证券研究报告 | 年报点评报告 2024年03月27日 药明生物（02269.HK） 业绩稳健符合预期，新增项目数逐季恢复，持续增长可期 公司发布 2023年年度报告。2023年公司实现收入170.3亿元，同比增长 买入（维持） 11.6%；实现归母净利润 34.0亿元，同比降低 23.1%，归母经调整净利润 股票信息 47.0亿元，同比下降4.6%。 行业 生物技术 公司收入利润符合预期，非新冠收入保持快速增长，尤其后期商业化项目。 前次评级 买入 公司 2023 全年收入同比+11.6%符合预期，其中非新冠项目收入同比约 +37.7%，其中非新冠后期与商业化的非新冠项目收入同比+101.7%。分阶 3月26日收盘价(港元) 13.56 段看，临床前期/临床 I 期与 II 期/临床 III 期与商业化分别实现收入同比 总市值(百万港元) 57,742.73 +9.2%/+12.7%/+12.8%，随着欧美生物技术融资触底反弹，临床前收入增 总股本(百万股) 4,258.31 长有望逐步恢复。分地区看，北美/欧洲/中国/其他地区分别实现收入同比 其中自由流通股(%) 100.00 -5.0%/+101.9% ...

Financial Performance - The company's revenue for the year ended December 31, 2023, reached RMB 17,034.3 million, representing an 11.6% increase compared to RMB 15,268.7 million in 2022[2]. - Gross profit increased by 1.5% to RMB 6,827.9 million, with a gross margin of 40.1%, down from 44.0% in the previous year[2]. - Net profit attributable to shareholders decreased by 23.1% to RMB 3,399.7 million, with a net profit margin of 21.0%, down from 29.8%[2]. - The group's total revenue for the year ended December 31, 2023, was approximately RMB 17,034.3 million, an increase of 11.6% from RMB 15,268.7 million in the previous year[22]. - Adjusted net profit for 2023 was RMB 4,950.4 million, a decrease of 2.0% from RMB 5,053.9 million in 2022[59]. - Adjusted net profit margin decreased to 29.1% in 2023 from 33.1% in 2022[59]. - Basic adjusted earnings per share for 2023 was RMB 1.13, down from RMB 1.18 in 2022[59]. - The company reported a net profit of RMB 3,570.6 million for the year, down from RMB 4,549.9 million, reflecting a decrease of 21.5%[75]. - The basic earnings per share for the year was RMB 0.82, down from RMB 1.06 in the previous year[75]. Revenue Breakdown - Non-COVID revenue surged by 37.7%, while revenue from late-stage and commercial production projects skyrocketed by 101.7%[5]. - North America contributed RMB 8,073.5 million (47.4% of total revenue), showing a decrease of 5.0% compared to RMB 8,496.4 million (55.6% of total revenue) in the previous year[20]. - Europe saw a significant increase in revenue, rising by 101.9% to RMB 5,140.8 million (30.2% of total revenue) from RMB 2,546.2 million (16.7% of total revenue) in the previous year[20]. - Revenue from China decreased by 16.1%, amounting to RMB 3,121.5 million (18.3% of total revenue) compared to RMB 3,719.0 million (24.4% of total revenue) in the previous year[20]. - Revenue from the top five customers increased by 29.5% to approximately RMB 6,059.7 million, accounting for 35.6% of total revenue[23]. - Revenue from the top ten customers grew by 22.8% to approximately RMB 7,660.4 million, representing 45.0% of total revenue[23]. Operational Highlights - The number of ongoing integrated projects increased from 588 to 698, including 132 new projects, marking a record for non-COVID projects[3]. - The number of commercial production projects rose from 17 to 24, with nine new late-stage clinical and commercial production projects added[3]. - The proprietary bispecific antibody platform WuXiBodyTM has established 45 collaborations, showcasing the company's leadership in antibody development[6]. - The company has empowered 110 INDs during the reporting period, aiming to bring more high-quality and affordable biopharmaceuticals to global patients[8]. - The WuXiaTM platform has delivered over 800 cell lines, including five commercialized products, and can empower 150 integrated CMC projects annually[8]. - The WuXiUPTM platform can achieve batch yields equivalent to 10,000 to 20,000 liters of traditional stainless steel reactors using 1,000 to 2,000 liter single-use bioreactors[8]. - The company has achieved a process performance confirmation success rate of over 97%, indicating one