After more than two years of preparation for the A-share IPO, the "unicorn" WuXi PharmaTech has finally received approval from the China Securities Regulatory Commission. The team at the helm of the company, Li Ge, is preparing for the ringing ceremony.

On April 24, Li Ge led a group of people from the main management and sponsors of WuXi PharmaTech to serve as a guest card roadshow center to answer questions from investors and the public.

“In 2000, I founded WuXi PharmaTech with three partners, and I hope to establish an integrated technology and capability platform for chemical drug discovery, R&D and production, thus greatly reducing the threshold and cost of new drug research and development, and improving new drug research and development. The efficiency, let more innovative drugs enter the market as soon as possible." Li Ge revealed.

Li Ge said that the listing of this issue opened a new journey for WuXi PharmaTech's second venture.

WuXi PharmaTech was founded by Li Ge and his “little partners” Liu Xiaozhong and Zhang Zhaohui, together with Zhao Ning, who later joined the company. These four are the actual controllers of the company, and both have overseas study backgrounds and overseas pharmaceutical companies.

Previously, WuXi PharmaTech insiders revealed to the Times Weekly reporter that Li Ge is a very strategic entrepreneur and looks very long-term. WuXi PharmaTech’s shareholding structure is quite fragmented, and the company’s actual controllers cleverly control the company.

According to the Times Weekly reporter, the above four people, including Li Ge, also control the other two listed flagship medicines and medicines of WuXi PharmaTech. In the context of the current global capital competition for pharmaceutical unicorn companies, as the company's stock price rises, Li Ge and other four people's net worth also ushered in a moment of soaring.

The successful IPO of WuXi PharmaTech means that Li Ge has built three listing platforms. For WuXi PharmaTech to build more unicorn listed companies in the future, Time Weekly reporter sent an interview letter to him. As of press time, he has not received a reply.

The shareholding structure is highly fragmented and concentrated

According to the prospectus, Li Ge’s entrepreneurial “little partners” include Liu Xiaozhong and Zhang Zhaohui, and the three are the founders of WuXi PharmaTech. By signing an agreement on concerted action, and Zhao Ning, who later joined the company, the four were the actual controllers of WuXi PharmaTech, jointly controlling the voting rights of the company 34.4812%.

In fact, Li Ge and Zhao Ning are spouses, both of whom are American nationals, and both Liu Xiaozhong and Zhang Zhaohui are granted permanent residency in Singapore. The foreign identity of the company's actual controller was once considered the biggest uncertainty of the IPO.

The Times Weekly reporter found that in addition to the foreign status of the actual controller, the top ten shareholders of WuXi PharmaTech are all foreigners. This starts with the study of WuXi PharmaTech's shareholding structure, which has 42 sponsor shareholders.

The Times Weekly reporter noted that there is no natural person shareholder among the sponsor shareholders, all of which are “single-color” institutional entities, including 25 domestic shareholders and 17 overseas shareholders.

In addition, this is also a highly dispersed shareholding system. Among the 42 shareholders, there is no single shareholding ratio of more than 10%. The largest shareholder is the overseas entity Glorious Moonlight (Glorious Moonlight Co., Ltd., holding 9.4746%, hereinafter referred to as “ Glorious moonlight").

Including Guanghui Moonlight, only 9 of the 42 shareholders have a shareholding ratio of more than 5%, and the rest are below 5%. In the eyes of outside investors, this may be convenient for future reductions. Because in accordance with the A share reduction rules, shareholders holding more than 5% of the shareholding reduction, need to follow the letter of the letter to announce.

Time Weekly reporters found that, unlike many listed companies, which have a large shareholding in a one-offholding by major shareholders, in WuXi PharmaTech, the four actual controllers are not directly holding shares, but indirectly through many institutional entities. Shares, and the shareholding ratio is highly dispersed, most of the shares are less than 5%, and even many are less than 1%.

For example, among the shareholders of WuXi PharmaTech, G&C VI (qun cloud VI, holding 8.6375%), G&C IV Hong Kong (group cloud IV Hong Kong, holding 6.1646%), G&C V (qun cloud V, Holding 4.4137%), G&C VII (Qunyun VII, holding 2.2857%), Shanghai Houyi (holding 2.0735%), Jiaxing Houyi (holding 0.4974%), Jiaxing Houyi (holding 0.4974%), Jiaxing Houqi (holding 0.0902%), Jiaxing Houjin (holding 0.0902%), Shanghai Houyi (holding 0.0855%), Shanghai Houyi (holding) 0.0660% of shares), Shanghai Houyi (holding 0.0643%), Shanghai Houyi (holding 0.0641%), Shanghai Houyi (holding 0.0625%), Shanghai Houyi (holding shares 0 .0567%), Shanghai Houling (holding 0.0401%) is the final control of Li Ge.

