昭衍新药 | 2024年4月3日 评级：中性 香港股市 | 医药更新报告 昭衍新药（6127 HK） 目标价：8.48 港元 终端需求回升仍需时间，2024 年仍将面对挑战 股票资料（更新至2024年4月2日） 现价 9.16港元 2023年收入增速显著放缓 总市值 13,587.91百万港元 流通股比例（H股） 84.83 % 公司2023年收入同比增加4.8%至23.8亿元（人民币，下同），毛利同比下滑9.4%至9.8 已发行总股本 119.00百万 亿元，股东净利润同比下降 63.0%至 4.0 亿元。剔除由于实验猴市场价下滑产生的约 2.9 52周价格区间 8.62-25.714港元 亿生物资产公允值损失后，核心业务盈利同比下降 7.3%至约6.9 亿元，2023 年收入与盈 3个月日均成交额 13.74百万港元 利情况均符合公司 1 月发布的盈利预告。由于下游药企经营环境不佳，削减研发支出并 主要股东 冯氏家族（占32.25%） 来源：彭博，中泰国际研究部 终止约8亿元订单，导致收入增速显著放缓，核心业务盈利下降。 预计2024年仍面临挑战，下调2024-25年收入与盈利预测 我们在今年1月的报告中 ...

Investment Rating - The report maintains a BUY rating for Joinn Laboratories with a target price revised to HK$14.41 from HK$21.18, reflecting a potential upside of 57.1% from the current price of HK$9.17 [2][4]. Core Insights - Joinn Laboratories reported a revenue of RMB2,376 million for 2023, representing a 4.8% year-over-year increase, while attributable net income fell by 66.9% to RMB338 million due to fair value losses from biological assets [2]. - The company anticipates that revenue for 2024 will remain on par with 2023, facing continued pressure on profitability due to uncertainties in the R&D recovery of the domestic pharmaceutical market [2]. - Early signs of stabilizing client demand were noted, with a 20% year-over-year growth in contract booking volume in January-February 2024 [2]. - Joinn's overseas business saw a significant revenue increase of 51% year-over-year in 2023, driven by the performance of Biomere [2]. Financial Summary - For FY23, Joinn's revenue was RMB2,376 million, with a projected revenue of RMB2,425 million for FY24, indicating a modest growth of 2.0% [3][9]. - Adjusted net profit for FY23 was RMB481.6 million, with expectations of RMB436 million for FY24, reflecting a decline of 9.5% [3][9]. - The company’s gross profit margin is expected to decrease to 38.08% in FY24, with operating and net margins also projected to decline [5][12]. Operational Developments - Joinn has completed the construction of its Phase II facilities in Suzhou and is strategically planning the operational launch of these sites in line with market conditions [2]. - The company plans to hire an additional 100-200 staff in 2024 to support growth in emerging service areas, particularly clinical services [2]. Valuation Metrics - The report provides a DCF valuation with a WACC of 12.2% and a terminal growth rate of 2.0%, leading to a target price of HK$14.41 per share [7][4]. - The adjusted EPS for FY24 is projected at RMB0.58, with a P/E ratio of 15.5x for FY24 [3][12].

