"Electric Eel Finance" article / Li Bingyao
On March 31, the IPO of Changchun Zhuoyi Biotechnology Co., Ltd. (hereinafter referred to as Zhuoyi Bio) on the Shenzhen Stock Exchange suspended the listing process. According to the prospectus, Zhuoyi Biotech is a high-tech enterprise engaged in the research and development, production and sales of vaccine products. The company's current core product is lyophilized human rabies vaccine (Vero cell).
When reading the listing information provided by the company, "Electric Eel Finance" noticed that in this IPO, Zhuoyi Biotech plans to use 100 million yuan to raise funds to supplement liquidity. In the company's current assets, the proportion of monetary funds lags far behind the balance of accounts receivable. The company's general manager and deputy general manager have a combined annual salary of more than 2.2 million yuan. In addition, Zhuoyi Biotech has 9 invention patents, of which 6 invention patents are obtained by succession. At present, the capacity utilization rate of Zhuoyi Biotech is insufficient, how to digest the company's 800 million newly raised capacity? It's worth paying attention to.
100 million fund-raising replenishment The annual salary of the general manager and deputy general manager exceeds 2.2 million
According to the prospectus, in this IPO, Zhuoyi Biotech plans to raise 1 billion yuan, of which 100 million yuan will be used to supplement liquidity.
Zhuoyi Biotech plans to use 100 million yuan to raise funds to supplement liquidity, which is helpless. From 2020 to 2022 and June 30, 2023 (hereinafter referred to as the reporting period), the company's monetary funds accounted for 32.78%, 9.35%, 20.67% and 22.44% respectively, and the accounts receivable balance accounted for 43.36%, 58.22%, 56.33% and 57.79% respectively in the same period, accounting for a significantly higher proportion than monetary funds.
As of the date of signing of this Prospectus, Feng Xingfu held 39.92% of the equity interest in Cerker Corning and controlled 51.00% of the voting rights of Cercorning through the Articles of Association of Cercorning, which held 37.21% of the equity of the Company and 6.88% of the equity of the Company by persons acting in concert with Cercorning. Feng Xingfu holds 67.11% of the property share of Xieheng Kangtai and is its executive partner, and Xieheng Kangtai holds 6.80% of the company's equity; In addition, Feng Xingfu directly holds 0.95% of the company's equity. In summary, Feng Xingfu can control 51.84% of the voting rights of the company in total and is the actual controller of the company.
In 2022, the salary of Feng Xingfu, chairman and general manager of Zhuoyi Biotech, will be 1.1996 million yuan, and the salary of Xu Xiuzhi, the company's director, deputy general manager and core technical personnel, will be 1.0797 million yuan. It can be seen that the company's general manager and deputy general manager have a total salary of 2.28 million yuan.
During the reporting period, the total remuneration of Zhuoyi Biotech was 4.3114 million yuan, 7.9423 million yuan, 8.9071 million yuan and 3.4034 million yuan respectively, accounting for 2.99%, 6.74%, 9.42% and 10.46% of the total profit of the current period. It can be seen that as the company's total profit continues to decline, the company's compensation ratio continues to rise.
9 invention patents and 6 successive acquisitions
According to the prospectus, in this IPO, Zhuoyi Biotech plans to raise 100 million yuan for vaccine research and development projects. During the reporting period, the company's R&D expenses amounted to 23.6533 million yuan, 41.9521 million yuan, 52.9993 million yuan and 26.4561 million yuan respectively, accounting for 7.72%, 10.09%, 10.00% and 9.78% of the operating income of each period respectively.
In addition, Changchun Zhuoyi's R&D expense ratio is significantly behind that of comparable companies in the same industry. During the reporting period, the average R&D expense ratios of comparable companies in the same industry were 9.84%, 12.26%, 17.67% and 22.73%, respectively, which were significantly higher than those of comparable companies in the same industry.
As of June 30, 2023, Changchun Zhuoyi has a total of 45 domestic authorized patents, including 9 invention patents, 35 utility model patents and 1 design patent. It can be seen that after May 2019, the company only has two invention patents. Moreover, only 3 of the company's 9 invention patents were originally obtained, and the other 6 were all obtained by succession.
It is worth noting that Changchun Zhuoyi's sales expenses are much higher than the company's R&D expenses. During the reporting period, the company's sales expense ratio was 17.17%, 33.97%, 41.53% and 41.09%, respectively, which was almost four times the company's R&D expense ratio recently.
During the reporting period, the comprehensive gross profit margins of Changchun Zhuoyi were 85.37%, 87.13%, 85.64% and 82.23%, respectively, and the average gross profit margins of comparable companies in the same period were 88.27%, 87.04%, 87.72% and 88.69% respectively. Changchun Zhuoyi's gross profit margin is slightly lower.
How to digest the capacity utilization rate of less than 800 million new capacity?
According to the prospectus, more than 99% of Changchun Zhuoyi's revenue comes from lyophilized human rabies vaccine (Vero cell).
In this IPO, Changchun Zhuoyi plans to raise 800 million yuan to raise funds for the vaccine project of Changchun Zhuoyi Biological Co., Ltd. (intelligent production workshop for human rabies vaccine). After the project is put into operation, the company's new production capacity will inevitably increase the company's production capacity.
However, it is worth noting that the company's capacity utilization is not high. During the reporting period, Changchun Zhuoyi's freeze-dried human rabies
The output of disease vaccines (Vero cells) was 6,244,000, 10,737,600, 9,574,700 and 5,602,500, respectively, and the capacity utilization rates were 99.90%, 71.58%, 63.83% and 74.70%, respectively. The sales volume was 4,668,200, 5,835,000, 7,419,900 and 3,677,700 respectively, and the production and sales rates were 74.76%, 54.34%, 77.50% and 65.64% respectively.
During the reporting period, Changchun Zhuoyi's inventory turnover rates were 0.8 times, 0.49 times, 0.5 times and 0.3 times, respectively, and the inventory turnover rate was less than 1 time.
It can be seen that the company's inventory turnover rate is also relatively low in the case of low capacity utilization. How to digest the new production capacity in the future? It's worth paying attention to.