In addition, among the promoter shareholders, Jiaxing Yuxiang (holding 3.9477%) and Jiaxing Yumin (holding 1.3159%) are ultimately controlled by Liu Xiaozhong and Zhang Zhaohui; and Fertile Harvest (Wo Mao Investment Co., Ltd., holding shares) 1.7557%), Eastern Star (East Star Asia Investment Co., Ltd., holding 0.5563%), L&C Investment Limited (0.4469%) and Li Ge signed a concerted action agreement.

Although through privatization, and the introduction of many powerful and popular investors such as Taikang, Yunfeng and Ping'an, the control of WuXi PharmaTech is still controlled by Li Ge, Zhao Ning and Liu Xiaozhong and Zhang Zhaohui.

According to the actual controlling shareholding relationship of WuXi PharmaTech disclosed by Flushing, as of July 14, 2017 (the first disclosure date of the drug PharmaTech prospectus), Li Ge holds 21.84%, Zhao Ning holds 1.10%, Liu Xiaozhong Holding 1.08% and Zhang Zhaohui holding 1.05%.

At present, I don't know the real reason why Li Ge and his team use this way to control the company. The Times Weekly reporter wrote a letter to WuXi PharmaTech on the corporate governance of WuXi PharmaTech and the stability of the company's actual control rights. As of press time, there was no positive response.

However, some market participants believe that in the case that the overseas listing structure has not been safely dismantled, the regulatory authorities still allow their meetings to “return”, which means that the IPO of the IPO has been substantially broken, or it can provide reference for later generations.

Founding team is skyrocketing

Today, Li Ge, Zhao Ning, Liu Xiaozhong and Zhang Zhaohui still have the greatest influence within WuXi PharmaTech, both in terms of shareholding structure and corporate governance.

This high-level personnel situation has been maintained for many years and is quite stable. Among them, Li Ge is the company's chairman and president (CEO); Zhao Ning, Liu Xiaozhong and Zhang Zhaohui are directors and vice presidents of the company.

Liu Xiaozhong, who is 54 years old, is 3 years older than Li Ge. According to the resume, Liu Xiaozhong was a director and executive vice president of Wuming, a director and executive vice president of WuXi Cayman (Wuxi Cayman), and a director and vice president of Wuming Ming in 2001-2017.

Zhang Zhaohui is two years younger than Li Ge. From 2000 to 2017, he served as Director of Pharmacy Limited, Senior Vice President of Operations and Domestic Markets, WuXi Cayman (Wuxi Cayman) Director, Operations and Domestic Market Vice President, PharmaTech Limited Director and Vice President .

Li Ge’s wife, Zhao Ning, resigned from the multinational pharmaceutical giant Squibb Pharmaceuticals in the early years and then went to WuXi PharmaTech. From 2004 to 2016, she served as the general manager and vice president of the Pharmaceutical Analysis Limited Analysis Department, and served as the director and vice president of Yaoming Limited in 2016-2017.

At present, WuXi PharmaTech has become the flagship of the company's many business lines, and it owns the pharmaceutical industry and medicine. In fact, as early as before the overall listing of WuXi PharmaTech, Li Ge had previously split the subsidiary of the flag in an independent manner.

In April 2015, Li Ge pushed the pharmaceutical industry to the domestically active new third board market. As a company in the field of new drug cooperative research and development (CDMO), the company is committed to providing a one-stop solution from small molecule APIs to formulations.

According to the 2017 Annual Report of Hequan Pharmaceutical, Li Ge, Zhao Ning, Liu Xiaozhong and Zhang Zhaohui are the actual controllers of the company. Shanghai WuXi PharmaTech New Drug Development Co., Ltd. (hereinafter referred to as “Shanghai Pharmacy Kangde”) is the controlling shareholder of Hefei Pharmaceutical Co., Ltd., with a shareholding ratio of 86.96%. Shanghai WuXi PharmaTech is a wholly-owned subsidiary of WuXi PharmaTech.

After years of development, the valuation of the company has continued to rise. Up to now, the market value has exceeded 20 billion yuan.

However, WuXi PharmaTech is not satisfied with the current performance of the pharmaceutical industry in the capital market. Someone inside the medicine Mingkang told the Times Weekly reporter: "The only bad thing is that the trading is not active, and the price-earnings ratio is not high. We can only rely on our own efforts to see if there will be changes after the policy is put on the ground."

Yaoming Biology is another listed entity created by Li Ge outside of the pharmaceutical industry. The Yaoming Biological 2017 Annual Report stated that the company was ultimately controlled by Li Ge, Zhao Ning, Liu Xiaozhong and Zhang Zhaohui of the concerted actors.

