睿智医药(300149) - 2023 Q4 - 年度财报(更新)

Important Notice, Table of Contents, and Definitions This section outlines key disclaimers, the report structure, and definitions of terms Reasons for Performance Changes and Countermeasures The company's 2023 significant losses were primarily due to substantial asset impairments and a high comparative base, with strategic plans to enhance core business - Due to changes in market demand and increased expenses, subsidiary Shanghai ChemPartner's performance fell short of expectations, leading the company to prudently recognize CNY 863 million in impairment for goodwill and long-term assets from its acquisition[2] - The 2022 sale of 100% equity in wholly-owned subsidiary Quantum Hi-Tech recognized approximately CNY 1.021 billion in non-recurring investment income, resulting in a high net profit base for 2022, and the absence of this income in 2023 negatively impacted net profit[2][4] - Company countermeasures include enhancing core business competitiveness, intensifying market expansion, continuously investing in new technology platforms to meet client needs, and strengthening policy and market research to mitigate industry volatility risks[4] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[6] Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance metrics for the reporting period Key Accounting Data and Financial Indicators The company reported significant financial declines in 2023, including a revenue drop and a substantial net loss, primarily due to asset impairments Key Financial Indicators for 2023 | Indicator | 2023 | 2022 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,138,365,803.00 | 1,326,584,320.12 | -14.19% | | Net Profit Attributable to Shareholders (CNY) | -916,752,668.84 | 362,625,006.97 | -352.81% | | Net Profit Attributable to Parent Company Shareholders After Non-recurring Items (CNY) | -919,319,253.44 | -623,419,492.95 | -47.46% | | Net Cash Flow from Operating Activities (CNY) | 150,992,314.83 | 262,460,386.22 | -42.47% | | Basic Earnings Per Share (CNY/share) | -1.84 | 0.73 | -352.05% | | Weighted Average Return on Net Assets | -48.48% | 16.83% | -65.31pp | | Total Assets (CNY) | 2,434,322,930.12 | 3,807,937,141.71 | -36.07% | | Net Assets Attributable to Shareholders (CNY) | 1,436,646,599.86 | 2,345,576,001.31 | -38.75% | Key Quarterly Financial Indicators for 2023 (Unit: CNY) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 268,658,644.91 | 288,795,947.15 | 288,723,816.62 | 292,187,394.32 | | Net Profit Attributable to Shareholders | -25,145,108.24 | 10,049,422.48 | -16,227,230.17 | -885,429,752.91 | - The company incurred a substantial loss of CNY 885 million in net profit attributable to parent company shareholders during the fourth quarter, which was the primary driver of the full-year loss[17] Management Discussion and Analysis This section provides management's perspective on the company's operations, financial condition, and future outlook Business Overview and Operating Performance The company fully focuses on CRO/CDMO services for chemical and biological drugs, with 2023 revenue declining despite gross margin improvement - The company's core business is CRO/CDMO, providing one-stop pharmaceutical R&D and manufacturing services for biologics and small molecules, with a full focus on this core segment since divesting its prebiotic business in 2022[23][24] Operating Performance by Business Segment (Unit: CNY 10,000) | Business Segment | 2023 Operating Revenue | 2022 Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Pharmaceutical R&D Services and Manufacturing | 113,269.27 | 119,132.56 | -4.92% | | Chemical Business | 32,723.55 | 36,203.57 | -9.61% | | Pharmacodynamics/Pharmacokinetics Business | 59,458.83 | 55,792.97 | 6.57% | | Large Molecule Business | 20,649.83 | 25,323.20 | -18.46% | | Gross Margin | 25.98% | 23.22% | +2.76pp | - The decline in chemical business revenue was primarily due to intense market competition and some clients shifting R&D investment towards biologics, while the decrease in large molecule business revenue was mainly impacted by the slowdown in China's biopharmaceutical industry development and lower-than-expected order acquisition[30][31] Analysis of Core Competencies The company's core strengths lie in its integrated chemical and biological drug R&D and manufacturing platform, end-to-end biologics capabilities, and strong talent base - The company possesses a comprehensive integrated R&D and manufacturing service platform covering both chemical and biological drugs, offering services from early drug development to production, and proactively developing cutting-edge technology platforms such as ADC, peptides, and PROTAC[34] - In the biologics field, the company has over 15 years of service experience and end-to-end capabilities, having supported clients in advancing over 170 therapeutic antibody projects and achieving 100% IND application approval rates for 26 projects to obtain clinical trial approvals[35][36] - The company boasts a professional talent pool of nearly 2,000 employees, with over 30% holding master's or doctoral degrees, and has