Company Overview - Jiangsu Recbio Technology Co., Ltd. is incorporated in the People's Republic of China with stock code 2179[1]. - The interim report for 2024 includes financial highlights and management discussion and analysis sections[3]. - The report contains interim condensed consolidated statements of profit or loss and other comprehensive income, financial position, changes in equity, and cash flows[3]. Corporate Governance - The company has appointed new executive and non-executive directors as of May 8, 2024, including Dr. Liu Yong as the chairman[5]. - The audit committee for the second session of the board includes Dr. Xia Lijun as chairman, with other members appointed on May 8, 2024[6]. - The remuneration and appraisal committee is chaired by Professor Yuen Ming Fai, with members appointed on May 8, 2024[6]. - The nomination committee is also chaired by Dr. Liu Yong, with members appointed on May 8, 2024[6]. - The company has a joint company secretary, Ms. Chen Qingqing, appointed on June 18, 2024[6]. - The H share registrar for the company is Computershare Hong Kong Investor Services Limited[8]. - The interim report provides a comprehensive overview of the company's corporate governance and financial status[3]. Financial Performance - For the six months ended June 30, 2024, the company reported a loss before tax of RMB 249,636,000, an improvement from a loss of RMB 276,941,000 in the same period of 2023, representing a decrease of approximately 9.5%[13]. - Loss attributable to owners of the parent for the six months ended June 30, 2024, was RMB 249,135,000, compared to RMB 272,549,000 in the same period of 2023, indicating a reduction of approximately 8.6%[13]. - Total current assets decreased to RMB 795,359,000 as of June 30, 2024, from RMB 1,129,373,000 as of December 31, 2023, a decline of about 29.6%[14]. - The net current assets as of June 30, 2024, were RMB 113,716,000, a significant decrease from RMB 685,138,000 as of December 31, 2023[14]. - Other income and gains decreased by 40.4% from RMB 59.9 million for the six months ended June 30, 2023, to RMB 35.7 million for the same period in 2024, primarily due to a decrease in foreign exchange gains and interest income[103]. - Selling and distribution expenses decreased by 72.2% from RMB 5.4 million for the six months ended June 30, 2023, to RMB 1.5 million for the six months ended June 30, 2024, mainly due to a reduction in headcount in the marketing department[105]. - Research and development costs decreased by 17.2% from RMB 247.8 million for the six months ended June 30, 2023, to RMB 205.2 million for the six months ended June 30, 2024, attributed to lower clinical trial expenses[108]. - Administrative expenses decreased by 30.0% from RMB 78.1 million for the six months ended June 30, 2023, to RMB 54.7 million for the six months ended June 30, 2024, mainly due to reduced labor expenses[110]. - Finance costs increased by 68.5% from RMB 5.4 million for the six months ended June 30, 2023, to RMB 9.1 million for the six months ended June 30, 2024, primarily due to additional debt financing[115]. Asset and Liabilities - Total non-current assets increased to RMB 1,263,356,000 as of June 30, 2024, compared to RMB 1,056,904,000 as of December 31, 2023, reflecting a growth of about 19.5%[14]. - Property, plant, and equipment increased by 21.5% from RMB 840.8 million as of December 31, 2023, to RMB 1,021.9 million as of June 30, 2024, mainly due to construction projects for the HPV industrialization base[116]. - Cash and bank balances decreased by 34.4% from RMB 912.4 million as of December 31, 2023, to RMB 598.1 million as of June 30, 2024, mainly due to expenditures on R&D services and administrative costs[124]. - Trade payables decreased by 40.6% from RMB 115.1 million as of December 31, 2023, to RMB 68.3 million as of June 30, 2024, mainly due to payments for R&D and inventory procurement[125]. - Other payables and accruals increased by 33.2% from RMB 268.1 million as of December 31, 2023, to RMB 357.2 million as of June 30, 2024, mainly due to increased purchases of industrialization-based equipment[125]. - The company's cash and bank balances decreased by 34.4% from RMB 912.4 million as of December 31, 2023, to RMB 598.1 million as of June 30, 2024, primarily due to expenditures on R&D services, raw materials, equipment, and administrative expenses[127]. - Net current assets decreased by 83.4% from RMB 685.1 million as of December 31, 2023, to RMB 113.7 million as of June 30, 2024, mainly due to reduced cash and bank balances and increased current liabilities from bank loans[130]. - Lease liabilities decreased by 17.7% from RMB 19.2 million as of December 31, 2023, to RMB 15.8 million as of June 30, 2024, due to rent payments related to right-of-use assets[128]. - The total interest-bearing bank loans and other borrowings amounted to RMB 681.3 million as of June 30, 2024, with current