Financial Performance - The company's revenue for the reporting period was RMB 831.9 million, with a gross profit of RMB 339.4 million, resulting in a gross margin of 40.8%, an increase of 6.3 percentage points compared to the same period last year[10]. - The net profit for the first half of 2025 was RMB 148.6 million, a 3.1% increase from RMB 144.2 million in the same period last year; adjusted net profit under non-IFRS increased by 9.1% to RMB 183.5 million from RMB 168.2 million[10]. - The group's revenue for the reporting period was approximately RMB 831.9 million, a decrease of about 15.3% compared to RMB 981.8 million in the same period last year[38]. - Gross profit for the reporting period was approximately RMB 339.4 million, an increase of about 0.1% from RMB 339.1 million in the same period last year, with a gross margin of approximately 40.8% compared to 34.5% last year[46]. - The net profit for the period was approximately RMB 148.6 million, compared to RMB 144.2 million in the same period last year, with adjusted net profit under non-IFRS standards at RMB 183.5 million, up from RMB 168.2 million[56]. - The company reported a pre-tax profit of RMB 171,695,000 for the period, indicating strong operational performance despite market challenges[154]. - The company reported a net profit of RMB 121,805 thousand for the six months ended June 30, 2025, compared to RMB 116,808 thousand for the same period in 2024, representing an increase of approximately 4.3%[141]. Client and Revenue Growth - The number of cumulative clients served by the company increased to 2,574, with CRO business revenue growing from RMB 385.9 million to RMB 422.8 million, a growth rate of approximately 9.6%[12]. - The CRO business client distribution is diversified, with approximately 85.0% of revenue coming from overseas, which saw a year-on-year growth of about 4.9%, while revenue from mainland China clients grew by approximately 46.6%[13]. - New molecular models (peptides, antibodies, XDC, PROTAC/molecular glue, etc.) accounted for about 15.0% of CRO revenue, showing a year-on-year growth of nearly 19.0%[14]. - The company aims to enhance its technology platforms to meet customer demands, focusing on new targets, mechanisms, and molecular forms, while driving continuous growth in CRO revenue[35]. Research and Development - The company delivered over 90,739 protein structures to clients, with 8,023 new deliveries in the first half of 2025; the research included over 2,187 independent drug targets, with 89 new targets delivered during the same period[14]. - The CMC business has completed and is advancing 279 new drug projects, with a significant improvement in profitability during the reporting period[20]. - The company has established a comprehensive platform for new mechanism drug discovery, integrating various technologies including protein production, cryo-EM, and drug screening[25]. - The pharmacology and pharmacodynamics platform has expanded to multiple fields, including animal immunology and tumor efficacy evaluation, providing a one-stop service[29]. - The introduction of AI technology into the SBDD process has significantly accelerated the efficiency of innovative drug development[23]. Financial Position and Cash Flow - As of June 30, 2025, the total cash and cash equivalents amounted to approximately RMB 904.5 million, a decrease of about 3.9% from RMB 941.6 million at the end of 2024, mainly due to the repayment of bank loans[57]. - The company’s total equity increased to RMB 3,907,476,000 from RMB 3,816,221,000, reflecting a growth of 2.4%[140]. - The company’s cash flow from operating activities after tax payments was RMB 129,823 thousand, down from RMB 152,330 thousand in the previous year, reflecting a decline of approximately 14.7%[144]. - The financing activities resulted in a net cash outflow of RMB 151,989,000, compared to RMB 354,612,000 in the same period last year, reflecting improved cash management[146]. Employee and Corporate Governance - The group has a total of 2,085 employees as of June 30, 2025, with 1,098 in CRO R&D roles and 753 in Langhua Pharmaceutical[36]. - The board of directors will continue to review and monitor the company's practices to maintain high standards of corporate governance[74]. - The company has maintained stable employee relations without any significant strikes or labor disputes affecting business operations[69]. Share Incentive Plans - The company aims to attract and retain top talent through the share incentive plans, which include stock options and share rewards[91]. - The total number of stock options granted during the reporting period amounts to 19,960,000, with 10,340,000 options becoming exercisable[103]. - The performance targets for stock options granted include revenue increases of at least 60%, 90%, and 120% for the fiscal years 2022, 2023, and 2024 respectively, compared to the fiscal year 2020[103]. - The company has implemented a restricted share unit plan to recognize and incentivize participants for their contributions[106]. Market and Segment Performance - Revenue from the Drug Discovery segment was RMB 415,040,000, while the CDMO and Commercialization Services segment generated RMB 409,048,000, and the Viya Bio segment contributed RMB 7,786,000[158]. - The company’s revenue from the United States market was RMB 429,749,000, making it the largest regional contributor[159]. - Revenue from a major customer in the CDMO and Commercialization Services segment amounted to RMB 221,640,000 during the reporting period[162]. Investment and Strategic Initiatives - The company has realized investment returns of approximately RMB 76.5 million from exits of several incubated companies, with a total of 93 startups incubated as of June 30, 2025[21]. - The company engaged in strategic investments in biotech startups, enhancing its portfolio and potential future revenue streams[150]. - The company has successfully established and invested in a RMB fund, planning to invest RMB 25.0 million, aimed at discovering and developing quality pharmaceutical enterprises[22].
维亚生物(01873) - 2025 - 中期财报