For a listed company, the most important thing in the first quarter is to prepare the financial report and annual report for the whole year.
For example, the overall framework of this year's annual plan was completed as early as the third quarter of last year.
The top management only focuses on KPI indicators, while the middle management is responsible for breaking down the KPI indicators in the annual plan and then assigning the work to them.
2026 will be the sixth year since Kechuang Bio went public, and they will release their 2025 annual report at the beginning of this year.
This is a financial report from Kechuang Bio five years after its listing. For a company, five years after listing can be considered as gradually moving from the start-up stage to maturity.
However, there are no signs that the development of Kechuang Biotechnology has stalled.
Therefore, shareholders and major investment institutions are paying close attention to Kechuang Bio's 2025 annual financial report.
Giant companies like Kechuang Bio can drive the rise and fall of the entire sector.
Kechuang Bio spans sectors including biomedicine, semiconductors, new energy, and consumer electronics, covering core technologies of China.
Just like when CATL released its financial report, proving that it did not have the moat it had imagined in the battery field, its stock price plummeted and even dragged down the entire sector.
If the performance of Kechuang Bio falls short of expectations, the entire market will face the risk of being dragged down.
Especially upstream and downstream related enterprises.
"In the upcoming annual report of Kechuang Biotechnology, the most noteworthy points are: one is that Kechuang Future has been acquired by Kechuang Biotechnology, and the revenue from this part will be incorporated into the profits of Kechuang Biotechnology."
In addition, the innovative drug pipeline has been under development for five years and it's time to produce results. Pay close attention to the content mentioned in the annual report regarding innovative drugs.
Will any innovative drugs enter the clinical trial stage this year?
Another question is about the progress of research and development of next-generation brain-computer interface technology.
In the current situation, with the entire smartphone industry experiencing a downturn, Kechuang Bio also faces direct competition from Neuralink.
This part of the revenue will shrink; the question is whether other sources of income can compensate for this decline.
"The market value of Kechuang Bio has always been a mystery. I have always been curious why CATL can enjoy a PE ratio of 200, while Kechuang Bio can only enjoy a PE ratio of around 50."
Mingming Kechuang Biotechnology's competitive advantage is deeper than CATL's, and its technological strength is also stronger.
Even with CATL's lithium battery technology, they need to obtain authorization from Kechuang Bio.
The core equipment for manufacturing graphene coatings is also in the hands of Kechuang Biotechnology.
Why is the PE ratio of Kechuang Biotech, which clearly has more technology and stronger capabilities, lower than that of CATL?
Someone asked Duan Yongping a question on Xueqiu (a Chinese investment platform), and as a veteran user of Xueqiu, he had always wanted to answer a similar question.
I also take this opportunity to share my investment philosophy.
Therefore, upon seeing this, Duan Yongping gave his own answer:
"Because Kechuang Bio enjoys a valuation somewhat similar to that of BOE and TCL, while CATL enjoys a valuation similar to that of new energy companies."
Similarly, in the electronics industry, even with booming panel sales, BOE's dynamic price-to-earnings ratio is only around 6, which is frighteningly low.
"The underlying logic here is a lack of confidence in, or rather, a lack of confidence in, China's original scientific research capabilities."
CATL is able to enjoy a high PE valuation because the players in the battery manufacturing industry are only China, Japan, and Korea, which are the three East Asian countries in the traditional economic concept.
Moreover, China still has a manufacturing advantage, so the requirements for cutting-edge scientific research are not that high.
The investment community believes that CATL will win this competition; in other words, CATL's competitors are not that strong.
Moreover, CATL has proven its competitiveness over the past decade.
Kechuang Bio faces competition from high-tech companies in Europe and the United States. Neuralink is just one well-known company. In recent years, there have been more than a thousand brain-computer interface startups in America.
More importantly, if you look at CATL's financial report, you'll see that its annual investment in R&D is only between 2 and 3 billion yuan.
They previously raised 45 billion RMB through a private placement of shares, and then immediately used over 20 billion RMB to buy cash investment products.
Kechuang Bio invests hundreds of billions of RMB in research and development every year.
Kechuang Bio's research and development is at the forefront globally. If it cannot maintain technological progress, it will face the risk of being overtaken.
Investment in scientific research and manufacturing is very dangerous when you can no longer maintain a substantial monopoly advantage.
On the contrary, the PE ratio reflects the market's current greater acceptance of CATL's style and logic.
This phenomenon is now changing. After the release of Kechuang Bio's second-generation brain-computer interface VR product, we can see that Kechuang Bio's market value has increased by 25 percentage points so far.
Previously, the PE ratio was less than 40, but now it has exceeded 50. This shows that investment institutions and investors are gradually recognizing that Kechuang Bio's absolute leading position in the field of brain-computer interface is unshakable in the short term.
After this problem is solved, the only remaining issue for Kechuang Bio is that they have already reached the forefront of technology and need to invest heavily in research and development to experiment and learn from mistakes.
This was an investment that no one could have predicted.
We can only hope that Zheng Li can lead the R&D team to choose the right direction.
Of course, I have always been optimistic about Kechuang Bio. I bought it when it went public and have continued to do so until today. I have basically added to my position at every stage bottom.
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