cumulatively served nearly 3,400 clients, including the top twenty global pharmaceutical companies[38][39] Analysis of Principal Business In 2023, principal pharmaceutical R&D and manufacturing outsourcing revenue declined 4.83%, with overseas revenue slightly increasing while domestic revenue significantly dropped Operating Revenue Composition (by Region) | Region | 2023 Amount (CNY) | % of Operating Revenue | 2022 Amount (CNY) | % of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | 196,647,209.68 | 17.27% | 391,999,992.86 | 29.55% | -49.83% | | Overseas | 941,718,593.32 | 82.73% | 934,584,327.26 | 70.45% | 0.76% | Gross Margin by Product | Product | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | Operating Revenue Year-on-year Change | Operating Cost Year-on-year Change | Gross Margin Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chemical Business | 327,235,540.75 | 253,709,961.22 | 22.47% | -9.61% | -6.07% | -2.93pp | | Pharmacodynamics/Pharmacokinetics Business | 594,588,346.03 | 358,762,279.95 | 39.66% | 6.57% | 8.04% | -0.82pp | | Large Molecule Business | 206,495,619.44 | 223,447,780.16 | -8.21% | -18.46% | -13.75% | -5.90pp | R&D Investment | Indicator | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | R&D Investment Amount (CNY) | 77,468,257.76 | 92,278,125.34 | 124,652,569.11 | | R&D Investment as % of Operating Revenue | 6.81% | 6.96% | 7.37% | Key Cash Flow Statement Items (Unit: CNY) | Item | 2023 | 2022 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 150,992,314.83 | 262,460,386.22 | -42.47% | | Net Cash Flow from Investing Activities | -12,820,369.67 | 1,007,779,148.02 | -101.27% | | Net Cash Flow from Financing Activities | -388,341,315.40 | -860,109,783.46 | 54.85% | Outlook on the Company's Future Development and Risks The company plans to focus on integrated CRO/CDMO, particularly ADC platforms, to upgrade service models and expand markets, while facing various operational and market risks - The strategic core is to focus on the CRO/CDMO main business, using the ADC integrated platform as a breakthrough to upgrade the service model to a "full-package" integrated service, aiming to improve performance[62][63][64] - The company plans to strengthen domestic and international market expansion, optimize client service processes, and improve internal incentive and talent development systems to stabilize and expand its team[64][65] - The company faces major risks including declining demand for pharmaceutical R&D services, loss of core talent, failure in new technology development, stricter government regulation, exchange rate fluctuations, and intellectual property protection[66][67][69][70] Corporate Governance This section details the company's corporate governance structure, including information on its board, supervisors, and senior management Information on Directors, Supervisors, and Senior Management The company's senior management team underwent significant changes in 2023, with several core members departing and new appointments made to strengthen professional management - In 2023, the company's management team experienced frequent changes, with several senior executives including Chairman Zeng Xianwei, CEO Zhang Jiguo, CFO Wang Kui, and CFO Xia Dan-ying successively departing[80][81] - To address these changes, the company appointed new CEO, CFO, and several vice presidents, aiming to involve more professional personnel in operations and management to promote company development[81][97] Compensation of Directors, Supervisors, and Senior Management (Unit: CNY 10,000) | Name | Position | Status | Total Pre-tax Compensation | | :--- | :--- | :--- | :--- | | Lilly Xu | Vice President | Current | 400.20 | | Zeng Xianwei | Chairman, CEO | Departed | 337.23 | | Zhang Jiguo | Director, CEO | Departed | 247.34 | | Total | -- | -- | 2,097.44 | Employee Information As of the reporting period end, the company had 1,916 employees, with technical personnel comprising 79.07% and a high proportion of master's or doctoral degrees Employee Professional Composition and Education Level | Professional Composition | Number of Employees | Percentage | Education Level | Number of Employees | | :--- | :--- | :--- | :--- | :--- | | Technical Personnel | 1,516 | 79.07% | Doctorate | 102 | | Administrative Personnel | 248 | 12.94% | Master's | 534 | | Production Personnel | 89 | 4.65% | Bachelor's | 935 | | Financial Personnel | 31 | 1.62% | Junior College and Below | 345 | | Sales Personnel | 32 | 1.67% | Total | 1,916 | | Total | 1,916 | 100% | | | Profit Distribution and Capital Reserve to Share Capital Conversion Given the 2023 loss and future funding needs, the company's board proposed no profit distribution, cash dividends, bonus shares, or capital reserve conversions - Due to the loss incurred in 2023, and to ensure the company's production, operations, and long-term development, the company proposes not to distribute profits[111] Environmental and Social Responsibility This section outlines the company's environmental protection efforts, compliance with regulations, and social responsibility initiatives Major Environmental Issues