The investment risk of the science and Innovation Board reveals that after this stock issuance, it is planned to be listed on the science and innovation board market, which has high investment risk. Kechuang board company has the characteristics of large R & D investment, high operation risk, unstable performance and high delisting risk. Investors are facing greater market risk. Investors should fully understand the investment risks of the science and innovation board market and the risk factors disclosed by the company, and make investment decisions prudently. Shanghai Rendu Biotechnology Co., Ltd
(No. B, building 15, No. 528 Ruiqing Road, East District, Shanghai Shanghai Zhangjiang Hi-Tech Park Development Co.Ltd(600895) Technology Park)
Letter of intent for initial public offering and listing on the science and Innovation Board
Sponsor (lead underwriter)
(27th and 28th floors, building 2, international trade building, No. 1 Jianguomenwai street, Chaoyang District, Beijing)
Statement and commitment
Any decision or opinion made by the CSRC and the exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and completeness of the registration application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the shares are issued according to law; Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by the changes in the operation and income of the issuer or the changes in the stock price after the shares are issued according to law. The issuer and all directors, supervisors and senior managers promise that the prospectus and other information disclosure materials are free from false records, misleading statements or major omissions, and bear individual and joint legal liabilities for their authenticity, accuracy and completeness.
The controlling shareholder and actual controller of the issuer promise that there are no false records, misleading statements or major omissions in this prospectus, and bear individual and joint legal liabilities for its authenticity, accuracy and completeness. The person in charge of the company, the person in charge of accounting and the person in charge of the accounting institution shall ensure that the financial and accounting materials in the prospectus are true and complete.
The issuer and all directors, supervisors, senior managers, controlling shareholders, actual controllers, sponsors and underwriting securities companies promise to compensate investors for losses in securities issuance and trading due to false records, misleading statements or major omissions in the issuer’s prospectus and other information disclosure materials.
The sponsor and the securities service institution promise to compensate the investors for the losses caused to the investors due to the false records, misleading statements or major omissions in the documents prepared and issued for the issuer’s public offering.
Overview of this offering
Type of shares issued: RMB ordinary shares (A shares)
Number of shares issued: 10 million shares, no less than 25% of the total share capital of the company after this issuance
Par value per share: 1.00 yuan
Issue price per share: [] yuan
Estimated issue date: March 21, 2022
Stock exchange to be listed: Shanghai Stock Exchange
Total share capital after issuance: 40 million shares
Sponsor (lead underwriter): China International Capital Corporation Limited(601995)
Signing date of the prospectus: March 11, 2022
Tips on major issues
The issuer reminds investors to pay special attention to the following important matters. In addition, before making investment decisions, the issuer requests investors to carefully read all the contents of the “risk factors” section and the “investor protection” section of this prospectus. 1、 Important commitments related to this offering
The company reminds investors to carefully read the important commitments made by the company, shareholders, directors, supervisors, senior managers, core technicians, sponsors of this offering and relevant securities service institutions. For specific commitments, see “v. commitments” in “section 10 investor protection” of this prospectus. 2、 Investors are specially reminded to pay attention to the following risks of the issuer and this offering
The company specially reminds investors to carefully read the “risk factors” part of this prospectus, pay attention to the following major risks and make prudent investment decisions: (I) the risks of limited application field of SAT technology and limited market space of the issuer
Because of the early development and high maturity of PCR technology, the early molecular diagnostic markers are mainly DNA. At present, the mainstream molecular diagnostic detection method is PCR (including RT-PCR). In the field of pathogen detection containing both DNA and RNA, such as genital tract, tuberculosis, pulmonary branch, HPV, hepatitis B virus and so on, the RNA target detected by SAT technology has the advantages of high sensitivity and specificity. For the field of RNA virus detection (only containing RNA, such as covid-19 virus, influenza virus, hepatitis C, AIDS, etc.), RT-PCR technology based on PCR technology can also detect RNA targets, and this technology started earlier and has a high degree of market acceptance. It is the mainstream technology in this field at present.
It is necessary to overcome the inherent technical difficulties of RNA constant temperature amplification technology, such as the easy degradation characteristics of RNA, the complexity of reaction system and production process, and the imperfect industrial supporting of Chinese raw material enzymes and related instruments, which restrict the market application of this technology in China to a certain extent. In addition, for the quantitative and multiple technical requirements in the field of blood testing and HPV testing, RNA thermostatic amplification technology needs independent research and development, resulting in the late launch of related products, which affects the market application and acceptance of RNA thermostatic amplification technology.
Compared with foreign developed countries, there are still differences in the development stage of China’s disease diagnosis market. The disease diagnosis and treatment system in the mature market emphasizes “prevention first” and encourages early disease detection, so as to achieve early detection and treatment and save comprehensive medical expenses. The early detection market of infectious diseases is the field that RNA thermostat amplification technology is more suitable for developing the technology advantages. Although China’s industry policy is also developing to “prevent the development of the disease”, the market of early detection of infectious diseases in China is still small, which restricts the market application of RNA isothermal amplification technology. In addition, RNA detection targets can be better used in the evaluation of therapeutic efficacy in some infectious diseases, while China’s demand for such drugs as prevention of drug abuse and individual precise treatment is still less than that of developed countries. Therefore, the market for early detection of infectious diseases in China is still in the development stage. The concept of precise medical care and medical treatment needs to be improved, which has affected the market application and market acceptance of RNA isothermal amplification technology in China.
