New rice models have always been most popular when they first come out, but there is a shortage of stock, so you have to rush to buy them.
This is also the kind of scarcity marketing that rice has always been criticized for, a kind of monkey trick.
Once the production capacity of the new rice processing machines comes online, they will no longer be as attractive as the new machines available from competitors, so the only option will be to lower the price.
The price reduction made Mi Fans who bought the new phone immediately feel like they lost out. I lost 300 yuan if I bought it half a month earlier, and 500 yuan a month later.
Why not do it next time?
Compared to previous new Xiaomi phones, the Xiaomi Mix 4 is even more popular and harder to get one of. It was released at 9 a.m. and sold out in less than five seconds.
Lei Jun's Weibo posts are filled with:
"Mr. Lei, hurry up and release the new phone!"
Can production output be increased?
"Can you please stop with the tricks this time? I'm a die-hard Xiaomi 6 user and I really want to buy one now."
"Mr. Lei, why don't we go to the factory ourselves and tighten the screws?"
"It's not shameful to personally tighten screws; it's shameful to make a fool of your fans every day."
The better-than-expected performance of the first brain-computer interface phone, the Xiaomi Mix 4, has made investors even more eager for Kechuang Bio's listing on the Science and Technology Innovation Board.
Kechuang Bio's first-quarter report maintained high growth, with total operating revenue for the quarter exceeding that of the entire year of 2020, reaching 2.271 billion yuan. The main sources of revenue were the production and sales of endorphins and patent licensing.
The company's net profit excluding non-recurring items reached 1.0745 billion yuan in the first quarter, with a net profit margin of 47.3%, which is close to 50%.
This is because the profits from the licensing of brain-computer interface patents have not yet been realized.
At this time, Kechuang Bio had completed the inquiry and rectification phase of the Shanghai Stock Exchange and had entered the process of fulfilling the issuance registration procedure of the China Securities Regulatory Commission.
The China Securities Regulatory Commission (CSRC) needs to decide whether to approve or disapprove the registration application of Kechuang Bio within 20 working days.
Given Kechuang Bio's qualifications and profitability, the China Securities Regulatory Commission had no reason to refuse it, especially since it is a completely Chinese high-tech enterprise.
Chinese nationals hold absolute controlling interest, and their nationality was not changed even on the eve of the listing to avoid taxes.
There is a general consensus that the China Securities Regulatory Commission will approve the listing of Kechuang Bio as quickly as possible.
On forums such as Eastmoney, Tonghuashun, and Xueqiu, discussions about Kechuang Bio are particularly heated.
"The valuation of RMB 407.293 billion is not high at all. Kechuang Bio's profit in the first quarter was RMB 1.0745 billion. If we only consider the value of endorphins, this valuation is definitely too high."
However, it should be noted that Kechuang Bio is the only player in the field of brain-computer interfaces, and there are currently no brain-computer interface companies in China that can be seen to be ahead of Kechuang Bio.
This year, Kechuang Bio signed patent licensing agreements with leading domestic and international mobile phone brands such as Xiaomi, OPPO, Vivo, Huawei, Samsung, and Apple. The patent licensing fees are calculated based on the number of mobile phones connected to the brain-computer interface.
According to IDC's report, the Chinese high-end mobile phone market reached 23.5 million units in the first half of 2020, which I estimate to be 47 million units for the whole year. It is also projected that the high-end market will remain unchanged in 2021, at 47 million units.
Even if we calculate based on the lower limit, the proportion of brain-computer interface connected to mobile phones should be 30%, which is 14.1 million units. The patent licensing fee for a single brain-computer interface connected to a mobile phone is 200 yuan.
Even if we only consider the lower limit of the brain-computer interface technology licensing, this part contributed 2.82 billion yuan to the annual profit in 2021.
Furthermore, a 30% brain-computer interface connection to mobile phones represents the worst-case scenario, considering factors such as insufficient production capacity.
More importantly, the profit from brain-computer interfaces is essentially net profit. Kechuang Bio adopts the same strategy as Qualcomm in the field of brain-computer interfaces: I only do technology licensing and technology research and development.
It is estimated that Kechuang Bio's profit for the whole of 2021 will be at least 7 billion yuan.
One company holds patents in endorphins and brain-computer interfaces, giving it a dominant position in both of these niche areas.
Is a valuation of 407.293 billion really expensive?
In my opinion, the valuation of this listed company on the Science and Technology Innovation Board is basically giving money away to everyone. Haven't people noticed that a large number of companies on the Science and Technology Innovation Board are still operating at a loss, while many biopharmaceutical companies on the ChiNext and main board enjoy P/E ratios of over 100?
Kechuang Bio's price-to-earnings ratio is less than 100, and it is a high-growth technology company.
This valuation is really not high at all.
Looking at future profit forecasts, with the release of brain-computer interface chip production capacity, Kechuang Bio's profits from brain-computer interface patents can maintain a high growth trend.
The second phase of the endorphin production base has already begun construction, and the profits from this part will be gradually released in the future.
Endorphins not only have analgesic effects, but also, importantly, can reduce the addictive potential of drugs, including drugs.
While there are alternatives for pain relief, there are no alternatives for reducing drug addiction. One could say that endorphins are to Kechuang Biotech what growth hormone is to Changchun High & New Technology Industries Group, and to Pien Tze Huang as it is to Pien Tze Huang.
However, unlike those two companies that rely on only one leg, Kechuang Bio also has brain-computer interfaces.
Current brain-computer interfaces are only a very rudimentary application in this field. In the future, the development of brain-computer interface patents for English-speaking, Arabic-speaking, and other ethnic groups will enable Kechuang Bio to maintain high profit growth for many years.
Secondly, there are applications of brain-computer interfaces in other areas. I don't know much about the technical aspects, but judging from the rapid development of Kechuang Bio, I believe that Kechuang Bio is even more promising in the future.
The only thing that I'm not entirely satisfied with is the listing price of Kechuang Biotechnology, with a total share capital of 400 million shares and an issue price of 1018.23 yuan.
This price is just the listing price. When it is officially listed, it will definitely be driven up instantly. The price per lot is too high, which is very unfavorable to retail investors.
Personally, I feel that after its listing, Kechuang Bio will become the exclusive domain of institutional investors, just like Moutai.
Retail investors are buying and selling one lot for over 100,000, and it may be over 200,000 in the future. This price is difficult to withstand fluctuations.
But no matter what the listing price of Kechuang Bio is, I will buy a lot and hold onto it, growing alongside this great company!
In online stock forums, experienced investors usually have a calculator in hand, typing away rapidly, and their calculations of a company's profits and future earnings are generally quite accurate.
Most people who can survive in the A-share market for many years without losing money have some special skills.
"I have always agreed with the saying that science and technology innovation is to the Science and Technology Innovation Board what CATL is to the Growth Enterprise Market."
Since its inception, the Science and Technology Innovation Board (STAR Market) has never had a leading company like the main board and the STAR Market. When I saw the news about Kechuang Bio completing its Series B funding round, I realized that Kechuang Bio was the leading company on the STAR Market.
Without a leading player, how can the STAR Market, this giant dragon, take flight?
China has been advocating for independent innovation and building a strong nation through science and technology for many years, and in my opinion, Kechuang Bio perfectly embodies these eight words.
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