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 2,376,487 thousand, representing a 4.8% increase from RMB 2,267,971 thousand in 2022[2] - Gross profit for the same period was RMB 979,393 thousand, a decrease of 9.4% compared to RMB 1,081,428 thousand in the previous year[2] - Net profit for the year was RMB 391,553 thousand, down 63.5% from RMB 1,073,200 thousand in 2022[2] - The profit attributable to equity shareholders of the company was RMB 396,993 thousand, a decline of 63.0% from RMB 1,074,257 thousand in the prior year[2] - Basic earnings per share for 2023 were RMB 0.53, down from RMB 1.44 in 2022[5] - The company reported a significant decrease in operating profit to RMB 513,162 thousand, down from RMB 1,246,275 thousand in the previous year[3] - The total operating expenses for 2023 were RMB 634,133,000, compared to RMB 558,665,000 in 2022, reflecting an increase of 13.5%[24] - The company's net profit decreased by 63.5% from RMB 1,073.2 million for the year ended December 31, 2022, to RMB 391.6 million for the year ended December 31, 2023, with a net profit margin dropping from 47.3% to 16.5%[68] - Gross profit fell by 9.4% from RMB 1,081.4 million to RMB 979.4 million due to intensified market competition[68] Revenue Breakdown - Non-clinical research services generated revenue of RMB 2,308,999,000 in 2023, compared to RMB 2,213,598,000 in 2022, indicating a growth of about 4.3%[13] - Clinical trial and related services revenue increased to RMB 63,424,000 in 2023 from RMB 49,568,000 in 2022, reflecting a growth of approximately 27.8%[13] - Revenue from external customers in China decreased to RMB 1,797,730,000 in 2023 from RMB 1,885,205,000 in 2022, representing a decline of 4.6%[20] - Revenue from external customers in the United States increased significantly to RMB 566,271,000 in 2023, up 58.5% from RMB 356,892,000 in 2022[20] Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 8,559,794 thousand, slightly up from RMB 8,519,954 thousand in 2022[6] - The net asset attributable to equity shareholders was RMB 8,279,316 thousand, an increase of 1.2% from RMB 8,183,701 thousand in the previous year[2] - As of December 31, 2023, the cash and cash equivalents were RMB 2,862.9 million, a decrease of 1.8% from RMB 2,916.8 million as of December 31, 2022[70] - The equity-to-debt ratio decreased to 17.4% as of December 31, 2023, from 21.0% as of December 31, 2022, mainly due to a reduction in contract liabilities[71] Research and Development - Research and development expenses increased to RMB 96,854 thousand from RMB 77,985 thousand in 2022, reflecting a focus on innovation[3] - R&D expenses for the year ended December 31, 2023, were RMB 96.9 million, a 24.2% increase from RMB 78.0 million in the previous year, reflecting continued investment in R&D[65] Dividends and Shareholder Returns - Proposed final cash dividend per ordinary share for 2023 is RMB 0.16, down from RMB 0.40 in 2022, totaling RMB 119,977 thousand compared to RMB 214,258 thousand in 2022[30] - Final cash dividend approved and paid for the previous fiscal year was RMB 0.40 per ordinary share, totaling RMB 214,244 thousand, an increase from RMB 137,363 thousand in 2022[31] Operational Developments - The company aims to expand its market presence and enhance its service offerings in the contract research organization sector[8] - The company has implemented organizational restructuring to enhance management efficiency and support business development needs[39] - The construction of the Suzhou Phase II facility, covering 20,000 square meters, has been completed, enhancing the company's business throughput and supporting future growth[40] - A new 22,000 square meter supporting facility in Suzhou is under construction, expected to be completed and gradually put into use by 2024[40] Strategic Goals and Future Plans - The company aims to enhance its market share and international influence in the non-clinical pharmacology and toxicology evaluation business while expanding upstream and downstream capabilities[73] - Plans for 2024 include improving pharmacology and toxicology research capabilities and enhancing project management efficiency[74] - The company intends to actively recruit industry experts with overseas experience to strengthen its domestic team's international business capabilities[75] - The company plans to implement stock incentive programs to support its strategic goals and enhance employee motivation and productivity[75] Compliance and Audit - The audit committee has reviewed the financial statements for the year ending December 31, 2023, and confirmed compliance with relevant accounting standards and regulations[96] - The auditors, KPMG, have agreed that the financial figures in the preliminary announcement align with the audited consolidated financial statements for the year[97]

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 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 JOINN LABORATORIES (CHINA) CO., LTD. 北京昭衍新藥研究中心股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6127） 2023年度第三季度報告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09(2)條及第13.10B 條以及香港法例第571章證券及期貨條例第XIVA項 下 的 內 幕 消 息 條 文 而 作 出。 下文為北京昭衍新藥研究中心股份有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱 「本集團」）於2023年財政年度的第三季度報告（「2023年度第三季度報告」）。本 公 告 及 隨 附 的 財 務 報 表 最 初 以 中 文 編 製，並 以 中 英 文 版 本 刊 登。如 中 英 文 版 本 出 現 任 何 歧 義 或 衝 ...

