Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion for the fiscal year ending December 31, 2023[6]. - The company provided a forward guidance of 10% revenue growth for the next fiscal year, projecting revenues to reach RMB 1.32 billion[6]. - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 107.813 million, with a gross profit of RMB 85.069 million[24]. - Total revenue for the year ended December 31, 2024, reached RMB 107.8 million[47]. - License fee income for the year ended December 31, 2024, was RMB 82.8 million, accounting for 76.8% of total revenue[45]. - R&D service income for the same period was RMB 25.0 million, representing 23.2% of total revenue[46]. - The company recorded a pre-tax loss of RMB 97.599 million for 2024, an improvement from a loss of RMB 191.702 million in 2023[24]. - Total loss and comprehensive expenses for the reporting period were RMB 97.6 million, a decrease of RMB 94.1 million compared to RMB 191.7 million in the previous year, attributed to increased revenue and reduced listing expenses[61]. Research and Development - Investment in R&D increased by 25%, amounting to RMB 300 million, focusing on new product development and technology advancements[6]. - Research and development expenses increased to RMB 164.986 million in 2024, compared to RMB 155.054 million in 2023, indicating a focus on innovation[24]. - R&D spending on technical service fees accounted for 69.8% of total R&D expenses, increasing from 61.6% in the previous year[55]. - The core product M701 is currently in Phase III clinical trials for treating malignant ascites (MA) and has shown promising preliminary efficacy and safety signals[33]. - M701 is also undergoing Phase Ib/II clinical trials for malignant pleural effusion (MPE), with 24 patients recruited in the Ib phase, demonstrating initial efficacy in controlling MPE in NSCLC patients[33]. - The company plans to submit a Biologics License Application (BLA) for M701 in 2025, following successful clinical trial milestones[28]. - The company has established long-term strategic partnerships in early-stage research with academic institutions, research organizations, and CSOs, focusing on target identification and preclinical drug development[21]. Market Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2025[6]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[85]. - Market expansion efforts include entering three new international markets, aiming for a 10% increase in market share by the end of the next fiscal year[86]. - The company is launching a new dual-specific antibody product, anticipated to generate RMB 500 million in revenue within the first year of launch[6]. Corporate Governance - The company has established a corporate governance framework in accordance with the corporate governance code outlined in the listing rules[115]. - The board promotes a corporate culture that aligns with the company's mission, values, and strategies[114]. - The company has adopted the standard code of conduct as per the listing rules, ensuring compliance by all directors and relevant employees regarding insider trading[118]. - The board of directors is composed of a balanced mix of executive and non-executive directors, ensuring strong independent judgment[119]. - The company is committed to maintaining high standards of corporate governance through the appointment of qualified and experienced directors and supervisors[92][100]. Shareholder Communication - The company emphasizes effective communication with shareholders to strengthen investor relations and understanding of business performance and strategies[190]. - The company has established multiple channels for ongoing dialogue with shareholders, including company communications and announcements[192]. - The company has a shareholder communication policy to ensure timely and equal access to comprehensive information regarding financial performance and strategic goals[191]. - The company will hold investor/analyst briefings, roadshows, and other events to enhance communication with investors[200]. Strategic Acquisitions - A strategic acquisition of a local biotech firm was announced, expected to enhance the company's product pipeline and capabilities[6]. - The company has completed two strategic acquisitions in the past year, enhancing its product portfolio and increasing its competitive edge[89]. Operational Efficiency - The gross margin improved to 60%, up from 55% in the previous year, reflecting operational efficiencies[6]. - The company aims to reduce operational costs by 10% through process optimization initiatives[6]. - The management team emphasizes a focus on sustainable practices, aiming to reduce