Financial Performance - For the six months ended June 30, 2023, the total revenue from the CDMO and drug discovery services was RMB 1,142,184, an increase from RMB 1,108,747 for the same period in 2022, representing a growth of approximately 3%[5] - The segment profit for CDMO and drug discovery services was RMB 405,968 for the first half of 2023, compared to RMB 344,972 in the same period of 2022, indicating a year-over-year increase of about 17.7%[5] - The group reported a pre-tax profit of RMB 36,752 for the six months ended June 30, 2023, recovering from a pre-tax loss of RMB 63,474 in the same period of the previous year[5] - Total revenue for the six months ended June 30, 2023, was RMB 1,142,184, an increase from RMB 1,108,747 in the same period of 2022, representing a growth of approximately 3%[8] - Revenue from non-investment clients for FTE services was RMB 350,177, while FFS services generated RMB 72,088, contributing to a total of RMB 422,265 from these services[8] - Revenue from the United States market reached RMB 476,122, significantly up from RMB 144,144 in the previous year, indicating a growth of over 230%[8] - The company reported a net profit of RMB 13,659 thousand for the first half of 2023, a significant recovery from a loss of RMB 85,220 thousand in the same period of 2022[46] - The adjusted net profit for the six months ended June 30, 2023, was RMB 146,106 thousand, representing an increase of 64.4% compared to RMB 88,951 thousand in the same period of 2022[46] - The adjusted net profit margin for the first half of 2023 was 12.8%, up from 8.0% in the first half of 2022[46] Expenses and Costs - Research and development expenses for the first half of 2023 amounted to RMB 76,700, compared to RMB 40,917 in the same period of 2022, reflecting an increase of approximately 87%[5] - The financial cost for the first half of 2023 was RMB 87,984, compared to RMB 89,099 in the same period of 2022, showing a decrease of about 1.2%[5] - The income tax expense for the six months ended June 30, 2023, was RMB 23,093 thousand, an increase of 5.9% from RMB 21,746 thousand in 2022[27] - Employee costs, including directors' remuneration, increased to RMB 344,616 thousand, up 14.5% from RMB 300,950 thousand in the previous year[24] - The cost of goods sold was RMB 459,869 thousand, a decrease of 9.06% compared to RMB 505,769 thousand in 2022[24] Financial Position - The company’s total assets as of June 30, 2023, were RMB 1,095,304 thousand, reflecting a growth from RMB 1,046,616 thousand at the end of 2022[37] - As of June 30, 2023, trade receivables from third parties amounted to RMB 345,705 thousand, a decrease of 22.8% from RMB 447,610 thousand as of December 31, 2022[45] - Trade payables as of June 30, 2023, were RMB 281,398 thousand, down from RMB 326,130 thousand as of December 31, 2022, indicating a decrease of 13.7%[62] - The company has a net current liability of RMB 982 million, indicating significant uncertainty regarding its ability to continue as a going concern[133] Investments and Financing - The company issued USD 180,000,000 convertible bonds with a 2.5% interest rate on February 11, 2020, which are guaranteed by the company[71] - The company plans to redeem all unconverted bonds at 108.21% of the principal amount on February 11, 2025, along with accrued and unpaid interest[72] - The company has secured bank loans to finance the acquisition of 80% of Langhua Pharmaceutical, backed by a one-year deposit of RMB 640,000,000[70] - The total bank loans outstanding as of June 30, 2023, were RMB 1,292,383,000, slightly up from RMB 1,286,251,000 as of December 31, 2022[70] - The company has a capital commitment of RMB 110,898,000 for the investment in the Chengdu New Drug Incubation and Biopharmaceutical Production R&D Center as of June 30, 2023, compared to RMB 68,522,000 as of December 31, 2022[107] Strategic Plans and Future Outlook - The group plans to continue expanding its market presence and investing in new product development to drive future growth[5] - The company plans to continue leveraging tax incentives for small and micro enterprises, which could positively impact future profitability[48] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[8] - The company aims to enhance CRO profitability through cost reduction and personnel optimization measures[172] - The company plans to build an additional 400 cubic meters of production capacity between 2024 and 2025, currently under construction[174] Corporate Governance and Compliance - The implementation of new and revised international financial reporting standards is expected to impact the group's annual consolidated financial statements, particularly in accounting policy disclosures[2] - The group has adopted the revised International Accounting Standards effective January 1, 2023, with no significant impact on its interim financial information[2] - The company has adopted corporate governance codes to enhance management and protect shareholder interests[182] - The company did not identify any issues that would lead to a belief that the interim financial information was not prepared in accordance with International Accounting Standard 34[132] Market and Client Base - The total number of clients served by the company increased to 2,189, with the top ten clients contributing 26.9% of revenue[172] - Revenue from overseas clients accounted for approximately 86.5%, with a year-over-year growth of about 12.4%[172] - The company has a backlog of contracts amounting to approximately RMB 973.0 million, which represents a decrease compared to the same period last year[196] Research and Development - The company has delivered over 56,128 protein structures, with approximately 7,203 new deliveries in the first half of 2023[197] - The company has cumulatively researched over 1,892 independent drug targets, with 14 new targets delivered in the first half of 2023[197] - The company maintains its leading position in the protein structure analysis field globally[197] - The company has introduced a new compound library and molecular gel screening platform, and is applying deep learning in macromolecule drug design[197]

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 2,379.6 million, representing a 13.1% increase from RMB 2,104.1 million in 2021[4] - Gross profit for the same period was RMB 815.7 million, up 25.3% from RMB 651.0 million in the previous year, with a gross margin of 34.3% compared to 30.9% in 2021[4] - The company reported a net loss of RMB 504.2 million for 2022, compared to a profit of RMB 300.6 million in 2021[4] - Adjusted net loss under non-IFRS was RMB 133.9 million, down from a profit of RMB 321.1 million in the previous year[4] - The total liabilities related to the convertible bonds were allocated between the debt and equity portions, with a difference of USD 3,556,000 recognized in profit or loss[39] - The company reported a total order backlog of approximately RMB 1,050.0 million, representing an 8.8% increase compared to RMB 965.0 million in the same period last year[102] Cash and Liquidity - As of December 31, 2022, cash and cash equivalents amounted to RMB 678,569,000, a decrease of 15.3% from RMB 800,947,000 in 2021[34] - The company repurchased convertible bonds with a total consideration of USD 19,200,000, equivalent to RMB 126,751,000, for a principal amount of USD 30,000,000[39] - The company has sufficient buffer space according to assessments, with no impairment losses recognized for cash-generating units as of December 31, 2022[6] - The company has a discount rate of 15% for cash flow forecasts, with a projected growth rate