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[20]. - Revenue for the six months ended June 30, 2023, was RMB 1,012,077 thousand, representing a 30.3% increase from RMB 776,881 thousand in the same period of 2022[25]. - Gross profit for the same period was RMB 447,799 thousand, an increase of 18.5% compared to RMB 377,942 thousand in 2022[25]. - Net profit for the period decreased by 75.8% to RMB 89,508 thousand from RMB 370,384 thousand in the previous year[25]. - The profit margin for the period was 8.8%, down 38.9 percentage points from 47.7% in 2022[25]. - Basic earnings per share for the period was RMB 0.17, a decrease of 75.7% from RMB 0.70 in the previous year[25]. - The company achieved operating revenue of RMB 1.012 billion, representing a year-on-year growth of 30.27%[26]. - The total comprehensive income for the period was RMB 102,760 thousand, compared to RMB 388,471 thousand, a decrease of 73.5%[123]. - Operating profit decreased significantly to RMB 120,296 thousand from RMB 437,225 thousand, a decline of 72.5%[121]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[20]. - The company is focusing on expanding its market presence and enhancing its research and development capabilities[25]. - The company plans to enhance its non-clinical service range and expand facilities, focusing on areas with high industry demand such as large molecule bioanalysis and cell and gene therapy[46]. - The company aims to enhance its existing leadership position through acquisitions in the pharmaceutical R&D value chain[49]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the industry[134]. Research and Development - New product development includes the launch of three innovative drug testing services, projected to contribute an additional RMB 300 million in revenue[20]. - R&D expenditure for the six months ended June 30, 2023, was RMB 569 million, an increase of 123.4% compared to RMB 255 million for the same period in 2022[41]. - The company has been actively involved in research and development, focusing on enhancing its contract research organization services[134]. - The company is enhancing its capabilities in non-clinical evaluation and clinical trial services to meet diverse market demands[29][30]. Employee Engagement and Incentives - The company plans to implement a new employee stock ownership plan to enhance employee engagement and retention[20]. - The company has adopted stock option and restricted share incentive plans from 2018, 2019, and 2020 to attract and retain talent[58]. - The total number of participants in the 2021 A-share restricted stock incentive plan is 505, all of whom are core technical personnel[84]. - The company aims to align the incentives with performance achievements, with unexercised options being subject to buyback or cancellation if performance conditions are not met[68]. Financial Position and Assets - Total assets as of June 30, 2023, were RMB 10,219,310 thousand, a decrease of 1.4% from RMB 10,364,216 thousand at the end of 2022[25]. - Total liabilities increased by 1.0% to RMB 2,195,250 thousand from RMB 2,173,350 thousand at the end of 2022[25]. - Cash and cash equivalents as of June 30, 2023, were RMB 3,040.5 million, a 4.2% increase from RMB 2,916.8 million at the end of 2022, maintaining strong liquidity[42]. - The company reported a total of 3,389,000 stock options granted under equity-settled share-based transactions as of June 30, 2023[187]. Sustainability and Corporate Governance - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 20% by 2025[20]. - The company has complied with the corporate governance code during the six months ending June 30, 2023[106]. - There were no major litigations or arbitrations involving the group as of June 30, 2023[109]. Operational Developments - The construction of a new facility in Suzhou, covering 20,000 square meters, is underway, with 12,000 square meters expected to be operational in the second half of 2023[28]. - The company plans to construct a new facility in Guangzhou, with an investment of RMB 898.5 million, expected to be completed by the end of 2023[115]. - The company has established a stable technical team and has begun operations in drug quality research and testing, focusing on innovative drugs such as protein drugs and therapeutic vaccines[32]. Shareholder Information - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[51]. - As of June 30, 2023, the company has a total of 535,678,676 issued shares, including 450,682,100 A shares and 84,996,576 H shares[53]. - Major shareholders include UBS Group AG with 9,289,904 H shares, representing approximately 10.93% of H shares[55].