operational costs by 5% through efficiency improvements[87]. Management Team - The company has a strong management team with diverse backgrounds in finance, clinical medicine, and auditing, enhancing its operational oversight[95][98]. - The company has a strategic focus on expanding its management team with experienced professionals to enhance governance and oversight[94][96]. - The management team includes professionals with advanced degrees from prestigious institutions, such as Oxford University and Huazhong University of Science and Technology[95][98]. Clinical Trials - The Y400 project has successfully entered Phase II clinical trials in China, with ongoing collaborative development efforts with Kangzhe Pharmaceutical for overseas markets[21]. - Y101D completed Phase I clinical trial for metastatic or locally advanced solid tumors in September 2024[35]. - Y332 initiated Phase I clinical trial for metastatic or locally advanced solid tumors in October 2023, with 18 subjects enrolled by February 2025[36]. - Y400 advanced to Phase II multi-center clinical trial in China for age-related macular degeneration, showing good safety and efficacy in Phase I[37]. Financial Management - As of December 31, 2024, cash and cash equivalents decreased to RMB 126.3 million from RMB 196.7 million at the end of 2023, primarily due to increased R&D investments[62]. - Current assets totaled RMB 221.3 million, including cash and cash equivalents of RMB 126.3 million and trade and other receivables of RMB 90.7 million[62]. - Current liabilities amounted to RMB 186.1 million, with bank borrowings of RMB 75.8 million and trade and other payables of RMB 49.4 million[62]. - The company has implemented internal control policies for capital management, allowing investments only in structured deposits and principal-protected financial products issued by major commercial banks in China[65].

Financial Performance - The company reported a revenue of RMB 107,813 thousand for the year ended December 31, 2024, compared to no revenue in the previous years[3]. - The gross profit for the same period was RMB 85,069 thousand, with a cost of revenue amounting to RMB 22,744 thousand[3]. - The company recorded a pre-tax loss of RMB 97,599 thousand for the year, an improvement from a loss of RMB 191,702 thousand in 2023[3]. - Total revenue for the year ended December 31, 2024, was RMB 107.8 million, with licensing revenue at RMB 82.8 million (76.8%) and R&D service revenue at RMB 25.0 million (23.2%)[27]. - Other income decreased from RMB 13.0 million in 2023 to RMB 11.1 million in 2024, primarily due to a reduction in government subsidies by RMB 3.4 million[30]. - The total loss and comprehensive expenses for the reporting period were RMB 97.6 million, a decrease of RMB 94.1 million compared to RMB 191.7 million in the previous year, attributed to increased revenue and reduced listing expenses[41]. - Basic loss per share improved to RMB 0.50 from RMB 1.04 in the previous year, reflecting a reduction in losses[69]. - The company did not recommend a final dividend for the year ended December 31, 2024[62]. Research and Development - Research and development expenses increased to RMB 164,986 thousand, up from RMB 155,054 thousand in 2023, indicating a focus on innovation[3]. - Research and development expenses increased from RMB 155.1 million in 2023 to RMB 164.9 million in 2024, driven by higher costs associated with Phase III and Phase II clinical trials[36]. - The company is focused on developing bispecific antibodies for targeted therapy and tumor immunotherapy to address unmet medical needs in cancer and age-related eye diseases[71]. - The company plans to accelerate the clinical development of core pipeline drugs and aims to complete the production process characterization for M701 in preparation for commercial launch[23]. Clinical Trials and Product Development - The company has three clinical-stage candidates focused on tumor treatment, with M701 being a key product targeting malignant ascites and malignant pleural effusion[5][11]. - M701's Phase III clinical trial for treating malignant ascites commenced in March 2024, with the first patient successfully dosed[12][13]. - Y101D completed Phase I clinical trial for metastatic or locally advanced solid tumors in September 2024[15]. - Y101D's Phase Ib/II trial for advanced/metastatic pancreatic cancer completed Phase Ib in June 2023 and Phase II patient enrollment in October 2023, with expected completion in Q2 2025[15]. - Y332 initiated Phase I clinical trial for metastatic or locally advanced solid tumors in October 2023, currently in dose escalation phase[16]. - Y400 advanced to Phase II