To sum up, the company’s sat technology has the risk of limited application field and limited market space.
(II) the performance growth is mainly affected by the epidemic, which is sporadic, and there is a risk of sharp decline in future performance
At the beginning of 2020, the outbreak of New Coronavirus epidemic broke out in China, and the COVID-19 of the issuer was affected.
Great impact.
On the one hand, the COVID-19 epidemic has spawned the demand for COVID-19 virus detection in medical institutions all over the country. The New Coronavirus 2019-nCoV nucleic acid detection kit can be integrated with the automatic nucleic acid detection and analysis system (AutoSAT) to achieve automatic detection. The COVID-19 epidemic situation has promoted the sale of COVID-19 detection reagent and its matching instruments. During the reporting period, the covid-19 testing business involved by the company includes: ① sales of covid-19 testing reagents, ② covid-19 testing services provided by the subsidiary Taizhou Zhiliang, and ③ sales of autosat instruments fully applied to covid-19 testing.
From January to September in 2018, 2019, 2020 and 2021, before and after the issuer deducts covid-19 testing business
The changes of main financial data are as follows:
Unit: 10000 yuan
January September 20212020
Project deduction covid-19 inspection deduction covid-19 inspection deduction covid-19 inspection deduction covid-19 inspection deduction 20192018 annual test business pre test business post test business pre test business post test business
Operating income 2235582122031524990341390205991681693434
Operating cost 545653339136602965371184110362 819.36
Gross profit 168992988117918960691019021881319611498
Gross profit margin 75.59%, 72.21%, 75.87%, 73.30%, 88.87%, 88.18%
Net profit 512210250248613765341596 373.92 -320512
January September 20212020
Project deduction covid-19 inspection deduction covid-19 inspection deduction covid-19 inspection deduction covid-19 inspection deduction 20192018 annual test business pre test business post test business pre test business post test business
Deducting non recurring profit and loss
Net profit attributable to owners of 486102224140532816260647 -165.92 -176.14 of the parent company
Note 1: the financial data from January to September 2021 have been reviewed.
Note 2: the expenses during the period shall be apportioned according to the proportion of sales revenue related to covid-19 testing business.
As shown in the above table, excluding covid-19 testing business, 2018, 2019, 2020 and 2021
From January to September, the operating revenue was 693434 million yuan, 991681 million yuan, 1390205 million yuan and 1220315 million yuan respectively
Ten thousand yuan.
On the other hand, the company’s reproductive tract, intestinal tract and other respiratory products other than covid-19 are mainly supplied to doctors
It is used by the reproductive department, pediatrics and other departments of the hospital. During the epidemic prevention and control period, hospitals at all levels across the country have invested a lot of medical care
Personnel and health resources have been involved in the epidemic prevention and control campaign, which has affected the sales of relevant products of the company to a certain extent. Overall, the issuer’s performance growth since 2020 is mainly affected by the epidemic, while covid-19
The testing demand is sporadic and unsustainable. If the market segments of other testing products of the company are expanded in the future
Unfavorable, the market education effect is not as good as expected, resulting in the increase of income of other products, which can not make up for the increase of covid-19 testing income
Decline, there is a risk of sharp decline in the company’s performance.
(III) reproductive tract and respiratory tract (excluding covid-19) products have a small market share in the field of infection
Risk and stock market competition risk, new products such as hepatitis B RNA market capacity is large, but can be obtained.
There is some uncertainty in the market scale
In the field of reproductive tract and respiratory tract (excluding covid-19), the relevant products of the issuer rank first in the market segments,
However, the reproductive tract market and respiratory tract market (excluding covid-19) account for a small proportion of the total market in the field of molecular diagnosis and infection
Small, these two areas have the risk of accounting for a small proportion of the overall space of the infection field. In addition, PCR in the above areas
There are many participants in the competitive technology market, and there are certain market competition risks. According to Sullivan’s report, in
In 2019, the reproductive tract accounted for 4.69% (of which the issuer’s products accounted for the market share of reproductive tract molecular diagnosis)
The proportion of respiratory tract (excluding covid-19) is 4.75% (of which the issuer’s products account for the proportion of respiratory tract (excluding covid-19)
In addition to covid-19), the market share of molecular diagnosis is 11.2%. At present, these two fields account for the total of infection fields
The risk of small proportion of body space. By 2024, the field of reproductive tract is expected to develop to 1.2 billion yuan, leading the respiratory tract
Domain (excluding covid-19) is expected to grow to 700 million yuan.
For covid-19 testing market, the current market scale is large, but in the future, the overall market regulation of covid-19 testing
At the same time, there are many market participants in this field, and most of them use RT-PCR technology, so there is a certain risk of market competition.
In the molecular diagnostic application fields with large market scale (such as blood, HPV, etc.), the issuer’s products are still in the stage of just launch or R & D, and there is some uncertainty about the market share it can obtain.
The market for blood testing (including hepatitis B, hepatitis C and HIV) has a large market capacity. According to Sullivan’s report, in 2019, the market scale of molecular diagnostics in the field reached 2 billion 600 million yuan (the mainstream technology is PCR technology, including RT-PCR Technology), accounting for the total market of molecular diagnostics in the field of infection.