of 2.5% beyond the five-year period[15] Investments and Assets - The fair value of listed equity securities decreased to RMB 1,407 thousand in 2022 from RMB 5,028 thousand in 2021[11] - The fair value of unlisted investments was RMB 1,045,209 thousand in 2022, down from RMB 1,241,702 thousand in the previous year[11] - The net book value of intangible assets decreased to RMB 476,061 thousand in 2022 from RMB 531,444 thousand in 2021, a decline of 10.4%[90] - The fair value of financial assets at fair value through profit or loss decreased to RMB 1,046,616 thousand by the end of 2022, down from RMB 1,246,730 thousand at the beginning of 2022, a drop of 16%[96] Trade Receivables and Credit Risk - Trade receivables from third parties increased to RMB 447,610 thousand in 2022 from RMB 432,462 thousand in 2021, representing a growth of 3%[80] - The provision for impairment losses on trade receivables rose to RMB 15,124 thousand in 2022, up from RMB 9,452 thousand in 2021, indicating a significant increase of 59%[84] - The aging analysis of trade receivables shows that amounts overdue by more than 1 year increased to RMB 5,962 thousand in 2022 from RMB 3,086 thousand in 2021, reflecting an increase of 93%[81] - The expected credit loss rate for trade receivables was 2.20% overall in 2022, with specific rates of 2.10% for receivables under 6 months, 4.30% for 7 to 12 months, and 10.20% for over 12 months[85] Research and Development - Research and development investment for the year reached RMB 135.8 million, a 47.0% increase from RMB 92.4 million as of December 31, 2021[114] - The company has incubated a total of 91 startups, with 10 of them completing or nearing completion of new financing rounds, totaling approximately USD 158.0 million[113] - The CRO business has established multiple core technology platforms, including PROTAC technology, with PROTAC-related services accounting for nearly 10.2% of total CRO revenue[115] - The company has completed or is advancing nearly 123 new drug projects within its CMC research center, which has a total of 155 research personnel[112] Operational Highlights - The company has maintained a customer retention rate of 100% among its top ten clients, who contribute 56.0% of total revenue[111] - The company aims to strengthen its BD team's capabilities to drive order growth and enhance its strategic integration in biochemistry[102] - The company is leveraging advanced technologies such as Micro ED and AI-assisted drug design to accelerate drug discovery processes[135][136] - The group recorded a net loss during the reporting period, with specific figures not disclosed in the provided content[193] Expenses and Financial Costs - Sales cost for the reporting period was approximately RMB 1,564.0 million, an increase of 7.6% compared to RMB 1,453.1 million for the year ended December 31, 2021, aligning with business growth[167] - Administrative expenses were approximately RMB 273.6 million, a 20.9% increase from RMB 226.3 million for the year ended December 31, 2021, reflecting a rapid increase in personnel[168] - The group recorded other expenses of approximately RMB 254.0 million during the reporting period, compared to RMB 12.7 million for the year ended December 31, 2021, primarily due to increased foreign exchange losses, derivative financial instrument losses, and losses from the repurchase of convertible bonds[190] Future Plans and Strategies - The company plans to redeem all outstanding convertible bonds at 108.21% of the principal amount on February 11, 2025[31] - The company plans to establish investment funds to alleviate cash flow pressure related to its EFS incubation business[133] - The group intends to allocate 10% of the proceeds to recruit, train, and retain personnel in biopharmaceutical research and development, amounting to RMB 121.71 million[189] - The group aims to expand its CMO business with an allocation of 10% of the proceeds, totaling RMB 121.71 million[189]

Financial Performance - The total number of customers served by the company increased to 1,947, with revenue rising from RMB 1,026.5 million to RMB 1,108.7 million, representing an increase of approximately 8.0% year-on-year[8]. - Gross profit increased from RMB 316.3 million to RMB 345.0 million, reflecting a year-on-year growth of about 9.1%[8]. - Adjusted net profit decreased from RMB 196.9 million to RMB 89.0 million, a decline of approximately 54.8% year-on-year, primarily due to the impact of recurring COVID-19 outbreaks in mainland China[8]. - The company's revenue for the reporting period was approximately RMB 1,108.7 million, an increase of about 8.0% compared to RMB 1,026.5 million in the same period last year, primarily driven by the expansion of the CRO business[23]. - Gross profit for the reporting period was approximately RMB 345.0 million, up about 9.1% from RMB 316.3 million in the previous year, with a gross margin of approximately 31.1% compared to 30.8% last year[26]. - The group reported a net loss of approximately RMB 85.2 million, compared to a net profit of approximately RMB 95.8 million in the same period last year, mainly due to COVID-19 restrictions and unfavorable changes in the fair value of equity investments[35]. - The company reported a basic loss per share of RMB (0.05) for the six months ended June 30, 2022, compared to earnings of RMB 0.04 per share in the same period of 2021[101]. - The total comprehensive loss for the period was RMB 70,527,000, compared to a total comprehensive income of RMB 81,291,000 in the same period last year[107]. Revenue Segmentation - The company's CRO business revenue rose from RMB 321.0 million to RMB 406.0 million, marking an increase of approximately 26.5% year-on-year[9]. - Revenue from drug discovery services was RMB 406,070 thousand, while the revenue from CDMO commercialization services was RMB 702,677 thousand, contributing to a total segment profit of RMB 344,972 thousand[116]. - Revenue from overseas customers accounted for approximately 83.6%, with a year-on-year growth rate of about 26.0%[10]. - Revenue from Langhua Pharmaceutical for the first half of the year totaled RMB 702.7 million, a decrease of approximately 0.4% year-over-year due to pandemic-related shipment delays[11]. Operational Capacity and R&D - The total contract value of orders on hand is approximately RMB 1,150.0 million, a year-on-year increase of about 35.6% compared to RMB 848.0 million[9]. - The company delivered over 39,643 protein structures to customers, with 5,252 new deliveries in the first half of the year[10]. - The company has cumulatively researched over 1,857 independent drug targets, with 47 new targets delivered in the first half of the year[10]. - The utilization of synchrotron radiation sources reached 962 hours, maintaining long-term cooperation with 12 synchrotron radiation centers globally[10]. - The CMC R&D personnel count reached 150, with a CMC R&D center of approximately 10,000 square meters partially operational since December of the previous year[13]. - R&D investment for the period was RMB 40.9 million, a 9.1% increase from RMB 37.5 million as of June 30, 2021[15]. - PROTAC drug development services accounted for nearly 7.4% of total CRO revenue, with over 30 E3 ligase structures studied[16]. Employee and Workforce - The total number of employees reached 2,309, with CRO R&D personnel increasing by approximately 37.9%[18]. - The number of Full-Time Equivalents (FTE) in drug discovery services increased to 322,495 from 223,779, reflecting a significant growth in operational capacity[23]. - The total employee cost for the reporting period was approximately