of the best performances in the industry[10]. - The number of projects for the vaccine business platform has increased to 59, including 25 integrated projects, demonstrating the company's capabilities and scale[11]. Investments and Future Plans - The company plans to allocate RMB 4,359.6 million (40% of total funds) for additional production capacity across various technology platforms by the end of 2024[67]. - Investment in mRNA-related technology is projected at RMB 1,089.9 million, accounting for 10% of the total funds, with a timeline extending to the end of 2024[67]. - The company plans to continue expanding its CRDMO services and enhance its biopharmaceutical offerings to capture a larger market share in the coming years[84]. Cost and Expenses - R&D expenses increased by 15.1% to approximately RMB 785.8 million, reflecting continued investment in innovation and technology[33]. - Selling and marketing expenses grew by 80.5% to approximately RMB 294.0 million, representing 1.7% of total revenue[31]. - The total operating expenses, including sales and marketing, administrative, and R&D expenses, amounted to RMB 2,831.8 million, compared to RMB 2,115.3 million in the previous year, marking an increase of 33.8%[74]. - Employee costs for 2023 were approximately RMB 4,486.6 million, an increase of 11.1% from RMB 4,036.2 million in 2022[61]. Assets and Liabilities - Property, plant, and equipment increased by 13.3% from approximately RMB 24,171 million to approximately RMB 27,378 million, attributed to ongoing investments in facility construction[39]. - The total cash and bank balances, including time deposits, rose by 49.4% from approximately RMB 6,699.7 million as of December 31, 2022, to approximately RMB 10,009.8 million as of December 31, 2023, primarily due to net proceeds of approximately RMB 3,604.0 million from the independent listing of WuXi AppTec[52]. - The total borrowings decreased by 22.8% from approximately RMB 2,783.0 million as of December 31, 2022, to approximately RMB 2,147.4 million as of December 31, 2023, mainly due to the repayment of bank loans during the reporting period[54]. - The company's net assets increased to RMB 44,017,882 thousand in 2023, compared to RMB 36,213,077 thousand in 2022, indicating a growth of 21.1%[77]. Compliance and Governance - The company adheres to Good Manufacturing Practice (GMP) standards[114]. - The company operates in compliance with the International Financial Reporting Standards (IFRS)[114]. - The company has a compensation committee under the board of directors[114]. - The company is subject to regulations from the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA)[114].

2024 年3 月6 日 医药: 超配 证券研究报告 / 公司更新报告 药明生物 (2269 HK, 买入, 目标价: HK$29.09) 2023 年盈利或受公允价值变动损失所拖累 目标价: HK$29.09 当前股价: HK$19.94 • 生物安全法案短期内应该难以落地，但日益加剧的中美地缘冲突或将中长期压制相关 股价上行/下行空间 +46% 公司估值。 52周最高/最低价 (HK$) 58.15/14.70 市值 (US$mn) 3,131 • 2023 年和2024 年前两个月，恒指生物医药和纳斯达克生物医药指数皆跑输大盘。 当前发行数量(百万股) 1,228 • 下调DCF（WACC：9.9%）目标价至29.09 港币，维持买入。 三个月平均日交易額 163 (US$mn) 流通盘占比 (%) 100 生物安全法案短期内应该难以落地：2024 年1 月26 日，美国议员Mike Gallagher 向美 主要股东 (%) 国众议院提交了生物安全法案（BIOSECURE Act）草案版本，本条例旨在禁止与某些生物 WuXi Biologics Holdings 14 技术供应商签订合约。文件中提到了 ...

药明生物（2269 HK） | 2024年3月1日 香港股市 | 医药 更新报告 药明生物（2269 HK） 评级：中性 目标价：20.90 港元 预计投资浮亏将影响盈利，未来重点关注订单情况 股票资料（更新至2024年2月29日） 美国国内对生物安全法草案目前有较多争议，预计审议仍需时间 现价 19.04 港元 由于公司股价 1 月下旬以来受美国国会提出的《生物安全法案草案》影响波动较大，我 总市值 81,078.28百万港元 流通股比例 85.70% 们近期再次审视公司营运情况，公司管理层表示目前暂未看到该草案对收入端带来影 已发行总股本 4,258.31 百万 响。关于该草案中指出的首席执行官陈智胜先生具军方背景事宜，公司早前公告表明陈 52周价格区间 14.7-59.878港元 先生从未为军事医学科学院或任何具有军事背景的机构工作过，也没有直接或间接从任 3个月日均成交额 1,360.35 百万港元 主要股东 李革等（占 13.84%） 何具有军事背景的机构中获得过任何报酬。公司声明没有人类基因组学业务，也没有在 来源：彭博、中泰国际研究部 任何业务中涉及人类基因数据。从近期海外媒体的报道看，美国国内 ...