On June 13, 2017, Yaoming Biology was listed in Hong Kong. The opening price was HK$25, which was 21.3% higher than the offer price of 20.6 yuan per share. The first day's increase was 37.14%, and the total market value reached 320. HK$3.9 billion (approximately RMB 27.922 billion).

Wu Mingkang was surprised by the performance of Yao Ming Biological in the Hong Kong capital market after its listing. Less than a year after its listing, the market value is close to 90 billion Hong Kong dollars. As of the close of April 26, 2018, Yaoming Biological fell 3.51% to close at HK$72.80, with a total market capitalization of HK$89.052 billion and a P/E ratio of 253.01 times.

Some market participants predict that with the overall listing of WuXi PharmaTech, the market value of 100 billion yuan in the future may be "not to mention", and Li Ge, Zhao Ning, Liu Xiaozhong and Zhang Zhaohui's net worth may also rise.

Or split more subsidiaries to go public

With the country's advocacy of "healthy China" and the introduction of a series of policies, the development of WuXi PharmaTech ushered in a new opportunity. Judging from the current development, WuXi PharmaTech will build more unicorn enterprises and land in the capital market one by one.

In the roadshow session of the day, on the issue of the spin-off of subsidiaries, Time Weekly reporter sent questions to Li Ge as an investor.

"In fact, it cannot be said that it is a split. The three businesses of WuXi PharmaTech, Yaoming Biology and Hefei Pharmaceuticals all have their own relatively independent characteristics, especially Pharmacological Biology, its macromolecular biopharmaceutical R&D and production business. WuXi PharmaTech's small molecule chemical drugs are completely different and do not overlap, so they are independent in all aspects of development and operation," Li Ge replied.

Li Ge said that the small molecule chemical production business and laboratory services of Hequan Pharmaceuticals are also different from capital investment and operation management. It belongs to the small molecule new drug business. Hequan Pharmaceutical is a holding subsidiary of WuXi PharmaTech. Its existence makes WuXi PharmaTech truly become a CRO/CMO platform for chemical products integrating R&D and production. “So these few businesses It has always been such a development, and it is not the result of deliberate splitting."

"Combining the characteristics of the business itself, separating them from the perspective of company architecture is also in order to meet the needs of the natural development of different businesses. In particular, we feel that a company with outstanding main business can better understand the development of the company's business. Environment and business context.” Li Ge said that from a management perspective, professionals can be better equipped to make business, assets, finances and personnel more professional and independent.

“It can ensure that business people and managers have the ability to focus on their expertise and build a platform with depth, breadth and height. The end result is to more effectively empower global customers and enhance service value.” Li Ge believes.

Previously, the insiders of WuXi PharmaTech had told the Times Weekly reporter that the future drug will be listed separately. But in a recent interview, it added: "Not so fast, it is not easy to say now, it can only be long-term planning."

According to the prospectus, during the reporting period, the subsidiary of WuXi PharmaTech was originally engaged in a small amount of medical health technology services. Since 2015, WuXi PharmaTech has gradually divested this part of its business, assets and personnel. Mingmao (Shanghai) Biotechnology Co., Ltd. (hereinafter referred to as “Pharmaceutical Mingming”) has taken over as an independent entity and signed cooperation agreements with external customers.

From July to August 2015, WuXi PharmaTech sold equipment, equipment and software related to the medical health technology service business to the drug Mingming code. The transfer price reference book value was determined to be 84.426 million yuan. During the reorganization, the relevant employees have terminated the labor contract with WuXi PharmaTech and signed a labor contract with the medicine.

According to the prospectus, the drug is actually engaged in gene sequencing , gene data storage and analysis, and is controlled by Liu Xiaozhong and Zhang Zhaohui. According to the industry and commerce information, the registered capital of Yaoming Mingyuan is 100 million yuan, and each of them holds 50% of the shares.

According to public information, in May 2017, Yaoming Mingmao received $75 million in Series B financing, invested by Temasek Temasek, Yunfeng Fund, Amgen Ventures and 3W Partners.

Four months later, in September 2017, Yao Mingming announced that it had received a $240 million B+ round of financing. The investors were Sequoia Capital China, Temasek Temasek, Yunfeng Fund, and 3W Partners.

However, WuXi PharmaTech's prospectus indicates that Yao Mingming is currently in its infancy. In 2017, its total assets reached 196 million yuan, net assets reached 20.602 million yuan, and net profit loss was 38.878 million yuan. (Time Weekly)

Sports Towel

Sports Towel,High Quality Towel Robe,Quick Dry Sport Towel Robe,Sport Towel Supplier

Suzhou Golden Gamrnet MFG Co.,Ltd , https://www.svchangerobe.com