RMB 290.6 million, with a total of 2,309 employees as of June 30, 2022[43]. Financial Position and Cash Flow - As of June 30, 2022, the total cash and cash equivalents amounted to approximately RMB 712.2 million, a decrease of about 11.1% from approximately RMB 800.9 million as of December 31, 2021[36]. - The debt-to-asset ratio was approximately 51.8% as of June 30, 2022, compared to 51.4% as of December 31, 2021[37]. - Operating cash flow for the six months ended June 30, 2022, was RMB 92,617,000, significantly up from RMB 18,106,000 in the previous year[108]. - The company reported a net cash flow used in investing activities of RMB (180,047) thousand, compared to RMB (851,460) thousand in the previous year, indicating a significant reduction in cash outflow[110]. - The company reported a decrease in inventory by RMB 19,622,000, contrasting with an increase of RMB 15,584,000 in the previous year[108]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[52]. - The independent auditor, Ernst & Young, has reviewed the interim financial information and found no significant issues[57]. - The company confirmed compliance with the corporate governance code during the six months ending June 30, 2022[55]. - The board of directors will continue to review and monitor the company's practices to maintain high standards of corporate governance[54]. Shareholder Information and Equity - The company has not recommended the distribution of an interim dividend for the six months ended June 30, 2022[44]. - The company’s directors and senior executives hold a total of 50,332,551 shares, representing approximately 2.60% of the issued share capital[60]. - The shareholding structure indicates significant concentration, with major shareholders holding over 5% of the issued shares[67]. - The company aims to attract and retain top talent through its share incentive plans, which include options and awards[74]. Convertible Bonds and Financial Instruments - The company issued USD 180,000,000 convertible bonds with a 2.5% interest rate, maturing on February 11, 2025, with an initial conversion price of HKD 5.7456 per share[164]. - The company reported a total of RMB 223,666,000 in liabilities related to the convertible bonds as of December 31, 2021[169]. - The company plans to redeem all outstanding bonds at 105.23% of the principal amount on December 30, 2025, along with accrued and unpaid interest[172]. - The company reported a loss of RMB 10,050,000 from changes in fair value related to embedded derivatives as of June 30, 2022[169]. Taxation and Compliance - The company’s income tax expense for the six months ended June 30, 2022, was RMB 21,746,000, compared to RMB 26,252,000 for the same period in 2021, reflecting a decrease of approximately 17.5%[130]. - The estimated corporate income tax rate for the subsidiary in Shanghai is 15% for the six months ended June 30, 2022, as it is renewing its "High-tech Enterprise" qualification[134]. - The company’s tax strategy includes leveraging various tax incentives available in different jurisdictions to optimize its tax liabilities[136]. Future Outlook and Strategic Plans - The company plans to strengthen its one-stop drug R&D and production service platform, enhancing the synergy between CRO and CDMO businesses[20]. - The company plans to continue expanding its market presence and developing new products and technologies to drive future growth[120]. - The company will continue to assess its business objectives and may adjust plans based on changing market conditions[47].

Financial Performance - In 2021, the group's revenue increased significantly from RMB 697.0 million to RMB 2,104.1 million, representing a growth of approximately 201.9% year-on-year[6]. - Revenue for the year ended December 31 reached RMB 2,104.1 million, an increase of 201.9% compared to RMB 696.0 million in the same period of 2020[12]. - Gross profit for the same period was approximately RMB 651.0 million, up 113.5% from RMB 304.9 million in 2020[12]. - Net profit for the year was approximately RMB 300.6 million, a turnaround from a net loss of RMB 378.9 million in 2020[12]. - Adjusted net profit under non-IFRS was approximately RMB 352.5 million, an increase of 39.7% compared to RMB 252.3 million in 2020[12]. - The total number of customers served by the group increased to 1,820, with total revenue rising from RMB 697.0 million to RMB 2,104.1 million, representing a year-on-year growth of approximately 201.9%[18]. - Gross profit increased from RMB 304.9 million to RMB 651.0 million, reflecting a year-on-year growth of approximately 113.5%[18]. - Adjusted net profit rose from RMB 252.3 million to RMB 352.5 million, marking a year-on-year increase of 39.7%, primarily driven by the rapid growth of the CRO business and the revenue increase from the acquisition of Zhejiang Langhua Pharmaceutical Co., Ltd.[18]. Operational Highlights - The company delivered approximately 13,134 protein structures during the reporting period, a year-on-year increase of 73.8%, and added 226 new independent drug targets, bringing the total number of clients to 1,032[6]. - The number of research pipelines for incubated companies increased to 185, with 20 pipelines entering clinical stages in 2021[7]. - The available capacity for CDMO operations was 671 cubic meters, with an additional 189 cubic meters expected to be operational in 2022[7]. - The CMC R&D center, covering approximately 10,000 square meters, partially commenced operations in December 2021, with 120 CMC researchers[7]. - The company aims to enhance the synergy between CRO and CDMO businesses and build an open cooperation platform for global biopharmaceutical innovators in 2022[9]. - The company plans to deepen project business capabilities to accelerate the funnel effect and maximize company and shareholder value[9]. Acquisitions and Investments - The company acquired multiple properties in Shanghai, Zhangjiang, Chengdu, Hangzhou, and Jiaxing to support rapid business growth and personnel plans[7]. - The subsidiary, Langhua Pharmaceutical, obtained MPP licensing to produce and supply Merck's oral antiviral drug Molnupiravir to low- and middle-income countries[9]. - The company acquired 100% of SYNthesis med chem (Hong Kong) Limited for approximately RMB 451.0 million on February 28, 2021, with no other significant investments or acquisitions reported during the period[60]. - A total of 14 incubated companies completed new financing rounds, raising over USD 360 million[27]. Financial Stability - Total assets as of December 31 were RMB 8,044.8 million, a slight decrease from RMB 8,154.1 million in 2020[11]. - The company’s equity attributable to owners was RMB 3,913.4 million, up from RMB 3,756.8 million in 2020[11]. - The capital debt ratio was 51.4% for the year, compared to 53.9% in 2020, indicating improved financial stability[11]. - As of December 31, 2021, the company's cash and cash equivalents totaled approximately RMB 800.9 million, a decrease of 65.3% from approximately RMB 2,308.5 million as of December 31, 2020, mainly due to repayment of bank loans of approximately RMB 975.6 million[57]. - The debt-to-asset ratio as of December 31, 2021, was approximately 51.4%, down from 53.9% as of December 31, 2020[58]. Research and Development - The R&D investment for the reporting period was RMB 92.4 million, a 40.0% increase from RMB 66.0 million for the year ended December 31, 2020[28]. - The company continues to focus on innovative drug development and has integrated resources to provide comprehensive services from early-stage drug research to commercialization[17]. - The company has