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].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Pharmaron Beijing Co., Ltd.* 康龍化成（北京）新藥技術股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3759） 截至2023年6月30日止六個月中期業績公告 財務摘要及要點 截至6月30日止六個月 2023年 2022年 變動 人民幣千元 人民幣千元 % 收益 5,640,118 4,634,585 21.7 毛利 2,037,441 1,613,111 26.3 母公司擁有人應佔利潤 786,093 585,432 34.3 母公司擁有人應佔非國際財務報告準則 經調整淨利潤 931,852 812,106 14.7 經營活動所得現金流量淨額 1,280,205 858,787 49.1 － 於報告期間，本集團錄得總收益約人民幣5,640.1百萬元，較截至2022年6 ...

Incentive Plans - The company granted rewards under the 2022 A-share incentive plan on July 28, 2022, with the closing price prior to the grant being RMB 82.37[1] - The first phase of the H-share incentive trust plan granted rewards on April 1, 2022, and May 31, 2022, with closing prices of HKD 63.28 and HKD 59.38 respectively prior to the grants[1] Annual Report - The announcement does not affect other information disclosed in the 2022 annual report, which remains unchanged[2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Pharmaron Beijing Co., Ltd.* 康龍化成（北京）新藥技術股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3759） 補充公告 有關截至2022年12月31日止年度的年報 的進一步資料 茲提述康龍化成（北京）新藥技術股份有限公司（「本公司」）截至2022年12月31日 止年度的年報（「2022年年報」）。除非另有定義，本公告所用詞彙與2022年年報所 界定者具有相同涵義。 除於2022年年報所載董事會報告「股份激勵計劃」一段及綜合財務報表附註40所披 露的資料外，本公司謹此提供有關根據上市規則第17.07(1)(c)條於報告期內根據 2022年A股激勵計劃及首期H股獎勵信託計劃授予各獎勵的進一步詳情。 於報告期內，本公司股份於緊接根據2022年A股激勵計劃及首期H股獎勵信託計 劃授予獎勵日期前的收市價載列如下： 2022年A股激勵計劃 ...

康龍化成（北京）新藥技術股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 股份代號：3759 2022 年度報告 生命科學行業 的領先研發服務提供商 關於 康龍化成（股票代碼：300759.SZ/3759.HK）是國際領先的生命科 康龍化成 學研發服務企業。自2004年成立以來，康龍化成一直致力於其人 才培養和設施建設，為包括小分子、大分子和細胞與基因治療藥 物在內的多療法藥物研發打造了一個貫穿藥物發現、臨床前及臨 床開發全流程的研發生產服務體系。康龍化成在中國、美國、英 國均開展運營，擁有近20,000名員工，向北美、歐洲、日本和中 國的合作夥伴提供研發解決方案並與之保持良好的合作關係。 目 錄 2 公司資料 4 董事會主席報告書 ...

Financial Performance - The company reported a revenue of CNY 2,723,970,949.97 for Q1 2023, representing a 29.53% increase compared to CNY 2,102,899,933.93 in the same period last year[4] - Net profit attributable to shareholders reached CNY 348,255,328.87, up 39.81% from CNY 249,086,573.60 year-on-year[4] - The adjusted net profit attributable to shareholders under non-IFRS was CNY 438,339,247.42, reflecting a 20.29% increase from CNY 364,396,375.05 in the previous year[4] - Basic earnings per share increased by 40.37% to CNY 0.2952, driven by the overall positive development and expanding revenue scale[9] - The company reported a net profit of RMB 350,148,000 for the period, compared to RMB 236,953,000 in the previous year, marking an increase of about 47.7%[39] - For Q1 2023, the profit attributable to the parent company was RMB 348,255 thousand, an increase from RMB 249,087 thousand in Q1 2022[45] - The adjusted net profit attributable to the parent company under non-IFRS was RMB 438,339 thousand, reflecting a 20.3% increase compared to RMB 364,396 thousand in the same period last year[45] Revenue Breakdown - Revenue from laboratory services was CNY 1,652,771,147.35, with a year-on-year increase of 29.73%[5] - Revenue from North American clients accounted for 66.64% of total revenue, growing 34.74% year-on-year[6] - Revenue from European clients (including the UK) represented 