Reply to the examination and inquiry letter on the application documents of Zhejiang Haizheng biomaterials Co., Ltd. for initial public offering and listing on the science and Innovation Board
Sponsor (lead underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
Shanghai Stock Exchange:
We have received the inquiry letter on the examination of the application documents for the initial public offering of shares and listing on the science and Innovation Board of Zhejiang Haizheng biomaterials Co., Ltd. (szksh [2021] No. 654 (hereinafter referred to as the “inquiry letter”) issued by your office on October 26, 2021. Zhejiang Haizheng biomaterials Co., Ltd. (hereinafter referred to as “Haizheng biomaterials”, “company” and “issuer”) and the sponsor China Securities Co.Ltd(601066) (hereinafter referred to as “sponsor”) The issuer’s lawyer, Beijing Kangda law firm (hereinafter referred to as “lawyer” and “issuer’s lawyer”) and the reporting accountant, Tianjian Certified Public Accountants (special general partnership) (hereinafter referred to as “accountant” and “reporting accountant”) and other relevant parties have implemented and verified the questions listed in the inquiry letter item by item, and now their replies are as follows (hereinafter referred to as “this inquiry reply”), Please review.
Unless otherwise specified, the abbreviations or terms in this inquiry reply have the same meanings as those in the prospectus (application draft) of Zhejiang Haizheng biomaterials Co., Ltd. for initial public offering of shares and listing on the science and Innovation Board (hereinafter referred to as the “prospectus”).
Review the questions listed in the inquiry letter in bold (not bold)
Responses to the questions listed in the inquiry letter (not bold)
Quote the contents of the original prospectus in Song typeface (not bold)
catalogue
1. About the attributes of scientific innovation 32. About the cooperation between the issuer and Changchun Yinghua Institute 273. On core technology and independent R & D capability 654. With regard to the holding and cancellation of shares 835. About sales and key customers 936. On revenue and revenue recognition 1117. About procurement and production 1248. About cost and gross profit margin 1539. With regard to R & D expenses 17310. With regard to financial costs 18511. About equity incentive 19112. With regard to inventory 21013. About fixed assets and construction in progress 22414. About the development trend of the industry 23315. With regard to the market position of the issuer 24816. With regard to gambling agreements 26017. Related party transactions 27718. Changes in directors and senior management 28119. With regard to other financial issues 28420. With regard to other non-financial issues two hundred and ninety
1. About the attributes of scientific innovation
1.1 according to the application materials, the issuer, as the lead unit, undertook the task of “bio chemical combined synthesis technology of new generation polylactic acid” of 863 plan in 2011. The task was completed jointly by the issuer, Changchun Yinghua Institute, Tianjin Institute of industrial biotechnology and other units. The issuer is responsible for “industrialized production of polylactic acid and market application promotion of its products”. Chen Xuesi is the main person in charge of the task of the subject. He is a researcher of Changchun Chemical Institute and one of the sponsors of the issuer. At present, he holds 1.39% of the shares of the issuer. Undertaking the above tasks is one of the basis for the issuer to meet the scientific and creative attribute indicators. The issuer believes that the achievements of the above projects provide a solid foundation for the independent research and development of existing core technologies. On this basis, the company has gradually formed the core technologies covering the key production links of polylactic acid through independent research and development since 2016. The issuer is requested to explain: (1) the roles and roles of the company, Changchun Yinghua Institute and Chen Xuesi in the above 863 project tasks, and the background and reasons of the company as the lead unit and Chen Xuesi as the project leader; (2) The research content and importance of the subject participating units; (3) The technical achievements and invention patents obtained by the company in participating in the subject tasks, the corresponding relationship and update iteration between relevant technical achievements and invention patents and the technologies used in the current main business.
The issuer is requested to submit the policy documents related to the above 863 project tasks and project initiation, review, assessment, conclusion and other materials as an annex to this round of inquiry reply.