published approximately 10 research papers related to obesity and diabetes, showcasing its commitment to scientific advancement[126]. Market and Customer Insights - CRO business revenue surged from RMB 438.8 million to RMB 740.4 million, a growth of approximately 68.7%, with a backlog of orders amounting to RMB 965.0 million, up 58.9% year-on-year[19]. - The CRO business's customer distribution is diversified, with approximately 72.5% of revenue coming from the United States and 16.1% from mainland China, which saw an increase of approximately 83.8% year-on-year[19]. - Revenue from customers in the United States reached RMB 646.5 million, up 63.0% from RMB 396.9 million year-on-year, while revenue from the European Union increased to RMB 590.2 million, a rise of 363.5% from RMB 127.5 million[38]. Corporate Governance - The company has a strong focus on maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[145]. - The company has adopted the principles and code provisions of the Corporate Governance Code as per the listing rules to ensure proper oversight of business activities and decision-making processes[145]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[149]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional qualifications to enhance performance[168]. Shareholder Relations - The company emphasizes effective communication with shareholders to strengthen investor relations[190]. - The company’s website serves as a communication platform for shareholders and investors, providing access to financial and other relevant information[191]. - The company is committed to maintaining ongoing dialogue with shareholders, particularly through annual general meetings[190].

Financial Performance - The company reported a significant revenue increase from approximately RMB 197.6 million to approximately RMB 1,026.5 million, representing a growth of about 419.5% year-over-year[8]. - Gross profit rose from approximately RMB 100.1 million to approximately RMB 316.3 million, reflecting a year-over-year increase of about 216.0%[8]. - Adjusted net profit increased from approximately RMB 123.7 million to approximately RMB 204.9 million, marking a growth of about 65.6% compared to the same period last year[8]. - The group’s revenue for the reporting period was approximately RMB 1,026.5 million, representing an increase of about 419.5% compared to RMB 197.6 million in the same period last year[21]. - Net profit for the period was approximately RMB 95.8 million, a turnaround from a net loss of RMB 530.3 million in the same period last year, driven by a 62.5% increase in revenue from drug discovery services[35]. - The company reported a profit attributable to ordinary equity holders of RMB 85,020,000 for the six months ended June 30, 2021, compared to a loss of RMB 530,272,000 in the same period of 2020[142]. Revenue Segments - The drug discovery service revenue grew from approximately RMB 197.6 million to approximately RMB 321.1 million, an increase of about 62.5% year-over-year[9]. - The CDMO segment generated revenue of approximately RMB 415 million from 26 completed projects, accounting for about 58.8% of total sales revenue[10]. - Revenue from U.S. clients was RMB 320.4 million, up from RMB 164.6 million in the previous year, indicating strong growth in the U.S. market[22]. - The revenue from the drug discovery services segment was RMB 321,065 thousand, while the CDMO commercialization services segment generated RMB 705,386 thousand, contributing to the overall revenue[121]. - Revenue from a major customer amounted to RMB 212,346 million during the reporting period, generated from the CDMO and commercialization services segment[129]. Expenses and Costs - Research and development expenses amounted to RMB 37.5 million, focusing on building technological barriers in drug discovery and CDMO services[12]. - Selling and distribution expenses were approximately RMB 34.7 million, a significant increase of about 1,635.0% from RMB 2.0 million year-on-year, mainly due to the expansion of CDMO business and marketing team[26]. - Administrative expenses rose to approximately RMB 100.4 million, an increase of about 171.4% from RMB 37.0 million in the same period last year, reflecting a rapid increase in employee numbers and higher consulting fees[27]. - Financial costs totaled RMB 96,097 million, an increase from RMB 38,594 million in the previous year[131]. - The cost of goods sold was RMB 498,925 million, with service costs amounting to RMB 31,798 million[133]. Assets and Liabilities - Cash and cash equivalents totaled approximately RMB 669.0 million, a decrease of about 71.0% from RMB 2,308.5 million as of December 31, 2020, primarily due to repayment of bank loans of approximately RMB 910.2 million[36]. - Total liabilities increased to RMB 4,111,314 thousand as of June 30, 2021, compared to RMB 4,397,249 thousand at the end of 2020, reflecting a decrease of approximately 6.5%[110]. - Non-current assets increased to RMB 5,645,709 thousand as of June 30, 2021, up from RMB 4,802,536 thousand at the end of 2020, representing a growth of approximately 17.6%[109]. - Current assets decreased to RMB 2,259,877 thousand from RMB 3,351,544 thousand, a decline of about 32.5%[109]. - The company's net asset value increased to RMB 3,794,272 thousand as of June 30, 2021, compared to RMB 3,756,831 thousand at the end of 2020, reflecting a growth of approximately 1.0%[110]. Corporate Governance - The company has committed to maintaining high standards of corporate governance, which is crucial for enhancing management and safeguarding shareholder interests[53]. - The company has adopted the corporate governance code as part of its governance practices, ensuring compliance with the relevant regulations[54]. - The board will continue to review and monitor the company's practices to uphold high standards of corporate governance[55]. Employee and Talent Management - As of June 30, 2021, the total number of employees reached 1,873, with significant expansion in office and laboratory facilities to meet business growth demands[13]. - The total employee cost for the reporting period was RMB 211.1 million, with a total of 1,873 employees as of June 30, 2021[43]. - The company plans to enhance technical barriers, expand service facilities, and increase talent acquisition to strengthen business development, particularly in the Chinese market[20]. Acquisitions and Investments - The company acquired 100% of SYNthesis for approximately RMB 451.0 million, which was consolidated into the group's financial statements on February 28, 2021[38]. - The identifiable net assets acquired from the Synthesis group were valued at RMB 142,309,000, resulting in goodwill of RMB 308,696,000[193]. - The acquisition resulted in a net cash outflow of RMB 290,610,000 after accounting for cash and bank balances acquired[195]. Shareholder Information - The board does not recommend the distribution of an interim dividend for the six months ended June 30, 2021[44]. - The company repurchased 3,098,500 shares at a total cost of approximately HKD 22.7 million, with a maximum purchase price of HKD 7.56 per share[58]. - The company has not engaged in any other share buybacks, sales, or redemptions during the six months ending June 30, 2021[59]. Future Outlook - The company intends to assess its business objectives continuously and may change or modify plans based on the rapidly changing market conditions[52]. - Future plans include enhancing technical barriers, expanding service facilities, and increasing talent acquisition to strengthen business development, particularly in the Chinese market[20].