multi-center clinical trial in China for age-related macular degeneration, showing good safety and efficacy in Phase I[18]. Assets and Liabilities - Non-current assets decreased to RMB 46,508 thousand from RMB 51,523 thousand in 2023, reflecting a reduction in long-term investments[3]. - The total current assets decreased to RMB 221,335 thousand from RMB 250,101 thousand in 2023, reflecting changes in liquidity[3]. - Current liabilities amounted to RMB 186.1 million, with bank borrowings of RMB 75.8 million and trade payables of RMB 49.4 million[42]. - The company's net asset value decreased from RMB 127,654,000 in 2023 to RMB 30,535,000 in 2024, a decline of approximately 76.1%[70]. Cash Flow and Financing - As of December 31, 2024, cash and cash equivalents decreased to RMB 126.3 million from RMB 196.7 million, primarily due to increased R&D investments[42]. - The net cash used in operating activities was RMB 100.7 million, a decrease from RMB 186.0 million in the same period last year, primarily due to a pre-tax loss of RMB 97.6 million[43]. - The net cash generated from financing activities was RMB 33.0 million, compared to RMB 176.3 million in the same period last year, driven by new bank borrowings of RMB 129.4 million, offset by repayments of RMB 92.0 million[43]. - Bank borrowings increased from RMB 89.5 million as of December 31, 2023, to RMB 126.9 million as of December 31, 2024, due to additional loans obtained for working capital[47]. Government Subsidies and Other Income - Government subsidies accounted for RMB 8.5 million (76.7%) of other income in 2024, down from RMB 11.9 million (92.0%) in 2023[30]. - The company received government subsidies amounting to RMB 8,508,000 in 2024, down from RMB 11,944,000 in 2023[87]. Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal control systems[66]. - The company has implemented internal control policies for capital management, allowing investments only in structured deposits and wealth management products issued by major commercial banks in China[44]. - The company’s financial report and annual results will be published on its website and the Hong Kong Stock Exchange, ensuring transparency and compliance with listing rules[103].

Financial Performance - YZY Biopharma reported a revenue of RMB 150 million for the first half of 2024, representing a 25% increase compared to the same period last year[3]. - The company achieved a net profit margin of 15%, up from 10% in the previous year, indicating improved operational efficiency[3]. - For the six months ended June 30, 2024, the company reported a loss before tax of RMB 78,396,000, compared to a loss of RMB 86,568,000 for the same period in 2023, representing a 9.5% improvement[12]. - The company reported a net cash outflow from operating activities of RMB (58,173,000), an improvement from RMB (72,318,000) in the previous year, suggesting better cash management[91]. - The net loss for the six months ended June 30, 2024, was RMB (78,396,000), an improvement of 9.5% compared to a net loss of RMB (86,568,000) in the same period of 2023[87]. - Basic and diluted loss per share was RMB (0.40), compared to RMB (0.48) for the same period last year, reflecting a reduction in loss per share[87]. Research and Development - YZY Biopharma is investing RMB 50 million in R&D for new technologies aimed at enhancing drug delivery systems[3]. - The company has three clinical-stage candidates specifically targeting tumor treatment or tumor-related complications, including malignant ascites (MA) and malignant pleural effusion (MPE)[14]. - The core product M701 is in a Phase III clinical trial for MA, with the first patient dosed in March 2024 and a BLA submission expected in Q1 2025[18]. - Y101D, another core product, is undergoing an Ib/II clinical trial for advanced pancreatic cancer, with completion expected in Q2 2025[19]. - Y332, a candidate for various solid tumors, began its Phase I clinical trial in October 2023 and is currently in the dose escalation phase[20]. - The company is focused on developing bispecific antibodies for targeted therapy and tumor immunotherapy, addressing significant unmet medical needs in oncology and autoimmune diseases[93]. Market Expansion and Strategic Initiatives - YZY Biopharma plans to launch two new products in Q4 2024, targeting a market expansion in oncology and autoimmune diseases[3]. - The company is exploring strategic partnerships for market expansion in Southeast Asia, aiming to enter three new countries by the end of 2025[3]. - The company has completed the acquisition of a local CDMO, which is expected to increase production capacity by 40%[3]. - The company aims to establish