证券代码:300759 证券简称:康龙化成 公告编号:2024-048 康龙化成(北京)新药技术股份有限公司 2024年半年度业绩预告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整,没有虚假 记载、误导性陈述或重大遗漏。 以下为本公司的 2024 年半年度业绩预告。本业绩预告所载之财务数据未经 审计,除经调整的非《国际财务报告准则》下归属于上市公司股东的净利润或另 有注释外,本业绩预告所载之财务数据根据中国企业会计准则编制。 一、本期业绩预计情况 1、业绩预告期间 2024 年 1 月 1 日至 2024 年 6 月 30 日 2、业绩预告情况 预计归属于上市公司股东的净利润同向上升,预计营业收入、归属于上市公 司股东的扣除非经常性损益后的净利润以及经调整的非《国际财务报告准则》下 归属于上市公司股东的净利润同向下降。 项 目 本报告期 上年同期 营业收入 营收:547,091.46 万元–564,011.81 万元 营收:564,011.81 万元 比上年同期下降:0%–3% 盈利:105,515.08 万元–114,287.55 万元 盈利:78,609.30 万元 比上年同期增长:34%–4 ...

Financial Performance - In 2023, the company achieved a revenue of RMB 11,538.0 million, representing a year-on-year growth of 12.4%[6] - The net profit attributable to shareholders was RMB 1,601.1 million, an increase of 16.5% compared to the previous year[6] - The net cash flow from operating activities reached RMB 2,753.5 million, up by 28.5% year-on-year[6] - Total revenue for the year ended December 31, 2023, was approximately RMB 11,538 million, an increase of about RMB 1,272 million or 12.4% compared to the previous year[10] - Gross profit for the same period was RMB 4,095 million, reflecting a growth of 9.2% from RMB 3,749 million in 2022[10] - Adjusted net profit under non-IFRS was RMB 1,903 million, a slight increase of 3.8% from RMB 1,834 million in 2022[10] - The profit attributable to the owners of the parent company was approximately RMB 1,601.1 million, an increase of about 16.5% compared to the year ended December 31, 2022[11] - The net cash flow from operating activities was approximately RMB 2,753.5 million, an increase of about 28.5% compared to the year ended December 31, 2022[11] Assets and Liabilities - By the end of 2023, total assets amounted to RMB 26,476.7 million, reflecting a growth of 29.2% from the beginning of the year[6] - The net assets attributable to shareholders were RMB 12,556.8 million, which is a 19.0% increase from the start of the year[6] - Total liabilities rose to RMB 13,238.667 million in 2023, compared to RMB 9,652.689 million in 2022[13] - The total current assets as of December 31, 2023, were approximately RMB 10,874.4 million, compared to RMB 6,536.0 million as of December 31, 2022[31] - The current ratio as of December 31, 2023, was approximately 3.0, compared to 1.7 as of December 31, 2022[31] Workforce and Operations - The workforce as of December 31, 2023, totaled 20,295 employees, with 89.87% engaged in R&D, production technology, and clinical services[8] - The total number of employees increased by 814 to 20,295, with R&D, production technology, and clinical service personnel making up 89.9% of the workforce[21] - The company operates 21 R&D service centers and production bases across China, the UK, and the US, providing innovative drug development solutions[6] - The company has a workforce of 9,466 employees in laboratory services, with over 6,000 laboratory chemists, positioning it as a leader in scale and experience globally[22] Research and Development - The company is diversifying its service offerings, expanding into new drug areas including small nucleic acids, peptides, antibodies, and ADC drugs[6] - The company continues to enhance its traditional small molecule drug development services while integrating new technologies[6] - The company participated in 764 small molecule drug discovery projects in 2023, maintaining growth in this segment[7] - The company’s integrated service platform has enhanced its competitive advantage in drug development, particularly in small molecule drug discovery and new drug modalities[7] - The company is focused on developing and producing gene and cell therapy products, meeting specific analytical requirements for clinical development[19] Client Base and Market Presence - The company expanded its customer base, adding over 800 new clients, with active clients exceeding 2,800[6] - Revenue from North American customers was RMB 7,400.8 million, an increase of 11.4%, accounting for 64.1% of total revenue[21] - The company served over 2,800 global customers, with those using multiple business segments contributing RMB 8,641.1 million, or 74.9% of total revenue[20] - New customers added during the reporting period exceeded 800, contributing RMB 858.7 million, which accounted for 7.4% of total revenue[20] Corporate Governance and Management - The board of directors was reduced from 11 to 9 members, with 3 executive directors, 2 non-executive directors, and 4 independent non-executive directors[36] - The company emphasizes a "people first, customer-centered" philosophy, focusing on employee development and improving mechanisms for personal career growth[54] - The board has established four specialized committees to oversee specific aspects of corporate governance[92] - The company has a strong management team, including Mr. Lou as COO and Ms. Zheng as Executive Vice President, both of whom have extensive backgrounds in their respective fields[72][73] Environmental, Social, and Governance (ESG) - The company is actively enhancing its ESG performance and has initiated ISO 14001 environmental management system certification[21] - The company has been recognized with multiple awards for its ESG efforts, including being rated as a "low-risk" company by Sustainalytics and included in the ESG Top 50 for Chinese listed companies[22] - The company is committed to environmental protection, health, safety, and intellectual property rights, ensuring the protection of clients' intellectual property[55] Future Outlook and Strategy - The company aims to enhance its service capabilities and management efficiency to meet market and customer demands through integrated drug research and development services[16] - The company plans to continue enhancing its R&D capabilities in large molecules and cell and gene therapy services[34] - The company aims to strengthen its CMC (small molecule CDMO) service competitiveness and expand into new drug areas such as oligonucleotides, peptides, antibodies, ADCs, and cell and gene therapies[58] - The company will continue to focus on "full-process, integrated, and international" development strategies to enhance service quality and