borrowings of RMB 212.1 million maturing on June 30, 2025[137]. - The current ratio decreased from 2.5 as of December 31, 2023, to 1.2 as of June 30, 2024, primarily due to an increase in bank loans and other borrowings maturing within one year[137]. - The gearing ratio increased to 59.4% as of June 30, 2024, compared to 51.0% as of December 31, 2023, due to a significant amount of loans borrowed for production and operations[138]. Research and Development - The company has developed a vaccine portfolio consisting of more than 10 candidates, including three strategic products currently in various stages of clinical trials[16]. - The company is focused on the R&D of innovative vaccines, including HPV vaccine candidates, with ongoing clinical trials for its strategic products[16]. - The company has established a comprehensive vaccine innovation engine, including a novel adjuvant platform, protein engineering platform, and immunological evaluation platform, enhancing its R&D capabilities[17]. - The R&D team consists of over 100 personnel with expertise in immunology and related fields, supported by an Integrated Product Development (IPD) system that governs the entire vaccine development lifecycle[83][84]. - The company has established three advanced technology platforms: novel adjuvant development, protein engineering, and immunological evaluation, enabling the discovery and development of subunit vaccines[73][78][80]. - The company has the capability to conduct advanced immunological tests such as pseudoviral neutralization, ELISPOT, and ICS tests, making it one of the first in China to do so[80]. - Total research and development costs for the six months ended June 30, 2024, amounted to RMB 205.2 million, with no costs capitalized during the same period[89]. Vaccine Development - The HPV vaccine manufacturing facility in Taizhou City has a designed capacity of 20 million doses per year and is currently in the pilot production stage[18]. - REC603, a recombinant HPV 9-valent vaccine, is currently in phase III clinical trials in China, with a BLA application expected to be submitted to the NMPA in 2025[25]. - REC610 received clinical trial approval in October 2023 for phase I and phase III trials in China, with phase III expected to start in 2024[27]. - The vaccine pipeline includes a novel adjuvanted recombinant shingles vaccine in phase I and a bivalent recombinant respiratory syncytial virus vaccine about to enter clinical research[21]. - The company has completed the first-in-human clinical trial for REC610 in the Philippines[27]. - The company plans to allocate resources based on future development plans for respiratory combination vaccines and market conditions[28]. - The core product REC603 obtained umbrella IND approval from the NMPA in July 2018, allowing direct phase III trials in China[25]. - The clinical trial design for REC603 is randomized, double-blind, and placebo-controlled, which is considered the best strategy for confirming immunogenicity[32][33]. - The company is developing next-generation HPV vaccines with a two-shot regimen, potentially offering advantages over current three-shot regimens[43]. - The company aims to adopt a reasonable follow-up development strategy based on market demand and regulatory guidance for its vaccine candidates[48]. - The company has established a clear commercialization strategy for its clinical-stage vaccine candidates, including the recombinant HPV vaccine and recombinant shingles vaccine[95]. Market and Commercialization - A strategic cooperation agreement was signed with SPIMACO for the exclusive development, registration, and commercialization of the recombinant HPV 9-valent vaccine REC603 in 15 Middle Eastern and North African countries[94]. - The company plans to enter collaborations with foreign governments and organizations to commercialize its products internationally[94]. - The company aims to strengthen its international business development team to facilitate the commercialization of its products in overseas markets[95]. - The company plans to concentrate resources on the marketing of HPV 9-valent vaccines and recombinant shingles vaccines as soon as possible[101]. Shareholder Structure - The major shareholder, Taizhou Yuangong Technology Partnership, holds 62,147,715 Domestic Shares, representing approximately 17.16% of the Company[162]. - The company has multiple stakeholders with significant interests in both Domestic and H Shares, indicating a diverse ownership structure[164]. - The total number of H Shares held by various entities indicates a significant interest in the company, reflecting strong investor confidence[169]. - The company has a diverse shareholder base, with interests from various investment partnerships and corporations[175]. - The ownership structure of these partnerships indicates a complex network of financial relationships and investment strategies[190].
瑞科生物(02179) - 2024 - 中期财报