【港股医药外包概念股反弹 药明生物涨超3%】财联社1月29日电，截至发稿，康龙化成(03759.HK)涨4.76%、泰格医药(03347.HK)涨3.18%、药明生物(02269.HK)涨3.05%。根据公告，2024年1月26日，该公司注意到美国众议院上提出一项法案草案，建议限制美国行政机关与若干生物技术供应商订立合约。法案草案仍有待美国立法机构进一步审议变更。同时法案草案中对公司首席执行官及执行董事陈智胜有关经历的描述具有误导性。法案草案提及的学术头衔是2013年在陈智胜唯一一次受邀讲座后作为一种礼遇而授予，这是中国高等院校惯例。该公司还指出，陈智胜既没有为军事医学科学院或任何具有军事背景的机构工作过，也没有从具有军事背景的机构中获得过任何报酬。 ...

Financial Performance - Revenue for the first half of 2023 reached RMB 8,492,046 thousand, representing a 17.8% increase from RMB 7,206,440 thousand in the same period of 2022[15] - Gross profit for the same period was RMB 3,560,634 thousand, with a gross margin of 41.9%, down from 47.4% in the previous year[15] - Profit before tax decreased by 13.7% to RMB 2,528,976 thousand, while net profit was RMB 2,337,860 thousand, a decline of 10.8% compared to RMB 2,621,225 thousand in 2022[15] - The company's revenue for the six months ended June 30, 2023, increased by 17.8% year-on-year to RMB 8,492.0 million, with gross profit rising by 4.3% to RMB 3,560.6 million[24] - The company’s revenue increased by 17.8% from approximately RMB 7,206.4 million for the six months ended June 30, 2022, to approximately RMB 8,492.0 million for the six months ended June 30, 2023[73] - The company reported a net profit of RMB 2,337.9 million for the six months ended June 30, 2023, down from RMB 2,621.2 million in the previous year, reflecting a decrease of 10.8%[185] - The total comprehensive income for the six months ended June 30, 2023, was RMB 2,004.6 million, compared to RMB 2,339.5 million in the previous year[185] Assets and Liabilities - Total assets increased by 5.2% to RMB 52,141,232 thousand, while total liabilities decreased by 1.9% to RMB 13,096,912 thousand[15] - The total cash and bank deposits rose by 13.5% from approximately RMB 6,699.7 million as of December 31, 2022, to approximately RMB 7,603.6 million as of June 30, 2023, attributed to net cash inflow from operating activities during the reporting period[109] - Non-current liabilities totaled RMB 4,956,064 thousand, compared to RMB 4,032,711 thousand in the previous year, reflecting an increase of approximately 22.9%[192] - The company's equity attributable to owners increased to RMB 37,738,377 thousand from RMB 35,047,407 thousand, marking an increase of approximately 7.7%[192] Cash Flow - The company reported a cash flow from operating activities of RMB 2,135.6 million for the period[179] - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 2,750,086 thousand, compared to RMB 1,457,918 thousand in 2022, representing an increase of approximately 88.6%[197] - The net cash used in investing activities was RMB 1,589,164 thousand, a decrease from RMB 2,362,787 thousand in the previous year, indicating improved cash flow management[197] Research and Development - Research and development expenses rose by 25.9% to approximately RMB 341.4 million, reflecting continued investment in innovation and technology[87] - The company has continued to invest in research and development, focusing on new product and technology advancements to drive future growth[192] Market Strategy and Growth - The company continues to focus on its end-to-end CRDMO service platform, which supports the entire biopharmaceutical development process[17] - The business model is based on a "follow and win molecules" strategy, which aligns revenue growth with the advancement of biopharmaceutical projects[17] - The company is committed to expanding its market presence and enhancing its service offerings in the biopharmaceutical sector[17] - Future outlook includes continued investment in new technologies and product development to meet client demands[17] - The company is exploring market expansion opportunities and potential mergers and acquisitions to enhance its competitive position in the industry[192] Employee and Governance - The total number of employees reached 12,397, including a team of 4,344 scientists, with a key talent retention rate exceeding 98%[31] - The company is committed to maintaining high standards of corporate governance and has complied with all applicable codes during the reporting period[128] - The company has adopted various employee stock option plans to incentivize qualified participants based on their contributions[122] Regulatory and Compliance - The company has a dedicated regulatory affairs team to monitor and adapt to changing regulatory requirements in the biopharmaceutical industry[134] - The company