Jiuyuan Gene IPO, former director Li Bangliang received an equity incentive worth 9 million

Mondo Finance Updated on 2024-02-04

Rui Finance Wu WentingOn February 4, Hangzhou Jiuyuan Gene Engineering Co., Ltd. *** hereinafter referred to as "Jiuyuan Gene") recently submitted a prospectus on the Hong Kong Stock Exchange, with Huatai International as the sole sponsor.

According to the prospectus, from 2021 to 2022 and in the first three quarters of 2023, Jiuyuan Gene will achieve revenue of 130.7 billion yuan, 112.5 billion yuan, 10$2.3 billion; Profit for the year was 11.9 billion yuan, 598670,000 yuan, 11.1 billion yuan.

Jiuyuan Co., Ltd., the predecessor of Jiuyuan Gene, was established under the leadership of Li Bangliang. On December 31, 1993, Sino-US Huadong, a wholly-owned subsidiary of Huadong Pharmaceutical, together with Lin'an Fushi Biotechnology Co., Ltd., Taiwan Yuyou Construction *** and Hong Kong Yuanyu Investment***, jointly invested US$2.1 million to establish Jiuyuan Co., Ltd., with shareholding ratios of % and 15% respectively. However, as of the submission of Jiuyuan Gene, except for China, China and East China, the other three initial shareholders have withdrawn from their investment in Jiuyuan Gene and are no longer its shareholders.

When Sino-US East China participated in the establishment of Jiuyuan Gene, East China Medicine had just been established, and Li Bangliang was the chairman of East China Medicine at that time. In May 1994, Li Bangliang was appointed as the vice chairman of the board of directors of Jiuyuan Co., Ltd., and became the chairman of the board of directors of the company in June 2000.

The prospectus does not clearly state when Li Bangliang will retire as chairman of the company's board of directors, but it can be known that Fu Hang, the new chairman of the board of directors of Jiuyuan Gene, will take office in November 2023.

Although he is no longer the highest authority in the company, Li Bangliang is still a shareholder of Jiuyuan Gene.

On July 31, 2023, Jiuyuan Gene implemented a new employee incentive plan. In order to distribute to employees the retained equity interest of Hangzhou Weitai Investment*** hereinafter referred to as "Hangzhou Weitai"), Hangzhou Weitai transferred the equity interest with a registered capital of US$78,225 to Li Bangliang, which was regarded as a reward share to compensate him for his contribution to Jiuyuan Gene as a director.

Subsequently, in the profit and loss for the nine months ended September 30, 2023, Jiuyuan Gene deducted a one-time share award expense of 89840,000 yuan.

Before submitting the form, Li Bangliang directly held Jiuyuan Gene 117% of the shares. In addition, his wife Wang Zhiying controlled Jiuyuan Gene through Hangzhou Huasheng1625% stake. In the end, Li Bangliang and Wang Zhiying controlled the nine-source gene 1742% interest.

It is reported that Hangzhou Huasheng is owned by Hangzhou Ruizhisifeng Technology *** hereinafter referred to as "Ruizhisifeng") 3957% interest, and Wisdom is wholly owned by Hangzhou Wanyuhe Pharmaceutical Technology *** hereinafter referred to as "Wanyuhe Pharmaceutical"), and Wanyu Pharmaceutical is 99% owned by Wang Zhiying, Li Bangliang's wife.

Founded in 1993, Jiuyuan Gene is a pioneer in the application of genetic engineering to the pharmaceutical industry in China, with more than 30 years of experience in R&D, manufacturing and commercialization of biopharmaceuticals and medical devices. The company focuses on four fast-growing areas: orthopedics, metabolic diseases, oncology and blood. According to CIC, these four ** sectors together accounted for 52% of China's total drug sales in 2022.

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