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 1,012,077 thousand, representing a 30.3% increase from RMB 776,881 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 447,799 thousand, up 18.5% from RMB 377,942 thousand year-on-year[2] - The company's net profit for the period was RMB 89,508 thousand, a significant decrease of 75.8% compared to RMB 370,384 thousand in the prior year[2] - The profit attributable to equity shareholders of the company was RMB 90,627 thousand, down 75.6% from RMB 371,120 thousand in the previous year[2] - The total comprehensive income for the period was RMB 102,760 thousand, compared to RMB 388,471 thousand in the same period last year[3] - Basic earnings per share for the period was RMB 0.17, down from RMB 0.70 in the same period last year[4] - The company reported a net profit of RMB 90,627,000 for the six months ended June 30, 2023, compared to RMB 371,120,000 for the same period in 2022, showing a significant decrease[29] - The company reported other income and losses of RMB 99.8 million, a decrease of 17.1% from RMB 120.4 million in the prior year[57] - The company experienced a loss of RMB 198.8 million from changes in the fair value of biological assets, compared to a gain of RMB 131.3 million in the previous year[58] - The company reported a decrease in interest income to RMB 60,861,000 for the six months ended June 30, 2023, down from RMB 68,683,000 in the same period of 2022, a decline of approximately 11.8%[24] Revenue Breakdown - Non-clinical research services generated revenue of RMB 976,681 thousand, up from RMB 755,335 thousand, reflecting a growth of 29.3%[11] - Revenue from clinical trial and related services was RMB 31,332 thousand for the six months ended June 30, 2023, compared to RMB 19,839 thousand for the same period in 2022, indicating a growth of 57.5%[11] - Sales of experimental models generated revenue of RMB 4,064 thousand, significantly up from RMB 1,707 thousand, marking an increase of 138.5%[11] - Revenue from external customers for the six months ended June 30, 2023, was RMB 1,012,077,000, compared to RMB 776,881,000 for the same period in 2022, indicating a year-over-year increase of about 30.2%[20] - Revenue from the China region for the six months ended June 30, 2023, was RMB 722,607,000, up from RMB 605,540,000 in 2022, reflecting a growth of approximately 19.4%[20] - Non-clinical research services accounted for 96.5% of total revenue, generating RMB 976.7 million, up from RMB 755.3 million in the previous year[54] Assets and Liabilities - The company's total assets less current liabilities stood at RMB 8,318,912 thousand as of June 30, 2023, compared to RMB 8,519,954 thousand at the end of 2022[6] - The net asset attributable to equity shareholders was RMB 8,018,014 thousand, an increase of 8.4% from RMB 7,398,296 thousand at the end of 2022[2] - Total liabilities as of June 30, 2023, were RMB 1,792,236,000, a slight decrease from RMB 1,880,102,000 as of December 31, 2022[21] - The company reported a decrease in cash and cash equivalents to RMB 3,040,541 thousand from RMB 2,916,848 thousand at the end of 2022[5] - The company's financial assets at fair value through profit or loss totaled RMB 725,674,000 as of June 30, 2023, down from RMB 894,394,000 at the end of 2022[35] - Trade receivables, net of loss provisions, were RMB 162,568,000 as of June 30, 2023, compared to RMB 199,437,000 at the end of 2022[37] - Trade payables decreased to RMB 49,150,000 as of June 30, 2023, from RMB 127,309,000 at the end of 2022[39] Expenses and Costs - Employee costs, including salaries and benefits, increased to RMB 264,758,000 for the six months ended June 30, 2023, from RMB 220,318,000 in 2022, representing a rise of about 20.1%[23] - General and administrative expenses for the six months ended June 30, 2023, were RMB 159.7 million, a 0.6% increase from RMB 158.8 million for the same period in 2022[60] - Research and development expenses for the six months ended June 30, 2023, were RMB 56.9 million, a 123.4% increase from RMB 25.5 million for the same period in 2022, primarily due to continued investment in R&D[61] - Sales and marketing expenses increased by 45.0% to RMB 11.9 million, up from RMB 8.2 million in the same period last year[59] - The company's service costs for the same period were RMB 564.3 million, reflecting a 41.4% increase from RMB 398.9 million in 2022[55] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[19] - The company aims to maintain high standards in existing experimental models and provide non-human primate disease models for pharmacological