INNOCARE(SH:688428)2022-11-13 16:00Financial Performance - In Q3 2022, the sales revenue of Orelabrutinib (Yinokai®) reached RMB 183 million, a 64% increase compared to Q2 2022, and a 129% increase year-on-year for the first nine months of 2022, totaling RMB 400 million[4]. - The total operating revenue for Q3 2022 was RMB 196 million, a decrease of 77.76% year-on-year, primarily due to a strategic cooperation agreement with BeiGene in Q3 2021 that generated RMB 776 million in licensing revenue[5]. - The net loss attributable to shareholders for Q3 2022 was RMB 393 million, representing a 232.11% increase compared to the same period last year[7]. - Revenue for the current reporting period decreased by 77.76% compared to the same period last year, primarily due to a high one-time technology licensing income recognized in the previous year[11]. - Net profit attributable to shareholders decreased by 232.11% in the current reporting period, influenced by the high technology licensing income recognized in the previous year[11]. - Total operating revenue for the first three quarters of 2022 was CNY 441.61 million, a significant decrease from CNY 981.43 million in the same period of 2021[24]. - Net profit for the first three quarters of 2022 was a loss of CNY 842.65 million, compared to a profit of CNY 87.31 million in the same period of 2021[25]. - Basic and diluted earnings per share for the third quarter of 2022 were both CNY -0.59, compared to CNY 0.06 in the same quarter of 2021[26]. Research and Development - Research and development expenses for the first nine months of 2022 amounted to RMB 475 million, reflecting a 30% increase after excluding the previous year's upfront payment to Incyte Corporation[5]. - The R&D expenses accounted for 100.71% of operating revenue in Q3 2022, reflecting a 55.14 percentage point increase compared to the same period last year[7]. - R&D investment decreased by 50.85% in the current reporting period, mainly due to last year's payment related to Incyte[13]. - The proportion of R&D investment to operating revenue increased by 55.14 percentage points in the current reporting period, reflecting the company's increased focus on R&D[13]. - The company has 13 products in various stages of clinical trials, with several others in preclinical stages, indicating a robust pipeline for future growth[4]. Assets and Liabilities - The company's total assets as of September 30, 2022, were RMB 10.43 billion, a 40.68% increase year-on-year[7]. - Total assets increased by 40.68% year-to-date, primarily due to the increase in funds raised from the A-share listing[13]. - The company's equity attributable to shareholders reached CNY 7,736,172,992.15, up from CNY 5,604,559,524.19, representing an increase of about 37.9%[22]. - Total liabilities increased to CNY 2,649,251,273.58 from CNY 1,756,050,524.82, which is an increase of approximately 50.7%[22]. Cash Flow and Liquidity - As of September 30, 2022, the company held cash and cash equivalents exceeding RMB 9.2 billion, with net cash exceeding RMB 7.7 billion, ensuring sufficient liquidity for ongoing projects[5]. - The net cash flow from operating activities decreased by 241.19% year-to-date, attributed to high one-time technology licensing payments received in the previous year and increased personnel costs due to a rise in R&D and production staff[11]. - Cash flow from operating activities showed a net outflow of CNY 395.32 million in 2022, contrasting with a net inflow of CNY 279.98 million in 2021[27]. - The net increase in cash and cash equivalents was 1,176,888,160.90 CNY, down from 2,133,772,073.22 CNY, indicating a decrease in overall liquidity growth[28]. - Cash inflow from investments totaled 2,789,411,528.74 CNY, an increase from 2,526,674,475.99 CNY, suggesting enhanced investment attraction[28]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 118,973[15]. - The company issued a total of 1,764,321,452 shares, with 85% listed in Hong Kong and 15% on the Shanghai Stock Exchange[14]. - The top ten shareholders hold a combined 88.10% of the company's shares, with HKSCC NOMINEES LIMITED holding 41.07%[16]. - The number of shares held by the top ten shareholders includes significant stakes from HKSCC NOMINEES LIMITED with 724,573,837 shares and HHLR Fund, L.P. with 208,671,222 shares[18]. Strategic Focus - The company continues to focus on expanding its market presence and developing innovative therapies for unmet clinical needs in oncology and autoimmune diseases[4]. - The company plans to focus on market expansion and new product development to improve future performance[24]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[19]. Financial Management - The company incurred financial expenses of CNY 311.95 million, compared to a financial income of CNY 98.51 million in the previous year[24]. - Total cash inflow from financing activities reached 3,129,667,311.83 CNY, up from 2,526,674,475.99 CNY, reflecting a strong increase in financing efforts[28]. - Net cash flow from financing activities was 3,106,021,468.26 CNY, compared to 2,505,380,367.38 CNY in the previous period, showing improved financial management[28]. Other Financial Metrics - The company reported a significant increase in sales expenses, which rose to CNY 290.26 million from CNY 187.45 million year-over-year[24]. - Other comprehensive income after tax for the first three quarters of 2022 was CNY 563.17 million, compared to a loss of CNY 2.96 million in the same period of 2021[25]. - Investment activities generated cash inflow of CNY 144.46 million in 2022, a sharp decline from CNY 2.12 billion in 2021[27]. - The company has adopted new accounting standards starting from 2022, which may affect financial reporting and analysis[29].