an internal commercialization team to enhance market acceptance of its products in China, particularly focusing on M701[24]. - The company is collaborating with a contract sales organization (CSO) in China to promote M701, with plans to expand its sales team to meet future demand[24]. Financial Position and Assets - Total current assets decreased to RMB 210,939,000 as of June 30, 2024, down from RMB 250,101,000 at the end of 2023, reflecting a reduction in liquidity[12]. - The company's net asset value dropped to RMB 49,589,000 from RMB 127,654,000 at the end of 2023, indicating a significant decline in equity[12]. - Current liabilities slightly decreased to RMB 170,093,000 from RMB 173,820,000, showing some improvement in short-term financial obligations[12]. - The company’s equity total decreased to RMB 49,589,000 from RMB 127,654,000 at the end of 2023, reflecting a significant reduction in shareholder equity[89]. Governance and Corporate Practices - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[77]. - The audit committee has reviewed the unaudited interim financial information and confirmed compliance with relevant accounting standards and regulations[82]. - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of the roles of chairman and CEO[77]. Employee and Management Information - The company has a total of 114 employees, including 90 R&D personnel and 24 general and administrative staff, emphasizing a competitive compensation structure[50]. - Total compensation for key management personnel was RMB 3,789,000 for the six months ended June 30, 2024, compared to RMB 3,592,000 for the same period in 2023[129]. - The company provides various professional development opportunities and emphasizes internal talent cultivation through training programs[50]. Future Outlook - The company’s future outlook includes potential market expansion and strategic partnerships[56]. - The company is actively involved in new product development and technological advancements[56]. - Future outlook includes potential growth driven by new product developments and market strategies[60].

Financial Performance - For the six months ended June 30, 2024, the company reported a loss before tax of RMB 78,396 thousand, an improvement from a loss of RMB 86,568 thousand for the same period in 2023, representing a decrease of approximately 9.5%[2] - Other income for the six months ended June 30, 2024, decreased to RMB 4.8 million from RMB 6.9 million in 2023, primarily due to a reduction in government grants by RMB 3.9 million[15] - The total loss and comprehensive expenses for the reporting period were RMB 78.4 million, a decrease of RMB 8.2 million from RMB 86.6 million in the same period last year[22] - The company did not declare an interim dividend for the reporting period, reflecting a conservative approach to cash distribution amid ongoing losses[36] - The company reported a pre-tax loss of RMB 78,396,000 for the six months ended June 30, 2024, compared to a loss of RMB 86,568,000 in the same period of 2023, indicating an improvement of 9.5%[48] - Basic loss per share improved to RMB (0.40) for the six months ended June 30, 2024, from RMB (0.48) in the same period of 2023, reflecting a reduction of 16.7%[48] Research and Development - Research and development expenses for the period were RMB 70,290 thousand, slightly reduced from RMB 71,598 thousand in the previous year, indicating a decrease of about 1.8%[2] - The company has four clinical-stage candidates, with three specifically targeting tumor treatments or related complications, highlighting a focused pipeline in oncology[4] - The core product M701 is undergoing a Phase III clinical trial for treating malignant ascites (MA), with the first patient successfully dosed in March 2024[7] - M701 is also in an Ib/II clinical trial for malignant pleural effusion (MPE), with 24 patients recruited in the Ib phase, showing preliminary efficacy in controlling MPE in NSCLC patients[7] - The company plans to submit an IND application for M701 targeting solid tumors in Q3 2024, indicating ongoing development efforts[4] - Y101D is being developed for the treatment of solid tumors, with ongoing Phase Ib/II clinical trials for advanced/metastatic pancreatic cancer, having completed patient recruitment for the Phase II stage in October 2023[8] - Y332, targeting multiple solid tumors, has commenced its Phase I clinical trial for metastatic or locally advanced solid tumors as of October 2023, currently in the dose escalation phase[9] - Y400, an ophthalmic drug, has initiated its Phase I clinical trial for neovascular age-related macular degeneration, with preliminary results indicating