China Net Finance, December 4 (Reporter Zhang Zengyan) Recently, XtalPi, known as "AI Pharmaceutical", submitted a prospectus to the Hong Kong Stock Exchange, with CITIC ** as the sole sponsor.
XtalPi will apply for listing under the new Rule 18C of the Hong Kong Stock Exchange, and is expected to become the second technology company to be listed under such rules.
The cumulative loss in 3 years exceeded 4 billion.
Founded in 2015, XtalPi is an innovative R&D platform empowered by quantum physics, artificial intelligence, cloud computing, etc., providing pharmaceutical and material science related enterprises and innovative companies with drug and material science R&D solutions and services.
In terms of revenue**, XtalPi mainly includes drug discovery solutions and intelligent automation solutions. From January to June this year, XtalPi's revenue from the above two businesses was 3,60960,000 yuan and 438710,000 yuan, accounting for 45 percent of revenue1% and 549%。
*: Prospectus.
It should be pointed out that although XtalPi's revenue has a compound annual growth rate of 934%, but the net profit has continued to lose, with a cumulative loss of more than 4 billion yuan in the past three years. From 2020 to 2022 and from January to June 2023, XtalPi's revenue was 35.6 million yuan, 62.8 million yuan, and 1., respectively3.3 billion yuan and 80 million yuan;Net losses were 73.4 billion yuan, 213.7 billion yuan, 143.9 billion and 6200 million yuan.
According to the prospectus, XtalPi's various expenses have risen sharply, which continues to squeeze profit margins. Among them, R&D expenditure and general administrative expenditure exceeded the revenue of the year. From 2020 to 2022 and from January to June 2023, the company's R&D expenditure will be 83.54 million yuan and 21.3 billion yuan, 35.9 billion yuan, 23.4 billion yuan, accounting for the proportion of revenue. 2% and 2931%；The general administrative expenses were 47.49 million yuan, 13.7 billion yuan, 20.4 billion and 10.1 billion yuan, accounting for the proportion of revenue. 3% and 1265%。
In addition, the company's sales and marketing expenses in the same period were 17.08 million yuan, 27.41 million yuan, 40.43 million yuan and 29.64 million yuan respectively, accounting for about the revenue. 3% and 371%。
Regarding profit expectations, XtalPi said in the prospectus that it expects the company to continue to lose money in 2023, mainly due to expected costs and expenses related to increased R&D activities, implementation of commercialization plans (especially in the United States and Europe) and share-based payment expenses.
Unlike Insilico Medicine, which has previously submitted its form, XtalPi does not have its own pipeline. To date, XtalPi serves more than 100 biotech and pharmaceutical companies and research institutions worldwide, including 16 of the world's top 20 biotech and pharmaceutical companies. From 2020 to 2022 and from January to June 2023, the company's revenue from the five major customers was 29.9 million yuan, 38.8 million yuan, 66.1 million yuan and 33.1 million yuan respectively, accounting for the total revenue in the same period. 6% and 414%。
While reliance on large customers has decreased, customer retention has also fluctuated significantly. During the period, the Company's customer retention rates were as follows: 4% and 514%。
The total liabilities exceeded 10 billion yuan.
XtalPi, which continued to lose money, reported a negative net cash used in operating activities during the period, which was -16.7 billion yuan, -25.4 billion yuan, -42.9 billion yuan, -29.9 billion yuan.
In this regard, XtalPi said that due to the rapid technological development of the company's industry, it needs to invest a lot of financial and human resources in research and development. If R&D spending continues to increase significantly, it could adversely affect the Company's earnings and operating cash flow in the near term.
At the same time, XtalPi's total liabilities have also been rising. As of the end of 2020, the end of 2021, and the end of 2022, the company's total liabilities were 359.8 billion yuan, 798.6 billion and 96$2.6 billion. At the end of June this year, this figure hit a new high, reaching 104$2.8 billion. In addition, the company's debt-to-asset ratios are: 02% and 24444%。
Since its inception, XtalPi has raised 7US$3.2 billion, including Tencent, Sequoia, Chinese Life, Google, Mirae Asset, Alphabet and other well-known investment institutions. According to data from Frost & Sullivan, XtalPi ranks first in the world in terms of total financing among AI-enabled drug discovery companies.
*: Prospectus.
In July 2021, XtalPi received Series D financing, totaling 3$800 million, with a post-transaction valuation of 19$6.8 billion. At that time, XtalPi was considering going public in the United States, but the plan ran aground before moving to the Hong Kong capital market. Due to the uncertainty of the company's turnaround, XtalPi urgently needs to obtain financing through listing.
Regarding the progress of XtalPi's listing, China.com Finance will continue to pay attention to it.