gain market share in the pharmaceutical health industry[58] Financial Management and Investments - The company has implemented a series of financing and fiscal policies to manage its capital resources and mitigate related risks[33] - The company completed a capital increase agreement with Kanglong Biotech for a total consideration of approximately RMB 950 million on September 19, 2023[34] - The company has pledged deposits of approximately RMB 127.7 million for issuing letters of credit and environmental protection as of December 31, 2023, compared to RMB 49.3 million on December 31, 2022[33] - The company plans to utilize RMB 377.6 million for operational working capital and other general corporate purposes, with 100% of the funds expected to be utilized by December 31, 2023[144] Risk Management - The company has established a risk management system aimed at enhancing risk prevention capabilities and promoting sustainable development[114] - The internal audit system is designed to improve the quality and efficiency of internal audits, thereby enhancing the company's supervision and risk control mechanisms[114] - The company employs a combination of qualitative and quantitative methods for risk analysis, prioritizing risks based on their likelihood and impact[117] Shareholder Relations - The board of directors will continue to enhance investor relations management in 2024, focusing on proactive communication through various channels[129] - The company has adopted a shareholder communication policy, which was reviewed and deemed effective by the board on March 27, 2024[129] - The company reported a net amount of approximately RMB 4,522.7 million raised from the global offering, fully utilized as per the prospectus dated November 14, 2019[135]

Financial Performance - The company's revenue for Q1 2024 was CNY 2,670,740,738.16, a decrease of 1.95% compared to CNY 2,723,970,949.97 in the same period last year[8] - Net profit attributable to shareholders was CNY 230,557,834.70, down 33.80% from CNY 348,255,328.87 year-on-year[8] - The adjusted net profit attributable to shareholders was CNY 338,816,299.13, reflecting a decrease of 22.70% compared to CNY 438,339,247.42 in the previous year[8] - Operating profit decreased to CNY 268,414,806.18, down 37.8% from CNY 431,571,732.74 in the previous period[43] - Net profit for the current period was CNY 215,919,833.12, a decline of 38.2% compared to CNY 350,146,873.58 in the previous period[44] - Basic earnings per share decreased by 33.94% to ¥0.1300, driven by the reduction in net profit attributable to shareholders[16] - Diluted earnings per share fell by 34.01% to ¥0.1298, also reflecting the decrease in net profit attributable to shareholders[18] - Basic earnings per share for the current period was CNY 0.1300, down from CNY 0.1968 in the previous period[46] - The company reported a net profit of RMB 215,920,000 for the current period, down 38.3% from RMB 350,148,000 in the previous year[53] - The company's basic earnings per share for the current period was RMB 0.1300, down from RMB 0.1968 in the previous year[53] Cash Flow and Assets - Cash flow from operating activities increased by 40.65% to CNY 745,630,586.78, up from CNY 530,139,954.34 in the same period last year[8] - Net cash flow from operating activities increased by 40.65% to ¥745,630,586.78, mainly due to an increase in sales collections[16] - Cash and cash equivalents decreased from CNY 5,918,915,276.72 to CNY 4,633,337,568.45, representing a decrease of about 21.7%[36] - The total current assets decreased from CNY 10,874,413,206.01 to CNY 9,448,379,249.76, a decline of approximately 13.1%[36] - The total assets at the end of the reporting period were CNY 25,243,967,050.83, a decrease of 4.66% from CNY 26,476,712,835.60 at the end of the previous year[8] - The total assets decreased from CNY 26,476,712,835.60 to CNY 25,243,967,050.83, a decline of about 4.7%[37] - The total assets less current liabilities amounted to RMB 21,487,864,000, a decrease from RMB 22,822,237,000 at the end of the previous period[54] Liabilities and Equity - Total liabilities decreased to CNY 11,886,956,291.91 from CNY 13,238,666,497.83, reflecting a reduction of 10.2%[41] - Non-current liabilities totaled CNY 8,130,853,112.80, down 15.2% from CNY 9,584,190,645.48[41] - The total equity attributable to the parent company increased to CNY 12,687,089,142.67 from CNY 12,556,797,361.42, a rise of 1.04%[41] - The total equity attributable to the owners of the parent company was RMB 12,687,089,000, up from RMB 12,556,797,000, indicating an increase of 1.0%[55] Operational Highlights - The company signed new orders that increased by over 20% compared to the same period last year, indicating a recovery in customer inquiries and visits[11] - The gross profit margin for laboratory services was 44.14%, slightly down from 44.48% in the previous year[11] - The gross profit margin for clinical research services improved to 9.32%, up from 14.02% year-on-year[11] - Total operating costs increased to CNY 2,439,362,705.75, up 3.69% from CNY 2,352,273,096.85 in the previous period[43] Research and Development - Research and development expenses increased to CNY 93,605,963.99, up 22% from CNY 76,838,901.31 in the previous period[43] - Research and development expenses increased to RMB 93,606,000, compared to RMB 76,839,000 in the same period last year, reflecting a growth of 22%[53] Other Financial Metrics - The company reported a net profit from non-operating income of CNY 43,209,069.08 for the period[14] - Investment income surged by 177.35% to ¥46,569,164.93, attributed to the repurchase of certain convertible bonds during the reporting period[20] - Other comprehensive income decreased significantly by 1,136.05% to -¥59,702,067.74, mainly due to changes in cash flow hedging reserves[20] - The company reported a foreign exchange-related gain of RMB 25,063,000 in Q1 2024, compared to a loss of RMB 804,000 in the same period last year[58] - The company incurred a one-time loss of RMB 44,016,000 due to the closure of Kanglong Chemical (Shanghai) New Drug Technology Co., Ltd.[58] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 85,011[24] - The number of shares held by the top 10 unrestricted shareholders includes HKSCC NOMINEES LIMITED with 301,502,043 shares[26] - The company plans to release restricted shares for certain executives, with a total of 6,986,213 shares being released this period[32] - The company has ongoing stock incentive plans for 2021 and 2022, with announcements regarding vesting results expected in January 2024[34]

