About 30 years ago, there was a stock called Yuyuan Mall, whose market value rose from 800 yuan to [amount missing].
(As for whether Yuyuan Mall was split up, I really don't remember.)
“I took a look and found that Kechuang Bio’s R&D investment in the first three quarters reached 60 billion RMB. I estimate that most of it was spent on brain-computer interface chips.”
Whether it's the R&D center in England or the aggressive poaching of talent in the AI chip field this year, which led Cambricon's president to publicly call for an end to poaching domestic competitors' R&D teams and instead targeting foreign ones.
They were poached because they had no choice; domestic AI companies have been poached by almost everyone.
This incident shows that even with such high revenue and a deep competitive advantage, Kechuang Bio still invests a lot of money in research and development.
This demonstrates the ambition of the company's management. Zheng Li is only in his twenties, and his strong ambition will likely last for at least twenty years.
Coupled with its top-notch research talent, I am very optimistic about the future development of Kechuang Bio.
There's only one problem: it's too expensive. This isn't a problem with Kechuang Biotechnology; it's my problem.
The release of Kechuang Bio's 2022 annual report forecast has sparked heated discussions in the capital market.
A net profit of 150 billion is very high, but there are companies with even higher figures ahead of them.
However, only two giants in China, Tencent and Alibaba, have ever achieved such high net profits.
Only Tencent has maintained a growth trend, and it has been in a growth phase. Although the growth rate has slowed down, at least it is still growing.
Ali's net profit for the whole of 2019 was RMB163.3 billion, for the whole of 2020 it was RMB151.2 billion, but for the whole of 2021 it was only RMB71.1 billion.
It was precisely because of the negative growth that Ali's market value fell from HKD 5 trillion to below HKD 1 trillion.
As a rising star, Kechuang Biotechnology achieved a net profit of over 150 billion RMB in just four years.
With net profit growth consistently exceeding 100% year after year, the secondary market has high expectations for the company.
Retail investors want to buy but can't, and dare not buy, because it's too expensive; one lot costs 500,000.
Domestic institutions and European and American investment institutions have been increasing their holdings and snapping up shares.
Technology creates wealth, but this kind of wealth creation has still had a significant impact on Chinese entrepreneurs.
The impact on the industry was comparable to when Alipay helped Tianhong sell Yu'ebao, turning it from an unknown small fund company into the largest fund company in terms of scale, with Yu'ebao's scale exceeding one trillion yuan.
As a result, angel investors in China prefer R&D-focused companies over internet companies.
In the past two years, things have become increasingly difficult for internet companies. Even Alibaba has not been immune to a sharp drop in net profit, let alone startups.
The path of acquiring a large number of users through subsidies, scaling up the business, and then going public to raise funds is becoming increasingly difficult.
How can I view the full-year financial report of Kechuang Biotechnology in 2022?
Because the company is financially well-funded, it doesn't need to exploit its lower-level employees to generate profits. Therefore, Kechuang Bio basically doesn't require overtime, and performance evaluations don't consider your working hours.
In addition, Kechuang Bio has historically been very friendly to graduates in biology, materials science, and chemistry, making it one of the four most difficult majors to get into.
The science and technology innovation program not only recruits a lot of people, but also offers generous salaries, though the requirements are also high.
Therefore, questions related to science and technology innovation and biology have always been highly discussed on Zhihu.
"Thank you for the invitation. As a biology PhD who just joined Kechuang Biotechnology through campus recruitment this year, let me talk about why Kechuang Biotechnology can achieve such high profits."
First of all, Kechuang Bio has a very large R&D team. The R&D team at the Suzhou R&D Center has more than 3,000 people, more than one-third of whom are PhDs.
There are about a thousand people in Jiangcheng, about a thousand people in Lion City, and about eight hundred people in the research and development center in England.
In Singapore and England, the percentage of PhDs is about 50%, while in Wuhan, the percentage is similar to that in Suzhou.
Kechuang Biotechnology spends approximately 30 billion yuan annually on human resources costs.
The compensation for R&D staff is comparable to that of programmers at major companies. Their working hours are much longer than ours, so we basically don't have to work overtime, let alone work alternating weeks of 5-6 days a week.
The research atmosphere is excellent. No matter what direction your idea is in, you can find people in the corresponding field to discuss it with within the internal system. Of course, this only applies to my field of biology.
Currently, the main source of profit for Kechuang Bio is still Chairman Zheng's research and development achievements, namely endorphins and brain-computer interfaces.
The brain-computer interface is mainly being handled by the R&D team in Singapore, because Chairman Zheng himself is also in Singapore. Whether it's brain-computer interface with mobile phones or brain-computer interface with VR, all the R&D tasks are carried out in Singapore.
The R&D centers in Suzhou and Jiangcheng mainly focus on optimizing the industrial production process of endorphins, and have currently reduced costs by 20%.
In addition, the main focus is on the research and development of innovative drugs. Currently, the two R&D centers in China have a total of thirteen innovative drug pipelines under development.
Unfortunately, innovative drugs have not yet generated profits.
The research and development center in England primarily focuses on AI chips and algorithms. It's said that this center will eventually be allocated to Kechuang Semiconductor, a subsidiary established just last year that mainly develops brain-computer interface chips.
Our investment in scientific research is extremely high; it's second only to Huawei in terms of R&D investment.
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