Financial Performance - Total revenue for the six months ended June 30, 2021, was RMB 3,612,000, compared to RMB 3,554,000 for the same period in 2020, representing an increase of 1.63%[4] - The net loss for the six months ended June 30, 2021, was RMB 165,292,000, compared to a net loss of RMB 173,455,000 for the same period in 2020, indicating an improvement of 4.5%[4] - The total comprehensive loss for the period was RMB 165,294,000, compared to RMB 173,657,000 in the prior year, marking a 4.8% reduction[54] - The company reported a basic and diluted loss attributable to owners of RMB 165,292,000 for the six months ended June 30, 2021, compared to a loss of RMB 173,455,000 for the same period in 2020, representing a decrease of approximately 4.5%[73] - The company reported a pre-tax loss of RMB 90,644,000 for the six months ended June 30, 2021, compared to RMB 92,497,000 for the same period in 2020, indicating a slight improvement[68] Research and Development - Research and development expenses for the first half of 2021 were RMB 97,982,000, a decrease of 12.5% from RMB 112,253,000 in the first half of 2020[4] - The company has submitted a New Drug Application (NDA) for dorzagliatin to the NMPA in March 2021, which was accepted in April 2021[5] - Dorzagliatin has completed two Phase III trials in China, recruiting 1,230 patients across 110 sites, achieving its primary efficacy endpoints[5] - The company plans to conduct further studies on dorzagliatin and its combination therapies in T2D patients, potentially improving standard treatments[9] - The product pipeline includes multiple candidates, with dorzagliatin for Type 2 diabetes having an NDA submitted, and other compounds in various stages of development[7] Financial Position - Non-current assets as of June 30, 2021, were RMB 152,756,000, slightly down from RMB 153,244,000 at the end of 2020[4] - Current assets decreased to RMB 874,367,000 from RMB 1,045,277,000 at the end of 2020, reflecting a significant reduction in liquidity[4] - As of June 30, 2021, the net current assets decreased to RMB 791.6 million from RMB 938.7 million as of December 31, 2020[24] - The company's lease liabilities as of June 30, 2021, amounted to RMB 76.3 million, a decrease from RMB 80.7 million as of December 31, 2020[26] - The total equity attributable to owners of the company decreased to RMB 589,416 thousand as of June 30, 2021, from RMB 732,495 thousand at the end of 2020[55] Cash Flow - Cash used in operating activities for the six months ended June 30, 2021, was RMB 164.3 million, compared to RMB 167.4 million for the same period in 2020[18] - The company reported a net cash decrease of RMB 185.2 million for the six months ended June 30, 2021, compared to a decrease of RMB 156.0 million for the same period in 2020[20] - The net cash used in investing activities for the six months ended June 30, 2021, was RMB 10.1 million, mainly due to the purchase of equipment and intangible assets[22] - The net cash used in financing activities for the six months ended June 30, 2021, was RMB 5.8 million, arising from the repayment of lease liabilities[23] - The company incurred a total cash outflow from investing activities of RMB (10,124) thousand for the first half of 2021, compared to a cash inflow of RMB 2,871 thousand in the same period of 2020[58] Employee and Management - As of June 30, 2021, the company had a total of 154 employees, with 47% in R&D and 47% in general and administrative roles[37] - Employee costs for the six months ended June 30, 2021, were approximately RMB 85.4 million, a decrease of 5.1% from RMB 90.8 million for the same period in 2020[37] - The total compensation for key management personnel for the six months ended June 30, 2021, was RMB 14,340,000, a decrease from RMB 20,778,000 in the same period of 2020[95] - The company has granted stock options and bonuses based on competitive compensation policies, which are regularly reviewed by management[38] - The company continues to provide ongoing learning and training programs to enhance employee skills and knowledge[38] Share Options and Incentives - As of June 30, 2021, there were 92,960,978 unexercised stock options granted under the pre-IPO share incentive plan[40] - The total number of stock options exercised during the reporting period was 1,965,291[40] - The company has not granted any further restricted stock units under the pre-IPO share incentive plan since the listing date[42] - The company has a total of 117,000,000 shares available for issuance under the pre-IPO share incentive plan established in March 2013[88] - The company recognized share-based payment expenses of RMB 18,710,000 for the six months ended June 30, 2021, compared to RMB 28,800,000 for the same period in 2020[92] Corporate Governance - The company has adopted a corporate governance code since its listing date to enhance transparency and accountability[119] - The board confirmed compliance with applicable standards of the corporate governance code during the six months ended June 30, 2021[119] - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value[119] - The company has established a framework for compliance with international financial reporting standards, enhancing transparency[124] - The group includes the company and its subsidiaries, indicating a comprehensive operational structure[124] Future Plans and Investments - The company plans to continue investing in the pharmaceutical company established in Shanghai Lingang Special Area to ensure sufficient commercial supply of dorzagliatin[48] - The company plans to continue utilizing the proceeds in accordance with the future plans outlined in the prospectus[101] - The company expects to carry forward and utilize part of the net proceeds in the fiscal year 2022 due to slight adjustments in the production capacity development timeline[101] - The company has a responsibility to make a milestone payment of USD 3,000,000 upon the approval of the licensed product in China[71] - The company continues to collaborate with leading partners, including Bayer, to prepare for the market launch of dorzagliatin in China[6]
华领医药-B(02552) - 2021 - 中期财报