东曜药业-B(01875) - 2024 - 中期业绩

Performance and Milestone Highlights Overall Performance Overview The Group achieved a net profit of RMB 31.56 million in H1 2024, turning losses into profits, with 59% revenue growth from core product sales and CDMO/CMO business Key Financial and Operational Indicators for H1 2024 | Indicator | H1 2024 (RMB thousands) | YoY Growth | Description | | :--- | :--- | :--- | :--- | | Operating Revenue | 520,603 | 59% | - | | Product Sales Revenue | 400,400 | 44% | Primarily from continuous sales growth of core product Puxinting® | | CDMO/CMO Business Revenue | 113,791 | 144% | Significant results from strategic transformation | | Net Profit | 31,559 | Turned losses into profits | Last year same period was a loss | | Net Cash from Operating Activities | 27,801 | - | Remained positive | - CDMO business market position continues to improve, with 20 new projects added in H1 (17 of which are ADC projects), bringing the cumulative total to 115 projects. Two new pre-BLA (pre-Biologics License Application) projects were added, totaling 8, securing potential for future commercial production[1] - Signed but uncompleted orders (orders on hand) reached RMB 184 million, a year-on-year increase of 104%, providing assurance for future revenue growth[1] - To meet rapid business development, the CDMO team personnel increased by 29% year-on-year to 492 people, accounting for 86% of the Group's total headcount, with the ADC CDMO team seeing a 27% year-on-year increase[2] Consolidated Financial Information Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) The company turned losses into profits in H1 2024, reporting a net profit of RMB 31.56 million with 59% revenue growth to RMB 521 million Key Income Statement Data for H1 2024 | Indicator (RMB thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 520,603 | 328,063 | | Operating Profit/(Loss) | 33,258 | (14,576) | | Profit/(Loss) for the Period | 31,559 | (15,163) | | Total Comprehensive Income/(Loss) | 33,082 | (11,746) | | Basic and Diluted Earnings/(Loss) Per Share (RMB) | 0.04 | (0.02) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets reached RMB 1.457 billion, with total equity increasing to RMB 724 million and net current assets improving to RMB 348 million Key Balance Sheet Item Changes | Indicator (RMB thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 1,456,654 | 1,426,101 | | Total Liabilities | 732,767 | 739,415 | | Total Equity | 723,887 | 686,686 | | Current Assets | 720,320 | 693,175 | | Current Liabilities | 372,033 | 382,486 | | Net Current Assets | 348,287 | 310,689 | Notes to Financial Information Segment and Revenue Information The Group's H1 2024 revenue grew by 44% in goods sales and 144% in CDMO/CMO, with all revenue and non-current assets from mainland China Revenue Breakdown for H1 2024 | Revenue Category (RMB thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Sales of Goods | 400,400 | 277,881 | | CDMO | 109,264 | 26,054 | | CMO | 4,527 | 20,492 | | Total | 520,603 | 328,063 | - All of the Group's revenue and non-current assets are derived from the mainland China market[15] Borrowings As of June 30, 2024, total borrowings increased to RMB 383 million, primarily non-current, with a stable weighted average effective interest rate of 3.81% Borrowings Structure | Borrowing Category (RMB thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current (within one year) | 68,090 | 41,600 | | Non-current (over one year) | 314,918 | 302,685 | | Total | 383,008 | 344,285 | Management Discussion and Analysis Business Review and Outlook The company's strategic shift to CDMO yielded 144% revenue growth, particularly in ADC, while core product Puxinting® sales rose 44%, strengthening market position - CDMO business showed strong development, with 20 new projects added in H1, of which 17 were ADC projects; cumulative pre-BLA projects on hand reached 8; signed but uncompleted orders amounted to RMB 184 million, a year-on-year increase of 104%[35][36] - Sales of the core self-developed product Puxinting® (Bevacizumab Injection) increased by 49% year-on-year in H1 through differentiated marketing, and listing registration applications have been initiated in 31 overseas countries, with the first overseas country approval expected in H2[34][49] - The company emphasizes its differentiated CDMO competitive advantages, including a "one-site, end-to-end" antibody/ADC industrialization platform, continuously iterated technology platforms, a quality management system compliant with US, EU, and China GMP standards, and flexible and diverse capacity[37][39][40][42] - Looking ahead, the company will continue to focus on the biopharmaceutical CDMO business, leveraging its drug development experience, technology platforms, and quality system to expand brand influence and consolidate its leading market position[52] Financial Item Analysis In H1 2024, the company achieved RMB 31.56 million net profit, turning losses into profits, with total revenue up 59% to RMB 521 million, and positive operating cash flow Key Financial Item Changes for H1 2024 | Item (RMB thousands) | H1 2024 | H1 2023 | Change Description | | :--- | :--- | :--- | :--- | | Operating Revenue | 520,603 | 328,063 | Driven by both product sales and CDMO/CMO business | | Product Sales Revenue | 400,400 | 277,881 | Steady growth in sales of core product Puxinting® | | CDMO/CMO Business Revenue | 113,791 | 46,546 | Large-scale development of business segments | | R&D Expenses | 46,059 | 49,969 | Optimized product pipeline, focused R&D resources | | Selling Expenses | 276,482 | 197,376 | Increased with sales volume and CDMO business expansion | | Net Profit/(Loss) | 31,559 | (15,163) | Successfully turned losses into profits | | Net Cash Inflow from Operating Activities | 27,801 | 62,413 | Decreased year-on-year but remained positive | Other Information Corporate Governance and Dividends The Audit Committee reviewed financial statements, and the Board resolved not to declare an interim dividend for H1 2024, adhering to governance codes - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2024[67] - The company's Audit and Connected Transactions Review Committee has reviewed the Group's condensed consolidated interim financial statements[66] Use of Net Proceeds from Subscription As of June 30, 2024, RMB 43.84 million of 2022 subscription proceeds were used in H1, with RMB 66.52 million remaining for disclosed purposes - As of June 30, 2024, approximately RMB 66.515 million of the net proceeds from the 2022 subscription remains unused[70] - During the six-month period ended June 30, 2024, approximately RMB 43.841 million of the net proceeds was used[70]