Financial Performance - Revenue for the first half of 2023 reached RMB 2,500.47 million, a significant increase from RMB 1,289.39 million in the same period of 2022[75] - Gross profit for the first half of 2023 was RMB 1,778.83 million, compared to RMB 983.79 million in the first half of 2022[75] - Net profit for the first half of 2023 was RMB 239.98 million, a turnaround from a net loss of RMB 252.10 million in the same period of 2022[75] - Net profit for the six months ended June 30, 2023, was RMB 239.98 million, compared to a net loss of RMB 252.095 million in the same period last year[79][81] - Total comprehensive income for the six months ended June 30, 2023, was RMB 243.268 million, compared to a total comprehensive loss of RMB 253.607 million in the same period last year[79][81] - The company reported a profit attributable to ordinary equity holders of RMB 239,980 thousand in H1 2023, compared to a loss of RMB 252,095 thousand in H1 2022[102] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 6,975.37 million, up from RMB 6,732.77 million at the end of 2022[78] - Total liabilities as of June 30, 2023, were RMB 4,954.45 million, slightly down from RMB 5,001.58 million at the end of 2022[78] - The company's equity attributable to owners of the parent company as of June 30, 2023, was RMB 1,889.53 million, up from RMB 1,636.33 million at the end of 2022[78] - Total equity as of June 30, 2023, was RMB 1.889 billion, compared to RMB 2.078 billion as of June 30, 2022[79][81] - The company's net current liabilities as of June 30, 2023, amounted to RMB 2,337,538,000[87] Cash Flow - Cash flow from operating activities for the six months ended June 30, 2023, was RMB 332.46 million, compared to a negative cash flow of RMB 103.113 million in the same period last year[83] - Cash flow from financing activities for the six months ended June 30, 2023, was RMB 156.497 million, compared to RMB 845.54 million in the same period last year[85] - Cash and cash equivalents at the end of June 30, 2023, were RMB 632.156 million, compared to RMB 215.084 million at the end of June 30, 2022[85] Revenue Breakdown - Revenue from external customers in Mainland China for the six months ended June 30, 2023, was RMB 2,221,702,000, a significant increase from RMB 1,239,689,000 in the same period in 2022[93] - Total revenue from customer contracts for the six months ended June 30, 2023, was RMB 2,499,136,000, compared to RMB 1,288,739,000 in the same period in 2022[94] - Revenue from the sale of biopharmaceutical products for the six months ended June 30, 2023, was RMB 2,152,901,000, up from RMB 1,181,622,000 in the same period in 2022[94] - Licensing revenue for the six months ended June 30, 2023, was RMB 14,037,000, compared to RMB 31,606,000 in the same period in 2022[94] - Revenue from R&D services for the six months ended June 30, 2023, was RMB 331,452,000, a significant increase from RMB 74,964,000 in the same period in 2022[94] - Revenue recognized at a point in time for the six months ended June 30, 2023, was RMB 2,160,904,000, compared to RMB 1,201,164,000 in the same period in 2022[94] - Revenue recognized over time for the six months ended June 30, 2023, was RMB 338,232,000, up from RMB 87,575,000 in the same period in 2022[94] R&D and Expenses - R&D expenses for the first half of 2023 were RMB 547.83 million, slightly up from RMB 534.50 million in the same period of 2022[75] - Sales and distribution costs for the first half of 2023 increased to RMB 782.95 million from RMB 378.64 million in the first half of 2022[75] - R&D expenses remained stable at RMB 547,828 thousand in H1 2023 compared to RMB 534,497 thousand in H1 2022, a slight increase of 2.5%[96] - The company recognized expenses of RMB 2.285 million, cost of sales of RMB 302,000, deferred development costs of RMB 38,000, and inventory of RMB 2,000 in other reserves for the six months ended June 30, 2023[80] Related Party Transactions - Revenue from licensing to related parties increased to RMB 10.851 million in 2023, up from RMB 9.283 million in 2022[116] - Sales of goods to related parties surged to RMB 1.204518 billion in 2023, compared to RMB 742.868 million in 2022[116] - Services provided to related parties amounted to RMB 22.411 million in 2023, down from RMB 30.093 million in 2022[116] - Purchases of services from related parties rose to RMB 17.629 million in 2023, up from RMB 8.855 million in 2022[116] - Trade receivables from related parties increased to RMB 391.812 million in 2023, compared to RMB 179.728 million in 2022[118] - Deposits with related parties stood at RMB 193 million in 2023, with no comparable figure in 2022[116] - Trade payables to related parties decreased to RMB 302,000 in 2023, down from RMB 429,000 in 2022[119] - Other payables and accrued expenses to related parties totaled