Zhejiang Peptites Biotech Co., Ltd. seeks an IPO, intending to list on the ChiNext market. The company may become the first listed company of peptides in China.
On June 28, Zhejiang Peptites Biotech Co., Ltd. (hereinafter referred to as ZPC) submitted its prospectus to the Shenzhen Stock Exchange, intending to list on the ChiNext market.
The prospectus shows that ZPC is the largest cosmetic peptide raw material supplier in China, having cooperated with well-known cosmetics companies such as Proya, Bloomage Biotech, and Marubi. In 2022, its revenue was 213 million yuan ($29.39 million), and its net profit was 70 million yuan ($9.66 million). ZPC is expected to become China’s first listed company of peptides.
It is understood that ZPC’s peptide products are mainly used in cosmetics raw materials and pharmaceutical fields. In 2021, ZPC ranked first in China’s peptide cosmetics raw material market share. Currently, ZPC has developed more than 40 beauty peptide products, including snake venom-like peptides, blue copper peptides, and red scorpion venom. The red scorpion venom is an independently developed innovative beauty peptide product and the first domestically developed structural beauty peptide.
Financial data shows that from 2020 to 2022, ZPC’s revenue was 86.17 million yuan ($11.89 million), 143 million yuan ($19.73 million), and 215 million yuan ($29.67 million), respectively. Net profit was 12.40 million yuan ($1.71 million), 38.52 million yuan ($5.32 million), and 71.69 million yuan ($9.89 million), respectively. In terms of growth, the company’s revenue increased by 50.17% in 2022, and its net profit increased by 86.11% year-on-year.
A significant portion of ZPC’s revenue comes from peptide cosmetics raw materials. From 2020 to 2022, revenues were 46 million yuan ($6.35 million), 89 million yuan ($12.28 million), and 138 million yuan ($19.04 million), accounting for 53.64%, 62.46%, and 64.61%, respectively, with a three-year growth rate of 72.79%. This is mainly due to the rapid growth of anti-wrinkle peptide cosmetics raw material sales, which, in the past three years, accounted for the highest proportion of total peptide cosmetics raw material revenue at 39.33%, 67.36%, and 61.87%.
The prospectus shows that ZPC’s peptide cosmetics raw material liquid production capacity has steadily increased year by year, reaching 977 tons in 2022. In terms of products, the sales unit price of anti-wrinkle products was 990 yuan ($136.61)/kg in 2022, increasing year-on-year but significantly lower than in 2020; the unit price of repair products was 1,592.35 yuan ($219.73)/kg, decreasing year by year over the past three years. Moreover, the gross profit margin of ZPC’s peptide cosmetics raw materials was 77.74%, 79.50%, and 77.47%, respectively.
According to the prospectus, ZPC’s public offering will not exceed 139,030,660 shares, no less than 25% of the total share capital after issuance. The company intends to raise 1.245 billion yuan ($171.8 million) for the peptide industrial park construction project, drug peptide R&D project, cosmetic peptide R&D project, and supplementary working capital to expand the scale and improve comprehensive strength.
From the perspective of the top five customers, Bloomage Biotech and Proya have been among the top three customers of ZPC in the past three years. In 2022, Proya contributed 63.58 million yuan ($8.77 million) in revenue to ZPC, accounting for 29.62%, making it the largest customer. Bloomage Biotech, as the second-largest customer, contributed 16.28%. In the past three years, the two contributed 178 million yuan ($24.56 million) in revenue.
The prospectus also shows that since 2018, ZPC has provided cosmetics raw materials to Bloomage Biotech. In early 2021, the two companies signed a contract to jointly build a research and development laboratory. In June 2022, Bloomage Biotech increased its capital and invested in ZPC, currently holding a direct 1.64% stake in ZPC. Additionally, in 2019, ZPC provided peptide cosmetics raw materials to Proya.
According to Frost & Sullivan data, the Chinese peptide cosmetics raw material market size has grown from 630 million yuan ($86.93 million) in 2016 to 1.45 billion yuan ($200.09 million) in 2021, with a compound annual growth rate of 18.2%. It is expected to reach 2.32 billion yuan ($320.14 million) by 2025 and 3.24 billion yuan ($447.094 million) by 2030.
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