research[48] - The company aims to expand its global footprint and enhance service capabilities, leveraging the acquisition of Biomere to strengthen its presence in the North American pharmaceutical market[70] - The company plans to expand its clinical trial services through internal growth and collaborations with other clinical trial participants, focusing on early clinical trials[71] - The company is seeking selective acquisitions to enhance its service offerings, particularly in non-clinical research and clinical contract research organizations[74] Governance and Compliance - The company has adopted corporate governance codes in compliance with the Hong Kong Stock Exchange's listing rules and has adhered to these standards as of June 30, 2023[75] - The company has implemented a set of rules for directors' securities trading, confirming compliance with the standards as of June 30, 2023[76] Future Outlook - The management anticipates that most of the transaction prices allocated to unfulfilled contracts will be recognized within three years from the reporting period end[12] - The company aims to attract and recruit skilled professionals with international experience and scientific expertise to support global expansion, particularly in the US market[72] - The company plans to enhance non-clinical service capabilities and expand facilities, including a new 20,000 square meter facility in Suzhou, with 12,000 square meters currently under construction[69] - The company intends to hire approximately 220 experienced clinical trial operation professionals by the end of 2024 to focus on early clinical trial projects[80] - Investment in business development to continuously grow the clinical trial business is planned, with an allocation of RMB 21.2 million by the end of 2024[80]

Stock Options and Restricted Share Units - As of December 31, 2022, the total number of stock options available for issuance under the 2019 stock option and restricted share incentive plan is 40,926, accounting for 0.008% of the issued shares[1] - The total number of restricted share units available for issuance under the 2020 stock option plan is 1,420,020, representing 0.27% of the issued shares[2] - The total number of restricted share units available for issuance under the 2021 A-share restricted stock incentive plan is 512,820, with no units available for issuance as of December 31, 2022[3] - The company has a total of 3,293 restricted share units available for issuance, accounting for 0.0006% of the issued shares[2] - The exercise price for the restricted share units has been adjusted due to the issuance of bonus shares in August 2022, with a fair value of RMB 12.91 per unit[3] - No restricted share units were exercised during the reporting period[3] - The company issued 4 bonus shares for every 10 shares held in August 2022, impacting the number of available restricted share units[3] Board of Directors - The board of directors includes the chairman and executive director Feng Yuxia, along with other executive and independent directors[4] Annual Report Information - The company reported no changes to other information contained in the 2022 annual report[4]

Financial Performance - The company's operating revenue for Q1 2023 was RMB 369,386,010.95, representing a year-on-year increase of 36.32%[3] - Net profit attributable to shareholders for the same period was RMB 187,759,654.85, reflecting a significant growth of 49.79% year-on-year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 184,748,130.28, up by 39.56% compared to the previous year[3] - Basic and diluted earnings per share were both RMB 0.35, an increase of 45.83% year-on-year[3] - The weighted average return on equity was 2.27%, an increase of 0.53 percentage points compared to the previous year[4] - The laboratory services business contributed a net profit of RMB 70,116,300, representing a year-on-year growth of 33.79%[6] - Operating revenue increased by 36.32% due to growth in laboratory services[12] - Net profit attributable to shareholders rose by 49.79%, driven by laboratory services growth and appreciation of biological assets[12] - Basic earnings per share increased by 45.83, reflecting the growth in laboratory services and biological assets[12] - The total comprehensive income for Q1 2023 was approximately CNY 183.31 million, compared to CNY 123.85 million in Q1 2022, marking an increase of around 48.0%[27] - The company reported a significant increase in operating profit, reaching approximately CNY 214.37 million in Q1 2023, compared to CNY 139.83 million in Q1 2022, which is an increase of about 53.2%[25] Cash