from a “small company” with a market value of less than 10 billion to today’s “king of pre increase” in performance, Beijing Hotgen Biotech Co.Ltd(688068) has enjoyed continuous scenery all the way. Its share price has risen by 20% for five consecutive trading days, creating a historical record on the science and innovation board. However, the company does not seem to be satisfied with the current situation of “one recruit fresh”.
On February 16, Beijing Hotgen Biotech Co.Ltd(688068) announced that it plans to jointly invest 50 million yuan with Chairman and general manager Lin Changqing and employee stock ownership platform Yaojing management center to establish Yujing pharmaceutical to explore the field of live bacteria drug research and development.
Among them, Beijing Hotgen Biotech Co.Ltd(688068) invested 26 million yuan, accounting for 52% of the registered capital of Yujing pharmaceutical.
Meanwhile, Beijing Hotgen Biotech Co.Ltd(688068) plans to invest US $5 million in New York state to set up a wholly-owned subsidiary, hot view health.
On the same day, Beijing Hotgen Biotech Co.Ltd(688068) shares closed at 148.55 yuan / share, up 13.91%.
performance becomes the “king of pre increase”
Since the covid-19 epidemic began in 2020, the performance of Beijing Hotgen Biotech Co.Ltd(688068) also began to rise sharply due to the surge in the demand for covid-19 detection reagents.
In 2020, Beijing Hotgen Biotech Co.Ltd(688068) revenue reached 514 million yuan, an increase of 144.06% year-on-year, almost equal to the sum of revenue in the previous three years.
In 2021, Beijing Hotgen Biotech Co.Ltd(688068) has become a well deserved “pre increase king”. In the first half of the year, its revenue was 3.6 billion yuan, a year-on-year increase of 3904.13%; The net profit reached 1.45 billion yuan, a year-on-year increase of 74261.79%.
According to the newly released performance forecast, Beijing Hotgen Biotech Co.Ltd(688068) achieved a net profit of 2 billion yuan to 2.35 billion yuan in 2021, an increase of 1684.65% to 1996.97% year-on-year; Deduct non net profit of RMB 1.986 billion to RMB 2.336 billion, with a year-on-year increase of 1696.17% to 2012.59%.
For the reasons for the significant increase in performance, Beijing Hotgen Biotech Co.Ltd(688068) said that due to the covid-19 epidemic, the demand for covid-19 antigen detection reagents increased significantly, and the company’s detection kits were approved successively, realizing a significant increase in the income of overseas covid-19 detection reagents.
In fact, the doubling of this performance is closely related to the small performance base of the company itself. You know, the total revenue of Beijing Hotgen Biotech Co.Ltd(688068) in recent three years can not catch up with that in 2021, and its net profit has only exceeded 10 million yuan before.
However, can we really “beat the invincible hand in the world” only by testing reagents? The reporter noted that in the 2021 interim report, Beijing Hotgen Biotech Co.Ltd(688068) has total assets of 2.580 billion yuan, of which current assets are 2.066 billion, accounting for more than 80%. Specifically, the monetary capital is 484 million yuan, and the trading financial assets are as high as 1.232 billion yuan. In this regard, the company explained in the financial report that trading financial assets are used to buy bank financial products.
At the same time, Beijing Hotgen Biotech Co.Ltd(688068) is not so “distracted” in R & D investment. According to the semi annual report data of 2021, the proportion of R & D investment in operating revenue decreased by 17.20 percentage points year-on-year, and the proportion of R & D decreased to 1.68%.
At present, although Beijing Hotgen Biotech Co.Ltd(688068) has invested in the research and development of live bacteria drugs, how many shares can this market get?
Since Osel became the first company authorized by FDA to carry out clinical trials of live bacteria drugs in 2013, the research of live bacteria drugs has been carried out in full swing in Europe and America, with a total of more than 20 pipelines under research.