14.81% of total revenue, increasing by 38.12% compared to the previous year[6] Cost and Expenses - Total operating costs amounted to ¥2,352,273,096.85, up 28% from ¥1,838,358,908.07 in the prior period[21] - Research and development expenses surged by 93.81% to CNY 76,838,901.31, reflecting the company's commitment to enhancing R&D capabilities[10] - Research and development expenses increased to ¥76,838,901.31, up 93.9% from ¥39,647,299.50 in the prior period, highlighting a focus on innovation[23] Cash Flow and Liquidity - Cash flow from operating activities for the period was CNY 530,139,954.34, a 26.89% increase from CNY 417,792,056.81 in the previous year[4] - Cash and cash equivalents rose by 37.26% to CNY 2,055,504,003.16, an increase of CNY 558,020,200[9] - Cash and cash equivalents at the end of the period amounted to RMB 1,990,475,525.11, compared to RMB 2,443,525,549.66 at the end of the previous period[35] Assets and Liabilities - The total current assets as of March 31, 2023, amounted to CNY 6,558,583,630.24, showing a slight increase from CNY 6,536,006,646.99 at the beginning of the year[16] - The total non-current assets reached CNY 14,488,985,553.32, compared to CNY 13,956,550,581.08 at the beginning of the year, reflecting a growth of approximately 3.8%[17] - Total liabilities increased to ¥9,772,959,379.20 from ¥9,652,689,512.90 at the beginning of the year, marking a rise of 1.2%[19] - Non-current liabilities totaled RMB 5,838,198 thousand as of March 31, 2023, compared to RMB 5,740,256 thousand at the end of 2022[42] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 63,326[11] - The largest shareholder, HKSCC NOMINEES LIMITED, held 16.87% of the shares, totaling 201,001,393 shares[12] - The company's major shareholders include HKSCC NOMINEES LIMITED with 201,001,393 shares and Shenzhen Xinchongkangcheng Investment Partnership with 178,735,472 shares[13] Strategic Focus - The company continues to focus on a "full-process, integrated, and international" development strategy, with significant business presence in both China and overseas markets[6] - The company has completed the integration of its capabilities in large molecule and cell and gene therapy services, enhancing its service offerings[5] Other Financial Metrics - The company received government subsidies related to daily activities amounting to CNY 18,969,599.72, which contributed to other income growth of 108.49%[10] - The company reported a total comprehensive income of ¥349,276,609.52 for the current period, significantly higher than ¥181,924,551.84 in the previous period[28] - The total liabilities to equity ratio stands at approximately 86.7%, indicating a stable leverage position for the company[19]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Pharmaron Beijing Co., Ltd.* 康龍化成（北京）新藥技術股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3759） 截至2022年12月31日止年度全年業績公告 財務摘要及要點 截至12月31日止年度 2022年 2021年 變動 人民幣千元 人民幣千元 % 收益 10,266,288 7,443,770 37.9 毛利 3,749,276 2,672,044 40.3 母公司擁有人應佔利潤 1,374,604 1,661,029 (17.2) 母公司擁有人應佔非國際財務報告 準則經調整淨利潤 1,834,271 1,461,985 25.5 經營活動所得現金流量淨額 2,142,816 2,058,044 4.1 － 於報告期間，本集團錄得總收益約人民幣10,266.3百萬元，較截至2021年 12月31日止年度增加約人民幣2,822.5百萬元或37.9% ...

