Suzhou Huyun sought the IPO of the Bei Stock Exchange, saying that there is no product on the market and will continue to lose money.

On July 1, Capital State learned that Suzhou Huyun (833464.NQ) Beijing Stock Exchange's IPO application was accepted.

Picture source: Bei Stock Exchange website

The prospectus shows that Suzhou Huyun is an innovative -driven small molecular drug research and development enterprise based on natural products for drug discovery and development. Inflammatory bowel diseases) and other clinical needs have not yet been met.

From 2019 to 2021, Suzhou Huyun realized a net profit attributable to the owner of the parent company-28.477 million yuan, -44.5348 million yuan, and -55.331 million yuan.

Picture source: company prospectus

The actual raising funds for the company's public offering of stocks (after deducting the issuance costs) will be used for innovative drug research and development projects, innovative pharmaceutical research and development and production base construction projects, and supplementary operating funds. The total amount of investment raised is 450 million yuan.

Picture source: company prospectus

At the IPO of the Beijing Stock Exchange, the following risks of Suzhou Huyun need to focus on:

(1) There are risks that have not made up for losses and sustainable losses

At present, the company has no product listing and has not generated drug sales revenue, and it is expected that whether the product can go to the market and when will there be large uncertainty, the company cannot generate product sales revenue during a certain period of time. In order to ensure the successful research and development of the product and launch in time, the company needs to carry out continuous research and development investment, and it may still be in a state of unable to make a profitable state during a certain period of time.

In various periods of the reporting period, the company's net losses belonged to the ordinary shareholders of the parent company were RMB 28.477 million 44.458 million yuan and RMB 55.313 million, respectively. As of December 31, 2021, the company's cumulative losses have not made up to 185,270,300 yuan. As the company is expected to increase R & D investment and continue to lose money in the future, the company will still have a cumulative loss of losses.

The company's inability to make profits or profits in the future will not affect the investment income of shareholders to a certain extent.

(2) The company expects to continue to invest in large scale in the future, and the level of profit may be affected

As of the date of the signing of this prospectus, the company is undergoing a phase III clinical trial in the company's research product SPT-07A; HY0721 has completed phase I clinical trials and is preparing for phase II clinical trials; HY1770 is in the phase I clinical trial stage; HY1839 has received clinical trials Permits that the company has not yet realized the commercial production and sales of products.

During the reporting period, the company's R & D investment was 23,434,200 yuan, 35.4398 million yuan, and 40,278,800 yuan. Investment and increase in R & D investment may affect the company's future profitability.

(3) Risks of delisting

The state of unsuccessful status may continue to exist or accumulates the loss may continue to expand after this issuance. standard. If the company's main product has failed or failed to obtain product listing approval or due to other unpredictable factors, the company's main product appears, including the "Rules of Listing" Chapter 10.1 and 10.3 The stipulated situations and other provisions may also cause the company to face the risk of delisting.

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