Financial Performance - For the year ended December 31, 2020, the company's revenue increased significantly from RMB 323.1 million to RMB 697.0 million, representing a year-on-year growth of 115.7%[5] - The company's revenue for the year ended December 31, 2020, was approximately RMB 696.96 million, an increase of 115.7% compared to RMB 323.1 million in the same period of 2019[11] - Gross profit for the same period was approximately RMB 304.87 million, up 95.6% from RMB 155.9 million in 2019[11] - The net loss for the year was approximately RMB 378.87 million, compared to a net profit of RMB 265.87 million in 2019[11] - Adjusted net profit under non-IFRS was approximately RMB 252.32 million, a decrease of 20.7% from RMB 318.02 million in the previous year[11] - The total assets increased significantly to RMB 8,154.08 million in 2020 from RMB 1,898.79 million in 2019[10] - The group's revenue for the reporting period was approximately RMB 697.0 million, an increase of 115.7% compared to RMB 323.1 million for the year ended December 31, 2019[35] - Revenue from drug discovery services was approximately RMB 438.8 million, up 35.8% from RMB 323.2 million for the year ended December 31, 2019, driven by business growth[35] - The group recorded revenue of approximately RMB 258.2 million from CDMO and commercialization services due to the acquisition of Langhua Pharmaceutical during the reporting period[35] Business Expansion and Acquisitions - By the end of 2020, the CFS drug discovery business served over 543 biotech and pharmaceutical clients, delivering a total of 21,000 protein structures and researching over 1,500 independent drug targets[6] - The strategic integration with Zhejiang Longhua Pharmaceutical Group resulted in Longhua's annual revenue reaching RMB 1,518.1 million, a year-on-year increase of 22.7%, while CFS-CDMO business achieved sales of RMB 875 million, growing by 54%[6] - The company completed the acquisition of SYNthesis med chem Pty Limited for approximately USD 8 million, expanding its capabilities in drug development services[17] - The acquisition of 80% stake in Langhua Pharmaceutical was completed for RMB 2,560 million, making it a non-wholly owned subsidiary[18] - The strategic integration of Langhua Pharmaceutical aims to create a one-stop platform from drug discovery to commercial production[18] - The company completed the acquisition of SYNthesis for approximately USD 80 million, expanding its preclinical drug development services[32] Research and Development - The company invested RMB 66.0 million in R&D during the reporting period, an increase of 46.7% compared to the same period last year[28] - The total number of projects in the pipeline has exceeded 120, with over half having entered the PCC/IND-enabling stage[26] - The company is actively developing new technology platforms, including Cryo-EM and computational chemistry, to meet customer needs[28] Operational Efficiency and Strategy - The company aims to enhance technical barriers, strengthen talent acquisition, and improve operational efficiency to create long-term value for shareholders[8] - The company plans to enhance its existing CMC/CDMO infrastructure and expand into formulation production and customer diversification[18] - The company plans to build a one-stop drug R&D and production service platform to enhance operational efficiency and integrate resources[34] Market Position and Competition - The company faces intensified competition in the pharmaceutical R&D services market, with significant competitors including large international pharmaceutical companies and specialized CRO/CMO organizations[68] - The company relies on the number and scale of service contracts from clients, including multinational pharmaceutical companies and biotech firms, for its business performance[70] - The company has faced risks related to the potential decline in market demand for pharmaceutical R&D services, which could adversely affect its business[70] Financial Management and Capital Structure - The company successfully raised approximately HKD 1,050 million by placing 130,000,000 shares at HKD 8.15 each in July 2020[31] - The company issued $180 million of 2.50% guaranteed convertible bonds due in February 2025, with a conversion price of HKD 5.7456 per share, representing a 26.0% premium over the closing price on January 22, 2020[89] - The company also issued $280 million of 1.00% guaranteed convertible bonds due in December 2025, with a conversion price of HKD 11.6370 per share, representing a 35.0% premium over the closing price on December 17, 2020[90] - The company has a total workforce of 1,619 employees as of December 31, 2020, including 817 in R&D[29] - The capital debt ratio was 53.9% as of December 31, 2020, compared to 6.4% as of December 31, 2019, due to the issuance of convertible bonds and secured bank loans[54] Governance and Compliance - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value, adhering to the Corporate Governance Code as of December 31, 2020[143] - The company has complied with all relevant laws and regulations, with no significant violations reported as of December 31, 2020[77] - The company has implemented measures to ensure compliance with environmental and health regulations, including safety procedures and regular training for employees[76] - The company has adopted multiple share incentive plans that were in effect as of December 31, 2020[92] Shareholder Relations - The company aims to improve shareholder returns through strategic share repurchases and bond redemptions[103][104] - The company is committed to maintaining ongoing dialogue with shareholders, particularly through annual general meetings[186] - The company’s website serves as a communication platform for shareholders and investors, providing access to financial and other relevant information[187] Key Personnel - The company has a strong executive team, including Mr. Mao Chen as CEO, Mr. Wu Ying as Executive Vice President, and Mr. Hua Fengmao as CFO, all appointed in July 2018[132] - The company’s Chief Scientific Officer, Mr. Ye Zhixiong, has over 13 years of experience in drug research at Merck, focusing on diabetes and obesity-related diseases[133] - The Chief Business Officer, Mr. Xu Daqiang, joined the company in 2019, previously holding senior positions at Purdue Pharmaceuticals and Novartis, enhancing the company's marketing and product planning capabilities[135] Risks and Challenges - The company is exposed to foreign currency risks, particularly with revenue generated in USD while most costs are incurred in RMB, which could pressure profit margins if RMB appreciates significantly[71] - The valuation of investments in incubator companies may vary significantly due to the lack of market prices, leading to uncertainty in reported earnings and potential impacts on operating performance[73]

