The gross profit margin declines, and the equity dispute is not decisive!What happened before the pr

As a cutting -edge technology company, Shihe Gene invested a lot of funds in R \u0026 D and marketing. At present, the company has not yet made a profit, and has a cumulative loss of 160 million yuan in the past three years

Researcher Li Lu

Malignant tumors are important diseases that seriously endangers human health. In recent years, with the advancement of science and technology, drugs and nature, and the improvement of doctor -patient recognition, precision medical care represented by targeted therapy and immunotherapy has gradually become anti -anti -medical care. The mainstream and important means of the development of new tumor drug development has promoted the high -speed development of the tumor high -throughput gene testing industry.

Nanjing Shihe Gene Biotechnology Co., Ltd. (hereinafter referred to as the World and Gene) is a clinical transformation application dedicated to high -throughput gene sequencing technology, which mainly conducts genetic testing for patients with tumor patients. The company can specify the selection of clinical drugs, reminds drug tolerance mechanisms, and recur on after surgery. At the same time, it explores early screening and early diagnosis of risks to provide molecular diagnostic services and products for precision medical care of tumor.

Recently, the company, which is at the forefront of tumor diagnosis and treatment technology, submitted an IPO application to the Shanglixing Science and Technology Board, which plans to raise 1.55 billion yuan.

Researchers \"Investment Times\" researchers saw that as cutting -edge technology companies, Shihe Gene invested a lot of funds in R \u0026 D and marketing, or caused it to be profitable at present. In the past three years 160 million yuan. Not only that, the company's gross margin level has been declining in recent years. In addition, the company still has unsuccessful equity disputes.

Three -year accumulation of 163 million

According to FROST \u0026 Amp; Sullivan data, the domestic tumor high -throughput genetic testing market has increased from 700 million yuan in 2016 to 4.1 billion yuan in 2021. The compound annual growth rate is as high as 41.1%; in 2025 and 2030, the market size will reach 14.9 billion yuan and 49.1 billion yuan, respectively, showing a rapid growth trend.

In the market of China's tumor high -throughput genetic testing in 2020, the market share of BNR.O, Shihe Gene, and GTH.O is about 13%and 10, respectively. %And 10%, ranking among the top in the industry. In addition, the TMB detection kit of non -small cell lung cancer tissue developed by Shihe Gene is the first Panel high -throughput gene detection kit that has entered the special review process of innovative medical devices in China.

Benefiting from the industry's high -speed development and its leading technical strength, from 2019 to 2021 (hereinafter referred to as the reporting period) Shihe genetic operating income continued to grow, respectively Yuan. but. However, income growth has not yet caused the company to get rid of the losses. During the reporting period, the company achieved net profit-26.12 million yuan, -92042,600 yuan and-68.478 million yuan, a cumulative loss of 163 million yuan in three years, and the scale of losses continued to expand. As of the end of 2021, the company's cumulative uniplied profit was -169 million yuan.

In addition, the net cash flow generated during the reporting period during the reporting period was -87.96 million yuan, -59.493 million yuan, and -77.256 million yuan, respectively. State out.

For this loss state, Shihe Gene explained in the prospectus that the tumor high -throughput gene testing industry belongs to emerging industries, product services have not yet entered medical insurance, and the market penetration rate is low. R \u0026 D investment, the current industry profitability is generally weaker.

The proportion of sales expenses increased year by year

Researchers of the \"Investment Times\" found that high R \u0026 D investment and sales costs or the main reasons for the continuous losses of the world and genes. According to the prospectus, during the reporting period, the company's R \u0026 D investment (including expenses and capitalization) was 77 million yuan, 120 million yuan, and 138 million yuan, respectively. The total research and development investment in three years was about 335 million yuan. The proportion of research and development investment in each period is 19.56%, 29.62%, and 26.62%, respectively.

Even so, the level of R \u0026 D investment in the world and genes is not very high in the industry. During the reporting period, the average level of R \u0026 D costs of the same industry than listed companies was 31.48%, 41.14%, and 51.91%, respectively, and each period was much higher than that of the world.