Revenue and Profitability - Total revenue for Q3 2022 reached CNY 2,768,208,563.01, an increase of 37.31% compared to the same period last year[4] - Net profit attributable to shareholders decreased by 20.95% to CNY 375,674,760.35 for Q3 2022[4] - Operating revenue increased to ¥7,402,793,998.96, a year-on-year growth of 39.63% compared to ¥5,301,532,904.44[8] - Total revenue for the nine months ended September 30, 2022, was RMB 7,402,794 thousand, an increase from RMB 5,301,533 thousand in the same period of 2021, representing a growth of 32.5%[46] - Net profit for the current period is 944,178,254.54, down from 1,003,928,223.19 in the previous period, indicating a decrease of approximately 5.9%[35] - The company reported a profit attributable to equity holders of RMB 961,107 thousand for the nine months ended September 30, 2022, down from RMB 1,040,063 thousand in 2021, indicating a decline of 7.6%[51] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of CNY 1,395,070,031.14 for the year-to-date period, a decrease of 1.46% compared to the previous year[4] - Cash and cash equivalents decreased by 42.36% to ¥2,042,501,533.84 from ¥3,543,819,700.44, a reduction of ¥1,501,318,200[8] - Cash inflow from operating activities is 7,076,581,251.14, an increase from 5,410,437,911.75 in the previous period, reflecting a growth of approximately 30.8%[37] - Cash outflow from investment activities is 5,208,210,770.23, down from 7,505,559,923.92 in the previous period, indicating a reduction of approximately 30.5%[42] - Cash and cash equivalents decreased to RMB 1,780,290 thousand from RMB 3,526,577 thousand at the beginning of the year, indicating a decline of 49.5%[47] Assets and Liabilities - The total assets as of the end of Q3 2022 were CNY 19,706,904,963.16, reflecting a 7.17% increase from the end of the previous year[4] - Total liabilities increased to CNY 9,165,741,734.83 from CNY 8,093,817,609.58, marking a rise of 13.2%[26] - Total non-current assets increased to RMB 13,054,092 thousand as of September 30, 2022, up from RMB 9,745,622 thousand at the beginning of the year, marking a growth of 33.7%[47] - The company’s total assets less current liabilities amounted to RMB 16,060,504 thousand, an increase from RMB 15,407,128 thousand at the beginning of the year[47] Equity and Shareholder Information - The total equity attributable to shareholders was CNY 10,401,703,789.08, a 2.69% increase from the end of the previous year[4] - The total number of common shareholders at the end of the reporting period was 34,592[18] - The top ten shareholders collectively hold significant stakes, with HKSCC NOMINEES LIMITED owning 16.88% and Shenzhen Xinchongkang Investment Partnership holding 16.79%[19] Expenses and Cost Management - Total operating costs increased by 39.81% to ¥4,701,717,656.76 from ¥3,362,990,019.03, in line with revenue growth[14] - Sales expenses increased by 56.20% to ¥163,039,241.44 compared to ¥104,381,393.02 in the same period last year[15] - Management expenses rose by 73.19% to ¥1,036,265,811.81 from ¥598,348,091.85 year-on-year, primarily due to increased personnel costs and acquisitions[15] - R&D expenses grew by 61.55% to ¥177,468,493.98, up from ¥109,851,832.35, reflecting the company's commitment to enhancing R&D capabilities[15] Profit Margins and Earnings Per Share - The basic earnings per share for Q3 2022 was CNY 0.3171, down 20.71% year-on-year[4] - The net profit excluding non-recurring gains and losses increased by 8.79% to CNY 377,837,497.51 for Q3 2022[4] - Basic earnings per share for the current period is 0.8118, down from 0.8754 in the previous period, representing a decrease of approximately 7.3%[36] Government Support and Subsidies - The company received government subsidies amounting to CNY 11,466,691.04 during the reporting period[6]

Financial Performance - The total revenue for the six months ended June 30, 2022, was approximately RMB 4,634.6 million, an increase of about RMB 1,349.1 million or 41.1% compared to the same period in 2021[8]. - The gross profit for the same period was RMB 1,613.1 million, reflecting a growth of 35.6% from RMB 1,189.7 million in the previous year[8]. - The profit attributable to equity holders of the parent company was approximately RMB 585.4 million, up by 3.6% from RMB 564.8 million in the prior year[9]. - The adjusted net profit for the period was RMB 812.1 million, representing a 24.7% increase from RMB 651.4 million in the previous year[9]. - The net cash flow from operating activities was approximately RMB 858.8 million, a slight increase of 1.6% compared to RMB 845.1 million in the same period last year[9]. - Basic earnings per share were approximately RMB 0.4941, up 4.0% from approximately RMB 0.4751 for the six months ended June 30, 2021[22]. - The company reported a profit of RMB 1,191,068,000 for the six months ending June 30, 2022, compared to RMB 794,177,000 for the same period in 2021, representing a year-over-year increase of approximately 50%[84]. - The total comprehensive income for the period was RMB 547,136,000, compared to RMB 564,837,000 in the previous period, indicating a slight decline[86]. Revenue Breakdown - Revenue from North American clients accounted for 65.6%, while European clients contributed 13.6%, and Chinese clients contributed 17.7%[11]. - The laboratory services segment generated revenue of RMB 2,860.1 million, a 41.1% increase year-on-year, with a gross margin of 43.4%[12]. - CMC (small molecule CDMO) services achieved revenue of RMB 1,084.6 million, a year-on-year increase of 42.3%, with a gross margin of 32.9%, down 3.6 percentage points from the previous year[13]. - Clinical research services generated revenue of RMB 584.5 million, up 38.3% year-on-year, with a gross margin of 5.1%, down 9.0 percentage points from the previous year[14]. - The company’s large molecule and cell and gene therapy services reported revenue of RMB 95.5 million, a 33.2% increase year-on-year, but with a gross margin of -19.8% due to high operational costs[16]. Operational Highlights - The company introduced over 400 new clients in the first half of 2022, expanding its customer base significantly[11]. - The company operates in China, the United States, and the United Kingdom, employing over 17,000 staff[6]. - The company has over 800 ongoing clinical trial projects and collaborates with more than 600 hospitals and clinical trial centers across 140 cities in China[15]. - The company has established a comprehensive chemical technology platform that covers the entire process of small molecule drug research, development, and production, enhancing its competitive advantage in the pharmaceutical R&D service market[31]. - The company has strengthened its integrated service platform through international acquisitions, enhancing service capabilities and R&D efficiency, exemplified by the acquisition of a production base in Cramlington, UK[35]. Strategic Initiatives - The company aims to accelerate drug innovation and become a global leader in multi-therapy drug development services[10]. - The company is focused on enhancing its service platform's synergy through vertical and horizontal integration in drug development[10]. - The company has committed to the Science Based Targets initiative (SBTi) to align its carbon reduction goals with international climate agreements[12]. - The company aims to enhance its integrated drug development service platform, focusing on small molecule research while accelerating the development of large molecule and cell/gene therapy services[40]. - The company plans to expand its laboratory chemistry capabilities and strengthen its CDMO services in small molecules, with a strategic focus on technology investment and service content expansion[41]. Acquisitions and Investments - The company acquired 100% equity of Beijing Ankai Yibo Biotechnology Co., Ltd. to enhance its capabilities in drug safety evaluation and biological sciences[13]. - The acquisition of Aesica Pharmaceuticals Limited was completed in January 2022 for approximately GBP 55 million (about RMB 473.35 million), enhancing the company's CDMO service platform[26]. - Pharmaron Manufacturing Services (US) LLC acquired the Coventry API production facility in Rhode Island for approximately $31.5 million (RMB 210.6 million), completed on July 1, 2022[78]. - The company completed the acquisition of Pharmaron Manufacturing Services (UK) Ltd for a cash consideration of GBP 58,052,000 (approximately RMB 500,837,000) on January 7, 2022[154]. Market Outlook - The global pharmaceutical market's R&D and production investment was approximately $566.1 billion in 2021, projected to reach $726.1 billion by 2026, with a CAGR of 6.5%[37]. - The Chinese pharmaceutical market's R&D and production investment was about RMB 562 billion in 2021, expected to grow to RMB 956.6 billion by 2026, reflecting a CAGR of 11.2%[37]. - The global pharmaceutical R&D and production outsourcing service market was valued at approximately $140.3 billion in 2021, anticipated to reach $247.7 billion by 2026, with a CAGR of 12%[37]. - The company aims to leverage its international operational experience to provide customized services and solutions in gene and cell therapy development[34]. Risk Management - The company faces potential risks, including a decline in demand for drug development services, which could lead to clients postponing project development or cutting research budgets, adversely affecting the company's performance and outlook[43]. - The company operates in a highly regulated environment, with strict legal and industry standards governing drug development and production, and must continuously meet regulatory requirements to avoid penalties or loss of operating qualifications[46]. - The company is committed to complying with increasingly stringent environmental regulations, which may increase compliance costs[47]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect and enhance shareholder interests[49]. - The management team consists of experienced professionals, with over 30 years in the pharmaceutical industry, ensuring effective leadership and strategic direction for the company[35]. - The audit committee has reviewed the interim financial information and confirmed compliance with applicable accounting principles and sufficient disclosure[51].