good safety[10] - Y225, a biosimilar to Emicizumab for hemophilia treatment, has completed initial studies including cell line screening and process development[11] - The company plans to accelerate the clinical development of candidates in the second half of 2024, focusing on M701 and Y101D among others[14] Financial Position - As of June 30, 2024, the company's total non-current assets were RMB 49,018 thousand, a decrease from RMB 51,523 thousand at the end of 2023[2] - Current assets decreased to RMB 210,939 thousand from RMB 250,101 thousand at the end of 2023, reflecting a reduction of approximately 15.5%[2] - As of June 30, 2024, cash and cash equivalents decreased to RMB 161.9 million from RMB 196.7 million as of December 31, 2023, primarily due to funding for ongoing R&D[23] - The net current asset value was RMB 40,846,000, significantly lower than RMB 76,281,000 at the end of 2023, showing a reduction of approximately 46.4%[37] - The company’s total equity decreased to RMB 49,589,000 from RMB 127,654,000, reflecting a decline of approximately 61.1%[37] - The company has several bank borrowings secured by its properties and equipment, with a total book value of RMB 14 million[28] - The company’s capital structure includes bank loans of RMB 79.5 million due within one year and RMB 40.0 million in long-term loans[25] - As of June 30, 2024, the company's bank borrowings increased to RMB 119.5 million from RMB 89.5 million as of December 31, 2023, due to additional loans obtained for working capital[26] - The company's leverage ratio rose significantly from 70.6% as of December 31, 2023, to 161.6% as of June 30, 2024, primarily due to a decrease in equity resulting from losses and total comprehensive expenses in the first half of 2024[27] Corporate Governance - The company has adopted corporate governance codes and has complied with them, except for the separation of the roles of chairman and CEO[32] - The company has established internal guidelines for securities trading by directors and supervisors, ensuring compliance with the standard code of conduct[33] - The company has established an audit committee to oversee financial reporting processes and internal controls, enhancing governance and compliance[35] - The company is committed to improving corporate governance standards in line with the latest listing rules[60] Employee and Operational Insights - The company has 114 employees, including 90 R&D personnel, and emphasizes competitive compensation and professional development opportunities[30] - The employee incentive plans allow participants to gain partnership interests in the company, with a total of 28,413,118 shares directly held under these plans, representing approximately 14.66% of the total issued share capital[30] - Administrative expenses increased to RMB 13.1 million from RMB 8.3 million, primarily due to a rise in professional intermediary fees by RMB 3.3 million[20] - Total employee costs rose to RMB 16,703,000 in the first half of 2024, up from RMB 15,965,000 in the same period of 2023, an increase of 4.6%[46] Market and Strategic Initiatives - The company is actively seeking domestic and international collaborations and commercialization opportunities for M701[7] - A marketing team will be established to enhance commercialization capabilities, with a focus on M701's market promotion and sales upon approval[13] - The company is collaborating with a contract sales organization (CSO) in China, which has a workforce of 300, to support M701's commercialization efforts[13] - The company has invested RMB 300 million in R&D for the current fiscal year, which is a 10% increase from the previous year[58] - The company plans to enhance its digital marketing strategies, aiming for a 40% increase in online engagement[58] - The company is expanding its market presence in Southeast Asia, aiming to increase market share by 30% over the next year[58] - A strategic acquisition of a local biotech firm is anticipated to enhance the company's R&D capabilities and product pipeline[58] - The company has established partnerships with three new CROs to streamline its drug development processes[58]

綜合損益及其他綜合收益表 82 綜合現金流量表 86 2 10 54 目錄 綜合權益變動表 85 | --- | |------------------------| | | | 釋義 | | 公司資料 | | 董事長致辭 | | 財務摘要 | | 管理層討論與分析 | | 董事、監事及高級管理層 | | 企業管治報告 | | 董事報告 | | 監事會報告 | | 獨立核數師報告 | 8 21 74 . ● 於本年度報告內，除非文義另有所指外，下列詞彙具有以下涵義。該等詞彙及其釋義可能無法與任何行業標準 釋義一致，無法與本公司從事相同行業的公司採用的類似專有詞彙直接比較。 年度報告 2023 2 | --- | --- | --- | |----------------------------|-------|---------------------------------------------------------------------| | | | | | 「本公司」 | 指 | 武漢友芝友生物製藥股份有限公司，一家於 2022 年 1 月 13 日在中國成 | | | | 立的股份有限公司，或如 ...

