Kaishi Biological GEM IPO: Is the gross profit margin lower, is it related to the diagnosis of Komei?

During the reporting period, the average annual compound growth rate of Kai Shi biological operating income reached 108.59%, but its gross profit margin was less than the same value and declined year after year.

"Investment Times" researcher Liu Bai

The continuous development of modern life sciences and the introduction of national favorable policies have led to the prosperous trend of my country's external diagnostic instruments and disposable plastic biological experimental consumables. Grasp the industry's air outlet, and as the leading domestic in vitro diagnostic instruments and R & D and manufacturing enterprises of life science consumables, Jiaxing Kaishi Biotechnology Co., Ltd. (hereinafter referred to as Kaishi Biology) submits a prospectus to the Shenzhen Stock Exchange and applies for landing on the GEM.

Kaishi Bio mainly provides customers with customized development of products and services for in vitro diagnostic instruments and life science consumables, covering the entire life cycle of product development, design and transformation, product registration, precision manufacturing, and after -sales maintenance. Two major sections of consumables.

In this IPO, Kaishi Biological intends to disclose the publicly issued RMB ordinary shares (A shares) of more than 16.45 million shares, and it is planned to raise 700 million yuan. Among them, 420 million yuan was used for "in vitro diagnostic product production base projects", 130 million yuan was used for "in vitro diagnostic instrument research and development projects" and 150 million yuan to supplement mobile funds.

In terms of equity structure, Shanghai Kaishi holds 39.07%of Kaishi Bio, which is the controlling shareholder of the company. Yellow Crane directly holds 2.06%of Kaishi Bio. Through Shanghai Kai Shi and Kaikun Investment Control Company 45.75%of the equity, it controls the company's 47.81%equity of the company to be the actual controller of Kai Shi creatures.

From the perspective of financial data, from 2019 to 2021 (hereinafter referred to as the reporting period), Kaishi biological operating income was 132 million yuan, 259 million yuan, and 573 million yuan, respectively, with an average annual compound growth rate of 108.59%; net profit was 1753.24, respectively. 10,000 yuan, 66.852 million yuan, and 124 million yuan, operating income and net profit are increasing year by year.

"Investment Times" researchers further sorted out the Kaishi Biological prospectus, and also noticed that the company's affiliated transactions with Komei diagnosed were inquired. At the same time, its comprehensive gross profit margin and R & D expenses have declined year by year.

Related transactions are questioned

During the reporting period, the proportion of Kaishi Bio's sales of five major customers accounted for 91.03%, 71.07%, and 56.05%, respectively. Although the proportion decreased year by year, the customer concentration was still higher.

Among them, two years before the reporting period, Komei diagnosed the largest customers of Kaishi creatures, and the sales amount of Kaishi creatures accounted for 38.66%and 25.12%, respectively. Although the diagnosis of Kemei in 2021 is no longer the largest customer of Kaishi Bio, Camei Diagnosis still purchases 54.736 million yuan of products from the company, and is the fourth largest customer of Kaishi Bio.

What exactly is the diagnosis of Comei? According to Kaishi Bio, the company's controlling shareholder supervisor Weng Yunmou, his son Zhao Weiguo (Zhao Weiguo), who left as the controlling shareholder, served as the director and deputy general manager of Komei diagnostic diagnosis. The relationship between the association is not related to the actual controller of the Kaishi Biological, the actual controller of the diagnosis of Camei, and the major shareholders. During the reporting period, Comei diagnosis mainly purchased the optical chemical emitting diagnostic instruments from Kaishi Bio, which included two models: LICA500 and LICA800.

Jiaxing Kaishi Biotechnology Co., Ltd. (hereinafter referred to as Kai Shi Limited) was established in June 2009 and officially changed to a joint -stock company in December 2020, namely Kaishi creature. Comei Diagnosis and Kai Shi have cooperated since 2009. In 2010, Kaishi Co., Ltd. accounted for more than 80 % of the revenue from Camei diagnosis, and then the proportion fell sharply. From 2014 to 2017, the proportion of revenue from Kemei diagnosis increased year by year. 47.33%.

Since 2018, with the rapid growth of the sales scale of other customer instruments and the rapid expansion of the scale of consumables, the proportion of revenue from Camei diagnosis has decreased. Although the proportion of revenue from Camem diagnosed in 2021 has dropped to 9.55%, the high -proportion of transactions between the two parties for more than 10 years has caused exchanges to question whether there is a significant dependence between the two parties.

However, it is doubtful that Kaishi Biological claims to be a related partner of Komei diagnosis, but according to the information disclosed during the Diagnosis of Cameo's 2020 Create Board IPO, Comei diagnosis clearly states that it has no connection with Kaishi creature. Why does the information disclosed by the two companies in the transaction contradict each other? In response to this doubt, the researcher of the "Investment Times" emailing communication outline to Kaishi Biological relevant departments, but as of the press company, it has not responded.

Gross profit margin has declined year after year

During the reporting period, the comprehensive gross profit margin of Kaishi Bio was 51.10%, 49.76%, and 46.28%, respectively, and the gross profit margin fell nearly 5 percentage points in three years. In the same period, the average comprehensive gross profit margin of the peers was 50.10%, 56.08%, and 51.49%. During the reporting period, the comprehensive gross profit margin of the Kaishi creatures was not only lower than the average value of the peer, but the trend of its changes was also different from peer companies. On the whole, the comprehensive industry comprehensive industry was comprehensive. The gross profit margin shows a trend of fluctuations.

Specifically, during the reporting period, the gross profit margins of Kaishi Bio -type products were 50.57%, 49.08%, and 42.32%, respectively, and the gross profit margins of consumables were 60.65%, 52.66%, and 49.14%. The gross profit margin has shown a trend of decline year by year. In response to the reasons for the decline in gross profit margin, Kaishi Bio explained that the decline in the gross profit margin of the instrument and consumables business was mainly affected by the changes in product structure. In 2021, some new instruments entered the mass production stage, the proportion of sales increased, and the production cost of instrument production during the output phase was output. Relatively high and low gross profit margin, lowered the gross profit level of the overall instrument business. In addition, affected by the centralized release of new production capacity in the industry, the competition in the consumable market has increased, and the company has lowered the sales price of conductive pushing heads, which reduced the gross profit margin of conductive conductivity and lowered the gross profit margin of the consumable business.

In addition to the decline in the gross profit margin years, the R & D expense ratio of Kaishi Biological has also decreased year by year. During the reporting period, the R & D expense rates of Kaishi Bio were 20.27%, 13.85%, and 11.44%, respectively. The research and development cost rate at the end of the reporting period was nearly 10 percentage points from the beginning of the period, and the decrease was significant.

Kaishi Biological stated in the prospectus that the company's R & D investment continued to grow during the reporting period, but due to the rapid increase in the company's income scale, the R & D cost rate showed a decline.

In comparison, the R & D expense rate of Tsingtao Haitai Xinguang Technology Co., Ltd. (hereinafter referred to as Haitai Xintuang) shows a growth trend. During the reporting period, Haitai Xinguang's R & D expense rates were 11.29%, 11.24%, and 13.35%, respectively. Its R & D cost rate increased by 2.11 percentage points from 2020, while the R & D expense ratio of Kaishi Biological in 2021 decreased by 2.41 percentage points year -on -year. Essence

Compared with the company

Data source: Kaishi Biological Prospectus

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