has established strict compliance plans to monitor legal and regulatory changes, ensuring operational adaptability[135] Strategic Partnerships and Collaborations - The strategic partnership with Amicus Therapeutics, Inc. led to the approval of the innovative therapy Pombiliti™ by the European Commission, marking a significant milestone for the company[29] - The company entered a licensing agreement with GSK plc, receiving an upfront payment of $40 million and potential milestone payments of up to $1.46 billion for the development of four T-cell engagers (TCEs)[29] - The company expanded its collaboration with Cidara Therapeutics, Inc. to provide CMC development services for Cidara's oncology projects, showcasing its leading capabilities in the ADC market[29] Production and Capacity - The company has established commercial production facilities in the U.S. for COVID-19 and related CDMO projects as part of its global expansion strategy[174] - The company aims to double its ADC production capacity by the end of 2023 to meet the demand for late-stage development and production projects[60] - The total planned production capacity will reach 580,000 liters, distributed across China, the USA, Ireland, Germany, and Singapore[64] Awards and Recognition - The company received multiple awards, including the "Leading CDMO Company Award" for the sixth consecutive year and the "Best CDMO Award" at the IMAPAC 2023 Asia Pacific Bioprocessing Excellence Awards[31] Financial Ratios and Metrics - Basic earnings per share decreased by 9.8% from RMB 0.61 to RMB 0.55, while diluted earnings per share decreased by 10.3% from approximately RMB 0.58 to RMB 0.52[93] - Adjusted EBITDA for the same period was RMB 3,818.3 million, compared to RMB 3,686.4 million in 2022, reflecting an increase of about 3.6%[121] - The adjusted EBITDA margin decreased to 45.0% from 51.2% year-on-year[121]

Financial Performance - Revenue for the six months ended June 30, 2023, increased by 17.8% year-on-year to RMB 8,492.0 million[2] - Gross profit rose by 4.3% to RMB 3,560.6 million, with a gross margin of 41.9%, down from 47.4%[2] - Net profit attributable to the company’s owners decreased by 10.6% to RMB 2,266.7 million, with a net profit margin of 26.7%[2] - The group’s revenue increased by 17.8% from approximately RMB 7,206.4 million for the six months ended June 30, 2022, to approximately RMB 8,492.0 million for the six months ended June 30, 2023[40] - The company reported a total of RMB 2,814,958 million in borrowings due within one year as of June 30, 2023, compared to RMB 2,782,993 million at the end of 2022, indicating an increase of approximately 1.1%[124] - The company recorded a total of RMB 3,230.6 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of 2023, down from RMB 3,392.7 million in 2022[79] Project and Client Growth - The number of ongoing projects increased from 534 to 621, with nearly 580 non-COVID projects, indicating strong business growth[3] - The number of early clinical development projects rose from 204 to 269, while late-stage clinical projects increased from 43 to 66[3] - The total value of uncompleted orders grew from USD 18,467 million to USD 20,108 million, with uncompleted service orders increasing from USD 12,809 million to USD 13,562 million[7] - The company served 573 clients in the reporting period, up from 434 clients in the previous year, indicating expanded customer reach[7] Strategic Partnerships and Collaborations - The strategic partnership with Amicus Therapeutics, Inc. led to the approval of the innovative therapy Pombiliti™ by the European Commission, marking a significant milestone for the company[9] - The company entered a licensing agreement with GSK plc, receiving an upfront payment of $40 million and potential milestone payments of up to $1.46 billion for the development of up to four T-cell engagers (TCEs)[10] - The company expanded its CRDMO subsidiary's collaboration with Cidara Therapeutics, providing CMC development services for Cidara's oncology projects[10] Technological Advancements - The integration of digital technologies has enhanced the efficiency of the CRDMO platform, significantly reducing research time and costs[8] - The company is enhancing its drug discovery capabilities through advanced technologies, including computer-aided drug discovery (CADD) and single B-cell cloning technology[16][17] - The company has developed a data-driven approach