Running listed in 2020 A-share IPO number has exceeded last year's 73% of pharmaceutical companies landing on the board

Author . . The first anniversary of the A-Goko board pilot has passed, the registration system to the GEM process, the speed of A-share IPO directly pushed the peak in 2017.
the pharmaceutical industry perform? What is the reason for the capital feast? This paper will count the number of IPOs in recent years, the scale of financing, pre-IPO net profit and other indicators to give the answer.
the pace of IPOs has continued to grow, with the pace of IPOs accelerating rapidly in the past three years, when the size of financing reached an all-time high in 2020.
the number of companies listed in 2019 is twice as high as in 2018, and the pace of IPOs has accelerated further in 2020, with 244 listings as of September 9, more than for all of 2019 combined.
this growth trend, the number of companies listed in 2020 is expected to surpass 2017 and reach an all-time high.
Chart 1: IPO speed picks up in 2019 and accelerates further in 2020 Data sources: Tonghuashun, Zhongkang Industrial Capital Research Center in terms of financing scale, the first three quarters of 2020 listed enterprises financing reached 317.2 billion yuan, the first time in history more than 300 billion yuan, more than double the initial public offering of listed enterprises in 2016.
is worth noting that while the number of companies financing in 2017 exceeded 400, the highest in history, most of them were small, with an overall financing of only 230 billion yuan.
Chart 2: The scale of IPO financing has risen steadily in the past three years, exceeding 300 billion yuan in the first three quarters of 2020 Source: Of the 244 companies listed by Tonghuashun and Zhongkang Industrial Capital Research Center in 2020, machinery Equipment, pharmaceutical biology, electronics, chemicals and computers occupy 43, 30, 29, 24 and 23 respectively, the five industries listed this year, the increase in the number of these high-tech enterprises listed and the creation of the board is inextricable.
Chart 3: The number of IPOs in high-tech industries such as machinery, medicine and electronics will increase in 2020: Tonghuashun, Zhongkang Industrial Capital Research Center, the number of listed companies has been increasing in the past two years.
was founded in July 2019, 70 companies have listed on the Board in just six months, accounting for 34.48 per cent of the total number of listed companies in 2019.
continues to increase in 2020, with 102 companies listed on the board as of September 9, up to 41.80 per cent.
and with the emergence of the board, the main board market and small and medium-sized board market listed enterprises have decreased.
, the launch of the Trot board is an important reason for the accelerated pace of IPOs in the past two years.
Chart 4: In 2019 and 2020, the proportion of new listed enterprises on the Science and Technology Board reached 34.48 percent and 41.80 percent, respectively.
30 companies went public in the first three quarters of 2020, pushing the scale of financing to a record high of 39.506 billion yuan in 2017.
Chart 5: The number of pharmaceutical bio-enterprises listed in 2020 is expected to reach an all-time high, and the financing scale will double from data sources: Tonghuashun, Zhongkang Industrial Capital Research Center in the sub-sector, 2020 listed 30 enterprises, 14 are medical device enterprises, accounting for nearly 50%.
from agent to domestic replacement until the launch of independent products, China's medical device industry development has finally reached the harvest point, into the capital market is also a matter of course.
, biologics companies have also stepped up the pace of listing.
will have nine listings by 2020, up from just one in 2018 and 2019.
thanks to the establishment of the Science and Technology Board, so that early research and development investment, but not profitable biological products companies can also embrace A-shares.
, however, Chinese medicine and pharmaceutical companies have slowed the pace of listing.
there will be no new listings in the pharmaceutical business by 2020, and only three new listings will be made in Chinese medicine.
this is due to the fact that the two industries are affected by the reform of national collection and Chinese medicine respectively, and the competitiveness of small and medium-sized enterprises continues to decline, which is difficult to expand in scale.
Chart 6: The pace of listing of medical devices and biological products enterprises has accelerated, and the pace of listing of Chinese medicine and pharmaceutical commercial enterprises has slowed down data: Tonghuashun, Zhongkang Industrial Capital Research Center due to industry characteristics, pharmaceutical and biological enterprises are mainly listed on the GEM and the Science and Technology Board.
2019, gem-listed pharmaceutical companies are more listed than other sectors.
by 2019 and 2020, the newly established Science and Technology Board has replaced the GEM as the main battleground for pharmaceutical bio-enterprise IPOs, with 14 and 22 IPOs completed, accounting for 77.78 percent and 73.33 percent of all pharmaceutical bio-enterprises listed that year, respectively.
Chart 7: In 2020, 22 pharmaceutical and biological enterprises were listed on the Board, accounting for 73.33 percent of the data sources of newly listed pharmaceutical and biological enterprises in the whole year: 6 of the 30 enterprises listed in 2020 by Tonghuashun and Zhongkang Industrial Capital Research Center had negative profits.
negative values, the average was $143 million, just one-half of what it was in 2018, and the minimum was down to $34 million from $60 million in 2018.
This is due to the fact that most of the newly listed biopharmaceuticals are innovative pharmaceutical and high-performance device enterprises, with high investment in research and development required in the early stage, long investment cycle, high risk, but high long-term return, the enterprise's net profit in the early period is low, or even no profit. the trial of the registration system of the
Branch, which gives enterprises greater tolerance, no longer regards net profit as a hard standard, but considers net profit, research and development capabilities, the industry and development prospects of enterprises, thus increasing the number of listed enterprises.
Figure 8: The average net profit of pharmaceutical bio-enterprises in the year before the listing of the company's registration system decreased rapidly, to only 143 million yuan in 2020: Tonghuashun, Zhongkang Industrial Capital Research Center macro-environment and capital market reform dual role, 2020 IPO in the accelerated cycle of the IPO wave by China's capital market reform and macro-environment dual drive.
the introduction of the 2019 board relaxed the conditions for companies to apply for IPOs, while the trial of the registration system accelerated the pace of IPO review, resulting in a rapid increase in the number of listed companies in 2019 and 2020, the demand for IPOs is also unusually hot.
As of September 9, 2020, 422 A-shares have lined up to list, and after the registration system successfully entered the GEM, the overall A-share IPO review speed will be further improved, will avoid the re-emergence of lake in 2017, by the end of the year the number of listed enterprises and the scale of financing are expected to reach a new peak in history.
From China's macro-environment, the macro-policy of stimulating the economy in the post-epidemic period, the People's Bank of China to the market to continue to provide liquidity support, to the A-share market injected sufficient financial support to ease the financing pressure of enterprises, and further improve the speed of IPOs.
of the number of listed companies in A-shares over the past 30 years, we can see that since 2005, the speed of IPOs has been significantly cyclical.
peaked in the first and second cycles in 2010 and 2017, respectively, and is now in the accelerated phase of the third cycle.
Figure 9: The pace of IPOs in the past 15 years is cyclical, and 2020 is in the third cycle of accelerated data sources: Tonghuashun, Zhongkang Industry Direct Research Center conclusion overall, under the dual role of the macro-policy of stimulating the economy and the reform of the capital market registration system, the 2020 A-share IPO is in an accelerated period, with 244 companies listed in the first three quarters, more than the total for the whole of 2019.
the implementation of the board registration system in the accelerated audit, but also lowered the threshold for listing, more pharmaceutical and biological enterprises are also listed in the company version.
after the booming demand for IPOs and the successful transition of the registration system to the GEM, the pace of A-share IPO review will be further accelerated and the number will be further increased, with the number of new listings expected to reach an all-time high throughout the year.