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a rumor about layoffs of thousands of employees has put innovative pharmaceutical company rongchang biopharma (688331.sh, 09995.hk) in the spotlight.

recently, some media reported that rongchang biopharma's massive layoffs involved multiple departments including r&d and production, and the layoffs are still continuing. rongchang biopharma denied the layoff rumors and responded that "it was a personnel adjustment based on the company's strategic development needs."

since its listing, rongchang bio has suffered a cumulative net loss of more than 3 billion yuan, and its operating funds mainly rely on external financing. since the beginning of this year, the company has been reported to have tight cash flow many times.

rongchang biopharma raised more than 6 billion yuan in total through its two listings, but years of losses and high r&d expenses have almost "burned up" the financing. as of the end of the second quarter, rongchang biopharma's cash scale was 676 million yuan, the lowest value in the same period since its listing, and the amount raised in the a-share ipo was only about 60 million yuan. the company's annual r&d expenditure exceeded 1 billion yuan, and its operating funds were stretched.

under financial pressure, rongchang bio decided to "ask for money" from the market again. it released a plan for a private placement in march this year. a few months later, it reduced the original planned fundraising amount of 2.55 billion yuan to about 1.9 billion yuan. it has not yet obtained regulatory approval.

rongchang bio's a-share price is currently 50% lower than the issue price, and its h-share price is less than one-fifth of the issue price. compared with the high percentage of the share price falling below the issue price, whether the above-mentioned "blood-replenishing" fixed increase fundraising can be successfully implemented is the focus of investors' attention.

years of huge losses and high r&d expenditures