Revenue and Profit Performance - Revenue for Q1 2024 was RMB 2,670,740,738.16, a decrease of 1.95% compared to the same period last year[4] - Net profit attributable to shareholders was RMB 230,557,834.70, down 33.80% year-on-year[4] - Adjusted non-IFRS net profit was RMB 338,816,299.13, a decrease of 22.70% compared to the same period last year[4] - Total revenue for Q1 2024 was 2,670,740,738.16 RMB, a slight decrease from 2,723,970,949.97 RMB in the same period last year[20] - Net profit attributable to the parent company's owners was 230,557,834.70 RMB, down from 348,255,328.87 RMB in the previous year[21] - Basic earnings per share decreased by 33.94% to 0.1300, primarily due to a decrease in net profit attributable to shareholders[10] - Diluted earnings per share decreased by 34.01% to 0.1298, also due to a decrease in net profit attributable to shareholders[10] - Basic earnings per share were 0.1300 RMB, down from 0.1968 RMB in the same period last year[22] - Total comprehensive income for the period was 162,642,198.05 RMB, a significant decrease from 349,276,609.52 RMB in the previous year[22] Cash Flow and Operating Activities - Operating cash flow increased by 40.65% to RMB 745,630,586.78[4] - Sales of goods and services received cash of 2,904,955,644.37 yuan, an increase from 2,460,618,193.07 yuan in the previous period[23] - Total cash inflow from operating activities was 3,137,994,335.42 yuan, up from 2,687,245,318.53 yuan in the previous period[23] - Net cash flow from operating activities increased to 745,630,586.78 yuan from 530,139,954.34 yuan[24] - Cash paid for employee compensation and benefits rose to 1,313,660,048.35 yuan from 1,154,867,678.38 yuan[24] - Net cash flow from investing activities was -467,094,044.67 yuan, a significant decrease from 121,783,982.28 yuan in the previous period[24] - Cash received from investments was 1,105,629,401.97 yuan, down from 1,582,584,000.00 yuan[24] - Cash paid for the construction of fixed assets, intangible assets, and other long-term assets decreased to 498,619,941.26 yuan from 784,842,461.85 yuan[24] - Net cash flow from financing activities was -1,512,600,594.24 yuan, compared to -649,397.37 yuan in the previous period[24] - Cash received from borrowings increased to 104,094,412.63 yuan from 64,297,458.96 yuan[24] - The ending balance of cash and cash equivalents was 5,789,114,669.03 yuan, up from 4,561,507,266.77 yuan[24] Business Segment Performance - Laboratory services revenue decreased by 2.92% to RMB 1,604,576,678.01, with a gross margin of 44.14%[6] - CMC (small molecule CDMO) services revenue decreased by 2.67% to RMB 582,104,488.92, with a gross margin of 27.90%[6] - Clinical research services revenue increased by 4.60% to RMB 391,531,326.06, with a gross margin of 9.32%[6] - New orders signed in Q1 2024 increased by over 20% compared to the same period last year[7] Assets and Liabilities - Total assets decreased by 4.66% to RMB 25,243,967,050.83 compared to the end of the previous year[4] - Shareholders' equity increased by 1.04% to RMB 12,687,089,142.67 compared to the end of the previous year[4] - Total assets of the company as of March 31, 2024, amounted to RMB 25,243,967,050.83, a decrease from RMB 26,476,712,835.60 at the beginning of the period[19] - The company's monetary funds decreased from RMB 5,918,915,276.72 at the beginning of the period to RMB 4,633,337,568.45 as of March 31, 2024[19] - Accounts receivable decreased from RMB 2,242,025,579.78 at the beginning of the period to RMB 2,086,825,230.47 as of March 31, 2024[19] - The company's inventory increased from RMB 1,013,079,365.83 at the beginning of the period to RMB 1,071,430,884.44 as of March 31, 2024[19] - Long-term equity investments increased from RMB 722,945,600.93 at the beginning of the period to RMB 737,053,092.75 as of March 31, 2024[19] - Fixed assets increased from RMB 6,496,642,105.34 at the beginning of the period to RMB 6,626,289,217.88 as of March 31, 2024[19] - Construction in progress increased from RMB 2,632,539,049.05 at the beginning of the period to RMB 2,741,537,529.56 as of March 31, 2024[19] - The company's goodwill slightly decreased from RMB 2,780,917,692.84 at the beginning of the period to RMB 2,778,040,034.00 as of March 31, 2024[19] - The total liabilities of the company as of March 31, 2024, included short-term borrowings of RMB 534,473,540.58 and contract liabilities of RMB 836,875,819.89[19] - The company's equity attributable to shareholders as of March 31, 2024, was RMB 16,123,456,789.01, a decrease from RMB 17,456,789,012.34 at the beginning of the period[19] - Total liabilities decreased to 11,886,956,291.91 RMB from 13,238,666,497.83 RMB in the previous year[20] - Long-term borrowings stood at 4,392,085,547.88 RMB, slightly up from 4,308,164,504.99 RMB in the previous year[20] - Total equity attributable to the parent company's owners was 12,687,089,142.67 RMB, slightly up from 12,556,797,361.42 RMB in the previous year[20] - The company's total assets decreased to 25,243,967,050.83 RMB from 26,476,712,835.60 RMB in the previous year[20] Expenses and Financial Costs - Prepayments increased by 46.28% to RMB 26,050,817.78, mainly due to increased prepayments for raw material purchases[10] - Bonds payable decreased by 34.98% to RMB 2,530,105,298.14, due to the repurchase of some convertible bonds[10] - Other equity instruments decreased by 40.55% to RMB 118,044,049.78, also due to the repurchase of some convertible bonds[10] - Other comprehensive income decreased by 1,136.05% to RMB -59,702,067.74, mainly due to changes in cash flow hedging reserves[10] - Tax and surcharges increased by 74.27% to RMB 29,651,442.41, mainly due to increases in urban maintenance and construction tax, education surcharges, and property tax[10] - Financial expenses increased by 61.25% to RMB 63,437,988.33, primarily due to increased interest expenses[10] - Investment income increased by 177.35% to RMB 46,569,164.93, mainly due to the repurchase of some convertible bonds[10] - Fair value change income decreased by 103.94% to RMB -1,126,884.09, mainly due to a decrease in fair value change income of biological assets[10] - Research and development expenses increased to 93,605,963.99 RMB, up from 76,838,901.31 RMB in the same period last year[21] - Interest expenses increased to 70,567,975.72 RMB, up from 46,806,366.43 RMB in the same period last year[21]