Revenue Growth - Revenue increased significantly from RMB 142.3 million in the same period last year to RMB 197.6 million, representing a growth of 38.9%[6] - Total revenue for the period was RMB 197.6 million, representing a 38.8% growth compared to RMB 142.3 million in the same period last year[16] - The company reported revenue of approximately RMB 197.6 million, an increase of 38.9% compared to RMB 142.3 million in the same period last year[14] - Revenue from CFS model increased to RMB 154.0 million, up 45.0% from RMB 105.4 million in the previous year[15] - Revenue from EFS model reached RMB 43.5 million, a 17.8% increase from RMB 36.9 million year-on-year[15] - Revenue from Full-Time Equivalent (FTE) services to non-investment clients increased to RMB 118,102 thousand, up 47.9% from RMB 79,781 thousand in the previous year[114] - Revenue from Fee-for-Service (FFS) to non-investment clients rose to RMB 35,908 thousand, a 40.3% increase from RMB 25,620 thousand in the previous year[114] - Total revenue from services provided to non-investment clients reached RMB 154,010 thousand, representing a 45.0% growth compared to RMB 105,401 thousand in the previous year[114] - Revenue from FTE services to investment clients was RMB 13,924 thousand, up 12.9% from RMB 12,330 thousand in the previous year[114] - Revenue from SFE (Service Fee Equivalent) to investment clients increased to RMB 28,756 thousand, a 18.8% rise from RMB 24,340 thousand in the previous year[114] - Total revenue from services provided to investment clients amounted to RMB 43,547 thousand, a 17.9% increase from RMB 36,940 thousand in the previous year[114] - Revenue recognized over time from FTE services was RMB 132,026 thousand, up 43.3% from RMB 92,111 thousand in the previous year[115] - Revenue recognized at a point in time from FFS services was RMB 36,775 thousand, a 42.0% increase from RMB 25,890 thousand in the previous year[116] Profitability - Adjusted net profit rose from RMB 98.6 million to RMB 123.7 million, marking an increase of 25.5% year-on-year[6] - Gross profit increased to RMB 100.1 million, up 39.2% from RMB 71.9 million, with a gross margin of 50.7%[19] - The group reported a net loss of approximately RMB 530.3 million, compared to a net profit of RMB 46.5 million in the same period last year, primarily due to increased fair value losses on embedded derivatives of convertible bonds[31] - The adjusted non-IFRS net profit increased by 25.5% from approximately RMB 98.6 million to approximately RMB 123.7 million, with an adjusted non-IFRS net profit margin of 62.6%, down from 69.3% in the same period last year[31] Order Backlog - As of June 30, 2020, the total order backlog amounted to approximately RMB 493 million, a substantial increase of 138.2% compared to the same period last year[6] - The CFS model's order backlog reached approximately RMB 325 million, reflecting a growth of about 118% year-on-year[6] - The EFS model's order backlog was approximately RMB 168 million, showing a significant increase of 190% compared to the previous year[6] Research and Development - Research and development investment amounted to RMB 22.3 million, focusing on new technology platforms such as Cryo-EM and HDX-MS[12] - The company reviewed over 425 projects globally and incubated 10 new startups, bringing the total to 56 startups with an average equity stake of 21.78%[8] - The company has accelerated the integration of the new drug R&D production service chain in response to the pandemic[5] - The CRO industry in China is showing a positive growth trend after a brief adjustment due to the pandemic[5] Financial Position - As of June 30, 2020, the total cash and cash equivalents amounted to approximately RMB 1,521.3 million, an increase of 68.3% from RMB 904.1 million at the end of 2019, mainly due to proceeds from convertible bonds[32] - The debt-to-asset ratio increased to 42.4% as of June 30, 2020, from 6.4% at the end of 2019, primarily due to an increase in liabilities from convertible bonds by RMB 1,224.7 million[33] - Non-current assets increased to RMB 1,123,902 thousand as of June 30, 2020, up from RMB 804,359 thousand as of December 31, 2019, representing a growth of 39.7%[100] - Current assets rose significantly to RMB 2,174,141 thousand, compared to RMB 1,094,426 thousand in the previous year, marking an increase of 98.8%[100] - Total liabilities increased to RMB 1,399,295 thousand, up from RMB 1,113,391 thousand, reflecting a rise of 25.7%[102] - The company's net asset value reached RMB 1,898,748 thousand, an increase from RMB 1,777,394 thousand, indicating a growth of 6.8%[102] Corporate Governance - The company confirms that good corporate governance is essential for enhancing management and protecting shareholder interests[49] - The company has complied with the corporate governance code for the six months ending June 30, 2020[52] - The audit committee has reviewed the interim financial information, confirming compliance with International Accounting Standards[56] - The company aims to identify suitable candidates to separate the roles of Chairman and CEO in the long term[50] - The board will continue to review and monitor the company's practices to maintain high standards of corporate governance[51] Shareholder Information - The company repurchased 3,652,500 shares at a total cost of approximately HKD 15.2 million, with the aim to enhance shareholder value[53] - The repurchased shares were subsequently canceled, reflecting the board's belief that the market price did not reflect the intrinsic value of the shares[53] - The company also repurchased USD 4,500,000 of 2025 convertible bonds for a total cost of USD 3,870,000, realizing a gain of USD 630,000[54] - As of June 30, 2020, the company’s directors and senior management held a total of 326,910,365 shares, representing approximately 19.38% of the issued share capital[59] Employee Relations - The company has maintained stable employee relations without significant labor disputes affecting business activities[41] - The company has provided competitive compensation packages to retain employees, including salaries, bonuses, and benefits[41] - The total employee cost for the group during the reporting period was RMB 86.5 million, with 798 employees as of June 30, 2020[41] Capital Expenditures and Investments - Capital expenditures during the reporting period were approximately RMB 70.2 million, significantly higher than RMB 15.1 million in the same period last year, primarily for facility construction and equipment procurement[37] - The group made a significant investment by acquiring 100% equity of Shanghai Shenyu Wire Co., Ltd. for RMB 120.0 million in March 2020[34] - The company successfully acquired land use rights for a property at a competitive price of RMB 392,370,000 on July 1, 2020, aimed at supporting future business growth[172] Convertible Bonds - The company issued USD 180 million convertible bonds due in 2025 to support business expansion and daily operations[13] - The initial conversion price for the bonds is set at HKD 5.7456 per share, with adjustments based on stock splits and other corporate actions[151] - As of June 30, 2020, the fair value of the debt portion of the convertible bonds was approximately RMB 919.37 million, while the derivative portion was RMB 354.95 million, totaling RMB 1.27 billion[156] - Total transaction costs related to the issuance of the convertible bonds amounted to $2.588 million, equivalent to RMB 18.28 million[154] Stock Options and Share Plans - The total number of stock options granted was 59,121,313, with 31,270,209 exercised during the reporting period[79] - The employee stock option plan was adopted on April 14, 2019, and is valid for ten years[81] - The company aims to enhance shareholder value through the stock option plan by incentivizing eligible participants[81] - The total stock options exercised by other employees during the reporting period amounted to 17,475,236[79] - The company has a maximum limit of 150,000,000 shares that can be issued under the post-IPO share option plan, which does not exceed 10% of the total shares issued at the time of trading commencement[85] Financial Performance - The company reported a total comprehensive loss of RMB 523,122 thousand for the period, compared to a loss of RMB 530,272 thousand in the previous period, indicating a slight improvement[104] - The group reported a loss attributable to equity holders of the parent of RMB (530,272,000) for the six months ended June 30, 2020, compared to a profit of RMB 46,496,000 in 2019[125] - The company reported a significant increase in financial assets at fair value through profit or loss, totaling RMB 855,775,000 as of June 30, 2020, compared to RMB 652,483,000 as of December 31, 2019[136]