to identify tumor-specific antigens (TSA) and tumor-associated antigens (TAA), with three TCEs currently in Phase I clinical trials[15] Awards and Recognition - The company received multiple awards, including the 2023 "Leading CDMO Award" for the sixth consecutive year and the "Best CDMO Award" at the IMAPAC 2023 Asia-Pacific Bioprocessing Excellence Awards[10] - The company has been recognized for its ESG practices, achieving a top rating from Sustainalytics and being ranked in the top 5% of the industry by S&P Global[10] Operational Efficiency and Capacity Expansion - The company has the capability to empower 150 INDs and 12 BLAs annually through its leading biopharmaceutical development team[18] - The WuXia® platform can enable 150 integrated CMC projects each year, delivering over 750 cell lines, including five commercial products[19] - The WuXiUP™ platform has been applied in over 130 processes, achieving a production scale equivalent to 10,000 to 20,000 liters with a high purification yield[20] - The company has expanded its formulation development and production capabilities, successfully completing large batches for client projects[27] Financial Management and Investments - The company has established a series of forward contracts to manage currency risk and has adopted hedge accounting for derivatives to mitigate the impact of exchange rate fluctuations on profit and loss[74] - The company faced foreign exchange risks primarily involving USD and EUR due to its borrowings and sales denominated in these currencies[73] - The company has proposed a spin-off of WuXi AppTec, aiming to enhance its focus on bioconjugates and improve resource allocation, which is expected to create value for the company and its shareholders[86] Employee and Governance Practices - The company’s workforce reached 12,397 employees, including a team of 4,344 scientists, with a key talent retention rate exceeding 98%[11] - The company has implemented a comprehensive training system for employees, covering topics such as corporate culture, ethics, and quality management, to enhance employee knowledge and skills[81] - The company confirmed compliance with the corporate governance code and has committed to continuous improvement in governance practices[81] Market Outlook and Future Plans - The global biopharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030[39] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[88] - The company is actively pursuing regulatory approvals from agencies such as the US FDA and the European EMA for its new drug applications[133]

Financial Performance - The company achieved a revenue growth of 48.4% year-on-year, reaching RMB 15,268.7 million[7]. - Gross profit increased by 39.2% year-on-year to RMB 6,724.0 million[7]. - Adjusted net profit for 2022 was RMB 5,053.94 million, reflecting a significant increase from RMB 3,435.91 million in 2021[13]. - The group's revenue for the year ended December 31, 2022, increased by 48.4% year-on-year to RMB 15,268.7 million, with adjusted net profit rising by 48.5% to RMB 4,925.3 million[19]. - The company achieved a revenue of RMB 15,268.66 million in 2022, representing a 48.5% increase from RMB 10,290.05 million in 2021[13]. - Net profit increased by 29.7% from approximately RMB 3,508.6 million for the year ended December 31, 2021, to approximately RMB 4,549.9 million for the year ended December 31, 2022, with a net profit margin of 29.8%[86]. - Basic earnings per share increased by 30.9% from RMB 0.81 for the year ended December 31, 2021, to RMB 1.06 for the year ended December 31, 2022[87]. - The adjusted EBITDA for the year ended December 31, 2022, was RMB 6,857.4 million, with an adjusted EBITDA margin of 44.9%[112]. Revenue Sources - Non-COVID related revenue surged by 62.8% year-on-year, indicating strong growth momentum[7]. - The IND pre-service revenue grew by 45.8% to approximately RMB 4,945.6 million, accounting for 32.4% of total revenue[71]. - Early clinical development service revenue increased by 100.1% to approximately RMB 3,207.8 million, representing 21.0% of total revenue[71]. - Late clinical development and commercialization revenue rose by 39.0% to approximately RMB 6,854.3 million, making up 44.9% of total revenue[71]. - The five largest customers' revenue grew by 25.0% to approximately RMB 4,680.1 million, accounting for 30.7% of total revenue[73]. - The ten largest customers' revenue increased