 provinces (autonomous regions and municipalities). Among them, Beijing topped the list with 29, followed by Shanghai, Jiangsu, Guangdong and Zhejiang with 25, 24, 21 and 14 respectively. The rest of the provinces (autonomous regions and municipalities), in addition to Shandong Province occupies 6 places, the rest are below 5. The western and northern Gansu and Ningxia have no enterprises to declare for the time being.
In Xu Peng's view, the above places with a higher number of companies declared on the Science and Technology Innovation Board (STIB) belong to the more economically developed regions, where numerous educational resources, continuous population inflow and rich talent reserves are commonalities, and the formed industrial cluster effect and better entrepreneurial environment factors, superimposed on the relatively strong support of PE and VC to enterprises, have allowed more science and technology innovation companies to emerge from the above regions.
For example, the Beijing Economic-Technological Development Area (BEDA), which is responsible for building a carrying area for the transformation of scientific and technological achievements with global influence, has 22,000 enterprises, including 130 projects invested by 90 of the world's top 500 enterprises, and nearly 1,000 state-level hi-tech enterprises, which have formed the four major leading industries of new-generation information technology, biomedicine and great health, high-end and new-energy automobiles, and intelligent equipment and robots.
Higher tech than motherboard
The launch of the Science and Technology Board (STB) has put technology at the forefront of its mind. Photo/Chinese New
At the time of the launch of the Science and Technology Board, technology content was prioritized, and this metric is one of the key focuses of investors.
"The gold content of science and technology depends not only on whether it belongs to the relevant industry classification, but also on the structure of the main business, the company's position in the industry, as well as the proportion of R & D investment, R & D personnel, and so on." Fu Lichun, research director of Northeast Securities, believes.
In the case of KSC companies, a large investment in R&D is a commonality.
According to Wind data statistics, from 2016 to 2018, the average value of the R&D investment of the companies on the Science and Technology Board as a percentage of their respective operating revenues was 12.91%, 11.43% and 10.74% (excluding the impact of some loss-making enterprises), and the companies whose R&D investment accounted for more than 20% during 2018 were 17.
Among them, Microchip Bio has the highest proportion of R&D investment, which is as high as 55.85%. This means that Microchip Bio has invested more than half of its operating income into R&D. Microchip Bio is an innovative biopharmaceutical company that independently develops new molecular entity drugs. Kingsoft Office ranked second, with its R&D ratio of 37.85%.
The above R&D expenditure ratio is much higher than that of the Main Board and GEM, and even higher than that of NASDAQ last year. According to the statistics of the Central Plains Securities, in 2018, the total R&D expenditures of the GEM and the main board were 68.9 billion yuan and 512.7 billion yuan respectively, and the ratio of R&D expenditures to operating income was 5% and 1.3% respectively.The R&D expenditures of Nasdaq at the end of last year accounted for 7%.
However, with the increase in the number of companies declaring for the Science and Technology Innovation Board (STB), a number of companies with a lower percentage of R&D have emerged, raising questions in the market.
Wind data statistics show that in the year 2018, the total R&D expenditures accounted for a proportion of operating income of less than 51 TP3T of the KICC, there are 33 companies, less than 31 TP3T, accounting for 21 TP3T, respectively, Nine Intelligence, Huatech, Papaya Mobile (IPO has been terminated).
Among them, Papaya Mobile, which has terminated the review of the listing on the CCTV board, is temporarily at the bottom of the list with 0.71%. 2016-2018, Papaya Mobile's R&D expenses were 27.932 million yuan, 27.3061 million yuan, 30.5243 million yuan, accounting for a proportion of revenues, respectively, of 4.94%, 1.2%, 0.71%.During the same period, the R&D expenses of Criteo (NASDAQ:CRTO), a company in the same industry, as a percentage of revenue were 6.87%, 7.57%, and 7.79%, respectively.
Papaya Mobile said that the company's low proportion of research and development expenses is due to the company's rapid growth in revenue and changes in the earnings structure. 2017-2018, the company's operating income growth rate of 303.51%, 89.89%, respectively.