Financial Performance - In 2019, the revenue of VIVA Biotech increased by 53.9% to RMB 323.1 million, compared to RMB 210.0 million in the previous year[5]. - Net profit surged by 193.5% to RMB 265.9 million, up from RMB 90.6 million in the same period last year[5]. - The revenue from the CFS business rose by 58.8% to RMB 245.6 million, compared to RMB 154.7 million in the previous year[6]. - Revenue for the year ended December 31, 2019, was approximately RMB 323.1 million, an increase of 53.9% compared to RMB 210.0 million for the same period in 2018[12]. - Gross profit for the same period was approximately RMB 155.9 million, up 47.8% from RMB 105.5 million in 2018[12]. - Adjusted net profit under non-IFRS was approximately RMB 318.0 million, an increase of 134.7% compared to RMB 135.5 million in 2018[12]. - Revenue from repeat customers accounted for 81.5% of total revenue during the reporting period[16]. - Total revenue from the top ten customers increased from RMB 91.0 million in 2018 to RMB 125.3 million in 2019[16]. - The company's total assets reached RMB 1,898.8 million by the end of 2019, a significant increase from RMB 529.3 million in 2018[11]. - EFS business revenue for 2019 was RMB 77.5 million, representing a growth of approximately 40.0% year-over-year[17]. Business Growth and Expansion - The total contract value of backlog orders increased by 91.8% to RMB 349 million[6]. - Customer retention rate reached 81%, with over 438 biotech and pharmaceutical clients served, including nine of the top ten pharmaceutical companies globally[6]. - The company expanded its facilities in 2019, adding approximately 8,000 square meters in Shanghai and a modern research and production center covering about 50 acres in Chengdu[8]. - The company aims to enhance its service capabilities across the entire drug development value chain and expand partnerships with industry capital[9]. - The company delivered over 13,700 protein structures and more than 1,200 independent drug targets in 2019[16]. - The company established a new drug incubation and production R&D center in Chengdu, covering an area of 50 acres, aimed at integrating drug R&D and production[22]. - The company is actively building new technology platforms, including Cryo-EM and Computational Chemistry, to enhance drug discovery and biotesting capabilities[26]. Awards and Recognition - VIVA Biotech was included in the Hang Seng Hong Kong Listed Biotech Index in December 2019, reflecting recognition from the capital market[8]. - The company received multiple industry awards, including the "Most Welcomed New Stock Award" at the 4th Golden Stock Awards[8]. Research and Development - R&D investment for the year amounted to RMB 45.0 million, focusing on various drug discovery platforms and increasing existing equipment and talent[23]. - The ASMS screening platform received widespread recognition for its efficiency and cost-effectiveness in drug discovery[23]. Financial Management and Investments - The group recorded listing expenses of approximately RMB 17.9 million during the reporting period, down from RMB 24.3 million for the year ended December 31, 2018[36]. - The fair value gain on financial assets recognized in profit or loss was approximately RMB 217.6 million, significantly up from RMB 68.3 million for the year ended December 31, 2018, reflecting increases in equity value of three incubation investment companies[37]. - The group reported impairment losses of approximately RMB 1.8 million under the expected credit loss model, compared to RMB 0.1 million for the year ended December 31, 2018[38]. - Cash and cash equivalents totaled approximately RMB 904.1 million as of December 31, 2019, a 481.0% increase from RMB 155.6 million as of December 31, 2018, primarily due to proceeds from the global offering[45]. - The group’s asset-liability ratio decreased to 6.4% as of December 31, 2019, down from 52.5% as of December 31, 2018[46]. - The group acquired a 35% equity stake in Proviva for approximately USD 12.56 million and recorded a fair value change gain of approximately RMB 157.33 million from this investment during the reporting period[47]. Corporate Governance - The company has adopted the corporate governance code and has complied with its relevant provisions since listing on May 9, 2019[133]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors[136]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, to oversee specific aspects of governance[145]. - The company has implemented internal control policies and procedures to ensure effective risk management and compliance with applicable laws and regulations[166]. - The company has established a risk management framework to provide reasonable assurance regarding the effectiveness of its internal controls[166]. Shareholder Engagement and Dividends - The board plans to distribute up to 40% of distributable profits for the fiscal year ending December 31, 2019, subject to shareholder approval and operational cash flow requirements[156]. - The company is committed to maintaining effective communication with shareholders, particularly through annual general meetings[173]. - The company has established a website to serve as a communication platform for shareholders and investors, providing access to financial and other relevant information[173]. Employee and Leadership - The company expanded its employee count from 486 to 731, with 614 being R&D personnel, reflecting a significant increase in workforce[22]. - The company has a strong leadership team with over 17 years of experience in corporate services and governance, enhancing operational efficiency[130]. - The company has strengthened its team by adding 6 top scientists and professionals, bringing the total to over 20, enhancing its core capabilities in project value assessment and R&D prospects[24]. Risks and Challenges - The company faces intensified competition in the pharmaceutical R&D services market, with major competitors including large pharmaceutical companies and specialized CRO/CMO organizations[64]. - The company’s revenue is significantly impacted by foreign exchange risks, particularly with the appreciation of the Renminbi against the US dollar[67]. - The company is exposed to risks related to the failure of incubated investment companies, which are primarily early-stage firms engaged in new drug development[68]. - The company’s operational performance may be affected by fluctuations in the fair value of equity investments in incubated companies, which are typically private and lack market pricing[69]. - The company’s overseas revenue constitutes a significant portion of its main business, making it vulnerable to changes in the political and economic environment of foreign markets[70].