The company, a key pollutant-discharging entity, strictly adheres to environmental regulations, investing significantly in protection and incurring no administrative penalties during the period - The company and its subsidiaries are classified as key pollutant-discharging entities, with major pollutants being hazardous waste and wastewater[118][123] - During the reporting period, the company invested CNY 7.646 million in environmental governance and protection, and paid CNY 20,200 in environmental protection taxes[128] - All major subsidiaries of the company have developed emergency response plans for environmental incidents and filed them with local ecological environment bureaus[127] Significant Events This section details significant events impacting the company, including regulatory actions, major transactions, and other material developments Penalties and Rectification In December 2023, the company and its executives received a warning letter from the Guangdong Securities Regulatory Bureau for compliance violations, prompting comprehensive rectification and internal accountability - The company and relevant personnel received a warning letter from the Guangdong Securities Regulatory Bureau due to compliance violations identified during an on-site inspection[143] - The company has completed rectification and submitted a report, and has conducted internal criticism and education for relevant responsible persons to prevent similar occurrences[143][144] Share Changes and Shareholder Information This section provides details on changes in the company's share capital, its shareholder structure, and information regarding its actual controller Shareholder and Actual Controller Information As of the reporting period end, the company had 25,450 common shareholders, with Beihai Baben Venture Capital and Hangzhou Cixuan Liangjia Investment as top holders, and Mr. Zeng Xianjing remaining the actual controller Top Five Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Beihai Baben Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 13.69% | 68,441,800 | | Hangzhou Cixuan Liangjia Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 10.24% | 51,185,660 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 5.83% | 29,137,506 | | Shanghai Ruiyun Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 5.41% | 27,046,221 | | MEGA STAR CENTRE LIMITED | Overseas Legal Person | 4.54% | 22,711,333 | - The company's actual controller is Mr. Zeng Xianjing, who directly holds and controls 16.24% of the company's equity through Beihai Baben Venture Capital Co., Ltd[162][168][169][401] Financial Report This section presents the company's audited financial statements, including the audit report, balance sheet, income statement, and detailed notes Audit Report Ernst & Young Hua Ming LLP issued an unqualified audit opinion on the company's 2023 financial report, highlighting revenue recognition, goodwill, and long-term asset impairment as key audit matters - The audit firm is Ernst & Young Hua Ming LLP, which issued a standard unqualified audit opinion[174][175] - Key audit matters include: - Revenue recognition for pharmaceutical R&D services and manufacturing outsourcing business - Goodwill impairment testing - Long-term asset impairment testing[177][178] Financial Statements Financial statements show total assets decreased by 36.07% to CNY 2.434 billion, with net profit turning to a CNY 936 million loss, primarily due to CNY 878 million in asset impairment losses Consolidated Balance Sheet Key Items (Unit: CNY) | Item | 2023-12-31 | 2022-12-31 | | :--- | :--- | :--- | | Total Assets | 2,434,322,930.12 | 3,807,937,141.71 | | Total Liabilities | 973,437,322.12 | 1,437,935,834.66 | | Total Equity Attributable to Parent Company Shareholders | 1,436,646,599.86 | 2,345,576,001.31 | Consolidated Income Statement Key Items (Unit: CNY) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Total Operating Revenue | 1,138,365,803.00 | 1,326,584,320.12 | | Total Operating Costs | 1,198,434,734.47 | 1,409,047,259.26 | | Asset Impairment Losses | -877,869,899.00 | -550,029,479.39 | | Operating Profit | -936,363,721.90 | 747,524,766.06 | | Net Profit | -916,938,966.44 | 362,418,016.59 | Notes to Consolidated Financial Statement Items Notes detail financial data, revealing CNY 817 million goodwill impairment for Shanghai ChemPartner and CNY 28.53 million fixed asset impairment due to underperforming asset groups, with concentrated accounts receivable risk - Goodwill impairment testing revealed that the recoverable amount of Shanghai ChemPartner's asset group was CNY 858 million, significantly lower than its book value of CNY 1.675 billion, resulting in a goodwill impairment loss of CNY 817 million[318][320][321] - Due to lower-than-expected operating performance, a total impairment provision of CNY 28.525 million was recognized for fixed assets of Jiangsu ChemPartner and Kaihui ChemPartner asset groups[302][304][305] - As of the end of the period, accounts receivable from the top five clients collectively accounted for 17.66% of the total, indicating a relatively concentrated credit risk[389]