RMB 22.707 million in 2023, down from RMB 26.164 million in 2022[119] - Long-term payables to related parties increased significantly to RMB 754.717 million in 2023, up from RMB 235.849 million in 2022[119] - Contract liabilities with related parties rose to RMB 516.55 million in 2023, compared to RMB 501.187 million in 2022[119] Financial Assets and Liabilities - The fair value of financial assets at fair value through profit or loss as of June 30, 2023, was RMB 25.20 million[72] - The fair value of financial assets at fair value through profit or loss decreased significantly to RMB 25.202 million as of June 30, 2023, from RMB 160.186 million at the end of 2022[122][124] - Non-current portion of interest-bearing bank and other borrowings had a fair value of RMB 1.003927 billion as of June 30, 2023, up from RMB 965.952 million at the end of 2022[126][127] - The company's financial assets at fair value through profit or loss are classified as Level 3 in the fair value hierarchy, indicating significant unobservable inputs[124] Government Subsidies and Exchange Rates - Government subsidies decreased to RMB 14,505 thousand in H1 2023 from RMB 22,110 thousand in H1 2022, a decline of 34.4%[95] - Foreign exchange gains dropped significantly to RMB 7,820 thousand in H1 2023 from RMB 28,388 thousand in H1 2022, a decrease of 72.4%[95] - Exchange rate fluctuations resulted in a gain of RMB 3.288 million for the six months ended June 30, 2023, compared to a loss of RMB 1.512 million in the same period last year[79][81] Interest and Tax Expenses - Interest income increased to RMB 2,712 thousand in H1 2023 from RMB 704 thousand in H1 2022, a growth of 285.2%[95] - Bank and other borrowing interest expenses rose to RMB 64,237 thousand in H1 2023 from RMB 55,652 thousand in H1 2022, an increase of 15.4%[97] - Current tax expense in Mainland China increased to RMB 3,956 thousand in H1 2023 from RMB 953 thousand in H1 2022, a significant rise of 315.1%[99] Shareholder and Equity Information - FHL holds a 53.61% stake in the company's domestic shares and a 6.32% stake in H-shares[136] - HenLink owns 100% of the non-listed foreign shares, representing 2.92% of the total shares[137] - Cayman Henlius holds a 26.77% stake in H-shares, equivalent to 8.05% of the total shares[136] - Qatar Investment Authority holds a 6.96% stake in H-shares through Qatar Holding LLC[136] - Wenjie Zhang holds a 6.30% stake in HenLink, Inc. through ordinary shares[133] - 復星新藥 holds a 73.03% stake in domestic shares, representing 48.94% of the total shares[136] - 復星醫藥產業發展 holds a 6.97% stake in domestic shares, representing 4.67% of the total shares[136] - 復星國際 holds an 80.00% stake in domestic shares and a 21.03% stake in H-shares[136] - 復星實業 holds a 19.78% stake in H-shares, representing 5.95% of the total shares[136] - Al Rayyan Holding LLC holds a 6.96% stake in H-shares, representing 2.09% of the total shares[136] - FHL directly holds approximately 73.67% of Fosun International's shares as of June 30, 2023[138] - Fosun High-Tech holds approximately 35.82% of Fosun Pharma's shares as of June 30, 2023[138] - Scott Shi-Kau Liu holds approximately 64.20% of Cayman Henlius' shares, while Wei-Dong Jiang holds approximately 35.80% as of June 30, 2023[139][140] Share Incentive Plans - The 2018 Share Incentive Plan involved a total of 22,750,000 shares, representing approximately 4.19% of the company's total issued shares as of the report date[152] - The 2018 Share Incentive Plan was revised in December 2020, introducing new restrictions on the transfer of incentive shares and a special adjustment mechanism[153] - The 2020 Share Incentive Plan involved the purchase of restricted interests from resigned 2018 participants, totaling 360,700 domestic shares and 2,420,000 non-listed foreign shares, representing approximately 0.51% of the company's total issued shares[155] - The 2020 Share Incentive Plan's first batch of restrictions for the first category of participants was lifted on April 30, 2021, with 60% of the shares being unrestricted[156] - The 2020 Share Incentive Plan's second batch of restrictions for the second category of participants was lifted on April 30, 2022, with 25% of the shares being unrestricted[156] - The 2020 Share Incentive Plan's third batch of restrictions for the third category of participants will be lifted on April 30, 2023, with 55% of the shares being unrestricted[156] - As of June 30, 2023, 283,400 shares for Executive Director WENJIE ZHANG were vested on April 30, 2023, with a weighted average market price of HKD 14.14[157] - As of June 30, 2023, 599,502 shares for the five highest-paid individuals were vested on April 30, 2023, with a weighted average market price of HKD 14.14[157] - As of June 30, 2023, 149,790 shares for other grant recipients by category