Financial Performance - The total number of customers served by the company increased to 1,947, with revenue rising from RMB 1,026.5 million to RMB 1,108.7 million, representing an increase of approximately 8.0% year-on-year[8]. - Gross profit increased from RMB 316.3 million to RMB 345.0 million, reflecting a year-on-year growth of about 9.1%[8]. - Adjusted net profit decreased from RMB 196.9 million to RMB 89.0 million, a decline of approximately 54.8% year-on-year, primarily due to the impact of recurring COVID-19 outbreaks in mainland China[8]. - The company's revenue for the reporting period was approximately RMB 1,108.7 million, an increase of about 8.0% compared to RMB 1,026.5 million in the same period last year, primarily driven by the expansion of the CRO business[23]. - Gross profit for the reporting period was approximately RMB 345.0 million, up about 9.1% from RMB 316.3 million in the previous year, with a gross margin of approximately 31.1% compared to 30.8% last year[26]. - The group reported a net loss of approximately RMB 85.2 million, compared to a net profit of approximately RMB 95.8 million in the same period last year, mainly due to COVID-19 restrictions and unfavorable changes in the fair value of equity investments[35]. - The company reported a basic loss per share of RMB (0.05) for the six months ended June 30, 2022, compared to earnings of RMB 0.04 per share in the same period of 2021[101]. - The total comprehensive loss for the period was RMB 70,527,000, compared to a total comprehensive income of RMB 81,291,000 in the same period last year[107]. Revenue Segmentation - The company's CRO business revenue rose from RMB 321.0 million to RMB 406.0 million, marking an increase of approximately 26.5% year-on-year[9]. - Revenue from drug discovery services was RMB 406,070 thousand, while the revenue from CDMO commercialization services was RMB 702,677 thousand, contributing to a total segment profit of RMB 344,972 thousand[116]. - Revenue from overseas customers accounted for approximately 83.6%, with a year-on-year growth rate of about 26.0%[10]. - Revenue from Langhua Pharmaceutical for the first half of the year totaled RMB 702.7 million, a decrease of approximately 0.4% year-over-year due to pandemic-related shipment delays[11]. Operational Capacity and R&D - The total contract value of orders on hand is approximately RMB 1,150.0 million, a year-on-year increase of about 35.6% compared to RMB 848.0 million[9]. - The company delivered over 39,643 protein structures to customers, with 5,252 new deliveries in the first half of the year[10]. - The company has cumulatively researched over 1,857 independent drug targets, with 47 new targets delivered in the first half of the year[10]. - The utilization of synchrotron radiation sources reached 962 hours, maintaining long-term cooperation with 12 synchrotron radiation centers globally[10]. - The CMC R&D personnel count reached 150, with a CMC R&D center of approximately 10,000 square meters partially operational since December of the previous year[13]. - R&D investment for the period was RMB 40.9 million, a 9.1% increase from RMB 37.5 million as of June 30, 2021[15]. - PROTAC drug development services accounted for nearly 7.4% of total CRO revenue, with over 30 E3 ligase structures studied[16]. Employee and Workforce - The total number of employees reached 2,309, with CRO R&D personnel increasing by approximately 37.9%[18]. - The number of Full-Time Equivalents (FTE) in drug discovery services increased to 322,495 from 223,779, reflecting a significant growth in operational capacity[23]. - The total employee cost for the reporting period was approximately RMB 290.6 million, with a total of 2,309 employees as of June 30, 2022[43]. Financial Position and Cash Flow - As of June 30, 2022, the total cash and cash equivalents amounted to approximately RMB 712.2 million, a decrease of about 11.1% from approximately RMB 800.9 million as of December 31, 2021[36]. - The debt-to-asset ratio was approximately 51.8% as of June 30, 2022, compared to 51.4% as of December 31, 2021[37]. - Operating cash flow for the six months ended June 30, 2022, was RMB 92,617,000, significantly up from RMB 18,106,000 in the previous year[108]. - The company reported a net cash flow used in investing activities of RMB (180,047) thousand, compared to RMB (851,460) thousand in the previous year, indicating a significant reduction in cash outflow[110]. - The company reported a decrease in inventory by RMB 19,622,000, contrasting with an increase of RMB 15,584,000 in the previous year[108]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[52]. - The independent auditor, Ernst & Young, has reviewed the interim financial information and found no significant issues[57]. - The company confirmed compliance with the corporate governance code during the six months ending June 30, 2022[55]. - The board of directors will continue to review and monitor the company's practices to maintain high standards of corporate governance[54]. Shareholder Information and Equity - The company has not recommended the distribution of an interim dividend for the six months ended June 30, 2022[44]. - The company’s directors and senior executives hold a total of 50,332,551 shares, representing approximately 2.60% of the issued share capital[60]. - The shareholding structure indicates significant concentration, with major shareholders holding over 5% of the issued shares[67]. - The company aims to attract and retain top talent through its share incentive plans, which include options and awards[74]. Convertible Bonds and Financial Instruments - The company issued USD 180,000,000 convertible bonds with a 2.5% interest rate, maturing on February 11, 2025, with an initial conversion price of HKD 5.7456 per share[164]. - The company reported a total of RMB 223,666,000 in liabilities related to the convertible bonds as of December 31, 2021[169]. - The company plans to redeem all outstanding bonds at 105.23% of the principal amount on December 30, 2025, along with accrued and unpaid interest[172]. - The company reported a loss of RMB 10,050,000 from changes in fair value related to embedded derivatives as of June 30, 2022[169]. Taxation and Compliance - The company’s income tax expense for the six months ended June 30, 2022, was RMB 21,746,000, compared to RMB 26,252,000 for the same period in 2021, reflecting a decrease of approximately 17.5%[130]. - The estimated corporate income tax rate for the subsidiary in Shanghai is 15% for the six months ended June 30, 2022, as it is renewing its "High-tech Enterprise" qualification[134]. - The company’s tax strategy includes leveraging various tax incentives available in different jurisdictions to optimize its tax liabilities[136]. Future Outlook and Strategic Plans - The company plans to strengthen its one-stop drug R&D and production service platform, enhancing the synergy between CRO and CDMO businesses[20]. - The company plans to continue expanding its market presence and developing new products and technologies to drive future growth[120]. - The company will continue to assess its business objectives and may adjust plans based on changing market conditions[47].
维亚生物(01873) - 2022 - 中期财报