Financial Performance - For the six months ended June 30, 2023, the revenue was RMB 21,086 thousand, a decrease of 96.7% compared to RMB 629,790 thousand in the same period of 2022[8]. - The operating loss for the same period was RMB 1,342,432 thousand, an increase of 714.6% from RMB 164,800 thousand in the previous year[8]. - The loss before income tax was RMB 1,283,335 thousand, representing a significant increase of 2,988.3% compared to RMB 41,555 thousand in 2022[8]. - Total comprehensive loss for the period was RMB 1,282,024 thousand, a decline of 8,091.2% from a profit of RMB 16,043 thousand in the prior year[8]. - Basic and diluted loss per share was RMB (3.4098), a decrease of 6,988.5% from earnings of RMB 0.0495 per share in 2022[8]. - The company recorded a revenue of approximately RMB 21.1 million for the six months ended June 30, 2023, a significant decrease from RMB 629.8 million for the same period in 2022, primarily due to reduced demand for COVID-19 vaccine products and a provision for expected returns of RMB 237.1 million[40]. - The company reported a net loss of RMB 841,429 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 1,282,024 thousand for the same period in 2022, indicating an improvement of approximately 34.4%[121]. Assets and Liabilities - As of June 30, 2023, total assets were RMB 9,897,272 thousand, down 13.7% from RMB 11,468,960 thousand at the end of 2022[10]. - Total equity decreased by 17.6% to RMB 5,969,259 thousand from RMB 7,245,602 thousand at the end of 2022[10]. - Non-current assets increased by 6.2% to RMB 3,969,248 thousand from RMB 3,738,775 thousand at the end of 2022[10]. - The company’s total liabilities decreased to RMB 3,928,013 thousand as of June 30, 2023, from RMB 4,223,358 thousand as of December 31, 2022, a decrease of approximately 7.0%[119]. - The company’s borrowings decreased to RMB 2,204,910 thousand as of June 30, 2023, from RMB 2,453,585 thousand as of December 31, 2022, a reduction of about 10.1%[119]. Research and Development - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[11]. - The company has a broad vaccine pipeline targeting over ten disease areas, with five commercialized products currently[17]. - The company aims to address unmet medical needs globally with innovative vaccines, including mRNA COVID-19 vaccines and other candidates in clinical development[17]. - The company has initiated Phase III clinical trials for the DTcP vaccine for infants as of August 2023, with expectations to start the new drug application process in 2025[24]. - The company has launched Phase I clinical trials for the Tdcp vaccine for adolescents and adults, with approval received in June 2023, targeting populations aged 6 and above[26]. Market and Product Development - The company has received approval for the commercialization of the meningococcal vaccines Meinaixi® and Manhaixin®, with Meinaixi® being the best bivalent meningococcal vaccine in China and Manhaixin® being the first MCV4 vaccine approved in the country[17]. - The recombinant COVID-19 vaccine Kweisha® has received emergency use authorization overseas and conditional marketing approval in China as of June 30, 2023[20]. - Kweisha® has been widely administered as a booster vaccine in China since September 2022, with emergency use authorizations granted in Morocco and Indonesia[20]. - The company has established a comprehensive commercial operation center to implement marketing strategies for Manhaixin®[17]. - The company is actively expanding its marketing system and has identified key vaccination points and opinion leaders across China to promote its products, including the meningococcal vaccine[37]. Financial Position and Cash Flow - Cash and bank balances decreased by 29.6% from approximately RMB 3,394.8 million as of December 31, 2022, to approximately RMB 2,389.2 million as of June 30, 2023, attributed to reduced sales revenue and cash outflows from operating activities[69]. - Operating cash flow for the six months ended June 30, 2023, was a net outflow of RMB 753,907 thousand, an improvement from a net outflow of RMB 1,215,901 thousand in the same period of 2022[123]. - The company reported financial income of RMB 59,097 thousand for the period, down from RMB 123,245 thousand in the previous year, indicating a decrease of about 52.00%[116]. Corporate Governance - The company has adopted the corporate governance code and believes it has complied with all applicable provisions during the reporting period, except for the separation of the roles of Chairman and CEO, which are both held by Dr. Yu[80]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim financial results for the six months ending June 30, 2023, and found them to comply with applicable accounting standards[84]. - The independent auditor, Deloitte, reviewed the interim financial information in accordance with the Hong Kong Institute of Certified Public Accountants' standards[85]. - The company will continue to review the effectiveness of its corporate governance structure, including the potential separation of the roles of Chairman and CEO[80]. Shareholder Information - As of June 30, 2023, Dr. Yu holds 34,598,400 H shares (13.98%) and 42,579,625 A shares (17.21%), representing approximately 26.08% and 37.10% of the respective classes of shares[89]. - The company did not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[86]. - The company has repurchased 683,748 A-shares at a total cost of approximately RMB 150.2 million, with 277,650 shares allocated for the employee stock ownership plan as of June 30, 2023[108]. Impairment and Provisions - The group recognized an impairment loss of approximately RMB 325,401,000 for property, plant, and equipment as of June 30, 2023[142]. - The company recognized impairment losses of RMB 332,846,000 for inventory and RMB 325,401,000 for property, plant, and equipment related to COVID-19 vaccine products[127]. - The company adjusted the estimated future sales returns for sold products, resulting in a revenue adjustment of RMB 237,131,000 for the six months ended June 30, 2023[127]. Future Outlook - The company aims to enhance its capital efficiency and market competitiveness through strategic allocation of IPO proceeds[98]. - The company anticipates using the remaining unutilized proceeds based on current and future market conditions and business needs[107]. - The company plans to invest approximately RMB 2,244.7 million in the Kangsino Innovative Vaccine Industrial Park project, with funding sources including unutilized proceeds from the A-share IPO[104].
康希诺生物(06185) - 2023 - 中期业绩