Revenue Growth - The company's revenue increased significantly from approximately RMB 77.4 million in the previous year to about RMB 142.3 million, representing a growth of 83.9%[4] - Revenue from the CFS business segment grew from approximately RMB 61.2 million to about RMB 105.4 million, reflecting a growth of 72.2% compared to the same period last year[5] - Revenue from the top ten customers increased from approximately RMB 39.7 million to about RMB 64.7 million, a year-over-year growth of 63%[5] - Revenue from services provided to non-investment clients (CFS model) increased to RMB 105,401,000 in 2019 from RMB 61,226,000 in 2018, representing a growth of 72.0%[13] - Revenue from services provided to investment clients (EFS model) rose to RMB 36,940,000 in 2019 from RMB 16,156,000 in 2018, marking an increase of 128.6%[13] - Revenue from FTE services was RMB 79,781,000, significantly higher than RMB 46,583,000 in the prior year, indicating a 71% increase[114] - Revenue from SFE services also saw growth, reaching RMB 24,340,000 compared to RMB 12,671,000, which is a 92% increase[116] - Revenue from the United States increased to RMB 119,545 thousand, up 74.4% from RMB 68,598 thousand in the same period last year[117] - Revenue from China rose to RMB 22,135 thousand, a significant increase of 158.5% compared to RMB 8,566 thousand in the previous year[117] Profitability - The adjusted net profit rose from approximately RMB 66.9 million to about RMB 98.6 million, marking an increase of 47.4% year-over-year[4] - Net profit for the reporting period was approximately RMB 46.5 million, a decrease of 8.5% from RMB 50.8 million in the same period last year, with a net profit margin dropping from 65.7% to 32.7%[30] - Adjusted non-IFRS net profit increased by 47.4% to approximately RMB 98.6 million, with an adjusted non-IFRS net profit margin of 69.3%, down from 86.5% in the previous year[30] - Basic earnings per share were RMB 0.04, compared to RMB 0.05 in the same period last year[80] - The diluted earnings per share for the six months ended June 30, 2019, were calculated based on a weighted average of 1,330,936,000 shares, compared to 1,178,481,000 shares in 2018, marking an increase of about 12.9%[126] Expenses and Costs - Gross profit for the reporting period was approximately RMB 71,900,000, a 70.0% increase from RMB 42,300,000 in the previous year, with a gross margin of 50.5%[17] - Research and development expenses rose to RMB 15,600,000, a 40.5% increase from RMB 11,100,000 in the previous year, attributed to an increase in R&D personnel[20] - Administrative expenses increased to RMB 22,400,000, up 119.6% from RMB 10,200,000, reflecting the expansion of the incubation team and increased rental costs[21] - Total employee costs, including director remuneration, amounted to RMB 67,349 thousand, up from RMB 35,857 thousand in the previous year, an increase of 87.6%[123] Financial Position - As of June 30, 2019, total cash and cash equivalents amounted to approximately RMB 1,249.3 million, a 702.9% increase from RMB 155.6 million the previous year, primarily due to proceeds from the global offering[30] - Current assets were approximately RMB 1,324.3 million, with current liabilities of approximately RMB 67.2 million, resulting in a zero debt-to-equity ratio as cash exceeded borrowings[31] - The company’s equity increased to RMB 1,693,369 thousand as of June 30, 2019, from RMB 251,442 thousand, representing a substantial growth of 573.5%[82] - The total liabilities decreased from RMB 235,435 thousand to RMB 51,250 thousand, a reduction of 78.2%[82] - The company reported a total of RMB 3,994,000 in research and development service fees from related parties for the six months ended June 30, 2019, an increase from RMB 1,681,000 in the same period of 2018[164] Shareholder Information - The board declared an interim dividend of HKD 0.005 per share for the six months ended June 30, 2019[37] - The company declared a special dividend of RMB 120,747,000 for the six months ended June 30, 2019, compared to no dividend declared for the same period in 2018[129] - Major customer A contributed RMB 17,541 thousand to total revenue, accounting for over 10% of the group's total revenue[118] Corporate Governance and Compliance - The company confirms compliance with corporate governance codes from the listing date to June 30, 2019[41] - The Audit Committee has reviewed the interim financial information for the reporting period, confirming no significant issues[45] - The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance with global accounting standards[90] Future Outlook and Strategy - The company provided a future outlook, projecting a revenue growth of 20% for the next fiscal year, driven by new product launches[174] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2021[172] - A strategic acquisition of a local competitor is expected to be finalized by Q4 2019, which will enhance the company's product offerings[173] - The company aims to reduce operational costs by 15% through efficiency improvements in the supply chain[172] Research and Development - The company is actively enhancing its core technology platforms, including SBDD, FBDD, and ASMS, to improve service offerings and operational efficiency[9] - Investment in R&D increased by 30%, focusing on innovative technologies and product enhancements[175] Stock Options and Share Buyback - The company announced a share buyback program allowing the repurchase of up to 150,000,000 shares, representing 10% of the total issued shares post-global offering, with 7,628,000 shares repurchased at a total cost of HKD 31,902,000 (approximately RMB 28,087,000) as of the report date[169] - The total number of stock options exercised by directors and their associates during the reporting period is 43,737,473[66] - The total number of stock options exercised by other employees during the reporting period is 45,163,925[68]