Clinical Development - The company has developed four clinical-stage drug candidates, with three specifically targeting cancer treatment or related complications[8]. - M701 is undergoing an Ib/II clinical trial for treating malignant pleural effusion (MPE) in China, with 24 patients recruited in the Ib phase showing preliminary efficacy[11]. - The company plans to accelerate the development of its drug candidates in 2024, focusing on M701's III phase trial and Y101D's Ib/II phase trial[17]. - The company has decided to postpone the clinical development of certain pipeline candidates to focus resources on the most promising candidates[34]. - The company anticipates holding a pre-BLA submission meeting with the Center for Drug Evaluation (CDE) in Q1 2025[28]. - The company is advancing clinical projects for pipeline products in China and globally, with the first patient enrolled in the Phase III trial of M701 for MA in March 2024[174]. - The company has completed patient recruitment for the Phase II clinical trial of M701, involving 115 patients, demonstrating good safety and efficacy in controlling MA[193]. - The first patient for the Phase III clinical trial of M701 is expected to be enrolled in March 2024, following written consent from the drug review center in February 2024[193]. - Y400, a recombinant anti-VEGF and anti-ANG2 BsAb, has initiated its Phase I clinical trial, with mid-term results indicating good safety[196]. - The IND application for Y400 was approved in April 2023, marking a significant milestone in its development[196]. - Y101D, designed to block PD-1 and PD-L1 axis and TGF-β signaling, is under development for solid tumors, showcasing potential synergistic anti-tumor activity[194]. - Y332 has commenced its Phase I clinical trial in October 2023[192]. - The company has completed patient enrollment for the Phase Ib/II trial of a combination therapy for pancreatic cancer, expected to finish by Q3 2024[192]. - The company warns that there is no guarantee of successful development and commercialization of M701, Y101D, Y332, and Y225[197]. Financial Performance - Other income for the reporting period included government grants and bank interest, totaling RMB 0.7 million, while other losses amounted to RMB 0.3 million[21]. - The company's listing expenses increased significantly from RMB 11.8 million to RMB 24.6 million due to professional fees related to the listing[23]. - The net cash inflow from investment activities was RMB 54.8 million, primarily from redeeming financial assets valued at RMB 491.0 million[25]. - Other income increased from RMB 2.6 million in the same period last year to RMB 13.0 million, primarily due to government subsidies increasing by RMB 9.7 million[39]. - Total loss and comprehensive expenses for the reporting period were RMB 191.7 million, relatively stable compared to RMB 188.9 million in the same period last year[45]. - The company reported a pre-tax loss of RMB 191.7 million, compared to a loss of RMB 188.9 million in the previous year, indicating a slight increase in losses[95]. - Basic and diluted loss per share was RMB 1.04, an improvement from RMB 1.10 in the previous year[95]. - Total operating cash outflow for the reporting period was RMB 186.0 million, compared to RMB 176.7 million in the same period last year, primarily due to a pre-tax loss of RMB 191.7 million[72]. - The company reported a net loss of RMB 191,702,000 for the year ended December 31, 2023, compared to a net loss of RMB 188,866,000 in 2022[188]. - The company reported trade and other payables of RMB 42,373,000 as of December 31, 2023, compared to RMB 33,555,000 in 2022[148]. - The company incurred listing expenses of RMB 24,629,000 in 2023, compared to RMB 11,775,000 in 2022[151]. - The company reported total non-current assets of RMB 51,523 thousand as of December 31, 2023, a decrease from RMB 63,885 thousand in 2022, representing a decline of approximately 19%[96]. - The company has unrecognized tax losses of approximately RMB 903,871,000 as of December 31, 2023, up from RMB 632,811,000 in 2022[140]. - The company has a temporary difference deductible of RMB 34,356,000 as of December 31, 2023, compared to RMB 16,256,000 in 2022[139]. Assets and Liabilities - As of December 31, 2023, current assets amounted to RMB 250.1 million, including cash and cash equivalents of RMB 196.7 million[46]. - The company's leverage ratio