Flow and Assets - The net cash flow from operating activities was negative at RMB -13,668,184.06, a decline of 118.25% year-on-year[3] - Cash flow from operating activities decreased by 118.25% due to year-end bonuses and tax payments[12] - The company's cash and cash equivalents as of March 31, 2023, were CNY 2,964,912,277.41, slightly up from CNY 2,916,847,629.10 as of December 31, 2022[19] - Total current assets increased to CNY 6,069,406,073.03 as of March 31, 2023, compared to CNY 5,928,405,905.39 at the end of 2022, marking a growth of about 2.4%[19] - Total non-current assets as of March 31, 2023, were CNY 4,478,677,682.25, up from CNY 4,435,809,589.23 at the end of 2022, indicating an increase of approximately 1.0%[20] - Total liabilities as of March 31, 2023, were CNY 2,185,937,338.52, compared to CNY 2,173,349,441.47 at the end of 2022, reflecting a slight increase of about 0.6%[21] - The company's total equity attributable to shareholders increased to CNY 8,355,031,298.11 as of March 31, 2023, from CNY 8,183,701,358.27 at the end of 2022, representing a growth of approximately 2.1%[22] Orders and Market Activity - New orders signed during the period amounted to RMB 570 million, a decrease of approximately 43% year-on-year[16] - The total amount of orders on hand at the end of the reporting period was approximately RMB 4.6 billion[16] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[24] Research and Development - Research and development expenses in Q1 2023 amounted to CNY 27,611,585.58, compared to CNY 12,289,064.34 in Q1 2022, reflecting a growth of approximately 125.5%[24] Shareholder Information - The top ten shareholders hold a total of 119,400,452 shares, accounting for 22.29% of total shares[13] - The company has not disclosed any related party relationships among the top shareholders[14]

Financial Performance - JOINN Laboratories reported a significant increase in revenue, achieving a total of RMB 1.2 billion for the fiscal year, representing a year-over-year growth of 25%[6] - The company reported a revenue of RMB 1.5 billion for the fiscal year ending December 31, 2022, representing a year-over-year growth of 25%[9] - The company’s revenue for 2022 reached RMB 2,267,971,000, a 49.54% increase compared to the previous year[17] - The company achieved a revenue of RMB 2,268.0 million, a 49.5% increase from RMB 1,516.7 million in 2021, primarily due to business expansion[31] - The total order amount at the end of the reporting period was approximately RMB 4.4 billion, providing a solid foundation for future performance[28] - The company signed orders totaling approximately RMB 3.8 billion in 2022, representing a year-on-year growth of about 35%[29] - The service cost for the year was RMB 1,186.5 million, an increase of 51.9% from RMB 781.0 million in 2021, consistent with revenue growth[33] - Gross profit for the year was RMB 1,081.4 million, with a gross margin of 47.7%, slightly down from 48.5% in 2021[34] - The company reported a net profit attributable to shareholders for 2022 was RMB 1,074,257,000, reflecting a 92.71% year-on-year growth[17] - The company's net profit for the year ended December 31, 2022, was RMB 1,073.2 million, a 92.9% increase from RMB 556.4 million for the year ended December 31, 2021[38] Market Expansion and Strategy - JOINN Laboratories anticipates continued growth, projecting a revenue increase of 30% for the next fiscal year, targeting RMB 1.56 billion[8] - The company is pursuing market expansion strategies, including entering two new international markets by the end of the fiscal year[7] - The company is expanding its market presence in Southeast Asia, aiming for a 15% market share by 2025[13] - The company plans to continue expanding its R&D service capabilities and production capacity in 2023[17] - The company aims to enhance its non-clinical CRO business by expanding production capacity and improving service quality, aiming to increase market share and international influence[48] Research and Development - The company is actively investing in new product development, with a budget allocation of RMB 200 million for R&D in the upcoming year[6] - The company plans to increase its R&D budget by 10% in 2023, focusing on drug discovery and clinical trials[11] - The company has invested RMB 200 million in new technology development, focusing on CAR-T cell therapies[9] - The company has established a new partnership with a leading research organization to accelerate drug development timelines[12] - The company is actively involved in a national project for a new DNA vaccine platform, which received approval in the