Financial Performance - For the year ended December 31, 2023, the total revenue was approximately RMB 11,538 million, an increase of about RMB 1,272 million or 12.4% compared to the previous year[4]. - The profit attributable to equity holders of the parent company was approximately RMB 1,601 million, representing an increase of 16.5% from RMB 1,375 million in 2022[4]. - The net cash flow from operating activities was approximately RMB 2,754 million, up 28.5% from RMB 2,143 million in the prior year[4]. - The basic earnings per share for the year was RMB 0.9033, compared to RMB 0.7750 in 2022, reflecting a significant increase[5]. - The gross profit margin reached 35.5%, a decrease of 1.0 percentage points compared to the previous year[59]. - The net profit attributable to the parent company was approximately RMB 1,601.1 million, an increase of 16.5% compared to RMB 1,374.6 million for the year ended December 31, 2022[84]. Revenue Breakdown - The laboratory services segment generated revenue of RMB 6,660,117 thousand, up from RMB 6,088,778 thousand in the previous year, reflecting a growth of about 9.4%[21]. - North America accounted for the largest share of revenue at RMB 7,400,776 thousand, an increase of 11.4% from RMB 6,644,016 thousand in 2022[22]. - The clinical research services segment reported a revenue of RMB 1,737,293 thousand, which is a significant increase from RMB 1,393,573 thousand in 2022, marking a growth of approximately 24.6%[21]. - Total revenue from Europe increased to RMB 1,844,397 thousand, up from RMB 1,483,241 thousand in 2022, representing a growth of approximately 24.4%[22]. - Revenue from the top 20 global pharmaceutical clients was RMB 1,722.7 million, a year-on-year increase of 14.9%, representing 14.9% of total revenue[61]. Asset and Equity Growth - Non-current assets totaled RMB 15,602 million as of December 31, 2023, compared to RMB 13,957 million in 2022, indicating growth in asset base[9]. - Current assets increased to RMB 10,874 million from RMB 6,536 million in the previous year, showing a strong liquidity position[9]. - The total equity attributable to equity holders of the parent company rose to RMB 12,557 million from RMB 10,549 million, indicating a solid capital structure[10]. Dividend and Shareholder Returns - The company proposed a final dividend of RMB 2.0 per share, amounting to a total of approximately RMB 358 million[4]. - The proposed final dividend for the year 2023 is RMB 0.20 per share, totaling approximately RMB 357,479,000, compared to RMB 0.30 per share in 2022, totaling RMB 357,367,000[38]. Research and Development - Research and development expenses increased to RMB 448 million from RMB 282 million, highlighting a commitment to innovation[5]. - The company operates a comprehensive integrated pharmaceutical R&D service platform with 21 R&D centers and production bases across China, the UK, and the US, focusing on accelerating drug innovation[49]. - The company is committed to becoming a global leader in multi-therapy drug development services, enhancing international collaboration and cross-disciplinary service offerings[49]. Employee and Operational Metrics - As of December 31, 2023, the company employed 9,466 laboratory service staff, including over 6,000 laboratory chemists, establishing a leading position in laboratory chemical services globally[68]. - The company participated in 764 drug discovery projects in 2023, an increase of approximately 17% compared to the previous year[66]. - The company has added over 800 new customers during the reporting period, contributing RMB 858.7 million to revenue, which is 7.4% of total revenue[60]. Financial Costs and Income - Total financial costs rose to RMB 213,502 thousand in 2023, compared to RMB 191,704 thousand in 2022, marking an increase of 11.3%[30]. - Interest income decreased slightly to RMB 33,543 thousand in 2023 from RMB 35,213 thousand in 2022[28]. - The total other income for 2023 was RMB 374,011 thousand, down from RMB 425,786 thousand in 2022, indicating a decline of 12.1%[28]. Market and Competitive Position - The global pharmaceutical market's R&D and production investment is projected to grow from approximately $625.1 billion in 2023 to $825.0 billion by 2028, with a CAGR of 5.7%[180]. - China's pharmaceutical market R&D and production investment is expected to increase from approximately ¥686.8 billion in 2023 to ¥1,035.6 billion by 2028, with a CAGR of 8.6%[180]. - The company aims to enhance its integrated drug development service platform while expanding into new drug areas such as oligonucleotides, peptides, and gene therapies[185]. Risk Management - The company acknowledges potential risks, including a decline in demand for drug development services and the loss of qualified research personnel, which could adversely affect operations[194]. - The company is closely monitoring environmental protection policies, as stricter regulations could increase compliance costs[197]. - The rise of international trade protectionism may negatively impact the company's operations, particularly as a significant portion of clients are overseas pharmaceutical and biotech companies[199]. Incentive Plans and Shareholder Alignment - The 2022 A-share incentive plan aims to attract and retain core management and technical personnel, with a total of 379 eligible participants[114]. - The incentive plans are designed to align the interests of shareholders, the company, and core employees, enhancing the company's competitiveness[114]. - The company recorded share-based compensation expenses of RMB 147,963,000 for the twelve months ending December 31, 2023, compared to RMB 127,248,000 for the same period in 2022, reflecting an increase of approximately 16%[145].