increased from 49.2% as of December 31, 2022, to 70.6% as of December 31, 2023, due to an increase in short-term bank borrowings[49]. - Total bank borrowings increased from RMB 76.5 million as of December 31, 2022, to RMB 89.5 million as of December 31, 2023, reflecting additional loans obtained for operational funding[73]. - The company had unutilized bank financing of RMB 160.5 million as of December 31, 2023[73]. - The total liabilities decreased to RMB 173,820 thousand in 2023 from RMB 146,960 thousand in 2022, showing an increase of approximately 18%[96]. - The company's net asset value was RMB 127,654 thousand as of December 31, 2023, down from RMB 155,882 thousand in 2022, a decrease of around 18%[96]. - Cash and cash equivalents increased from RMB 153,500,000 as of December 31, 2022, to RMB 196,700,000 as of December 31, 2023, primarily due to the redemption of investments in financial products[185]. Employee and Administrative Matters - As of December 31, 2023, the company had 123 employees, including 98 R&D personnel and 25 general and administrative staff[57]. - The company plans to recruit capable marketing professionals to enhance commercialization capabilities and expand product coverage in China[36]. - Administrative expenses increased to RMB 22.3 million, up from RMB 20.5 million in 2022, representing a rise of approximately 8.8%[95]. - The company’s administrative expenses for the year were RMB 22,311,000, showing relative stability compared to RMB 20,525,000 in the previous year[182]. - Employee welfare expenses decreased to RMB 8.8 million, accounting for 39.7% of total expenses, down from 44.4% in the previous year[68]. - Professional intermediary fees rose to RMB 5.0 million, representing 22.2% of total expenses, compared to 14.2% in the previous year[68]. Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting processes and internal control systems, ensuring compliance with listing rules[109]. - The next annual general meeting is scheduled for June 27, 2024, with notifications to be published in accordance with listing rules[111]. - The company has not been involved in any significant litigation or arbitration during the reporting period[107]. - The company is subject to new international financial reporting standards effective from January 1, 2024[118]. - The company has been certified as a high-tech enterprise in November 2023, qualifying for a preferential tax rate of 15% for three years starting from 2023[138]. Revenue and Income - The company has not generated any revenue for the years ended December 31, 2023, and 2022[103]. - Total revenue from other income was RMB 13.0 million, significantly higher than RMB 2.6 million in the previous year, marking an increase of over 400%[95]. - The company recorded government grants of RMB 11,944 thousand for the year ended December 31, 2023, significantly up from RMB 2,254 thousand in 2022, reflecting a growth of approximately 429%[104]. - Bank interest income rose to RMB 1,047 thousand in 2023 from RMB 283 thousand in 2022, marking an increase of about 270%[104]. - Total other income for the year ended December 31, 2023, was RMB 13,014,000, a significant increase of 409.4% compared to RMB 2,560,000 in 2022[176].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2023, representing a 25% growth compared to the same period last year[1]. - Total revenue for the first half of 2023 was 6,919 million RMB, a significant increase from 1,167 million RMB in the same period of 2022, representing a growth of approximately 493%[22]. - The company reported a pre-tax loss of 86,568 million RMB, slightly improved from a loss of 89,628 million RMB in the previous year, showing a reduction of approximately 3%[22]. - The gross margin for the first half of 2023 improved to 65%, up from 60% in the previous year, reflecting better cost management and pricing strategies[1]. - The company reported a decrease in current assets and capital resources, indicating a focus on managing operational costs and funding ongoing projects[110]. - The company's net asset value dropped to 69,314 million RMB from 155,882 million RMB, a decline of approximately 56%[22]. - The company incurred listing expenses of 13,499 million RMB, a substantial increase from 509 million RMB in the previous year[22]. - Financial costs rose to 1,435 million RMB from 766 million RMB, representing an increase of approximately 