The data caused the exchange to ask questions, requiring the company to disclose the transformation of R&D investment results, and how the company can effectively maintain technological innovation and technological advancement and whether it can meet the company's development needs in the case of a continuous and significant decline in the proportion of R&D investment.
Papaya Mobile replied that maintaining the existing research and development method and rhythm that can ensure the continuous updating of technology and technological sophistication, but also sufficient to meet the company's development needs.
In the view of Minsheng Securities, papaya mobile R & D expenses decreased year by year, may indicate that the company's barriers are not high, but the company's per capita output is higher than the same industry, according to the company's current business model, increasing customer resources and expanding R & D investment is one of the elements of the construction of barriers.
Fu Huifang believes that the seven major areas in line with the requirements of the national strategy of the company's R & D investment, the technical status of the segment also has a relatively high requirement, which is consistent with the positioning of the Science and Technology Innovation Board (STIB), but also to make the STIB has a higher gold content.
Centaline Securities analyzed that, from the Nasdaq experience, R & D expenses and revenue scale correlation of more than 80%, the more R & D expenditure of the company's operating income is higher, or the higher the revenue for R & D of the more abundant funds, the two will also produce a positive cycle.
Xu Peng said to the "financial" reporter, the main board does not make special provisions for science and technology innovation, as long as it meets certain criteria can be declared, for example, Guizhou Maotai, although the profitability is very strong, but its R & D expenditure rate is low, and does not belong to the industry recommended by the Science and Technology Innovation Board, which is one of the reasons why the gold content of the Science and Technology Innovation Board is relatively high.
Although all parties in the market are focusing on the indicator "R&D investment" as a "litmus test" for the success of science and innovation, some entrepreneurs disagree: "R&D investment is not the more the better, there should be some trade-offs. " He said bluntly, do R & D is equivalent to "wrestling", large-scale investment may not be able to be converted into income and profits, the risk is very high, "if not large enterprises, this indicator can reach 5% -6%, has been quite good."
Uneven earning power
Although the gold content is relatively high, but the science and technology innovation board company's ability to make money is slightly insufficient, in the current SSE accepted 148 science and technology innovation board enterprises, there are four companies in the loss-making status.
Take the first stock of the Science and Technology Innovation Board, Huaxing Yuanchuang, for example, the prospectus shows that during the reporting period of 2016-2018, the company's operating income was 512 million yuan, 1.39 billion yuan, 1.005 billion yuan, and the net profit was 180 million yuan, 210 million yuan, and 243 million yuan, and the net net profit of the net worth of the mother after deducting non-performance was 172 million yuan, 296 million yuan, respectively, 237 million yuan. The gross profit margin of the business was 58.90%, 45.03% and 55.38% respectively, which was at a relatively high level.
The company is mainly engaged in flat panel display and integrated circuit testing, and its major customers include Apple, Samsung, LG, Sharp and BOE.
Despite the revenue scale being at the top of the top 100 KSCs, both the operating growth rate and net profit after deduction declined in 2018. Compared with 2017, the company's 2018 operating income, net profit and net profit after deduction and non-deduction increased by -26.63%, 16.03% and -19.93% year-on-year, respectively, with a significant decline in the performance growth rate.
Huaxing Yuanchuang explained in the prospectus that the fluctuations in performance were mainly affected by cyclical fluctuations in demand for products from downstream customers.
Compared to it, the performance of its competitor on the GEM, Precision Measurement Electronics, is more stable than that of Huaxing Yuanchuang, and in 2016-2018, the operating income of Precision Measurement Electronics was RMB 524 million, RMB 895 million and RMB 1.39 billion, with year-on-year growth rates of 25.51 TP3T, 70.811 TP3T and 55.241 TP3T, respectively.
From an overall perspective, there are still some gaps between the current money-making ability of KTC and GEM.
According to the statistics of the reporter of "Financial" based on the wind data, among the 148 companies accepted by the Science and Technology Innovation Board, only 32 companies had operating revenues of more than 1 billion yuan in 2018, accounting for less than a quarter of the total, and more than half of the companies had revenues of less than 500 million yuan in 2018.
There are three "giant" companies in these enterprises, such as the central enterprise China Communications Corporation (CCC).In 2018, CCC realized operating revenue of 40.013 billion yuan, net profit of 3.409 billion yuan, is the highest net profit and revenue in the CCC board, the other two companies with more than 10 billion yuan in revenue for Trina Solar and Transfarer Holdings.