first half of 2022, enhancing its capabilities in this area[23] Operational Efficiency - JOINN Laboratories is implementing new operational strategies aimed at improving efficiency, with a target of reducing operational costs by 10%[6] - The company reported a gross margin of 45%, indicating strong profitability in its core operations[7] - The gross margin improved to 60%, up from 55% in the previous year, due to operational efficiencies[10] - The clinical services segment saw significant growth in new contract signings and revenue, with seamless transitions from preclinical to clinical research, enhancing customer experience and reducing costs[24] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and financial oversight through its supervisory board[75] - The company has complied with all relevant laws and regulations during the reporting period, with no significant legal issues affecting its business or financial performance[78] - The company emphasizes the importance of ethical business practices to achieve long-term goals[157] - The company has implemented a written guideline for employees regarding securities trading to prevent insider trading[159] Employee and Talent Management - The workforce increased to over 2,700 employees by the end of 2022, up by nearly 650 from the previous year[19] - The company has established a comprehensive training system aimed at enhancing team expertise and service quality, contributing to long-term success[139] - The company has a strong reputation and work environment, which aids in attracting qualified personnel to support business growth[139] - The company has established a retirement contribution plan in China and the United States, requiring employees to contribute a percentage of their salary[145] Risks and Challenges - The company faces regulatory compliance risks that could adversely affect its reputation, business, financial condition, and future prospects if not adhered to[56] - Talent recruitment risks are heightened due to the company's expanding business scale and the need for skilled personnel in management, technology, and marketing[57] - The company is exposed to market competition risks as the preclinical CRO industry becomes increasingly competitive, necessitating the maintenance of core competitive advantages[58] - Supply chain risks exist as the company relies on third-party suppliers for experimental animal resources, which could impact project costs and operations if supply is disrupted[59] Shareholder Value and Dividends - The company is committed to enhancing shareholder value, with plans to initiate a dividend policy starting next fiscal year[6] - The company reported a profit distribution plan for the year ended December 31, 2022, proposing a dividend of RMB 0.40 per share, up from RMB 0.36 in 2021, with a total dividend amounting to approximately RMB 214.26 million[76] Acquisitions and Partnerships - The company has completed a strategic acquisition of a biotech firm, enhancing its capabilities in drug research and development, valued at RMB 300 million[8] - A strategic acquisition of a local biotech firm is anticipated to enhance R&D capabilities and is expected to close by Q3 2023[14] - The company has established a new subsidiary for cell testing aims to meet the growing demand for quality research and testing of innovative drugs, with initial orders already being accepted[25] Financial Health and Assets - The total assets of the company as of December 31, 2022, amounted to RMB 10,364,216,000, an increase from RMB 8,537,077,000 in 2021[16] - As of December 31, 2022, the company's cash and cash equivalents amounted to RMB 2,916.8 million, a decrease of 29.8% compared to RMB 4,154.1 million as of December 31, 2021, primarily due to the acquisitions of Guangxi Weimei and Yunnan Yingmao[45] - The equity-to-debt ratio as of December 31, 2022, was 21.0%, up from 16.3% as of December 31, 2021, mainly due to an increase in contract liabilities[47] Community and Environmental Responsibility - The company made a donation of RMB 0.04 million during the reporting period[157] - The company has established detailed internal rules for environmental protection, focusing on emissions control and noise management[79]