87%[22]. - The total loss and comprehensive expenses remained relatively stable at RMB 86.6 million in the reporting period compared to RMB 89.6 million in the same period last year[90]. Research and Development - The company has allocated 15% of its annual budget towards research and development, focusing on innovative treatment solutions for oncology[1]. - Research and development expenses decreased to 71,598 million RMB from 82,357 million RMB year-on-year, indicating a reduction of about 13%[22]. - The company has developed seven clinical-stage drug candidates, with five specifically targeting cancer treatment or related complications[23]. - The company is focused on developing T-cell engaging bispecific antibodies (BsAbs) and targeting the tumor microenvironment (TME)[23]. - The company plans to initiate Phase III trials for M701 in Q1 2024 and submit a Biologics License Application (BLA) in Q1 2025[24]. - The company is also conducting Ib/II trials for liver cancer and other advanced solid tumors, with completion expected in Q2 2025[24]. - The company has initiated a Phase I trial for Y400, targeting wet age-related macular degeneration (wAMD) and diabetic macular edema (DME)[24]. - The company is committed to advancing its clinical pipeline and achieving regulatory approvals for its drug candidates[23]. Market Expansion and Strategy - The company has provided a positive outlook for the second half of 2023, projecting a revenue growth of 20% to 30% based on current market trends and product demand[1]. - The company is expanding its market presence in Southeast Asia, with plans to establish partnerships with local distributors by early 2024[1]. - A strategic acquisition of a small biotech firm specializing in gene therapy is in progress, aimed at enhancing the company's R&D capabilities[1]. - The company plans to enhance its digital marketing efforts, targeting a 40% increase in online engagement by the end of 2023[1]. - The company aims to expand its market presence through the development of innovative therapies and strategic partnerships[23]. Clinical Trials and Drug Development - M701, the core product, targets EpCAM-expressing cancer cells and CD3-expressing T cells, with ongoing Ib/II clinical trials for malignant pleural effusion (MPE) in China showing encouraging data[27]. - Y101D is currently in Ib/II clinical trials for advanced/metastatic pancreatic cancer, with patient recruitment for the II phase starting in July 2023[28]. - Y150, targeting relapsed/refractory multiple myeloma, is expected to submit an Investigational New Drug (IND) application after completing the II phase of its clinical trial[29]. - The company is assessing Y150 in Phase I clinical trials for treating relapsed/refractory multiple myeloma (rrMM) and is currently recruiting patients[52]. - Y332 received IND approval in April 2023 for treating metastatic or locally advanced solid tumors, demonstrating high affinity and promising anti-tumor efficacy in preclinical studies[54]. - M802, an anti-HER2 and anti-CD3 BsAb, has shown good safety in Phase I trials and the company is considering global licensing opportunities[53]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of corporate governance to protect shareholder interests[183]. - The company is involved in a concerted action agreement among major shareholders, ensuring unified voting on operational matters[200]. - Major shareholders include Wuhan Caizhi with a 28.12% stake in non-listed shares and 0.70% in H shares[145]. - The company has established partnerships with various investment funds, indicating a strategic approach to capital management[200]. - The total number of issued shares includes 82,380,386 non-listed shares and 110,620,814 H shares, with all equity considered as good holdings[140]. Employee and Operational Insights - The company emphasizes employee development through various training programs, enhancing retention and performance[135]. - The company has a strong focus on integrated independent R&D capabilities, highlighting the importance of internal talent cultivation[135]. - As of June 30, 2023, the company had a total of 122 employees, including 99 in research and development[119]. - The employee incentive plans were established to recognize contributions and motivate further development, with participants holding approximately 14.72% of the company's total issued share capital[120][121].