Financial Performance - In 2019, the revenue of VIVA Biotech increased by 53.9% to RMB 323.1 million, compared to RMB 210.0 million in the previous year[5]. - Net profit surged by 193.5% to RMB 265.9 million, up from RMB 90.6 million in the same period last year[5]. - The revenue from the CFS business rose by 58.8% to RMB 245.6 million, compared to RMB 154.7 million in the previous year[6]. - Revenue for the year ended December 31, 2019, was approximately RMB 323.1 million, an increase of 53.9% compared to RMB 210.0 million for the same period in 2018[12]. - Gross profit for the same period was approximately RMB 155.9 million, up 47.8% from RMB 105.5 million in 2018[12]. - Adjusted net profit under non-IFRS was approximately RMB 318.0 million, an increase of 134.7% compared to RMB 135.5 million in 2018[12]. - Revenue from repeat customers accounted for 81.5% of total revenue during the reporting period[16]. - Total revenue from the top ten customers increased from RMB 91.0 million in 2018 to RMB 125.3 million in 2019[16]. - The company's total assets reached RMB 1,898.8 million by the end of 2019, a significant increase from RMB 529.3 million in 2018[11]. - EFS business revenue for 2019 was RMB 77.5 million, representing a growth of approximately 40.0% year-over-year[17]. Business Growth and Expansion - The total contract value of backlog orders increased by 91.8% to RMB 349 million[6]. - Customer retention rate reached 81%, with over 438 biotech and pharmaceutical clients served, including nine of the top ten pharmaceutical companies globally[6]. - The company expanded its facilities in 2019, adding approximately 8,000 square meters in Shanghai and a modern research and production center covering about 50 acres in Chengdu[8]. - The company aims to enhance its service capabilities across the entire drug development value chain and expand partnerships with industry capital[9]. - The company delivered over 13,700 protein structures and more than 1,200 independent drug targets in 2019[16]. - The company established a new drug incubation and production R&D center in Chengdu, covering an area of 50 acres, aimed at integrating drug R&D and production[22]. - The company is actively building new technology platforms, including Cryo-EM and Computational Chemistry, to enhance drug discovery and biotesting capabilities[26]. Awards and Recognition - VIVA Biotech was included in the Hang Seng Hong Kong Listed Biotech Index in December 2019, reflecting recognition from the capital market[8]. - The company received multiple industry awards, including the "Most Welcomed New Stock Award" at the 4th Golden Stock Awards[8]. Research and Development - R&D investment for the year amounted to RMB 45.0 million, focusing on various drug discovery platforms and increasing existing equipment and talent[23]. - The ASMS screening platform received widespread recognition for its efficiency and cost-effectiveness in drug discovery[23]. Financial Management and Investments - The group recorded listing expenses of approximately RMB 17.9 million during the reporting period, down from RMB 24.3 million for the year ended December 31, 2018[36]. - The fair value gain on financial assets recognized in profit or loss was approximately RMB 217.6 million, significantly up from RMB 68.3 million for the year ended December 31, 2018, reflecting increases in equity value of three incubation investment companies[37]. - The group reported impairment losses of approximately RMB 1.8 million under the expected credit loss model, compared to RMB 0.1 million for the year ended December 31, 2018[38]. - Cash and cash equivalents totaled approximately RMB 904.1 million as of December 31, 2019, a 481.0% increase from RMB 155.6 million as of December 31, 2018, primarily due to proceeds from the global offering[45]. - The group’s asset-liability ratio decreased to 6.4% as of December 31, 2019, down from 52.5% as of December 31, 2018[46]. - The group acquired a 35% equity stake in Proviva for approximately USD 12.56 million and recorded a fair value change gain of approximately RMB 157.33 million from this investment during the reporting period[47]. Corporate Governance - The company has adopted the corporate governance code and has complied with its relevant provisions since listing on May 9, 2019[133]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors[136]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, to oversee specific aspects of governance[145]. - The company has implemented internal control policies and procedures to ensure effective risk management and compliance with applicable laws and regulations[166]. - The company has established a risk management framework to provide reasonable assurance regarding the effectiveness of its internal controls[166]. Shareholder Engagement and Dividends - The board plans to distribute up to 40% of distributable profits for the fiscal year ending December 31, 2019, subject to shareholder approval and operational cash flow requirements[156]. - The company is committed to maintaining effective communication with shareholders, particularly through annual general meetings[173]. - The company has established a website to serve as a communication platform for shareholders and investors, providing access to financial and other relevant information[173]. Employee and Leadership - The company expanded its employee count from 486 to 731, with 614 being R&D personnel, reflecting a significant increase in workforce[22]. - The company has a strong leadership team with over 17 years of experience in corporate services and governance, enhancing operational efficiency[130]. - The company has strengthened its team by adding 6 top scientists and professionals, bringing the total to over 20, enhancing its core capabilities in project value assessment and R&D prospects[24]. Risks and Challenges - The company faces intensified competition in the pharmaceutical R&D services market, with major competitors including large pharmaceutical companies and specialized CRO/CMO organizations[64]. - The company’s revenue is significantly impacted by foreign exchange risks, particularly with the appreciation of the Renminbi against the US dollar[67]. - The company is exposed to risks related to the failure of incubated investment companies, which are primarily early-stage firms engaged in new drug development[68]. - The company’s operational performance may be affected by fluctuations in the fair value of equity investments in incubated companies, which are typically private and lack market pricing[69]. - The company’s overseas revenue constitutes a significant portion of its main business, making it vulnerable to changes in the political and economic environment of foreign markets[70].
维亚生物(01873) - 2019 - 年度财报