Shihe Gene also said that the company currently mainly research products include human multi -gene mutating testing kits, non -small cell lung cancer tissue TMB detection kits, human circulating tumor DNA multi -gene mutation test box, physical tumor The efficacy monitoring kit, intestinal cancer liquid biopsy early sieve testing box, blood cancer multi -gene detection test box, and common respiratory pathogenic bacterial acid testing kit, etc. The project R \u0026 D risk, high technical difficulty, long time cycle, it is expected that a lot of funds will still be invested in the future Essence

In terms of sales expenses, during the reporting period, the World and Gene invested 163 million yuan, 192 million yuan, and 250 million yuan in sales, accounting for 41.36%, 47.26%, and 48.34%of operating income, respectively. Among them, the company's market promotion fee was 33.499 million yuan, 76.493 million yuan, and 99.667 million yuan, respectively, accounting for 20.51%, 39.83%, and 39.91%of the sales costs, which increased year by year and became one of the most important sales expenses.

In this regard, Shihe Gene introduced in the prospectus that the company's main customers are tumor patients, but they mainly carry out academic promotion activities for doctors. During the reporting period, marketing fees mainly include direct expenditures such as conferences and training in academic promotion activities, and indirect expenditures generated by professional service providers to carry out promotion activities.

Falling gross profit margin

Except lossIn addition, the profitability risk of the world is also reflected at the level of gross profit margin that declines year by year. The prospectus shows that during the reporting period, the company's main business gross profit margin was 70.15%, 68.35%, and 67.78%, respectively, and a decrease of nearly 3 percentage points from 2019 in 2021.

In terms of division of business, the company's main business includes clinical testing services, research and development services and instrument reagent sales. Essence

Clinical testing services also include two types of tumor gene testing services and infection testing services. In recent years, the sales of infectional detection services have been driven by new crown nucleic acid detection sales. The interest rate is lower than the tumor gene testing service, which led to the continuous decline in the gross profit margin of the overall clinical testing services, from 84.92%in 2019 to 77.83%in 2021. This is also one of the reasons for the continuous decline of the company's main business business.

Shihe Gene stated in the prospectus that the gross profit margin of the company's main business is mainly affected by factors such as industry competition, product market performance, sales price changes, detection reagents procurement prices, sequencing capacity utilization and other factors Essence If the above -mentioned influencing factors will change significantly in the future, the company's gross profit margin will face the risk of further decline, which will adversely affect profitability.

The R \u0026 D expense ratio of the same industry in the world is comparable to listed companies

Data Source: Company Prospectus

[123 ] Disputes of Stock Stocks

From the perspective of the equity structure, Shihe gene controlling shareholders and actual controllers are Shao Huawu, Shaoyang, and Wang Xiaosan. %Of voting rights. Among them, Shao Huawu and Shaoyang have a relationship between father and son, and Shao Yang and Wang Xiaonan are husband and wife.

It is worth noting that Shao Huawu, one of the actual controller, has a lawsuit that has not yet been ended, respectively. In July 2014, Sudan transferred the equity of 2.58%of Shihe's limited limited equity (corresponding to the world and limited amount of 258,800 yuan in capital) to Shao Huawu at the time. In the next few years, the two sides did not obtain this. In 2020, the company planned to be listed on the science and technology board.

In order to confirm that the transfer of equity is valid, Shao Huawu filed a lawsuit with the People's Court of Pukou District, Nanjing in June 2020. Because Sudan was citizen in Canada, the case was a case of foreign -related civil and commercial cases. In January 2021, it was changed from Nanjing The city's intermediate people's courts are accepted by jurisdiction.

In April 2021, Sudan filed a counterclaim and demanded that the \"Share Transfer Agreement\" signed by Sultan and Shao Huawu in July 2014. at the same timeIn April 2021, Sudan filed a lawsuit with the Nanjing Intermediate People's Court, requesting confirmation that the company's decision to decide or invalidate the shareholders 'meeting issued by the previous shareholders' transfer was not established.

At present, Shao Huawu is preparing to respond.However, according to the prospectus, due to multiple rounds of financing, the Huali and Sudan involving disputes in the shares of disputes are relatively low, accounting for only 1.3525%of the total share capital.However, if the result of the lawsuit is not as expected, although the control is expected to change, it may still adversely affect the company.

In addition, the gambling agreement of Di Fei Medicine of Shihe Gene Holding subsidiary has not been completely lifted, or there is a potential risk of adversely impacting its equity structure stability.

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