Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 849,357 thousand, a decrease of 16.1% compared to RMB 1,012,077 thousand for the same period in 2023[2] - Gross profit for the same period was RMB 211,301 thousand, down 52.8% from RMB 447,799 thousand in 2023[2] - The net loss attributable to equity shareholders for the six months ended June 30, 2024, was RMB (169,742) thousand, compared to a profit of RMB 90,627 thousand in 2023, representing a decline of 287.3%[2] - Total comprehensive loss for the period was RMB (169,213) thousand, compared to a comprehensive income of RMB 102,760 thousand in the previous year[4] - Basic and diluted loss per share for the period was RMB (0.23), compared to earnings per share of RMB 0.12 in the same period last year[4] - The company reported a significant increase in research and development expenses, totaling RMB 47,840 thousand for the period, compared to RMB 56,933 thousand in 2023[3] - Total revenue from external customers for the six months ended June 30, 2024, was RMB 849,357,000, a decrease from RMB 1,012,077,000 for the same period in 2023, representing a decline of approximately 16.1%[20] - Reported segment gross profit for the six months ended June 30, 2024, was RMB 211,301,000, down from RMB 447,799,000 in the same period of 2023, indicating a decrease of about 52.8%[18] - The gross profit margin for the six months ended June 30, 2024, was approximately 24.8%, down from 44.3% in the same period of 2023[18] - The company reported a decrease in government grants received, totaling RMB 9,571,000 for the six months ended June 30, 2024, compared to RMB 15,108,000 in 2023, a decline of about 36.5%[24] - The company's profit decreased from RMB 89.5 million for the six months ended June 30, 2023, to a loss of RMB 172.2 million for the six months ended June 30, 2024, resulting in a net profit margin drop from 8.8% to -20.3%[66] Assets and Liabilities - The company's total assets as of June 30, 2024, were RMB 8,559,794 thousand, compared to RMB 8,281,041 thousand as of December 31, 2023[6] - Non-current assets increased to RMB 4,168,390 thousand as of June 30, 2024, from RMB 2,905,192 thousand at the end of 2023[5] - Current liabilities decreased to RMB 5,492,884 thousand as of June 30, 2024, from RMB 7,121,967 thousand at the end of 2023[5] - The company's total liabilities as of June 30, 2024, were RMB 1,938,946,000, down from RMB 2,065,701,000 as of December 31, 2023, reflecting a decrease of approximately 6.1%[21] - Trade receivables, net of loss provisions, amounted to RMB 202,397,000 as of June 30, 2024, slightly down from RMB 206,014,000 as of December 31, 2023[35] - Trade payables increased to RMB 64,587,000 as of June 30, 2024, compared to RMB 43,323,000 as of December 31, 2023[37] - As of June 30, 2024, cash and cash equivalents were RMB 2,158.2 million, a decrease of 24.6% from RMB 2,862.9 million as of December 31, 2023[68] - The capital debt ratio remained relatively stable at 18.1% as of June 30, 2024, compared to 17.4% as of December 31, 2023[69] Operational Developments - The company has a professional service team of 2,585 employees as of June 30, 2024, reflecting ongoing investment in talent development[40] - The construction of the Suzhou Zhaoyan Phase II facility, covering 20,000 square meters, has been topped out in 2023 and is expected to be operational by early 2025, enhancing business throughput and performance growth[41] - A new 22,000 square meter supporting facility in Suzhou is under renovation and is projected to be completed and operational by the end of 2024, aimed at providing a better working environment for employees[41] - The wholly-owned subsidiary Guangxi Weimei Biotechnology Co., Ltd. plans to initiate the construction of a non-human primate model animal testing facility in the second half of 2024, focusing on enhancing animal welfare[42] - The company successfully passed the FDA GLP inspection for its Beijing facility in the first half of 2024, marking the fifth successful inspection for both the Beijing and Suzhou facilities, ensuring compliance with international GLP standards[43] - The company has developed and optimized various ophthalmic disease models, including laser-induced mouse models and rabbit autoimmune uveitis models, to meet diverse market research needs[43] - The company has improved various drug administration methods for central nervous system drugs, establishing long-term catheter methods and verifying their effectiveness[45] - The company has established a high-level technical team of over 40 people for quality research and testing of innovative drugs, including protein drugs and gene therapy products[51] - The company has maintained a stable growth trend in the number of ongoing projects, with a total order amount of approximately RMB 2.9 billion, providing a guarantee for future performance[52] Strategic Initiatives - The company aims to enhance its non-clinical CRO business and expand upstream and downstream capabilities, including early drug discovery and clinical CRO services[71] - Plans to expand capacity include the completion of a 20,000 square meter facility in Suzhou, expected to be operational by early 2025[74] - The company intends to recruit more industry experts with overseas experience to strengthen its international business capabilities[73] - The company aims to expand its registration team to enhance international registration capabilities, addressing the growing demand for registrations[75] - The company plans to enhance its laboratory scale and team size for clinical testing, particularly in the U.S., to better support clinical trial needs[75] - The internationalization strategy includes supporting BIOMERE to expand its laboratory facilities in North America to increase service throughput[77] - The company will strengthen its business development team in the U.S. to enhance market promotion and leverage BIOMERE's brand reputation[77] Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[33] - The company approved a dividend of RMB 0.16 per ordinary share for the 2023 profit distribution plan, to be paid in July 2024[33] - No interim dividend will be paid to shareholders for the six months ending June 30, 2024[80] Compliance and Governance - The company has adopted corporate governance codes in compliance with the Hong Kong Stock Exchange regulations[78] - The audit committee reviewed the interim financial results for the six months ended June 30, 2024, and confirmed compliance with relevant accounting standards[92]
昭衍新药(06127) - 2024 - 中期业绩