[reply]
1、 In the above 863 project tasks, the roles and roles of the company, Changchun Yinghua Institute and Chen Xuesi, the background and reasons of the company as the lead unit and Chen Xuesi as the project leader
1. Roles and roles of the company, Changchun Yinghua Institute and Chen Xuesi in the above 863 project tasks
From 2011 to 2015, the company took the lead in undertaking the task of “bio chemical combined synthesis technology of new generation polylactic acid” of the 863 Plan “advanced biological manufacturing of major chemical products” (task No.: 2011aa02a202) (hereinafter referred to as “task”),
The main purpose of this task is to research and develop bio based materials technology, break through the technical bottleneck, and make the research and industrialization of polylactic acid in China at the international leading level. In this project, the roles and main tasks of the company, Changchun Yinghua Institute and Chen Xuesi in this project are as follows:
Main work contents of sequence object role
number
1. Optimize production process parameters, obtain 10000 ton production process package, and carry out process design, equipment selection, processing, manufacturing, installation and commissioning of 10000 ton production line to achieve continuous and stable production capacity;
2. Further develop different brands of PLA such as blow molding film-forming, spinning, heat resistance, poly L-lactic acid and poly D-lactic acid composite grade. The thermal stability of PLA was ensured by passivating catalyst, selecting terminated 1 Haizheng biological unit agent, adding heat stabilizer and antioxidant; 3. Develop the processing technologies such as blow molding film forming, spinning, non-woven fabric and foaming of PLA, and actively promote the market development of downstream PLA products;
4. As the leading unit, it is responsible for the organization and implementation of the overall task of the 863 program, submitting the annual summary report according to the management requirements of the 863 program, and strictly managing the funds according to the project budget.
1. Assist Haizheng biology in the design and optimization of polylactic acid production process;
2. Develop catalysts for lactic acid oligomerization, cracking and lactide polymerization, and a new PLA crystallization nucleating agent;
2 participating units of Yinghua Institute 3. Study the relationship between the left-handed content of PLA and the crystallization properties, and the relationship between the crystallization and properties of poly L-lactic acid and poly D-lactic acid composites. Explore various methods to improve melt strength and improve thermal stability, service life and mechanical properties of products; 4. Research and develop high temperature resistant PLA and its corresponding processing technology.
1. As a researcher of Changchun Chemical Institute, he led the research work of Changchun Chemical Institute;
2. As the chief engineer of Haizheng biology at that time, he guided the research of Haizheng Biology 3 and the work of Chen Xuesi;
3. Responsible for the coordination between Changchun Yinghua Institute and Haizheng biological research team;
4. As the project leader, overall coordinate the division of labor and cooperation of all participating units to complete the project tasks.
In the above scientific research tasks, the company has a close relationship with the work undertaken by Changchun Yinghua Institute. Both parties need to take into account their existing academic and production experience to jointly explore and solve the problems in the process of polylactic acid industrialization. At the same time, both parties also need to verify and adjust their own research contents according to the research conclusions of the other party.
