Under the adverse economic environment,shengnuo biotechnology one-year growth interview and broadcast article listed on the Science and Technology Innovation Board

Chengdu shengnuo biotechnology (hereinafter referred to as shengnuo biotechnology), a national high-tech enterprise, was established in 2001. The main business is the research and development, production and sales of peptides and peptide-related products. On June 3, 2021, shengnuo biotechnology was listed on the A-share Science and Technology Innovation Board. On June 6 this year, shengnuo biotechnology is about to usher in the lifting of some shares, and the type of shares is the initial restricted shares of the original shareholders. Within one year of listing, based on the main core business of peptide CDMO, peptide APIs and preparations, shengnuo biotechnologylogical has expanded to the fields of peptide new crown innovative drugs, peptide medical beauty and other tracks.

With the arrival of the first anniversary of the listing on the Science and Technology Innovation Board, we are also more concerned about the growth potential of shengnuo biotechnology, as well as information worthy of attention in the second half of the year. To this end, we interviewed Mr. Yu Xiaohai, Secretary of the Board of Directors of shengnuo biotechnology, to answer relevant questions for us.

Q: Will APIs become the main revenue growth point for shengnuo biotechnology in 2022?

A: shengnuo biotechnology has been deeply involved in the field of peptide CDMO and APIs. Currently, the production of APIs is in short supply. Therefore, the company is expanding the production line, which is expected to be completed in June. By then, the number of API production lines will reach 8, and the production capacity will be increased by one. times, the expansion project will also enter a state of full production. Therefore, the growth brought by the increase in production of APIs in the second half of the year is also considerable.

Q: After a year of precipitation in the market, what is the current development idea of ​​shengnuo biotechnologylogical? What are the considerations for entering the new crown special medicine and medical beauty track?

A: At present, shengnuo biotechnologylogical mainly focuses on preparations, APIs, and CDMOs as its business core, and is committed to making the industry chain stronger and more complete. On March 29, 2022, the resolution of the thirteenth meeting of the third session of the Supervisory Committee of the company was announced, and all rights and interests related to the patent rights of the AOD53724 project owned by Aoda Bio were transferred in China (the clinical approval has not yet been obtained) and all rights and interests. ,

Deploy the new crown specific drug research and development business. For the medical beauty track, on November 8, 2021, the company’s president office meeting reviewed and approved the foreign investment capital increase proposal. The company subscribed for 13.0434% of Chengdu Gechun Biopharmaceutical Co., Ltd. through its wholly-owned subsidiary Shengrong Langke for RMB 15 million. , and on March 2, 2022, a wholly-owned subsidiary Shengrong Netac acquired a 49% stake in Guangzhou Shengjing Shangmei Biotechnology Co., Ltd. for RMB 24.50 million.

The main business of these two companies focuses on medical beauty race track. At present, these projects are in progress in an orderly manner. The application fields of peptides are theoretically very extensive. Many emerging applications are still in the exploratory stage. We are very optimistic about these two new tracks, which will become the future of shengnuo biotechnologylogical new important growth point.

Q: Can you share the latest progress of the current new crown special drugs?

A: Relevant projects are being gradually advanced, and we will strive to apply for China’s clinical approval before the end of this year. Pharmaceutical research and development is a time-consuming and high-investment project. We will also fulfill the obligation of information disclosure in a timely manner if there is significant progress.

Q: Some media have questionedshengnuo biotechnologyemphasis on sales and less on R&D. What do you think?

A: In terms of sales, shengnuo biotechnology is currently in the stage of vigorously promoting the drug market, mainly due to the short time to market of the preparation products sold by shengnuo biotechnology, and it is necessary to use professional marketization agencies to market the products, because the promotion The workload is large, so the promotion cost is relatively high, but it is still at a reasonable level; after the “two-invoice system” was implemented nationwide, the sales model of the company’s preparation business has changed, and it has also caused sales expenses. influences.

In terms of research and development, in fact, in addition to our own team’s research and development and setting up special funds, we also introduced new technologies through acquisitions, transfers, etc. last year. For example, this year, shengnuo biotechnology received a 65 million yuan from Aoda Bio to develop new crown special effects. The patented technology of the drug, this project plans to apply for domestic clinical approval by the end of this year, and is expected to invest RMB 175 million in the next 2-3 years. In addition, shengnuo biotechnology has also invested in the medical beauty industry, and will maintain in-depth research in the field of peptide medical beauty products and services in the future. This is the improvement ofshengnuo biotechnologyindustrial chain and the expansion of the research and development field.

These are supplements to the R&D level by the company through self-research, cooperation and introduction. The company is an enterprise that attaches great importance to R&D. With the continuous development of the company, in order to consolidate the competitive advantage, the research and development expenditure of shengnuo biotechnologylogical will also increase.

Q: Judging from the 2021 annual report of shengnuo biotechnology and the Q1 quarterly report of this year, shengnuo biotechnology has achieved relatively stable growth. Do you think it is in line withshengnuo biotechnologyexpectations?

A: In 2021, shengnuo biotechnologylogical will achieve a year-on-year increase of 2.05% in operating income and a year-on-year increase of 2.09% in net profit. In the first quarter of this year, revenue fell by 13.44% year-on-year, and net profit increased by 22.64% year-on-year. For Sino, it did maintain a relatively stable growth. At the same time, shengnuo biotechnology is actively expanding the domestic and foreign markets and increasing its efforts to develop new customers. shengnuo biotechnology still has a large space for development. At present, the company is running well, and we are confident in maintaining steady growth in performance.

Q: What do you think of the lifting of the ban on the original shares of shengnuo biotechnology on June 6?

Answer: First of all, the lifting of the ban on original shares is a normal procedure after the listing of new shares. Second, if there are shareholders who reduce their holdings in the future, this is also a return for their previous investment in shengnuo biotechnology. An opportunity for investors in the development of Sirnabio’s businesses. We believe that the market affirms the long-term value of shengnuo biotechnology, and hope that the investors of Relay Shares can contribute to China’s pharmaceutical R&D and innovation with more confidence and for a longer period of time.