On March 1, 2021, the official website of the China Securities Regulatory Commission showed that Suzhou Jingyun Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “Jingyun Pharmaceutical”) responded to the fourth round of regulatory inquiries, involving multiple issues such as business model and revenue authenticity. .
According to the prospectus, Jingyun Pharmaceuticals was established in 2010 and is a CRO (R&D outsourcing service provider) enterprise focusing on drug crystal formation research. The registered capital is RMB 31,389,500. The actual controllers are Chen Minhua, Zhang Yanfeng, Robert Wenslow, and Wang Jialin. Controls 40.75% of the shares.
It is reported that Jingyun Medicine plans to issue no more than 10.4632 million shares, raising 600 million yuan of funds, which will be used to build R&D service platforms, crystal technology and product development platform projects, and to supplement working capital.
The overall performance of Jingyun Pharmaceuticals maintained growth. The prospectus shows that from 2017 to 2020, its operating income was 69 million yuan, 129 million yuan, 115 million yuan, and 150 million yuan; net profits were 7,640,200 yuan, 35,787,300 yuan, 32,490,800 yuan, and 51.704 million yuan, respectively. .
It is worth mentioning that from October 2015 to present, Renren.com founder Chen Yizhou has served as the director of Jingyun Pharmaceuticals and indirectly controls 10.05% of the company’s shares.
Tianyancha APP shows that Jingyun Pharmaceuticals completed the A round of financing in 2015, with an investment of 10 million US dollars by Renren. In 2017, Jingyun Pharmaceutical completed the Pre-B round of financing, which was also led by a company controlled by Chen Yizhou.
In addition, Jingyun Pharmaceutical also received 100 million yuan in financing led by investors such as Shiyu Capital and Tongchuangweiye at the end of 2018.
The prospectus shows that from 2017 to 2019, the company’s net cash flows from investment activities were -28 million yuan, -12 million yuan, and -126 million yuan, respectively.
Jingyun Pharmaceutical’s long-term equity investment is relatively large, but it has been losing money year after year. From the end of 2017 to the end of 2019, the book value of Jingyun Pharmaceutical’s long-term equity investment was 49.031 million yuan, 34.139700 yuan and 35.577 million yuan, accounting for 27.76%, 10.32%, and 9.92% of total assets, respectively. The long-term equity investment losses accounted for by the equity method were 3.26 million yuan, 2.2491 million yuan, and 729,300 yuan respectively.
In this regard, Jingyun Pharmaceutical said that if the operating conditions of the invested company decline in the future, it may cause the long-term equity investment to be impaired again, which will adversely affect the profitability of Jingyun Pharmaceutical.