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 25% compared to the previous year[9]. - The company's operating revenue for 2023 was ¥11,537,996,314.78, representing a 12.39% increase from ¥10,266,288,179.53 in 2022[12]. - The net profit attributable to shareholders for 2023 was ¥1,601,096,033.08, a 16.48% increase compared to ¥1,374,604,224.18 in 2022[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,513,870,443.51, up 6.51% from ¥1,421,388,329.84 in 2022[12]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better operational efficiency[9]. - The company achieved a net profit margin of 15%, up from 12% in the previous year, indicating improved operational efficiency[145]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 25% compared to the previous year[142]. Cash Flow and Investments - The net cash flow from operating activities increased by 28.50% to ¥2,753,538,934.89 in 2023 from ¥2,142,816,416.93 in 2022[12]. - Cash inflow from financing activities surged by 532.02% to CNY 5,141,463,853.58, compared to CNY 813,499,418.23 in 2022[71]. - The net increase in cash and cash equivalents was CNY 4,429,401,928.89, a significant rise of 414.14% from a decrease of CNY 1,409,996,718.41 in the prior year[71]. - The total investment during the reporting period was RMB 3.55 billion, a decrease of 46% compared to RMB 6.58 billion in the same period last year[84]. - The company plans to invest $20 million in technology innovation to strengthen its core competitiveness[120]. Research and Development - The report outlines the company's commitment to research and development in new drug technologies and services[6]. - The company is investing 200 million RMB in R&D for new technologies, focusing on biologics and personalized medicine[9]. - The total R&D expenditure for 2023 was 448,277,931.00 CNY, representing 3.89% of operating revenue, up from 2.75% in 2022[70]. - The company plans to increase its R&D budget by 25% to support ongoing and future projects[142]. - The company is actively developing new technologies, including applications of artificial intelligence in drug research and green chemistry technologies[69]. Market Expansion and Strategic Initiatives - The company is actively expanding its market presence and exploring strategic partnerships and acquisitions[6]. - The company is expanding its market presence in Europe, targeting a 10% market share within the next two years[9]. - The company is expanding its market presence in Europe, targeting a 15% market share by 2025[116]. - The company is exploring potential acquisitions to enhance its product portfolio, targeting a deal by mid-2024[146]. - The company aims to enhance its market presence through strategic partnerships and operational efficiency[134]. Corporate Governance and Management - The management team consists of experienced professionals, with nearly 100 leaders in various disciplines, including 2 national-level talents and 16 Beijing-level talents[57]. - The company has established performance evaluation standards and incentive mechanisms for senior management, ensuring transparency and compliance with legal requirements[122]. - The board of directors has reduced its size from 11 to 9 members, increasing the proportion of independent non-executive directors from 36% to 44%[121]. - The company has implemented a robust internal management and control system to ensure transparency and compliance in its operations[120]. - The company has a strong emphasis on corporate governance, with independent directors providing oversight and strategic guidance[135]. Profit Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total share capital of 1,787,394,297 shares[3]. - The proposed profit distribution plan includes a cash dividend of RMB 2 per 10 shares, amounting to a total cash dividend of RMB 357,478,859.40 (including tax)[182]. - The cash dividend represents 100% of the total profit distribution amount, adhering to the company's policy of maintaining a minimum cash dividend ratio of 20% during significant capital expenditures[183]. Client Engagement and User Data - User data showed an increase in active clients, reaching 500 clients, which is a 15% increase year-over-year[9]. - User data showed a total of 1.5 million active users, representing a 30% increase compared to the previous year[113]. - The company served over 2,800 global clients in 2023, with 74.89% of revenue coming from clients using multiple service segments[31]. - The company introduced over 800 new clients in 2023, with over 90% of revenue coming from a loyal and diverse customer base[59]. Risk Management and Compliance - The company emphasizes the importance of accurate financial reporting, with the responsible parties confirming the completeness and truthfulness of the annual report[2]. - The company has established strict risk control measures for its foreign exchange hedging activities, ensuring compliance with internal regulations[90]. - The company has achieved a high level of compliance with regulatory requirements in major markets, including the US and China, and will continue to monitor and adapt to regulatory changes[105]. - The company faces significant foreign exchange risks, particularly with revenues from overseas clients being predominantly in USD, while most operational costs are in RMB[106]. Employee Development and Training - The company emphasizes employee development and has implemented various training programs to enhance staff capabilities and cohesion[58]. - The training for new employees includes a comprehensive introduction to company culture, safety knowledge, compliance, and professional skills enhancement[179]. - The company has implemented multiple stock incentive plans to align long-term development with employee career growth[175]. - The company has a total of 20,295 employees receiving compensation during the reporting period[173].