by 28.1% to approximately RMB 6,236.6 million, representing 40.8% of total revenue[73]. Investments and Expansion - The company announced a USD 1.4 billion investment in Singapore to build a leading integrated CRDMO service center over the next decade[7]. - The company plans to achieve net-zero emissions by 2050 and aims to reduce waste density by 10% from 2022 to 2027[10]. - The company is committed to enhancing its CRDMO platform to create greater value for shareholders and improve drug discovery and development processes[10]. - The company is actively pursuing mergers and acquisitions to enhance its competitive edge and market share[122]. - The company aims to expand its market presence and enhance its product offerings through strategic partnerships and acquisitions[121]. Operational Capacity and Projects - The total number of ongoing projects reached 588, with 136 new projects added during the year[7]. - The total value of unfulfilled orders grew to USD 20.571 billion, with milestone payment orders at USD 7.032 billion[7]. - The production capacity reached 262,000 liters, with new CRDMO centers operational in China, Europe, and the USA[8]. - The number of ongoing integrated projects increased by 22.5% to 588 in 2022, with nearly 550 being non-COVID related projects[15]. - The company successfully advanced 70 projects from pre-IND to early clinical development during the reporting period[15]. Compliance and Regulatory Standards - The company successfully removed its subsidiaries from the U.S. Department of Commerce's unverified list, demonstrating compliance with regulatory standards[7]. - The company received its first GMP certification for the Dundalk facility in Ireland just nine months after it became operational, highlighting its speed and quality[23]. - The company has 14 production facilities certified by GMP, including new certifications in Germany and Ireland[10]. - The group has completed over 900 GMP audits and more than 70 EU QP audits, demonstrating compliance with global quality standards[55]. Research and Development - The integrated antibody-drug conjugate platform secured 94 projects globally, with 40 IND submissions completed[8]. - The proprietary bispecific antibody platform WuXiBody® has been applied in 39 licensed projects, showcasing its effectiveness and flexibility in biopharmaceutical innovation[33]. - The group is advancing 99 bispecific antibody projects, leveraging its extensive expertise and a top-tier scientific team[33]. - The group has developed DAR4 technology to control the drug-antibody ratio around 4, significantly reducing the heterogeneity of ADC molecules and their CMC development complexity[31]. - The group is continuously identifying and optimizing innovative biopharmaceutical fields and developing patented technologies to enable clients to discover and develop highly differentiated innovative biopharmaceuticals[27]. Employee and Leadership - The total number of employees increased to 12,373, with 4,372 scientists dedicated to biopharmaceutical R&D, achieving a key personnel retention rate of 95%[24]. - The leadership team includes experienced professionals with backgrounds in major pharmaceutical companies, ensuring a strong foundation for future growth[122]. - The management team has a diverse background in both scientific and operational roles, ensuring a comprehensive approach to biopharmaceutical development and manufacturing[128][132]. Corporate Governance and ESG - The company received several awards for its services and ESG practices, including the 2022 CMO Leadership Award for the fifth consecutive year[64]. - The company was recognized as the highest-rated ESG company in the Asia-Pacific region by Sustainalytics for the second consecutive year[64]. - The company has set ESG as a core strategic focus for long-term development, prioritizing diversity, equity, and inclusion[62]. - The leadership team is committed to maintaining high standards of corporate governance and operational integrity[121]. Market Outlook and Future Guidance - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of 20% to $1.44 billion[127]. - Future guidance indicates a commitment to increasing production capacity and improving service delivery to meet growing market demands[121]. - The global biopharmaceutical outsourcing market is expected to continue growing in the coming years due to increasing demand for innovative drugs and therapies[67].

