the doubts of the “shell” subsidiary have not dispersed, and it is difficult for the track to play an advantage. The Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) in many troubles has been impacted by the resignation of core personnel.
On February 22, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) announced that Ding Jiansheng, a core technician, resigned recently for personal reasons and will no longer hold any position in the company after his resignation.
Judging from Ding Jiansheng’s resume, he is a real R & D backbone. Since 2013, he has served as deputy director of R & D and director of R & D in Hangzhou xinbosi biomedical Co., Ltd., a holding subsidiary of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) until now. He has mainly participated in the research and development of five projects, including oseltamivir phosphate API and intermediate project, epaltamivir API and tablet project. There are five authorized invention patents and eight utility model patents, all of which are non single inventors.
Up to now, Ding Jiansheng has directly held 80000 shares of the company and indirectly held 95100 shares of the company, with a total of 175100 shares, accounting for 0.08% of the total share capital of the company.
On the same day, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) closed at 32.8 yuan / share, down 2.26%.
4 subsidiaries and 3 losses
Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) (hereinafter referred to as ” Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) “), founded in April 2009, is a biomedical enterprise focusing on polypeptide drugs and small molecular drugs for independent research and development and customized research, development and production.
Its main business includes customized product business and self selected product business. Customized product business includes cdmo business, CMO business and cro business; The product of self selection refers to the generic treatment of diabetes, cardiovascular disease, cancer and other diseases, mainly based on peptide drugs and small molecule drugs.
According to public information, the actual controller of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) is Zhao Deyi, who is a brother of the shareholder Zhao Dezhong. The two directly hold 26.828 million shares of the company, accounting for 12.58% of the total share capital. In addition, Zhao Dezhong indirectly holds 39.0138 million shares of the company through the company, accounting for 18.2% of the total share capital. The two jointly hold 65.8418 million shares of the company, The shareholding ratio is 30.78%.
It is reported that Zhao Deyi, chairman of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) was born in 1963. After graduating from junior college, he has worked hard in many industries. For example, he has installed industrial equipment, engaged in real estate, and finally engaged in the pharmaceutical business.
Since the previous Shanghai Junshi Biosciences Co.Ltd(688180) controller was reported to be “unprofessional”, the two brothers as leaders were naturally questioned by the public whether they could really lead Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) to the light? Some investors also questioned that this seems to be the lifeblood of enterprise development, which may eventually evolve into a contradiction between the two brothers and core technicians. Is the resignation of core technicians related to the two brothers?
In addition, the reporter checked the 2021 semi annual report and found that three of the four subsidiaries of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) have lost money, with a total loss of 20.2333 million yuan. You know, the net profit of the company in the first half of 2021 was only 51.418 million yuan.
Data source: Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) 2021 semi annual report
Among the four subsidiaries, the loss making three subsidiaries are actually controlled by Zhao Dezhong. Among them, Hangzhou Nuotai aosano Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as Hangzhou Nuotai), which suffered huge losses, was established in March 2015 with a registered capital of 42 million yuan. Hangzhou Nuotai’s business scope covers the technical development, technical consultation and transfer of technical achievements of chemical products and biotechnology, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) holds 100% of its equity.
As of December 31, 2019, the total assets of Hangzhou Nuotai were 1987.77 million yuan, the net assets were 15.7174 million yuan, and the net profit in 2019 was -14.7336 million yuan. Hangzhou Nortel’s loss in 2019 has reached its net assets in the same period, and the reason for the company’s loss is not disclosed in the prospectus. As of June 2021, Hangzhou Nortel’s net profit had lost 10.634 million yuan.
performance and share price are under pressure
Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) as another new drug enterprise entering cdmo, it provides customized R & D and production services for advanced pharmaceutical intermediates or APIs for more than 30 innovative drug R & D projects of global innovative pharmaceutical enterprises. At present, its main customers include dozens of well-known innovative pharmaceutical enterprises at home and abroad, such as Incyte, Gilead, Boehringer Ingelheim, vertex, Frontier Biotechnologies Inc(688221) , zoetis and so on.
In the crowded cdmo track, leaders like Wuxi Apptec Co.Ltd(603259) and Asymchem Laboratories (Tianjin) Co.Ltd(002821) already occupy most of the market share. If there is no core competitive advantage, they can only “fight a price war”. However, when the cdmo track is becoming more and more “rolling”, it is almost difficult to occupy a place without huge capital investment.
According to the data of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) prospectus, the main source of revenue in its main business is cdmo. From 2018 to 2020, its revenue accounted for 92.59%, 79.13% and 73.01% respectively.
Although its share has decreased year by year, the sales revenue of non exclusive suppliers of cdmo projects accounts for 75.32%, 53.25% and 50.63% of the company’s cdmo business revenue respectively, accounting for a relatively high proportion. In this regard Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) also admitted that if it can not continuously meet the demand in terms of product quality and price and maintain strong market competitiveness, it may face the risk of being replaced by other suppliers or the decline of procurement share.
At the same time, if you want to get a share in the cdmo track, the first thing you need is a lot of capital investment. How about the profitability of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) ?
According to the data, from 2018 to 2020, its revenue was 256 million yuan, 372 million yuan and 667 million yuan respectively, while its net profit was only 43.9084 million yuan, 48.6105 million yuan and 123 million yuan respectively. It is not difficult to see that the company is obviously facing the situation of increasing income without increasing profit. According to the 2021 interim report data, although its revenue reached 309 million yuan, its net profit was only 51.418 million yuan.
It may be that the performance failed to meet expectations. Since the first day of listing in May 2021, the share price of Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) has fallen all the way. Its latest closing price is 32.8 yuan, which has fallen by nearly 60% compared with the closing price of 77.5 yuan on the first day of listing, which is much different from the high point of 93.3 yuan in June last year. The latest market value is less than 7 billion yuan, which means that the sharp increase in market value on the first day of listing is almost back to the origin.
It should be noted that Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) is the only company whose share price continues to decline compared with enterprises in other cdmo tracks, such as Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) . Since May 2021, the overall trend of Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) share price has risen, and now it has fallen slightly. In December 2021, the share price also reached the highest point of 63 yuan / share in the year. The share price of Porton Pharma Solutions Ltd(300363) also fluctuated and rose, reaching the highest point of 109.77 yuan / share in August 2021. Although the share price of Asymchem Laboratories (Tianjin) Co.Ltd(002821) fluctuated greatly, it rose to the highest point of 532.49 yuan / share in the year in December 2021.
The reporter sent an interview letter to the enterprise on the resignation of core personnel and the advantages of the track. As of press time, no reply has been received.