Compared with the developed countries in Europe and the United States, the research and development of live bacteria drugs in China started relatively late, but in recent years, more and more enterprises have turned their attention to this field. For example, large pharmaceutical companies such as Gilead, Takeda, Johnson & Johnson and Eli Lilly have joined this track through investment and cooperative research and development.
Or maybe the R & D cycle of live bacteria drugs is shorter than that of other innovative drugs, so Beijing Hotgen Biotech Co.Ltd(688068) chose this track. However, no matter what kind of drug development takes time, it may not change in the short term.
In addition, the reporter also noted that the gross profit margin of Beijing Hotgen Biotech Co.Ltd(688068) in recent three years also began to decline in a straight line, from 73.74 in 2018 to 61.44% in the third quarter of 2021, and the investment cash flow has also lost 1.318 billion yuan.
secondary market violations continue
It is reported that Beijing Hotgen Biotech Co.Ltd(688068) is a biological high-tech enterprise engaged in the R & D, production and sales of in vitro diagnostic reagents and instruments. At present, its main business is in vitro diagnosis. In the market segment of in vitro diagnosis, the company mainly focuses on immune diagnosis and POCT.
The data show that the secondary market of Beijing Hotgen Biotech Co.Ltd(688068) has experienced two large fluctuations since 2021. Specifically, its share price was still 32.8 yuan / share in February 2021, and then soared to 237.38 yuan / share in April 2021, an increase of 86.18%. Then in January this year, its share price once again ushered in the highest price since its listing, once rising to 244 yuan / share
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In less than two months, Beijing Hotgen Biotech Co.Ltd(688068) became the “Bull Stock” of the science and innovation board. At this time, the shareholders couldn’t sit still and began to sell off the reduction plan one after another. In addition to the reduction of director Zhou zinc and shareholder Hangzhou Ditong chuangjian Equity Investment Fund Management Co., Ltd. – Zhejiang great health industry equity investment fund (limited partnership) (hereinafter referred to as great health fund), Dachen’s reduction is more active.
In October 2020, Dachen company plans to reduce its total holdings of Beijing Hotgen Biotech Co.Ltd(688068) no more than 6.9 million shares, accounting for 11.09% of the total share capital. At that time, Dachen held a total of 12.35% equity of the company. Later, in April 2021, when the share price began to rise sharply, Beijing Hotgen Biotech Co.Ltd(688068) disclosed that Dachen’s share reduction plan expired.
Obviously, Dachen’s reduction missed the sharp rise in share price. Therefore, from April 13 to 15, when the proportion of self owned shares was reduced to less than 5% and less than 90 days, the reduction plan had not been disclosed in advance, and Dachen department still reduced its holdings of 1.369 million shares. Later, in June, due to illegal reduction, Dachen Department of Beijing Securities Regulatory Bureau of CSRC issued a warning letter.
In addition to illegal reduction, the company’s supervisors were involved in short-term transactions. According to the disclosure of Beijing Hotgen Biotech Co.Ltd(688068) , the spouse of Han Wei, the supervisor of the company, successively bought 18000 Beijing Hotgen Biotech Co.Ltd(688068) shares from March 12 to April 20, 2021, with an average purchase price of 50.34 yuan / share and a total turnover of 906000 yuan. The company sold 200.95 million shares on April. The above-mentioned selling within six months after buying the company’s shares is suspected to constitute a short-term transaction.
Although Han Wei resigned as the supervisor of the company in July 2021, he was still punished. In August of the same year, Beijing Hotgen Biotech Co.Ltd(688068) received the supervision warning letter from Shanghai Stock Exchange to Han Wei, the supervisor of the company.
At present, although the in vitro diagnosis track where Beijing Hotgen Biotech Co.Ltd(688068) is located takes off with the help of the east wind of covid-19 epidemic, the epidemic not only brings fire to mask, protective clothing and other related industries, but also brings accounting and testing reagents and other products to the air outlet. However, the income from highly dependent reagent testing cannot be sustained. Compared with the business performance before 2020, Beijing Hotgen Biotech Co.Ltd(688068) the current urgent need may be to find a new profit growth point.