Financial Performance - The company's revenue for the year ended December 31, 2022, increased by 48.4% to RMB 15,268.7 million compared to RMB 10,290.1 million in 2021[2] - Net profit attributable to the company’s owners increased by 30.5% to RMB 4,420.3 million, with a net profit margin of 29.0%[2] - Adjusted net profit attributable to the company’s owners grew by 48.5% to RMB 4,925.3 million, maintaining an adjusted net profit margin of 32.3%[2] - The company reported a total comprehensive income of RMB 4,399.62 million for the year, significantly higher than RMB 2,789.98 million in the previous year, marking an increase of approximately 57.8%[92] - The company achieved positive free cash flow in 2022, laying a solid foundation for continued growth[36] - The company reported a compound annual growth rate (CAGR) of 61.4% in revenue and 79.6% in adjusted net profit from 2014 to 2022[36] Revenue Breakdown - Revenue from North America accounted for 55.6% of total revenue, amounting to RMB 8,496.4 million, while revenue from China remained stable at 24.4%, totaling RMB 3,719.0 million[38] - IND pre-service revenue grew by 45.8% to approximately RMB 4,945.6 million, representing 32.4% of total revenue, while early clinical development services revenue increased by 100.1% to RMB 3,207.8 million, accounting for 21.0%[39] - Revenue from the top five customers rose by 25.0% to approximately RMB 4,680.1 million, constituting 30.7% of total revenue, down from 36.4% the previous year[41] Cost and Expenses - The group's cost of sales increased by 56.5% to approximately RMB 8,544.6 million, aligning with the revenue growth[42] - Administrative expenses rose by 44.9% from approximately RMB 875.9 million for the year ended December 31, 2021, to approximately RMB 1,269.6 million for the year ended December 31, 2022, primarily due to increased employee-related costs[48] - Research and development expenses grew by 36.1% from approximately RMB 501.6 million for the year ended December 31, 2021, to approximately RMB 682.8 million for the year ended December 31, 2022, reflecting ongoing investments in innovation and technology[49] Project and Client Growth - The total number of ongoing projects increased by 22.5% to 588, with nearly 550 being non-COVID related projects[3] - The company provided services to 599 clients in the reporting period, up from over 470 clients in the previous year[6] - The company successfully transitioned 11 external projects into its pipeline, including 5 late-stage and commercial production projects[3] Production Capacity and Facilities - The company announced a $1.4 billion investment to build a leading integrated CRDMO service center in Singapore over the next decade, which will add 120,000 liters of biopharmaceutical capacity by 2026[9] - The company is expanding its production capacity with new facilities in Shanghai, Hebei, and New Jersey, further strengthening its global production capabilities[10] - The total planned capacity is expected to reach 580,000 liters post-2026, including the new CRDMO center in Singapore[28] Compliance and Certifications - The company successfully removed its two subsidiaries from the UVL, demonstrating its commitment to the highest compliance standards[9] - The company achieved its first GMP certification from HPRA for its Dundalk facility in Ireland just nine months after it became operational, marking a significant milestone for commercial production services[9] - The company has completed over 900 GMP audits and more than 70 EU QP audits, demonstrating compliance with global quality standards[27] Technology and Innovation - The company is focused on enhancing its drug discovery capabilities, with approximately 400 scientists working on innovative biopharmaceutical solutions[11] - The company has developed proprietary platforms for bispecific and multispecific antibodies, accelerating the development of new biopharmaceuticals[12] - The WuXiBody® platform has been applied in 39 licensed projects, providing flexibility and high yield for bispecific antibody development[16] Strategic Partnerships and Collaborations - The company has established 44 new business partnerships in its vaccine segment, a 57.1% increase from the previous year, including 20 comprehensive projects[17] - A collaboration agreement with a global vaccine giant has a total contract value exceeding $3 billion and spans an initial term of 20 years[17] - The company entered into a licensing agreement with GSK plc, which includes an upfront payment of USD 40 million and potential milestone payments of up to USD 1.46 billion for the development of four TCE antibodies[88] Employee and Talent Management - The total number of employees has increased to 12,373, with 4,372 scientists dedicated to biopharmaceutical R&D, and a key personnel retention rate of 95%, exceeding industry averages[10] - The total employee cost for the year was approximately RMB 4,036.2 million, an increase from RMB 3,572.7 million in the previous year, indicating a rise of 13%[77] - The board has approved a new stock incentive plan aimed at retaining key talent and aligning their interests with shareholders[129] Environmental and Social Governance (ESG) - The company aims to achieve net-zero emissions by 2050 and plans to reduce waste density by 10% from 2022 to 2027[32] - The company received multiple awards for its excellence in service and ESG practices, including the "Best CDMO Award" at the 2022 Asia-Pacific Biopharma CMO Excellence Awards[34] - The company is committed to adhering to global ESG and compliance standards while promoting operational efficiency and new platform growth[36] Future Outlook and Guidance - The company has provided a revenue guidance of RMB 1.8 billion for the upcoming fiscal year, which reflects an expected growth of 20%[129] - The company plans to continue expanding its market presence and investing in new technologies to enhance its service offerings[95] - The company is actively exploring opportunities for mergers and acquisitions to bolster its growth strategy in the biopharmaceutical sector[129]

