Financial Performance - The total number of customers served by the company increased to 2,189, with revenue rising from RMB 1,108.7 million to RMB 1,142.2 million, representing a growth of approximately 3.0% year-on-year[6]. - Gross profit increased from RMB 345.0 million to RMB 406.0 million, reflecting a year-on-year growth of about 17.7%[6]. - Adjusted net profit under non-IFRS increased from RMB 89.0 million to RMB 146.1 million, marking a significant increase of approximately 64.2% year-on-year, attributed to successful exits from incubated companies and positive contributions from CDMO product structure changes[6]. - The company's revenue for the reporting period was approximately RMB 1,142.2 million, an increase of about 3.0% compared to RMB 1,108.7 million in the same period last year[63]. - Gross profit for the reporting period was approximately RMB 406.0 million, representing an increase of about 17.7% from RMB 345.0 million in the previous year, with a gross margin of approximately 35.5%[68]. - The group recorded capital expenditures of approximately RMB 60.3 million during the reporting period, a decrease from RMB 128.9 million in the same period last year[107]. - The group faced a net foreign exchange loss of approximately RMB 40.0 million during the reporting period, compared to a net loss of approximately RMB 88.1 million in the same period last year[109]. - The group had a net current liability of RMB 982 million as of June 30, 2023[175]. Business Segments - CRO business revenue rose from RMB 406.0 million to RMB 441.3 million, with a growth rate of about 8.7% year-on-year, although growth has slowed compared to previous years due to global biopharmaceutical investment slowdowns[7]. - The CDMO segment reported a revenue of RMB 700.9 million in the first half of 2023, a slight decrease of approximately 0.3% year-on-year, while gross profit increased by about 25.3% to RMB 208.1 million[32]. - The CMC segment has completed and is advancing 143 new drug projects, with CMC revenue reaching nearly RMB 25 million, while the number of CMC R&D personnel reached 129 as of the reporting period[33]. - The company’s PROTAC drug development services accounted for nearly 12.3% of total CRO revenue, with over 50 E3 ligase structures researched and more than 110 target protein-PROTAC-E3 ligase ternary complex structures delivered as of June 30, 2023[20]. Customer and Market Insights - The proportion of revenue from overseas customers in the CRO business is approximately 86.5%, with a year-on-year growth of about 12.4%[17]. - The company's customer revenue analysis showed significant contributions from clients based in the United States, with revenue from this region increasing to RMB 476.1 million from RMB 383.4 million in the previous year[66]. - The company is actively building an open collaboration platform for global biopharmaceutical innovators, enhancing its CRO and CDMO business synergy[42]. Investment and Financing - The company has incubated 7 companies that have completed or are nearing completion of new financing rounds, with a total financing amount of approximately USD 156.0 million[18]. - The company successfully reached an investment agreement with strategic investors Temasek and Honghui Fund, aiming to raise nearly $210 million, which will help address convertible bond repayment issues and enhance governance and operational synergy[26]. - The net proceeds from the IPO were approximately RMB 1,217.1 million after deducting underwriting fees and expenses, with plans to adjust the use of funds according to business objectives[88]. - The group plans to utilize 70% of the net proceeds from the convertible bond offering for business development and expansion, amounting to approximately RMB 879.19 million[115]. Research and Development - R&D investment during the reporting period was RMB 76.7 million, an increase of 87.5% compared to RMB 40.9 million for the same period last year[57]. - Research and development expenses amounted to approximately RMB 76.7 million, an increase of about 87.5% compared to RMB 40.9 million in the same period last year, primarily due to increased investment in R&D and technology-driven platforms[73]. - The company has established multiple core technology platforms, including PROTAC technology and computer-aided drug design (CADD), enhancing its capabilities in drug discovery and development[57]. Employee and Talent Management - As of June 30, 2023, the total number of employees reached 2,271, with 1,341 in CRO R&D, reflecting the company's commitment to talent retention and training[39]. - The total employee cost for the group was RMB 336.3 million, which includes director remuneration[121]. - The group is focused on competitive compensation packages to retain employees, including salaries, discretionary bonuses, and employee stock ownership plans[121]. - The group is actively involved in training programs to enhance employee skills and knowledge[121]. Corporate Governance - The company has adopted corporate governance practices in line with the corporate governance code, enhancing management and shareholder interests[143]. - The company confirms that all directors complied with the standard code during the reporting period[145]. - The external auditor confirmed that the interim financial information was prepared in accordance with International Accounting Standard 34[129]. Future Plans and Strategies - The company plans to establish an investment fund to support its incubation business, aiming to reduce cash flow pressure and capital occupation at the group level[18]. - The company plans to expand its capacity by constructing an additional 400 cubic meters of production capacity between 2024 and 2025, with ongoing ground construction and equipment procurement[32]. - The group plans to actively control administrative costs and capital expenditures[178]. - The group aims to accelerate the collection of outstanding trade receivables and other receivables[178].
维亚生物(01873) - 2023 - 中期财报