KEXING BIOPHARM CO.(SH:688136)2024-08-19 10:11Financial Performance - The company's operating revenue for the first half of 2024 reached ¥759,894,679.84, representing a 17.09% increase compared to the same period last year[12]. - The net profit attributable to shareholders of the listed company was ¥11,877,328.48, a significant recovery from a loss of ¥47,561,505.48 in the previous year[12]. - The net profit after deducting non-recurring gains and losses was ¥21,530,307.28, compared to a loss of ¥71,740,894.74 in the same period last year[12]. - The net cash flow from operating activities was -¥34,029,158.20, an improvement from -¥87,139,193.83 in the previous year[12]. - The total assets at the end of the reporting period were ¥3,098,824,269.38, reflecting a 2.23% increase from the previous year[12]. - The net assets attributable to shareholders of the listed company decreased by 1.22% to ¥1,606,230,170.26 compared to the end of the previous year[12]. - The company achieved a net profit attributable to shareholders, marking a significant increase compared to the same period last year, primarily due to a 17.09% increase in revenue from core products including Yipuding, Sairuojin, and Baitexi[13]. - The basic earnings per share for the reporting period was not applicable, with diluted earnings per share also not applicable, reflecting a shift from a loss of 0.24 yuan per share in the previous year[13]. - The weighted average return on equity after deducting non-recurring gains and losses was 1.33%, a recovery from -4.01% in the same period last year[13]. - The company reported a revenue of 12,352.7 billion RMB in the first half of 2024, a year-on-year decline of 0.9%[22]. Research and Development - Research and development expenses accounted for 11.52% of operating income, a decrease of 18.49 percentage points compared to the previous year[13]. - The company has established a comprehensive R&D system with capabilities spanning drug discovery to industrialization, focusing on recombinant protein drugs and antibody drugs[21]. - The company has 12 innovative drug projects in focus, with multiple projects entering the process development stage[29]. - The company has achieved significant milestones in R&D, including breakthroughs in high-concentration formulations and eukaryotic expression systems[23]. - The company’s antibody drug development platform has successfully supported the development of multiple projects, including GB10 and GB18, with promising lead compounds[23]. - The company has invested CNY 87.54 million in R&D during the reporting period, focusing on antiviral, oncology, immune, and degenerative diseases[41]. - The first self-developed Class 1 innovative drug, Fc fusion protein-long-acting growth hormone, has entered Phase I clinical trials, and the inhalation solution of human interferon α1b is in Phase III trials[39]. - The company is focusing on the development of new therapies for chronic diseases, including multiple myeloma and breast cancer, to enhance its product portfolio[20]. Market Position and Product Development - The company has established strategic partnerships with several pharmaceutical companies to commercialize key drugs, enhancing its market presence in over 70 countries[17]. - The market share of Sairuojin® in the domestic short-acting interferon market remains the highest, while Yipuding ranks second in the domestic erythropoietin market[17]. - The company is actively expanding its oncology product line, including the introduction of Paclitaxel for various cancer treatments, indicating a focus on growth in the oncology sector[20]. - The company has submitted a listing application for its Palbociclib capsules in the U.S., reflecting its international market ambitions[20]. - The company’s biosimilar Infliximab has been recognized for its efficacy and safety, being the first of its kind launched in China, which strengthens its competitive edge[20]. - The company has developed a patented formulation of Erythropoietin that reduces blood-borne contamination and allergic reactions, making it one of only two manufacturers in China for a specific indication[18]. - The company has obtained registration for its traditional Chinese medicine product in Hong Kong, indicating its market expansion efforts[20]. - The company introduced 13 new products, focusing on oncology, autoimmune diseases, and metabolic diseases, to support its overseas commercialization strategy[35]. Financial Management and Investments - The company has established a marketing distribution network covering nearly 22,700 terminals in the domestic market[21]. - The company has established a marketing network covering approximately 7,000 hospitals in China, enhancing its market position and brand advantage[32]. - The company has invested a total of CNY 200,000,000.00 in a private equity fund aimed at expanding potential cooperation opportunities in the health industry[53]. - The company has recognized a cumulative profit impact of CNY -13,940,667.35 from its private equity investments[54]. - The total amount of raised funds is CNY 110,924.94 million, with a net amount after issuance costs of CNY 99,464.09 million[110]. - The company has utilized CNY 25,000 million of idle raised funds for cash management, with a cash management balance of CNY 7,000 million at the end of the reporting period[115]. - The company has received regulatory warnings for non-compliance in cash management of raised funds but has rectified the situation by redeeming non-principal guaranteed financial products[116]. Environmental and Social Responsibility - The company has invested 670,500 CNY in environmental protection during the reporting period[60]. - The company operates wastewater treatment facilities with a total design capacity of 1,100 m³/d, all running normally[61]. - The company has established an emergency response plan for environmental incidents, with a validity period of three years[65]. - The company has implemented an online monitoring system for wastewater and conducts regular third-party testing for emissions[66]. - The company has confirmed compliance with pollution discharge standards, with no exceedances reported[60]. - The company has received environmental impact assessment approvals for new projects, including the industrialization of polyethylene glycol-stimulated human granulocyte colony-stimulating factor injection[64]. - The company actively responds to the national "carbon neutrality" strategy by adopting low-carbon energy-saving measures and utilizing new technologies to reduce greenhouse gas emissions[70]. Corporate Governance and Compliance - The company has commitments from major shareholders and management regarding share restrictions, effective from March 31, 2020, until December 13, 2025, ensuring compliance with lock-up periods[71]. - The company has not reported any mergers or acquisitions during the reporting period[69][70][71][72]. - The company will publicly explain any failure to fulfill commitments made during the IPO and apologize to shareholders and public investors[90]. - The company will ensure that any stock incentive plans are tied to the execution of measures to compensate for diluted returns[82]. - The company has maintained a good credit status, with no significant debts that are overdue or unfulfilled[102]. - The company received administrative regulatory measures from the China Securities Regulatory Commission and the Shanghai Stock Exchange in August 2024, indicating compliance issues that require rectification[101]. Shareholder Information - The total number of ordinary shareholders as of the reporting period is 9,456[119]. - The company reported a total of 131,778,347 shares outstanding, with significant holdings from major shareholders including 1,764,125 shares held by the chairman, Deng Xueqin[120]. - Deng Xueqin increased his shareholding by 762,710 shares during the reporting period, reflecting a strong confidence in the company's future[121]. - The company granted a total of 780,000 new restricted stocks to key management personnel, indicating a commitment to incentivize and retain talent[122]. - The total number of shares held by the top ten shareholders includes a significant portion of 1,880,572 shares held by a repurchase account, representing 0.94% of the total shares[120]. Asset and Liability Management - The total liabilities as of June 30, 2024, were CNY 1,486.24 million, compared to CNY 1,400.30 million at the end of 2023, reflecting an increase of approximately 6.1%[127]. - The total assets reached CNY 3,098.82 million, up from CNY 3,031.09 million, indicating a growth of about 2.2%[127]. - The company's cash and cash equivalents decreased to CNY 439.76 million from CNY 568.80 million, a decline of approximately 22.7%[125]. - The total equity attributable to shareholders decreased to CNY 1,606.23 million from CNY 1,626.02 million, a decline of about 1.2%[127]. - The inventory level decreased to CNY 155.87 million from CNY 191.36 million, a reduction of approximately 18.5%[125].