Financial Performance - Revenue for the first half of 2022 reached RMB 7,206,440, representing a 63.5% increase compared to RMB 4,406,754 in the same period of 2021[8] - Gross profit increased by 48.6% to RMB 3,413,207, with a gross margin of 47.4%, down from 52.1% in the previous year[8] - Adjusted net profit rose by 60.9% to RMB 2,914,934, with an adjusted net profit margin of 40.4%[8] - The company's revenue for the six months ended June 30, 2022, increased by 63.5% year-on-year to RMB 7,206.4 million, with gross profit rising by 48.6% to RMB 3,413.2 million[18] - Adjusted net profit attributable to the company increased by 60.3% year-on-year to RMB 2,835.0 million[18] - Net profit grew by 39.2% from approximately RMB 1,882.8 million to approximately RMB 2,621.2 million, with a net profit margin decreasing from 42.7% to 36.4%[96] - Basic earnings per share increased by 38.6% from RMB 0.44 to RMB 0.61, while diluted earnings per share rose by 38.1% from RMB 0.42 to RMB 0.58[98] Project Development - The total number of integrated projects increased by 30.9% to 534, including nearly 500 non-COVID projects, indicating strong sustainable growth[14] - The number of preclinical projects grew by 35.4% to 287, while early clinical development projects increased by 27.5% to 204[14] - Late-stage clinical development and commercialization projects rose by 19.4% to 43, including 14 commercialization projects[14] - The company successfully advanced 32 projects from pre-IND to early clinical development during the reporting period[14] - The company executed its "Win the Molecule" strategy effectively, incorporating five external projects into its pipeline[14] Assets and Liabilities - The total assets of the company as of June 30, 2022, were RMB 47,473,253, a 7.8% increase from RMB 44,032,623 at the end of 2021[8] - Total liabilities increased by 5.9% to RMB 11,992,622, while total equity rose by 8.5% to RMB 35,480,631[8] - Trade and other receivables rose by 38.3% from approximately RMB 4,857.3 million to approximately RMB 6,715.4 million, influenced by revenue growth and delayed collections due to COVID[105] - Cash and cash equivalents decreased by 16.6% from approximately RMB 10,150.9 million to approximately RMB 8,470.9 million, primarily due to higher allocations to principal-protected financial products[110] Investment and Expansion - The company announced a USD 1.4 billion investment to build a leading integrated CRDMO service center in Singapore, which will add 120,000 liters of biopharmaceutical production capacity by 2026[24] - The new biopharmaceutical formulation plant (DP5) has successfully commenced GMP production, marking the company's first commercial pre-filled syringe production facility[24] - The company is constructing a second ADC formulation facility, expected to double its production capacity to meet the demand for late-stage development and production projects[31] - The new biopharmaceutical development and production facility in Worcester, Massachusetts, covering 200,000 square feet, is expected to be completed around 2024[67] Regulatory and Compliance - The company has a dedicated regulatory affairs team to monitor and adapt to new laws and regulations, ensuring compliance with evolving regulatory requirements[144] - The company has adopted a series of measures to enhance its compliance with international standards in response to increasing regulatory scrutiny in the biopharmaceutical industry[142] - The company is committed to maintaining high standards of corporate governance and has complied with all provisions of the corporate governance code during the reporting period[136] Employee and Shareholder Information - As of June 30, 2022, the group had 10,593 employees, with employee costs amounting to RMB 1,707.9 million for the six months ended June 30, 2022, compared to RMB 1,184.8 million for the same period in 2021, representing an increase of approximately 44%[127] - The company has implemented various employee incentive plans, including stock option plans and restricted share award plans, to reward eligible participants for their contributions[127] - The company has a significant concentration of ownership, with major shareholders holding over 50% of the total shares[164] Risk Management - The company recognizes the importance of robust risk management and has established mechanisms to assess significant risks, including operational and financial risks[141] - The group faces significant risks related to global political, international trade, and regulatory changes, which can impact financial performance[145] - Interest rate risk is managed through a review of fixed and floating rate borrowings, ensuring they remain within reasonable limits[146] - The ongoing COVID-19 pandemic has been identified as a business risk, with the group ensuring supply continuity and timely delivery to customers despite challenges[156]