Why did this Hong Kong-owned drug company choose The Science and Technology Board?

Pharmaceutical Network May 29 - May 27, Shipharma Group brought two good newsOn the same day, Shipharma Group announced that the board of directors approved a possible issue of RMB shares or Chinese depositary receipts and a preliminary proposal to list on the Science and Technology boardThis is after Junshi, another Hong Kong-owned pharmaceutical enterprises choose to achieve "A-H" in the science and technology boardAt the same time, Shipharma Group released its first-quarter 2020 results, saying it achieved revenue of 6.13 billion yuan, up 12% YoY, and net profit of 1.16 billion yuan, up 21.8% YoY01.
Science and Technology Board Attractiveness Rise?In fact, this is not the first time that stone medicine has returned to A-sharesAs early as last year, Stone Pharmaceutical Group carried out the "Hong Kong stock and A shares" capital layout, in March 2019, Stone Pharmaceutical Group affiliated with The New Novi Pharmaceuticals landing A-share GEM, Stone Pharmaceutical Group completed the "Red Chip plus A" new stage of capital patternAfter entering the A-sharemarket, The new Norwich's high market value exceeds 10 billion yuanBy the close of trading on May 27, 2020, The share price of New Norwich had risen by more than 20 per cent this yearRegarding the sudden announcement that it was considering the listing of Cotron Board, Stone Pharmaceutical Group said that this marked the completion of the "Hong Kong stock plus A shares" capital layout, Stone Pharmaceutical Group will continue to use financial leverage to further leverage the innovative high-tech capital market, and said, "the search for capital is for high-quality development."The trend of pharmaceutical companies pursuing "A-H" shares seems to have not stoppedSince Hong Kong stocks opened their doors to the biotech rout and last year's technocinboard opened, the two sectors have also become two directions for the flow of pharmaceutical companiesRecently, the CSRC issued a document approving The registration of Junshi Bio in the initial public offering of shares in Science and Technology BoardAfter more than a year, the days of the Junshi creature landing on the science-making board seem to be getting closerAs for the reasons for the reunification, Jun shi has said that there are three main points: first, compared with the new three boards, the SSE market is more mature, and the investor range is broader, can improve the company's market acceptance;In addition, the demand for capital for powerful innovative drugs is often large 　　In 2013-2019, Junshi Bio's net loss continued to expand year by year, from 1.2 million yuan in 2013 to 747 million yuan in 2019, with a cumulative loss of about 2 billion yuan After raising funds in the science and technology board, Junshi wants to invest 1.2 billion yuan in innovative drug research and development projects, 800 million yuan to repay bank loans and supplement the working capital, 700 million yuan for industrialization of port-to-port projects 　　In 2019 alone, the cost of research and development of Stone Pharma reached 2 billion yuan, a significant increase of 49.05 percent from 1,342 million yuan in 2018, mainly due to the increase in the number of products under development, the cost of ongoing and new clinical trials increased Stone Pharmaceutical Group's announcement shows that there are more than 300 research projects, the next three years is expected to be more than 50 products on the market 　　Stone Pharmaceutical Group said that the proposed science and technology board listing, after deducting the issuance fee, recommended that the initial plan of raising funds issued in China around the main business of Stone Pharmaceutical Group, "which means that Stone Pharmaceutical Group will further rely on the high-quality platform of science and technology board, continue to drive innovation, to the world-class pharmaceutical enterprises continue to move forward." "
but the case of stone medicine may be more complicated than the return of Junshi to the science-created board 　　02.A
shares or usher edify more pharmaceutical companies to return to stone medicine did not choose science plate? Is this its only option? 　　For the return of red-chip enterprises such as stone medicine A shares, two years ago is not easy, until last year, the science board landed, the policy gradually loosened a big mouth 　　A red-chip enterprise refers to an enterprise registered abroad and whose main business activity is in the territory Although the return of red chips was on the SFC's agenda as early as 2001, for many years foreign red-chip companies want to list in China, they need to dismantle the red-chip structure and transfer control back to the territory However, the dismantling of the red-chip structure usually involves more cumbersome procedures and the regulation of domestic and foreign regulations , and the return of red chips is not attractive enough 　　In 2018, the CSRC officially allowed pilot red-chip enterprises to issue shares or depositary receipts in the domestic capital market in accordance with the procedure, but the threshold for market value and industry requirements is still high 　　In July 2019, with the landing of the Science and Technology Board, the policy of listing the red-chip company Science and Technology Board was gradually introduced, widening the way for the Red Chip A-share issue or CDR to achieve listing 　　The pilot document of gem
registration system issued before May 1 this year officially allows red-chip enterprises to list on the GEM, and defines the criteria for listing on the GEM for listed and unlisted foreign red-chip enterprises 　　Immediately, the SFC once again issued a reduction in the market value of overseas listed red-chip enterprises, in addition to the original market value of 200 billion yuan requirements, the market value of 20 billion yuan and has a strong capacity for scientific and technological innovation can also choose to return This policy evolution has cleared the way for the return of Shi medicine group to A-shares, which is innovative but still worth less than 200 billion yuan 　　In the pharmaceutical red chips, Stone Medicine is also the first to make a rapid feedback on the New Deal of the enterprise, it can be seen that it is ready to return to A-shares 　　According to the latest innovative red-chip enterprise steaming pilot document, red chip stocks can choose to return to the main board, small and medium board, GEM and science and technology board 　　CICC believes that the market value level of different red chips will choose to return to the A-share sector is also different, the market value of more than 200 billion yuan of enterprise business is more mature, and has high-quality fundamental indicators, this part of the company is expected to return to the main board; 　　Previously, the main reason for the more attractive thing about The Gem was the registration system CICC believes that the gem listing from the declaration to the approval of the general only need stake of about six months, in addition to the inter-industry competition, related transactions, profit indicators and other audit requirements are more relaxed 　　As the GEM has only recently officially announced in the registration system reform document to allow red-chip enterprises to return to the listing, there is no enterprise application for listing on the GEM In the short term, small-cap red-chip companies interested in returning may be more inclined to techtronboards 　　It is worth noting that CICC had predicted in a report released on May 24th that some of the red chips that may return to A-shares, including stone drugs, were also on its forecast list, as did China Biopharmaceuticals, Hansen Pharmaceuticals, Cinda Bio, Pharmaceutical Sanbios, Anding Well son