Specifically, in the above tasks, the role of Changchun Yinghua Institute is to assist Haizheng biology in the design and optimization of polylactic acid production process, assist Haizheng biology in the development of production process technology of heat-resistant polylactic acid resin and other special resins, processing technology of polylactic acid resin and product development technology, etc, On the other hand, we carried out theoretical exploration and Analysis on some key problems in the production of polylactic acid. The research contents mainly include the research on the basic theories related to the production of polylactic acid, such as the relationship between the left-handed content of PLA and the crystallization properties; The selection of additives in the production of polylactic acid was studied, including the catalyst of lactic acid in oligomerization, cracking and lactide polymerization, the nucleating agent of polylactic acid crystallization, etc; Some production technologies of polylactic acid were studied, including the relationship between crystallization mode and properties of polyl-lactic acid and polyd-lactic acid composites, and the methods to improve melt strength. The role of the company is more focused on the research and development of a full set of technologies and processes for the industrialization of polylactic acid. The research contents mainly include:
(1) Research on the complete production process of polylactic acid, including: completing the complete process package of “two-step” process applied to 10000 ton polylactic acid production line, methods to ensure the thermal stability of polylactic acid, etc;
(2) R & D, improvement and optimization of key processes and specific equipment to improve production efficiency and product quality, including optimization of dehydration reactor, R & D of lactide purification process, optimization of lactide production equipment, etc; (3) Design and construction of 10000 ton polylactic acid production line, including process design, proprietary equipment selection and design, installation and commissioning, so as to make the production line reach continuous and stable production capacity;
(4) Research on the processing technology related to the specific performance or use of polylactic acid or its downstream application, including developing the processing technology of polylactic acid resin of different brands according to the downstream market demand of polylactic acid, and developing the processing technology of polylactic acid further used for blow molding film-forming, spinning, non-woven fabric, foaming, etc;
(5) As the company is the leading undertaking unit for the task of 863 plan, the company also needs to undertake the construction of polylactic acid industrial chain, mainly including setting up quality standards for raw materials and polylactic acid, establishing standardized quality testing methods, etc.
2. Background and reasons of the company as the lead unit and Chen Xuesi as the subject leader
The task of the project is led by the company, which is in line with the overall goal of “polylactic acid industrialization”. The company is an early enterprise specializing in the R & D, production and sales of polylactic acid in China. In 2008, the company built a polylactic acid production line with an annual output of 5000 tons to achieve stable production (the first in China and the second in the world), and is in a leading position in the industrialization of polylactic acid in China. Therefore, the company can serve as the basic carrier of the task of the 863 program, combined with the company’s existing industrialization experience, and feed back and adjust the technical standards of upstream lactic acid raw materials according to the actual production situation, so as to finally make China have a complete polylactic acid industry chain, and finally realize the task goal that China’s polylactic acid research and industrialization are at the international leading level.
Chen Xuesi is the person in charge of the task. Considering the overall goal of the task and the current situation of China’s polylactic acid industry at that time, it is reasonable:
(1) In terms of the scientific research background of the project leader, the overall goal of the project task is to support the research and development of bio based materials technology, break through the technical bottleneck, and make China’s research and industrialization of polylactic acid at the international leading level. When the 863 project was approved, the industrialization level of both polylactic acid and lactic acid, the upstream raw material of polylactic acid, in China was far behind the international advanced level. Therefore, it is necessary for a person who not only has the frontier discipline knowledge of polylactic acid production process, but also can put forward technical standards for lactic acid, the key raw material, It can also coordinate the discipline leaders of scientific research institutes as the project leader. Chen Xuesi received a bachelor’s degree from Jilin University, a master’s degree from Changchun Institute of Applied Chemistry in 1988, a doctor’s degree from the polymer chemistry laboratory of the Department of Applied Chemistry, Waseda University, Japan in 1997, and a postdoctoral in the Department of Biochemistry and Biophysics, School of medicine, University of Pennsylvania from 1997 to 1999; In addition, Chen Xuesi also undertook the task of national 863 plan as the subject leader, participated in the national “Ninth Five Year Plan” science and technology breakthrough project, the National Natural Science Foundation project, the “Tenth Five Year Plan” science and technology major project in Jilin Province, the joint development project of polylactic acid industrialization enterprises, etc., and has industry influence in the basic research and industrialization development of polylactic acid. Therefore, Chen Xuesi’s scientific research background matches the needs of the task leader of the 863 program.
(2) In terms of the relationship with the leading undertaking unit of the project, Chen Xuesi has funded and held a part-time job in Haizheng biology since 2004, serving as a director and chief engineer. Together with Haizheng group and the company, he is responsible for 10 liters of polylactic acid laboratory and 30 liters of polylactic acid