In order to avoid the influence of the above mentioned giant companies on the mean composition, the median can be chosen to analyze the performance of KSC companies.
The median 2018 operating revenues and net profits of the 148 companies admitted to the KTC were RMB 432 million and RMB 72.34 million, respectively, of which 4 admitted companies were in the red (in terms of net profits). During the same period, the median 2018 operating revenues and net profits of GEM were RMB 880 million and RMB 75.48 million, respectively.
The above four loss-making enterprises are No. 9 Intelligence, Baiotai, Zejing Pharmaceutical, and Shanghai Tuo Pu. Among them, especially the nine intelligent loss amount is the largest, 2016-2018, the company lost 158 million yuan, 627 million yuan, 1.799 billion yuan, three years of loss amount is a steep increase trend.
Founded in 2014, Nine Intelligence mainly produces electric balance scooters and electric scooters. The company has deep collaboration with Xiaomi Group and Mijia brand, and Xiaomi Group is its main customer.
During the reporting period, the amount of related sales transactions between the Company and Xiaomi Group amounted to RMB 643 million, RMB 1,019 million and RMB 2,434 million, accounting for 55.75%, 73.76% and 57.31% of the Company's operating revenue for the current period, respectively, and there is a risk of dependence on a single customer.
The company has now suspended its audit, the only one in the KTB to do so, and for the reason behind it, the SSE said that in early April 2019, Nine Intelligence converted the preferred shares held by investors into common shares. According to the relevant requirements of the Q&A for stock listing and audit on the Science and Technology Innovation Board (STB), an additional phase of audit (as of June 30, 2019) is required, and the company has applied for a suspension of the audit in order to complete the additional audit and update the filing materials.
Of the remaining three loss-making enterprises, Zejing Pharmaceutical is an innovation-driven new drug research and development enterprise focusing on a number of therapeutic areas, including oncology; Shanghai Topco mainly provides intelligent manufacturing equipment and process solutions for enterprises in the aerospace field; and Biotest is an innovative biopharmaceutical enterprise focusing on the research and development of innovative drugs and biosimilar drugs.
According to Fu Huifang, for the KTC-listed companies themselves, technological innovation is the main indicator of concern for their listing, rather than profitability.
However, in terms of gross profit margin level, the gross profit margin level of companies admitted to STEM is roughly comparable to that of GEM. If calculated on the basis of the median within the sector, the gross profit margin level of Techtronics companies is even significantly higher than that of the GEM.
The gross profit rate of KTC companies has been relatively stable in the last three years, according to Wind data statistics, the median gross profit rate of 148 KTC companies in 2016-2018 was above 46%, with a high level of gross profit rate and remained relatively stable. While the GEM gross profit margin for the same period was 32%, 30.9% and 29.6% respectively, showing a gradual downward trend.
For the phenomenon of uneven earning capacity and some enterprises not yet profitable or insufficiently profitable in the Science and Technology Innovation Board, Centaline Securities analyzed that due to the difficulty of finding ways to realize the business model of science and technology enterprises, or high and long R & D expenditures and other upfront inputs that lead to revenues that cannot cover the costs, there is not necessarily a profit, and the value of the enterprise is mainly derived from the expectation of future profitability.
Questioning comes with the territory.
Although the regulator has repeatedly emphasized that it is "more tolerant of the Science and Technology Innovation Board", with the increasing number of companies filing, questions have also arisen.
"There is no star unicorn company" is the biggest disappointment of the current market on the science and technology innovation board companies. An investment banker lamented to the "financial" reporter, the current science and technology innovation board companies as a whole feel relatively bland, no previously expected "stunning" enterprises, such as known as the AI industry, "four little dragons" of business soup science and technology, kuang vision science and technology, cloud from science and technology, YiTu science and technology and so on. "Unicorn" did not appear.
Previously called for a high number of new energy vehicles in the field, such as Xiaopeng Automobile, Weimar Automobile, etc. also did not "appear". Some investment bankers analyze, may be related to the recent new energy vehicle subsidy policy slopes, as well as the uncertainty of the development of technology.
