BOJI CRO(SZ:300404)2025-08-26 12:20Business Strategy and Development - The company plans to leverage its unique "one-stop" service advantage to adjust its business structure and development direction in response to potential stricter NMPA drug approval requirements[3]. - The company aims to enhance its core competitiveness through strategic planning and layout, utilizing its full industry chain service advantages amid increasing competition in the domestic CRO market[6]. - The company is expanding its business into preclinical research services and CDMO services, facing potential risks due to competition and lack of experience in these new areas[8]. - The company emphasizes the importance of internal management and integration to mitigate risks associated with the expansion of its operational scale and business scope[8]. - The company is committed to strengthening internal training and talent reserves to enhance its ability to withstand risks in the evolving regulatory environment[3]. - The company plans to enhance its risk management strategies in response to potential policy changes affecting new drug approvals and research investments[90]. - The company aims to expand its business into innovative drug clinical services and preclinical services to mitigate risks associated with market competition[91]. Financial Performance - The company's operating revenue for the reporting period reached RMB 361,448,457, representing a 5.88% increase compared to RMB 341,390,828.56 in the same period last year[25]. - The net profit attributable to shareholders decreased by 48.33% to RMB 15,569,864.27 from RMB 30,135,149.57 year-on-year[25]. - The net cash flow from operating activities significantly increased by 343.46%, amounting to RMB 21,245,267.43 compared to RMB 4,790,796.04 in the previous year[25]. - Total assets at the end of the reporting period were RMB 1,563,950,571.44, a 7.81% increase from RMB 1,450,592,225.50 at the end of the previous year[25]. - The company reported a basic earnings per share of RMB 0.0407, down 48.42% from RMB 0.0789 in the previous year[25]. - The company achieved total operating revenue of CNY 361,448,457, representing a year-on-year growth of 5.88%[39]. - Net profit attributable to shareholders decreased by 48.33% to CNY 15,569,864, while the net profit excluding non-recurring gains and losses fell by 53.28% to CNY 11,988,298[39]. Market Trends and Industry Insights - The global CRO market size grew from USD 59.2 billion to USD 92.7 billion over the past five years, with a projected CAGR of 9.93%[33]. - The Chinese CRO market is expected to reach RMB 118.3 billion in 2024, with a CAGR of approximately 20%[33]. - The clinical CRO market in China is projected to grow from RMB 26.3 billion in 2020 to RMB 83.5 billion by 2025, with a CAGR of 25.99%[33]. - The number of clinical trial applications accepted by the National Medical Products Administration increased from 1,830 in 2021 to 2,818 in 2024[34]. Operational Challenges and Risk Management - The company acknowledges the risks of contract execution delays in new drug development due to various factors, including clinical research failures and changes in client research directions[4]. - The company has established specific responsibility models in contracts to address potential delays and will conduct careful evaluations of project execution difficulties before accepting new projects[5]. - The company recognizes the need for improved budget management due to the long execution cycles of some innovative drug development contracts[4]. - The company will maintain good communication with clients to minimize the risks of cost overruns and insufficient profits during contract execution[5]. Research and Development - The company has filed for 8 invention patents, enhancing its core competitiveness through independent intellectual property rights[44]. - The company is advancing several innovative drug projects, including a new drug for chronic heart failure and a new drug for high uric acid levels, with significant progress reported[44]. - The company has established a comprehensive "one-stop" service capability for new drug development, significantly reducing time, research, communication, and conversion costs for clients[48]. Subsidiaries and Investments - The company has established a new subsidiary, Xinxin Traditional Chinese Medicine Technology, with no significant impact on overall operations and performance[89]. - The company has invested significantly in preclinical research capabilities, establishing a one-stop service platform with advanced technical features and advantages[51]. - The company has completed 100% of its promised investment in the R&D project as of the reporting date[78]. Corporate Governance and Compliance - The company emphasizes corporate governance and shareholder rights, ensuring compliance with relevant laws and regulations[107]. - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[111]. - There were no violations regarding external guarantees during the reporting period[112]. Shareholder Information and Stock Options - The company completed the third exercise period of the 2022 stock option incentive plan, with 1.1564 million stock options available for 60 incentive targets at an exercise price of 8.73 CNY per share[99]. - A total of 22.264 million stock options were canceled due to unexercised options from the second exercise period of the 2022 stock option incentive plan[100]. - The first vesting conditions of the 2023 restricted stock incentive plan were achieved, with 607,800 shares available for 39 incentive targets, and 458,400 shares were actually vested and listed for trading[101]. Related Party Transactions - The company engaged in related party transactions, including providing clinical research services valued at 21.42 million yuan, accounting for 0.52% of similar transaction amounts[118]. - Another related party transaction involved providing clinical research services valued at 290.57 million yuan, accounting for 1.00% of similar transaction amounts[118]. Future Outlook - The company plans to expand its market presence, focusing on new product development and technological advancements[190]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and diversify its portfolio[190].