Securities dealers disclosed to First Finance and Economics that Nokonda is one of the two enterprises supervised by the on-site supervision of the start-up of the Securities Creation Board sponsorship business on the previous Shanghai Stock Exchange. Among them, the companys customer background and earnings authenticity are the focus of attention. It is not excluded that this withdrawal of materials is related to this. In response, the rationality of customer concentration and customer business sales is also concerned by the examination and inquiry of the Shanghai Stock Exchange.
On May 8, the Shanghai Stock Exchange disclosed its inquiries and replies to Norkanda, but there was no progress thereafter. Until the end, Norkanda remained in the inquiry status.
The second largest customer was only established for two years.
During the inquiry, the Shanghai Stock Exchange raised 48 questions, which mainly involved seven aspects: ownership structure, core technology, corporate governance and independence, financial accounting information and management analysis, risk disclosure and other issues. From the prospectus and the content of audit and inquiry, there are obvious doubts about customer concentration and the rationality of customer business sales.
According to Nokondas current income structure, in 2018, nearly 95% of its income came from pharmaceutical research services and 5% from clinical research. Prior to 2016 and 2017, pharmaceutical research services accounted for 100% of Nokondas total revenue.
Although during the reporting period, the proportion of sales volume of Nokonda to the top five customers decreased year by year, and the proportion of sales revenue to the current business income of single customer dropped to less than 50% in 2018, it still did not escape the inquiry about the situation of major customers.
According to the prospectus, Huazhong Pharmaceutical Industry Co., Ltd. (hereinafter referred to as Huazhong Pharmaceutical Industry) has been Nokondas largest customer since 2016, accounting for 62.19%, 54.65% and 23.92% of Nokondas revenue in the past three years, respectively.
At the end of 2017 and 2018, Nokondas accounts receivable for Chinese traditional medicine industry were 11.13 million yuan and 7.7827 million yuan respectively.
Nokondas second largest customer from 2017 to 2018, Beijing Yijia New Medical Device Technology Research Institute Limited (hereinafter referred to as Yijia New Creation), is a company established in April 2017 with registered capital of 8.33 million yuan.
It is noteworthy that Tian Eye Check shows that in the two years since its establishment, Yijia Xinchuang has replaced four legal representatives, from Zhu Dianzhi to Zhang Chong. Zhu Dianzhi withdrew completely from the company in September 2017 shortly after its establishment.
The name of Yijia New Company was changed in January 2019. Before the change, the name of the company was Beijing Yijia New Technology Co., Ltd. At the same time, the companys chairman, four directors, managers and supervisors also changed and quit.
On May 21 this year, Nokondas business scope has also been changed, including the sale of chemical products, import and export of goods, wholesale medical equipment category I.
Due to the high concentration of issuerscustomers during the reporting period, the Shanghai Stock Exchange put forward in its inquiry the reasons for the high proportion of issuers sales to the Chinese traditional medicine industry and Yijia Xinchuang in the reporting period, in combination with the history and background of cooperation with the Chinese traditional medicine industry and Yijia Xinchuang, and asked to answer whether the phenomenon of customer concentration is widespread in the industry. The reason and rationality of whether the concentration of pedestrian customers is much higher than that of comparable companies in the same industry.
Indirect Share Participation of Several Listed Companies
Nokondas current revenue mainly comes from pharmaceutical research services-based technology services business, and independent research and development products have not yet generated revenue. The innovative preparations, medical devices and special medical foods independently developed by the issuer are still in the stage of continuous investment, and do not generate profits for the time being. In the future, the issuer may gain income through technology transfer and the practice of MAH system.
According to the Research Report of Huaxia Happiness Industry Research Institute, drug R&D service (CRO) is a hot track for science and technology innovation. It requires highly knowledge-intensive, R&D capability and technological renewal capability. Nokonda still belongs to the third to fourth echelon in terms of industry structure.
From 2016 to 2018, Nokonda achieved revenue of 22.3302 million yuan, 74.8949 million yuan and 185 million yuan, respectively. The net profit after deduction during the same period was 5.5892 million yuan, 29.9791 million yuan and 80.1616 million yuan, respectively. Revenue and net profit doubled year after year, and performance grew rapidly.
In terms of ownership structure, except for 5 natural shareholders, the other 9 shareholders of Norkanda are all institutions. Tao Xiumei and Chen Pengs total direct and indirect shareholdings account for 47.18% of Norkandas total equity, and they are the controlling shareholders and actual controllers of the company. At the same time, Chen Peng served as the chairman of the company, while Tao Xiumei served as the director and general manager.
Nokonda chose the first set of listing criteria for SciDev, that is, the estimated market value is not less than 1 billion yuan, the net profit in the last two years is positive and the cumulative net profit is not less than 50 million yuan.
According to the public information, in April 2015, Hangzhou Tairan Tianhe Fund invested 20 million yuan and acquired 20% of Norkandas shares, with a post-investment valuation of only 100 million yuan.
Then, on February 14, 2017, Nokonda received 160 million yuan in financing, and Huagai Capital, Dangerous Peak Banner Cloud and Qingke Venture Capital joined in one after another. After the financing, the post-investment valuation of Nokonda rose from 100 million yuan to 1.16 billion yuan.
Nokonda plans to raise 437 million yuan for the IPO. It plans to invest in the Pharmaceutical Research Platform and the Clinical Integrated Services Platform.
In addition, Nokonda has four subsidiaries, of which Beijing Renzhong Pharmaceutical Co., Ltd. has not yet actually carried out business. The remaining three enterprises are all established within five years. Among them, Beijing Collinmede Pharmaceutical Technology Co., Ltd. was just established last year. Its main business scope is the technology development, technical consultation and technology transfer of pharmaceutical and health related products. Hebei Aisheng Technology Co., Ltd. is mainly engaged in the production and sale of special medical food and medical devices. Established in 2016.
The other one is Beijing Ono Pharmaceutical Co., Ltd. (hereinafter referred to as Beijing Ono), which was established in 2014. It is a Pharmaceutical Research Platform under Nokonda. It is located in Daxing Biopharmaceutical Industry Base of Zhongguancun Science and Technology Park. It is mainly engaged in pilot scale-up of pharmacy, and is still under construction. In this fund-raising, we plan to invest 390 million yuan in the pharmaceutical research platform construction project, the main body of implementation is Beijing One Nuo.
Source: First Financial Responsibility Editor: Guo Chenqi_NBJ9931