Financial Performance - For the fiscal year 2022, the total revenue increased to RMB 2,379.6 million, representing a growth of approximately 13.1% compared to RMB 2,104.1 million in the previous year[17]. - The gross profit rose to RMB 815.7 million, reflecting a year-on-year increase of about 25.3% from RMB 651.0 million[17]. - The adjusted net loss under non-IFRS was RMB 133.9 million, a decline from the adjusted net profit of RMB 321.1 million in the previous year, primarily due to market volatility affecting the fair value of investments[17]. - The company reported a net loss of RMB 504.2 million for the year, compared to a profit of RMB 300.6 million in the previous year[9]. - The total contract value of orders on hand reached RMB 1,050.0 million, representing an 8.8% year-on-year increase from RMB 965.0 million[19]. - The company's revenue for the reporting period was approximately RMB 2,379.6 million, an increase of 13.1% from RMB 2,104.1 million in the same period last year[38]. - Gross profit for the reporting period was approximately RMB 815.7 million, up 25.3% from RMB 651.0 million in the previous year[39]. - The net loss for the reporting period was approximately RMB 504.2 million, compared to a net profit of RMB 300.6 million in the same period of 2021[40]. - The adjusted net loss under non-IFRS was approximately RMB 133.9 million, while the adjusted net profit for the same period in 2021 was RMB 321.1 million[40]. - The group recorded a loss of approximately RMB 364.2 million from financial assets measured at fair value, primarily reflecting a decrease in fair value of equity in four incubated investment companies[79]. - Financial costs for the reporting period amounted to approximately RMB 184.7 million, an increase of 0.9% compared to RMB 183.1 million for the year ended December 31, 2021[81]. - The group's net loss for the reporting period was approximately RMB 504.2 million, compared to a net profit of approximately RMB 300.6 million for the year ended December 31, 2021[82]. - Other income and gains decreased by 45.2% to approximately RMB 67.6 million from RMB 123.4 million in the same period last year, primarily due to foreign exchange losses and losses from derivative financial instruments[101]. - The group's income tax expense for the reporting period was approximately RMB 45.1 million, a decrease of 4.2% from approximately RMB 47.1 million for the year ended December 31, 2021[134]. - The group's debt-to-asset ratio was approximately 54.5% as of December 31, 2022, compared to 51.4% as of December 31, 2021, indicating an increase in leverage[137]. - Capital expenditures for the reporting period were approximately RMB 349.8 million, primarily for facility construction and equipment procurement, down from approximately RMB 1,059.0 million for the year ended December 31, 2021[139]. Client and Market Engagement - The number of clients served increased to 2,076 during the reporting period[17]. - The company delivered over 48,925 protein structures cumulatively, with approximately 14,534 new deliveries in 2022, maintaining its leading position in the protein structure analysis field[53]. - The CRO business saw a revenue growth of approximately 23.2% from overseas clients, accounting for about 85.4% of total revenue, while revenue from mainland China clients grew by 9.0%[53]. - As of December 31, 2022, Langhua Pharmaceutical served 852 customers, with the top ten customers accounting for 56.0% of revenue, maintaining a 100% retention rate[52]. - As of December 31, 2022, revenue from the top five customers accounted for 30.0% of total revenue, with the largest customer contributing 18.1%[186]. Research and Development - The company continues to focus on innovative drug development through its CRO and CDMO services, integrating resources to provide comprehensive services from early-stage drug development to commercialization[16]. - The number of ongoing research pipelines in the investment incubation business increased to 215, with 36 pipelines entering the clinical stage[27]. - The company has completed or is progressing on nearly 123 new drug projects since the establishment of the CMC[28]. - The CMC R&D center, covering approximately 10,000 square meters, has been fully operational and includes a 3,000 square meter GMP standard preparation workshop[28]. - The company has constructed multiple core technology platforms, including PROTAC technology platform and various drug screening technologies, contributing to future growth in CRO business[90]. - Research and development investment for the reporting period was RMB 135.8 million, representing a growth of 47.0% compared to RMB 92.4 million for the year ended December 31, 2021[89]. - Research and development expenses increased by 47.0% to approximately RMB 135.8 million from RMB 92.4 million for the year ended December 31, 2021, due to increased investment in internal platform research[104]. Strategic Investments and Growth - The company made strategic investments in several therapeutic firms, including GT Apeiron Therapeutics and Domain Therapeutics, to enhance its drug development capabilities[10]. - The company aims to strengthen its BD team's capabilities to drive order growth and implement a biochemistry integration strategy[19]. - The company is actively applying for a fund manager license in China to establish an investment fund for its incubation business[27]. - The company has incubated 10 companies that have completed or are nearing completion of new financing rounds, totaling approximately USD 158.0 million[64]. - The company aims to enhance its chemical business competitiveness by leveraging biochemical synergies and securing large orders from major pharmaceutical companies[53]. Operational Challenges and Risks - The company faced short-term COVID-19 outbreaks in its R&D and office locations in Shanghai, Jiaxing, and Chengdu, implementing measures to ensure employee safety and project continuity[12]. - There are risks associated with the high failure rate of incubated investment companies engaged in new drug development, which may impact expected investment returns[152]. - The company acknowledges the risk of underperformance in incubation investments, which may lead to significant uncertainty in the fair value of investments[177]. - The company faces foreign exchange risk, having recorded net foreign exchange losses of approximately RMB 146.4 million during the reporting period, compared to net gains of RMB 31.4 million for the year ended December 31, 2021[115]. - Future business may be adversely affected if industry growth trends slow down or if outsourcing ratios decrease[150]. Infrastructure and Capacity Expansion - The company completed the construction of its new headquarters in Shanghai, covering an area of approximately 40,000 square meters, which became fully operational by November 10, 2022[11]. - The company plans to build an additional 400 cubic meters of production capacity by 2024, with ground construction already initiated[52]. - The total available capacity for CDMO has reached 860 cubic meters, with plans to add 400 cubic meters of new capacity in 2024[58]. - The company has accelerated the construction of office and laboratory facilities to meet the demands of rapid business growth, including a 64,564 square meter facility in Chengdu[91]. Compliance and Governance - The company is committed to ensuring compliance with relevant laws and regulations, which may require obtaining permits from government agencies[156]. - The company’s operations must comply with extensive environmental and health and safety regulations, which could impose liabilities regardless of negligence[155]. - The group has no significant violations of applicable laws and regulations as of December 31, 2022[132]. - The company has not faced any significant disputes with clients or suppliers during the reporting period, maintaining good relationships and providing quality services[163]. Employee and Talent Management - The company has expanded its workforce to 2,601 employees, with 1,617 in CRO R&D roles, ensuring competitive compensation to retain talent[91]. - The company is focused on attracting and retaining skilled scientists and management personnel to maintain its technological leadership and service stability[149]. - The company’s ability to maintain competitive compensation levels is crucial to prevent the loss of core technical personnel and management[149]. Financial Instruments and Securities - The company issued 2.6 million, amounted to 280 million convertible bonds due in December 2025[169]. - The company has issued a total of 194,118,050 shares upon conversion of the February 2025 convertible bonds, with an additional 10,038,587 shares potentially issuable at the reset conversion price of HKD 5.11[168]. - As of December 31, 2022, the group did not issue any debt securities[200]. - The company maintains the public float required by listing rules as of the report date[197].
维亚生物(01873) - 2022 - 年度财报