Liaoning Chengda Bio to Hong Kong IPO: Gross margin is more than 80%

Four years after the new three-board war, Liaoning Chengda Biological Co., Ltd. (hereinafter referred to as "Chengda Bio") decided to enter the Hong Kong stock market.
October 30, Chengda Bio submitted a prospecto to the Hong Kong Stock Exchange. In its prospecto, Chengda Bio did not disclose the final number of issues, but said all the funds raised would be used for the company's development, including funding strategic transactions and capital expenditure projects, and strengthening research and development capabilities.competition for the "new three boards and H shares" the first share of
public information shows that Chengda biological is a family of rabies vaccine manufacturers, the core products include human rabies vaccine and inactivated B-brain vaccine.
end of 2014, Chengda Bio is listed on the new three boards, is currently an innovative layer of enterprises, the transfer mode is "market transfer." With many enterprises landing on the new three boards after the "zero transaction, no financing" situation is different, into the big creatures many times the daily turnover of more than 10 million yuan, in addition to the success of a new issue, raising a net 266 million yuan.
China Network financial reporter noted that the proposed listing in Hong Kong, the big creatures, and did not in the new three board delisting. That's because in April this year, HKEx signed a memorandum of cooperation with The National Small and Medium Enterprises Share Transfer System Company, which allows companies that meet the conditions for listing in Hong Kong to list on both sides on a "new three-board plus H" model.
understood that so far, there are nearly 10 new three board companies said there are plans to issue H shares, Chengda Bio is one of them. If Chengda Bio's IPO in Hong Kong is successful, it is expected to become the first share of the "New Three Boards and H". As of the close of trading on November 9, The new three boards of Chengda Bio closed at 13.22 yuan.in recent years,
continued to grow in terms of consecutive increases in operating income and performance. Revenues for 2014-2017 were RMB937 million, RMB943 million, RMB1.03 billion and RMB1.276 billion, respectively, with year-on-year growth rates of 10.1%, 0.68%, 9.14% and 2 3.93 percent, net profit was RMB442 million, RMB458 million, RMB457 million and RMB556 million, respectively, with year-on-year growth rates of 9.5%, 3.44%, -0.14% and 21.61%, respectively.
the first half of this year, Chengda Bio achieved operating income and net profit of RMB666 million and RMB299 million, respectively, an increase of 13.86 percent and 14.2 percent year-on-year, respectively. It is worth mentioning that since the end of July this year, due to the long-term vaccine fraud incident led to a shortage of human rabies vaccine in China, sales of products related to large organisms have increased. In the third quarter of this year, Chengda Bio's operating income and net profit increased by 14.89 percent and 9.27 percent, respectively, while non-profit profit jumped 187.27 percent.
through the prospectine, investors not only saw the company's bright performance, but also learned about the vaccine industry's windfall. In 2015-2017 and the first half of 2018, the gross margin of Chengda Bio was 84.2%, 83%, 84.4% and 83.3%, respectively, according to the prospectines. It has been disclosed that the income of rabies vaccine for large organisms is more than 85%, while the income of B-brain vaccine is about 10%.Salesmen paid multiple bribes for procurement
China Net Financial Reporter Search China Referee Documents Network found that since 2014, ChengDa Bio has been involved in eight legal proceedings, of which five cases are accused, one is an appellant, and the other two are appellants and executed persons. The case involves disputes over life, health and physical rights, medical damage liability and recovery.
addition, Chengda Bio also involved in six bribery cases, the total amount involved is close to 1.2 million yuan, of which the largest amount involved is 1.07 million yuan. According to the indictment filed in the First Branch of the Beijing Municipal People's Procuratorate, between 2009 and 2015, Zhai × A took advantage of his position as director of the Biological Products Department of the Drug Registration Department of the State Food and Drug Administration to accept the request of Zhuang×, the manager of Chengda Biogen, to help the company in drug approval matters, and the RMB given by × B was very much received by Zhuang× for a total of 1.07 million yuan.
The other five cases occurred in Yantai Economic and Technological Development Zone, Hunan Yiyang, Sichuan Yanting, An county and Nanjing and other places, the model is mostly the sales staff of large organisms, to the above-mentioned local CDC officials to provide rebates or benefits, in order to obtain a limited procurement of vaccines or a larger share of procurement.
as to whether the above-mentioned litigation and bribery cases will affect the listing process of the big creatures in Hong Kong? A senior member of Chengda Bio told China Net Finance: "Currently in the period of silence before the listing, it is not convenient to answer questions, about the progress of the listing also please pay attention to the relevant announcement." (China Net)