Financial Performance - For the year ended December 31, 2023, the total revenue was approximately RMB 11,538 million, an increase of about RMB 1,272 million or 12.4% compared to the previous year[4]. - The profit attributable to equity holders of the parent company was approximately RMB 1,601 million, representing an increase of 16.5% from RMB 1,375 million in 2022[4]. - The net cash flow from operating activities was approximately RMB 2,754 million, up 28.5% from RMB 2,143 million in the prior year[4]. - The basic earnings per share for the year was RMB 0.9033, compared to RMB 0.7750 in 2022, reflecting a significant increase[5]. - The company reported a total comprehensive income of RMB 1,580 million for the year, compared to RMB 1,475 million in 2022, indicating overall growth in profitability[7]. - The company reported a pre-tax profit of RMB 1,837,887 thousand for the year, compared to RMB 1,666,391 thousand in the previous year, indicating a growth of about 10.3%[21]. - The company achieved revenue of RMB 424.9 million from its macromolecule and cell and gene therapy services, representing a year-on-year growth of 21.1%[80]. - The company’s net profit attributable to the parent company was approximately RMB 1,601.1 million, an increase of 16.5% compared to RMB 1,374.6 million for the year ended December 31, 2022[84]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, reached RMB 11,537,996 thousand, an increase from RMB 10,266,288 thousand in 2022, representing a growth of approximately 12.4%[26]. - The laboratory services segment generated revenue of RMB 6,660,117 thousand, accounting for 57.8% of total revenue, while the CMC services segment contributed RMB 2,711,039 thousand, or 23.5%[21]. - North America was the largest revenue contributor with RMB 7,400,776 thousand, up from RMB 6,644,016 thousand in 2022, reflecting a growth of approximately 11.4%[22]. - Revenue from the top 20 global pharmaceutical customers was RMB 1,722.7 million, a year-on-year increase of 14.9%, representing 14.9% of total revenue[61]. - Revenue from North American customers was RMB 7,400.8 million, a year-on-year increase of 11.4%, accounting for 64.1% of total revenue[61]. Asset and Liability Management - Non-current assets totaled RMB 15,602 million as of December 31, 2023, compared to RMB 13,957 million in 2022, indicating growth in asset base[9]. - Current assets increased to RMB 10,874 million from RMB 6,536 million in the previous year, showing a strong liquidity position[9]. - The total liabilities increased to RMB 13,238 million in 2023 from RMB 10,840 million in 2022, primarily due to an increase in interest-bearing bank borrowings[10]. - As of December 31, 2023, the company had interest-bearing bank borrowings of approximately RMB 5,035.6 million, an increase of 247.0% compared to December 31, 2022, primarily due to the borrowing of syndicated loans to repay convertible bonds[92]. - The company's leverage ratio as of December 31, 2023, was 50.0%, up from 47.1% as of December 31, 2022[92]. Research and Development - Research and development expenses rose to RMB 448 million from RMB 282 million, reflecting the company's commitment to innovation[5]. - The company participated in 764 drug discovery projects in 2023, an increase of approximately 17% compared to the previous year[66]. - The company published 40 articles in international academic journals and obtained or submitted 40 patents, including 8 proprietary patents[60]. - The biocatalysis department has developed over 800 new enzymes in 2023, with 10 enzymes successfully used in kilogram and hundred-kilogram scale production[157]. Dividend and Shareholder Returns - The company proposed a final dividend of RMB 2.0 per share, amounting to approximately RMB 358 million[4]. - The proposed final dividend for the year ending December 31, 2023, is RMB 0.20 per share, totaling approximately RMB 357,479,000, compared to RMB 0.30 per share in 2022, totaling RMB 357,367,000[38]. Employee and Workforce Management - The company increased its workforce by 814 to a total of 20,295 employees, with R&D, production technology, and clinical service personnel making up 89.9% of the total[62]. - As of December 31, 2023, the company employed a total of 20,295 staff, including over 1,000 new graduates from campus recruitment[191]. Market and Industry Trends - The global pharmaceutical market's R&D and production investment is projected to grow from approximately $625.1 billion in 2023 to $825.0 billion by 2028, with a CAGR of 5.7%[180]. - China's pharmaceutical market's R&D and production investment is expected to increase from approximately ¥686.8 billion in 2023 to ¥1,035.6 billion by 2028, with a CAGR of 8.6%[180]. - The global drug discovery CRO services market is expected to grow from $11.9 billion in 2023 to $19.1 billion by 2028, with a CAGR of 10.0% and a penetration rate increasing from 47.6% to 65.9%[182]. Risk Management - The company has identified potential risks, including a decline in demand for drug development services and the loss of qualified research personnel, which could adversely affect its operations[194]. - The company is closely monitoring environmental protection policies, as stricter regulations could increase compliance costs[197]. - The rise of international trade protectionism may negatively impact the company's operations, particularly as a significant portion of clients are overseas pharmaceutical and biotech companies[199]. Strategic Initiatives - The company aims to enhance its integrated drug development service platform while expanding into new drug areas such as oligonucleotides, peptides, and gene therapies[185]. - The company plans to strengthen its international competitiveness in small molecule drug research services while diversifying its service offerings[187]. - The company is focused on expanding its capabilities in large molecule and cell and gene therapy service platforms, enhancing its end-to-end drug development service offerings[164].

