With a loud bang, at 9:30 am, Yan Yi, Chairman of Zhejiang Cheng Yi Pharmaceutical Co., Ltd., announced the opening of the Shanghai Stock Exchange's main board. After the LED screen trading data in the Shanghai Stock Exchange lobby began to scroll, there was a burst of cheers at the scene. Yan Yiyi was extremely excited. As the leader of the company, he summarized the path to going public with "ups and downs".
Cheng Yi Pharmaceutical, securities code 603811, had an opening price of 18.91 yuan on the first day. Undoubtedly, the price was locked at 22.69 yuan, an increase of 43.97%, with a total share capital of 85.2 million shares and a total market value of 1.93 billion yuan. The prospectus discloses that before this issuance, Yan Yiyi, the controlling shareholder and actual controller of the company, directly held 25.05 million shares issued, with a value of approximately 568 million yuan based on the stock price on that day.
Cheng Yi Pharmaceutical, as the first main board listed company in the Wenzhou pharmaceutical industry, has made a significant contribution to the historical process of Wenzhou's enterprise's sprint towards the capital market.
Zhang Zhenyu, director of Wenzhou Financial Office, believes that Cheng Yi Pharmaceutical is the first main board listed enterprise in Dongtou District, which has boosted confidence in the listing of enterprises in the region. After listing, enterprises will change to a modern enterprise system, achieve multi-channel financing, and attract technical talents. All these changes will bring positive effects to enterprises. The outbreak of the financial crisis has taught a lesson to small and medium-sized enterprises in Wenzhou, awakening the awareness of multi-channel financing, and also telling them that going to the capital market is an imperative path. Going public will bring opportunities for enterprise transformation and upgrading.
Dialogue with Yan Yiyi
Reporter: What are the feelings of being at the helm of a company with today's listing?
Yan Yiyi: During the process of listing, there were both sour, sweet, bitter, and spicy flavors. In fact, for individuals, what does it matter whether they go public or not? How much can they eat, use, or take away? But after the company goes public, it requires us to lead the company to run forward desperately, and society needs us to make greater contributions.
Today's listing is also a magnificent turn for Sincere Pharmaceutical. Going public is like a ticket, entering this door requires companies to comply with regulations and laws, but at the same time, capital will also bring greater development space for companies.
Reporter: What is the next goal for a company to open up its listing channels?
Yan Yiyi: For Cheng Yi Pharmaceutical, the next step is to transform its main business from raw materials to formulations. The raw material industry accounted for 90% of its business, and now the formulation industry has accounted for 52%. In the next five years, we must continue to strengthen the proportion of formulations, and to achieve this goal, going public is a necessary path.
Originally, our research and development accounted for 4% of the sales share. On the island of Dongtou, without research and development, there would be no support. After going public, our research and development share will gradually increase to 5%, 6%, 7%, 8%
Previously, there was a lack of funds, and preparations needed to be developed externally. Now, raising funds requires increasing research and development investment, producing high-end and high value-added products, and also entering the marine pharmaceutical industry.
This fundraising project has brought an opportunity for the enterprise to take off. Originally, the enterprise had no source of funds, and the project could still be postponed or released. The injection of capital requires us to "roll up our sleeves and work hard", continue to extend the industrial chain, and continue to expand the scale of the enterprise.