Regarding the above phenomenon, Xu Peng said that this may be related to the fact that the relevant star companies are not yet ready to land on the KTB due to the development stage and other reasons. "At present, some well-known companies in the industry segments are still in the stage of stock reform, and although the valuation of some targets is as high as several tens of billions of dollars, they are not yet ready to land on the KTB."
Cloud from Technology, which has already raised more than 3.5 billion yuan in four rounds of financing, is valued at as much as 23 billion yuan. Shangtang Technology's valuation was also raised to $6 billion when it received $1 billion in financing from Softbank China.
"In addition, at present, about 70% declaring companies have been redirected from other sectors. As these enterprises have been more fully prepared to land in the capital market, they have been declared faster, but these enterprises may not be 'unicorn' enterprises with higher tech content, which is one of the main reasons for the lack of tech unicorns among the currently declared companies." Wang Chenguang told Caijing.
According to statistics, about 70 declared enterprises have filed for counseling with the local securities regulators before the establishment of the Science and Innovation Board was announced, more than 20 enterprises are from the New Third Board, nearly 10 enterprises have planned for overseas listings, and more than 20 enterprises have had their IPOs rejected, withdrawn their IPO filings, or failed to borrow shells in the last three years.
Wang Chenguang believes that many Chinese enterprises are still in the stage of "climbing over the hurdles, running with and running alongside", leading the stage, especially the breakthroughs in key core technologies, relatively few enterprises.
In addition, with the increase in the number of companies accepted by the KTC, the authenticity of the disclosure of existing companies has been questioned.
The first stock listed on the Science and Technology Innovation Board Huaxing Yuanchuang that is. Although its prospectus repeatedly mentioned "semiconductor", "integrated circuit", "chip" and other related content, but from the composition of the revenue, the company's revenue in the last three years 98% is still 0.2%. From the flat panel display industry, integrated circuit revenue accounted for only 0.2%. Therefore, there are self-media wrote an article that Huaxing Yuanchuang "suspected of serious deception", attracted the Stock Exchange in one day two times voice.
In this regard, Huaxing Yuanchuang responded that individual media in the case of not fully read the company's disclosure of information, through the way of out-of-context quotes loudly released false statements, "the company's battery management system chip testing equipment has been certified by the internationally renowned consumer electronics companies, and has signed orders with a number of customers, totaling more than 300 million yuan, the relevant testing equipment has been delivered in succession. "
At the same time, there are media reports that are questioning the stage of Anhan technology is suspected of excessive packaging, fraudulent issuance, immediately triggered the market debate.
The report shows that Anhan Technology's core customer Meinian Group, whose sales accounted for about 80% for three consecutive years during the reporting period, disclosed that the number of stores carrying out capsule gastroscopy examination programs and the amount of capsules used were exaggerated by 100%-300% compared with the real situation obtained from the field investigation and unannounced visits, involving corresponding sales of more than 200 million yuan.
According to the report, Anhan allegedly used undisclosed related parties to share the cost of promoting and publicizing the company's products, and there may even be fictitious transactions through shareholders' proxy holdings.
Anhan Technology issued a clarification, denying its affiliation with its first major customer, Meinian Group, and said that the report confused capsule endoscopy and capsule gastroscopy, and that the data described was grossly inaccurate, among other things.
In the face of the exchange between issuers and the media, the SSE issued the "Questions and Answers on Media Supervision of the Science and Technology Innovation Board" at the first time, emphasizing that "social supervision is welcome, but false statements are not welcome", and in response to the issues mentioned in the report, the SSE indicated that it had organized a study of the relevant articles at the first time, and had also asked about them in the process of the issuance and listing audit and inquiry. In response to the issues mentioned in the report, the SSE indicated that it had organized a study of the article in the first instance, and had also made inquiries during the issuance and listing audit.
"The Science and Innovation Board is a brand new pilot for China's capital market. Various voices will inevitably appear in the process of figuring out, and no matter how the KEM will change in the later stage, it actually needs to be given more tolerance, so that it will continue to improve itself in the marketization." An expert concluded.
(This article first appeared in the July 8, 2019 issue of Finance Magazine)