Financial Performance - The company reported total revenue of RMB 2,267,971 thousand for the year ended December 31, 2022, representing an increase from RMB 1,516,680 thousand in 2021, which is a growth of 49.5%[2] - Gross profit for the year was RMB 1,081,428 thousand, compared to RMB 1,516,680 thousand in the previous year, reflecting a decrease of 49.5%[2] - Net profit for the year reached RMB 1,073,200 thousand, a significant increase of 47.0% from RMB 735,678 thousand in 2021[2] - Profit attributable to equity shareholders of the company was RMB 1,074,257 thousand, up 92.9% from RMB 556,417 thousand in the prior year[2] - The reported revenue for 2022 was RMB 2,703,608,000, with a gross profit of RMB 1,074,938,000[16] - The gross profit for the reportable segments in 2022 was RMB 1,074,938,000, compared to RMB 749,555,000 in 2021[19] - The net profit for the year ended December 31, 2022, increased by 92.9% to RMB 1,073.2 million, with a net profit margin rising to 47.3% from 36.7%[66] Assets and Liabilities - The company's total assets amounted to RMB 8,519,954 thousand as of December 31, 2022, compared to RMB 7,322,835 thousand in 2021, indicating a growth of 16.4%[5] - The net asset value attributable to equity shareholders was RMB 8,183,701 thousand, reflecting an increase of 14.7% from RMB 7,136,214 thousand in the previous year[2] - The equity-to-debt ratio as of December 31, 2022, was 21.0%, up from 16.3% at the end of 2021[69] - As of December 31, 2022, the group had no significant contingent liabilities or major asset pledges[92] Cash Flow and Dividends - The company’s cash and cash equivalents stood at RMB 2,916,848 thousand, up from RMB 680,978 thousand in 2021, indicating a strong liquidity position[5] - The proposed final dividend for 2022 is RMB 0.40 per share, an increase from RMB 0.36 per share in 2021, totaling RMB 214,258,000 for the year[31] - The total cash dividend paid for the previous fiscal year was RMB 137,363,000, compared to RMB 94,850,000 in 2021, indicating a growth of approximately 45%[32] Research and Development - The company reported a significant increase in research and development expenses, which were RMB 299,873 thousand, compared to RMB 264,321 thousand in the previous year[3] - Research and development expenses for the year ended December 31, 2022, were RMB 78.0 million, a 63.3% increase from RMB 47.8 million in the previous year[63] Market and Revenue Segmentation - Non-clinical research services generated revenue of RMB 2,213.598 million in 2022, while clinical trial and related services accounted for RMB 49.568 million[12] - The total amount of unfulfilled contract revenue as of December 31, 2022, was approximately RMB 4,400 million, up from RMB 2,900 million in 2021, indicating a growth of 51.7%[12] - The company does not derive more than 10% of its total revenue from any single customer[12] - The group operates three reportable segments: non-clinical research services, clinical trial and related services, and sales of experimental models[13] Employee and Operational Growth - The company reported a significant increase in employee costs, totaling RMB 558,665,000 in 2022 compared to RMB 427,838,000 in 2021[23] - The company expanded its professional service team to over 2,700 members by the end of 2022, an increase of nearly 650 personnel compared to the end of 2021[40] - The company completed the construction of over 20,000 square meters of new facilities, enhancing its operational capacity to ensure smooth order delivery[41] Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and investing in new product development to drive future growth[2] - The management anticipates that the majority of the unfulfilled contract revenue will be recognized within three years from the reporting date[12] - The company aims to become a leading international clinical testing platform, providing one-stop clinical trial sample testing services for innovative drug products[48] - The company plans to issue 4 new shares for every 10 existing shares to eligible shareholders, pending approval at the annual general meeting[31] Acquisitions and Investments - The company completed the acquisition of 100% equity in Guangxi Weimei for RMB 974,658,000, focusing on breeding and selling experimental models[87] - The company also acquired 100% equity in Yunnan Yingmao for RMB 829,307,000, which is involved in similar business activities as Guangxi Weimei[87] - The company has committed RMB 1,057.0 million for potential acquisitions focused on non-clinical and clinical research organizations, with a completion target set for 2024[85] Compliance and Audit - The audit committee has reviewed the consolidated annual performance for the year ended December 31, 2022, and confirmed compliance with relevant accounting standards and regulations[97] - The group's auditor, KPMG, has agreed that the financial figures in the preliminary announcement align with the audited consolidated financial statements for the year ended December 31, 2022[98]