Financial Performance - In the first half of 2024, the company served a total of 2,350 clients, with revenue decreasing from RMB 1,142.2 million to RMB 981.8 million, a decline of approximately 14.0% year-on-year[5] - Gross profit fell from RMB 406.0 million to RMB 339.1 million, representing a decrease of about 16.5% compared to the same period last year[5] - The net profit for the first half of 2024 was RMB 144.2 million, significantly up from RMB 13.7 million in the same period last year, primarily due to the elimination of related financial adjustments from the full repayment of convertible bonds[5] - Adjusted net profit under non-IFRS increased from RMB 146.1 million to RMB 168.2 million, a growth of nearly 15.1% year-on-year, attributed to successful exits from incubated investments and cost reduction measures[5] - The company's revenue for the reporting period was approximately RMB 981.8 million, a decrease of about 14.0% compared to RMB 1,142.2 million in the same period last year[20] - The total revenue of Langhua Pharmaceutical for the first half of 2024 was RMB 595.9 million, a decrease of about 15.0% year-on-year[9] - The company reported a total comprehensive income of RMB 149.191 million, compared to RMB 37.418 million in the same period last year, reflecting a growth of 298.5%[97] Revenue Breakdown - The company's CRO business revenue decreased from RMB 441.3 million to RMB 385.9 million, a decline of approximately 12.5% year-on-year[6] - Revenue from overseas clients accounts for approximately 88.8%, with a year-on-year decline of about 10.2%, while revenue from mainland China clients has decreased by approximately 27.6%[7] - Revenue from drug discovery services was RMB 309.0 million for FTE and RMB 73.6 million for FFS, showing a decline from the previous year's figures[21] - The revenue from CDMO and commercialization services was RMB 577.2 million, down from RMB 700.9 million in the previous year[20] - Revenue from the drug discovery services segment was RMB 375,632 thousand, while the CDMO and commercialization services segment generated RMB 595,889 thousand, contributing significantly to the overall revenue[121] Client and Market Information - The total number of CRO clients has increased to 1,465, with the top ten clients contributing 25.7% of revenue[7] - The cumulative number of clients served by Langhua Pharmaceutical reached 885, with the top ten clients accounting for 63.2% of revenue[9] - The company has delivered over 74,109 protein structures, with approximately 9,074 new deliveries in the first half of 2024[6] - The company has cumulatively researched over 2,065 independent drug targets, with 79 new targets delivered in the first half of 2024[6] Cost Management and Expenses - The sales cost for the reporting period was approximately RMB 642.7 million, down about 12.7% from RMB 736.2 million in the previous year, consistent with the revenue decline[23] - Administrative expenses were approximately RMB 117.2 million, down about 10.8% from RMB 131.4 million in the same period last year, mainly due to workforce optimization and effective cost control measures[27] - Research and development expenses were approximately RMB 42.8 million, a decrease of about 44.2% from RMB 76.7 million in the same period last year, reflecting the effectiveness of cost control measures[28] Strategic Initiatives - The company plans to enhance online digital marketing and expand its overseas business development team to drive order recovery and growth[6] - Strategic investors are currently contributing to the company's governance, business operations, investment planning, and strategic development following their introduction in 2023[5] - The company has introduced AI technology to enhance its SBDD platform, developing a unique AI-enabled one-stop original drug research and development service platform[12] Shareholder and Governance Information - The board does not recommend an interim dividend for the six months ending June 30, 2024, compared to zero for the same period ending June 30, 2023[41] - The company has adopted the corporate governance code and confirmed compliance with its provisions during the reporting period[46] - The audit committee has reviewed the unaudited interim financial information for the reporting period, confirming compliance with International Accounting Standard 34[50] Financial Position and Assets - As of June 30, 2024, the group had cash and cash equivalents totaling approximately RMB 1,035.8 million, a slight decrease of about 0.05% from RMB 1,036.3 million as of December 31, 2023[35] - The total number of employees as of June 30, 2024, was 2,043, with 1,117 in CRO R&D roles[18] - The company has maintained a 100% retention rate for its top ten clients in the CMC business[10] Future Outlook - The company plans to build an additional 400 cubic meters of production capacity between 2024 and 2025 to support the commercialization of new molecules[9] - The company aims to enhance its one-stop innovative drug development platform and production service platform, focusing on the synergy between CRO and CDMO businesses[20] - The company is leveraging its AI-enabled SBDD platform to drive continuous growth in CRO revenue[17] Taxation and Compliance - The estimated corporate income tax rate for Langhua Pharmaceutical is 15% for the six-month period ending June 30, 2024, due to its qualification as a "High-tech Enterprise"[134] - The corporate income tax rate for subsidiaries in the United States is 21% at the federal level, plus an additional 8.84% state tax in California[137] Share Options and Incentives - The company has established share incentive plans to attract and retain top talent[61] - The stock option plan aims to incentivize eligible participants to enhance the company's value and align with shareholder interests[65] - The company has a total of 3,665,141 stock options granted, which are set to vest over a five-year period[64]
维亚生物(01873) - 2024 - 中期财报