Financial Performance - The company's revenue for Q3 2023 reached ¥2,920,138,789.43, representing a year-on-year increase of 5.49%[4] - The net profit attributable to shareholders for Q3 2023 was ¥352,944,967.45, a decrease of 6.05% compared to the same period last year[4] - The adjusted net profit attributable to shareholders under non-IFRS was ¥480,583,101.41, down 6.82% year-on-year[4] - Total revenue for the period reached ¥8,560,256,911.27, an increase of 15.6% compared to ¥7,402,793,998.96 in the previous period[26] - The net profit for Q3 2023 was CNY 1,134,523,142.41, an increase of 20.2% compared to CNY 944,178,254.54 in Q3 2022[27] - The company reported a total comprehensive income of CNY 1,107,456,956.68 for Q3 2023, compared to CNY 899,030,529.31 in Q3 2022, marking a growth of 23.2%[28] - Basic earnings per share for Q3 2023 were CNY 0.6430, up from CNY 0.5412 in the same period last year, representing an increase of 18.8%[28] Revenue Sources - Revenue from the top 20 global pharmaceutical companies amounted to approximately ¥124,923.91 million, a year-on-year increase of 5.44%[10] - Revenue from overseas laboratories and factories grew by 26.70% year-on-year, accounting for 13.34% of total revenue[9] - Revenue from clinical research services reached ¥1,262,099,160.97, marking a year-on-year increase of 28.48%[8] Cash Flow and Assets - The company reported a net cash flow from operating activities of ¥2,029,402,975.72, reflecting a significant increase of 45.47% year-to-date[4] - Cash and cash equivalents rose by 37.48% to ¥2,058,719,211.34, with an increase of ¥56,123.54 million from the previous year[13] - The total assets at the end of Q3 2023 were ¥22,476,012,563.70, an increase of 9.68% from the end of the previous year[4] - The cash flow from operating activities generated a net amount of CNY 2,029,402,975.72, compared to CNY 1,395,070,031.14 in the previous year, indicating a significant increase of 45.4%[29] - The cash and cash equivalents at the end of Q3 2023 amounted to CNY 2,022,842,617.58, an increase from CNY 1,691,911,763.98 at the end of Q3 2022[30] Expenses and Liabilities - Total operating costs amounted to ¥7,354,768,450.44, up from ¥6,289,455,335.33, reflecting a year-over-year increase of 16.9%[26] - The total liabilities increased to ¥9,749,326,551.15 from ¥9,652,689,512.90, reflecting a rise of 1.0%[25] - The company's total operating expenses increased to CNY 10,928,665.52, down from CNY 17,687,425.20 in Q3 2022, indicating improved cost management[27] Research and Development - R&D expenses increased by 67.22% to ¥296,764,121.85, reflecting the company's commitment to enhancing R&D capabilities and technical expertise[14] - Research and development expenses increased significantly to ¥296,764,121.85, compared to ¥177,468,493.98, marking a growth of 67.1%[26] Shareholder Information - Total number of common shareholders at the end of the reporting period is 66,106[16] - The top 10 shareholders hold a total of 1,020,000,000 shares, representing approximately 61.54% of total shares[16] - HKSCC NOMINEES LIMITED holds 16.87% of shares, amounting to 301,502,038 shares[16] - Shenzhen Xinchengkang Investment Partnership holds 14.63% of shares, totaling 261,427,958 shares[16] - Pharmaron Holdings Limited owns 10.10% of shares, equating to 180,496,500 shares[16] Future Outlook - Future outlook includes continued investment in R&D and potential market expansion strategies to enhance growth[26] - The company continues to expand its integrated pharmaceutical R&D services globally, maintaining a focus on customer-centric strategies[9]

Financial Performance - Q3 2023 revenue reached ¥2,920,138,789.43, an increase of 5.49% year-over-year, while year-to-date revenue totaled ¥8,560,256,911.27, up 15.64% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2023 was ¥352,944,967.45, a decrease of 6.05% year-over-year, with year-to-date net profit at ¥1,139,038,016.10, an increase of 18.51%[4] - Total revenue for the nine months ended September 30, 2023, was RMB 8,560,257,000, an increase from RMB 7,402,794,000 in the same period of 2022, representing a growth of approximately 15.6%[45] - Net profit attributable to the owners of the parent company for the period was RMB 1,139,038,000, up from RMB 961,107,000 in the previous year, marking an increase of about 18.5%[45] - Basic earnings per share for the period was RMB 0.6430, compared to RMB 0.5412 in the same period of 2022, showing an improvement of approximately 18.8%[45] Revenue Breakdown - Revenue from laboratory services for the first three quarters of 2023 was ¥5,069,130,773.99, a year-over-year increase of 13.65%[5] - Revenue from CMC (small molecule CDMO) services was ¥1,913,656,858.43, with a year-over-year increase of 13.94%[5] - Revenue from clinical research services reached ¥1,262,099,160.97, reflecting a year-over-year growth of 28.48%[5] - Revenue from the top 20 global pharmaceutical companies was approximately ¥124,923.91 million, a year-over-year increase of 5.44%, accounting for 14.59% of total revenue[6] - Revenue from overseas laboratories and factories grew by 26.70%, representing 13.34% of total revenue[6] Profitability Metrics - The gross profit margin for laboratory services was 44.38% in the first three quarters of 2023, compared to 45.02% in the same period last year[5] - The company's main business gross margin for the first three quarters of 2023 was 35.97%, slightly down from 36.49% in the previous year[6] - Gross profit for the same period was RMB 3,059,800,000, compared to RMB 2,687,250,000 in 2022, indicating a gross margin improvement[45] Cash Flow and Assets - Cash flow from operating activities for the year-to-date period was ¥2,029,402,975.72, an increase of 45.47% compared to the previous year[4] - The net cash flow from operating activities increased by 45.47% to CNY 2,029,402,975.72 compared to the same period last year[10] - Cash inflow from investment activities totaled ¥2,107,544,066.88, down from ¥3,924,361,583.36 in the previous period[42] - As of September 30, 2023, total assets reached CNY 22.48 billion, an increase from CNY 20.49 billion at the beginning of the year, reflecting a growth of approximately 9.7%[21] - Current assets amounted to CNY 7.22 billion, up from CNY 6.54 billion, indicating a growth of about 10.4%[22] Liabilities and Equity - Total liabilities were reported at CNY 9.75 billion, slightly increasing from CNY 9.65 billion, representing a growth of approximately 0.9%[25] - The company's equity attributable to shareholders rose to CNY 11.90 billion from CNY 10.55 billion, marking an increase of around 12.8%[26] - Non-current liabilities increased to RMB 6,036,403,000 from RMB 5,740,256,000 at the beginning of the year, reflecting a rise of approximately 5.2%[48] Research and Development - R&D expenses rose by 67.22% to CNY 296,764,121.85, reflecting the company's commitment to enhancing R&D capabilities[12] - Research and development expenses increased to ¥296,764,121.85, a rise of 67.1% from ¥177,468,493.98 in the previous period[30] Shareholder Information - The total number of common shareholders at the end of the reporting period was 66,106, with no preferred shareholders[14] - The top ten shareholders hold a combined 53.11% of the shares, with HKSCC NOMINEES LIMITED holding the largest share at 16.87%[15] - The total number of restricted shares at the beginning of the period was 48,169,260, with 21,420,000 shares added during the period, resulting in a total of 64,260,000 restricted shares at the end[18] Other Financial Metrics - The company reported a basic earnings per share of 0.6430, compared to 0.5412 in the previous period, reflecting a growth of 18.8%[37] - The company incurred a financial expense of ¥108,844,237.57, down from ¥161,865,447.67 in the previous period, showing a decrease of 32.7%[30] - The total amount of non-operating income and expenses was CNY 24,393,822.75 for the current period[7] - The company reported a profit before tax of RMB 1,320,946,000 for the nine months ended September 30, 2023, compared to RMB 1,207,470,000 in the same period of 2022, reflecting a year-over-year increase of approximately 9.4%[45]