were vested on April 30, 2023, with a weighted average market price of HKD 14.14[157] - As of June 30, 2023, 44,000 shares for other grant recipients were vested on May 16, 2023, with a weighted average market price of HKD 14.14[157] - 79,800 unvested shares under the 2018 Share Incentive Plan were vested on May 16, 2023, for a resigned employee, with a weighted average closing price of HKD 14.14 per share[158][159] - 44,000 unvested shares under the 2020 Share Incentive Plan were vested on May 16, 2023, for a resigned employee[159] - WENJIE ZHANG, the former CEO, had 275,000 shares vested under the 2020 Share Incentive Plan, with a weighted average closing price of HKD 19.42 per share[161] - The top five highest-paid individuals, including WENJIE ZHANG, had 481,738 shares vested under the 2020 Share Incentive Plan, with a weighted average closing price of HKD 19.42 per share[161] - 42,000 unrestricted shares were transferred to WENJIE ZHANG under the 2020 Share Incentive Plan, with a total fair value of approximately RMB 396,000 (HKD 22.5 per share)[162] - The 2018 Share Incentive Plan was fully granted on April 14, 2018, with no cancellations or forfeitures during the reporting period[159] - The 2020 Share Incentive Plan was fully granted on December 10, 2020, with no cancellations or forfeitures during the reporting period[162] - The company corrected an unintentional error in the 2022 Annual Report regarding the 2020 Share Incentive Plan's share movement[160] Global Offering and Proceeds - The global offering of H shares raised a net amount of approximately HKD 3,147.1 million (RMB 2,800.9 million) after deducting listing expenses[146] - Approximately 24.8% (RMB 693.7 million) of the net proceeds from the global offering were allocated to ongoing clinical trials, regulatory filings, and registrations for core products[147] - The company allocated approximately 16.8% (RMB 470.8 million) of the net proceeds for clinical trials, regulatory filings, and registrations of other biosimilar candidates (including HLX12, HLX11, and HLX14), with RMB 470.8 million used as of December 31, 2022[148] - Approximately 48.4% (RMB 1,356.3 million) of the net proceeds were allocated for clinical trials, regulatory filings, and registrations of innovative biologics and tumor immunotherapy combinations, with RMB 1,345.4 million used as of December 31, 2022[148] - RMB 226.7 million of the company's own liquidity funds were used for clinical trials, regulatory filings, and registrations of other biosimilar candidates (including HLX12, HLX11, and HLX14)[149] - RMB 243.3 million of the company's own liquidity funds were used for clinical trials, regulatory filings, and registrations of HLX10 and tumor immunotherapy combinations (including HLX10+HLX07)[149] - As of June 30, 2023, all funds raised for R&D projects were fully utilized, including RMB 2,320.0 million from global offering proceeds and RMB 480.9 million from the company's own liquidity funds[150] - The company decided not to proceed with the proposed A-share issuance and listing on the Shanghai Stock Exchange's STAR Market as of July 3, 2023[151] Company Operations and Facilities - Songjiang Base (II) is under construction with a total planned area of 200 mu for the Henlius Biopharmaceutical Industrialization Base (II)[166] - The company has a production base in Xuhui District, Shanghai[166] - The company's Songjiang Base (I) is located in Songjiang District, Shanghai[166] - The company's HenLink, Inc. was incorporated in the Cayman Islands on August 15, 2014[164] - The company's Shanghai Guoyun Biotechnology Partnership was established on August 9, 2017[166] - The company's Jiangsu Fosun Pharmaceutical Sales Co., Ltd. is a wholly-owned subsidiary[165] Other Financial Information - The company adopted new and revised International Financial Reporting Standards (IFRS) effective January 1, 2023, with no material impact on the interim condensed consolidated financial statements[90] - The company is currently assessing the impact of Pillar Two income taxes, with no disclosure required for interim periods ending on or before December 31, 2023[91] - No significant events have occurred since the end of the reporting period[129] - The board of directors did not recommend any interim dividend for the reporting period[131] - The report period refers to the six months ended June 30, 2023[165] - The last practicable date for determining the contents of this report is September 21, 2023[165] - The company's H shares were listed on the Hong Kong Stock Exchange on September 25, 2019[165] - Global offering includes 6,469,600 H shares for Hong Kong public offering and 58,225,800 H shares initially available for subscription, with an additional 4,366,400 H shares under the over-allotment option[164]
复宏汉霖(02696) - 2023 - 中期财报