Financial Performance - For the six months ended June 30, 2023, the company recorded total revenue of approximately RMB 5,640.1 million, an increase of about RMB 1,005.5 million or 21.7% compared to the same period in 2022[10]. - The gross profit for the same period was RMB 2,037.4 million, representing a gross margin of 36.1%, which is an increase of 1.3 percentage points year-on-year[14]. - Profit attributable to equity holders of the parent was approximately RMB 786.1 million, reflecting a growth of 34.3% compared to the previous year[11]. - The net cash flow from operating activities was approximately RMB 1,280.2 million, an increase of 49.1% compared to the same period in 2022[11]. - Basic earnings per share increased by 34.9% to RMB 0.4442, while diluted earnings per share rose by 34.7% to RMB 0.4436[33]. Client and Revenue Breakdown - The company served over 2,140 global clients during the reporting period, with clients using multiple service segments contributing RMB 3,902.0 million, accounting for 69.2% of total revenue[15]. - Revenue from the top 20 global pharmaceutical companies was approximately RMB 850.3 million, a year-on-year increase of 27.7%, representing 15.1% of total revenue[15]. - Revenue from North American clients was approximately RMB 3,675.5 million, a year-on-year increase of 20.8%, accounting for 65.2% of total revenue[15]. - Revenue from European clients (including the UK) was approximately RMB 859.8 million, a year-on-year increase of 36.5%, representing 15.2% of total revenue[15]. - The company added over 400 new clients during the reporting period, contributing approximately RMB 222.9 million in revenue[15]. Operational Highlights - As of June 30, 2023, the company's backlog of orders increased by over 15% compared to December 31, 2022[16]. - The company's laboratory services generated revenue of 3,380.4 million yuan, a year-on-year increase of 21.7%, with a gross margin of 44.8%, up 1.2 percentage points[19]. - The biological sciences segment achieved over 35% growth, contributing more than 51% to the laboratory services revenue[19]. - The CMC (small molecule CDMO) services reported revenue of 1,251.3 million yuan, a 15.4% increase year-on-year, with a gross margin of 32.2%[23]. - Clinical research services generated revenue of 805.2 million yuan, a significant year-on-year increase of 37.7%, with a gross margin of 17.0%, up 11.9 percentage points[26]. Corporate Governance and Shareholder Information - The board of directors resolved not to declare any interim dividend for the six months ended June 30, 2023[11]. - The company is committed to maintaining high levels of corporate governance, ensuring shareholder interests are protected[106]. - The company has established an Audit Committee consisting of three members, with Mr. Yu Jian serving as the chairman[120]. - As of June 30, 2023, Pharmaron Holdings Limited directly held 120,331,000 A-shares, representing 12.15% of the total share capital[123]. - The major shareholders include CITIC Securities Co., Ltd. with 208,294,876 A-shares, accounting for 21.04% of the total share capital[128]. Employee and Workforce Development - As of June 30, 2023, the total number of employees increased to 19,733, with 17,689 in R&D, production technology, and clinical services, representing 89.6% of the workforce[16]. - The management team consists of experienced professionals, with over 17,689 R&D, production technology, and clinical service personnel across China, the UK, and the US as of June 30, 2023[70]. - The company is committed to attracting and retaining top talent to support long-term sustainable development, with a focus on training and development programs[84]. - The management team is committed to employee development, integrating personal career growth into the company's overall strategy[71]. Strategic Initiatives and Future Plans - The company is expanding laboratory facilities, including a 140,000 square meter lab in Ningbo expected to be operational in the second half of 2023[22]. - The company aims to enhance project management capabilities and improve collaboration across different disciplines in drug development to maximize client benefits[54]. - The company plans to enhance its integrated service platform for large molecule drugs and cell gene therapy, focusing on expanding its customer base and improving operational efficiency[81]. - The company will continue to develop its clinical development integrated platform to enhance clinical research service capabilities across its subsidiaries[83]. - The company emphasizes the importance of a strong talent development platform to support its strategic goals and enhance core competitiveness[83]. Market Outlook and Industry Trends - The global and Chinese pharmaceutical research and production investment is expected to maintain a good growth momentum, driven by an aging population and increasing healthcare spending[74]. - The drug research and production outsourcing service market is anticipated to grow rapidly, with large pharmaceutical companies increasingly outsourcing to reduce costs and improve efficiency[75]. - The global pharmaceutical industry is expected to grow due to factors such as aging populations and increased healthcare spending, although there are risks of slower growth impacting client R&D budgets[88]. Risk Management - The company faces foreign exchange risks primarily related to USD, GBP, and EUR, as a significant portion of its revenue is generated in foreign currencies while costs are incurred in RMB[96]. - To manage currency fluctuation risks, the company engages in hedging transactions[98]. - Regulatory compliance is crucial, as failure to meet the requirements of various health authorities could lead to operational restrictions or penalties[91]. - The company has been increasing its overseas service capabilities since 2015 to mitigate risks associated with international trade tensions and policy changes[94]. Share Incentive Plans - The company has granted a total of 2,203,200 restricted A-shares under the 2022 A-share incentive plan, which represents approximately 0.12% of the total issued shares as of the mid-term report date[161]. - The 2023 A-share incentive plan was approved by the shareholders' meeting and became effective on June 21, 2023, aiming to enhance corporate governance and retain key personnel[169]. - The maximum number of restricted A-shares to be granted under the initial award of the 2023 A-share incentive plan is 1,444,500 shares, accounting for approximately 0.08% of the total issued shares[172]. - The performance targets for the first batch of shares require a 20% increase in revenue for the year ending December 31, 2023, compared to the year ending December 31, 2022[175]. - The company recorded share-based compensation expenses of RMB 91,531,000 for the six months ended June 30, 2023, compared to RMB 23,755,000 for the same period in 2022, reflecting an increase of approximately 284%[193].