Financial Performance - Other income increased by approximately 14.6% from RMB 4.8 million for the six months ended June 30, 2022, to RMB 5.5 million for the six months ended June 30, 2023, primarily due to an increase in government subsidies recognized during the reporting period [10]. - Administrative expenses decreased by approximately 45.9% from RMB 46.3 million for the six months ended June 30, 2022, to RMB 25.0 million for the six months ended June 30, 2023, mainly due to reductions in employee costs, professional fees, and depreciation expenses [12]. - The company's loss before tax decreased by approximately 16.6% from RMB 142.2 million for the six months ended June 30, 2022, to RMB 118.6 million for the six months ended June 30, 2023 [15]. - The company reported a net loss of approximately RMB 20.3 million for the six months ended June 30, 2023, compared to a profit of approximately RMB 3.1 million for the same period in 2022, primarily due to fair value losses on financial assets [11]. - The total employee compensation for the six months ended June 30, 2023, was approximately RMB 38.3 million, down from RMB 62.9 million for the same period in 2022 [125]. Capital Structure and Liabilities - As of June 30, 2023, the company's capital structure was 62.6% liabilities and 37.4% equity, compared to 42.4% liabilities and 57.6% equity as of December 31, 2022 [22]. - The group's total liabilities as of June 30, 2023, amounted to RMB 145,461,000, down from RMB 167,989,000 as of December 31, 2022, showing a decrease of approximately 13.5% [48]. - The company has a total non-current liability of RMB 1,629,000,000 in contract liabilities as of June 30, 2023, compared to RMB 1,984,000,000 in the previous year [56]. - The fair value of convertible bonds as of June 30, 2023, is RMB 309,818,000, which serves as collateral for the company's payment obligations [52]. - The group has a total of RMB 885 million in credit financing related to property, plant, and equipment investments, contingent upon meeting certain conditions [98]. Investments and Funding - The company plans to utilize approximately RMB 102.3 million of the RMB 300 million raised from the issuance of convertible bonds for clinical trials of EAL® and expects to use the funds by the end of 2023 [24]. - The group’s investment in Shaoxing Fund includes a subscription amount of RMB 500,000,000 for convertible bonds with an annual interest rate of 6%, maturing in May 2024 [45]. - The company has invested RMB 320,221,000 in convertible bonds as of June 30, 2023, with no convertible bonds reported in the previous year [78]. - The company entered into a subscription agreement for convertible bonds with a principal amount of RMB 300 million, with an initial conversion price of HKD 4.81 per share [95]. - The company reported a total investment of HKD 1,127.8 million for ongoing clinical trials and commercialization of EAL®, with 34.2% allocated for clinical trials and 5.0% for working capital [142]. Research and Development - The company is conducting research on gene modification pathways affecting T cell signaling to enhance the effectiveness of T cells against tumor cells, with the first product expected to enter clinical research being a targeted immunosuppressive molecule [6]. - The company has developed a systematic technical platform for cell immunotherapy product research, allowing for customized services based on customer needs [8]. - The company is focused on CAR-T cell therapy, which involves genetically engineered T cells to target specific proteins on cancer cells [189]. - The company has developed a monoclonal antibody, COC166-9, to simulate ovarian cancer-related antigens, indicating progress in its oncology pipeline [185]. - The company is advancing its OCIK injection product, aimed at treating ovarian cancer, as part of its biopharmaceutical product line [186]. Employee and Management - The company had 203 employees in China and 3 in South Korea as of June 30, 2023 [125]. - The company emphasizes training for employees to enhance technical and product knowledge across different positions [145]. - The company’s stock option plans were established to reward and incentivize participants for their contributions to the company's achievements [127]. - The company has confirmed compliance with all applicable corporate governance codes during the six-month period ending June 30, 2023 [154]. - The audit committee has reviewed the financial reporting procedures and confirmed adherence to applicable accounting principles and standards [158]. Government and Regulatory - The group has adopted new and revised International Financial Reporting Standards for the preparation of its financial statements, indicating a commitment to compliance and transparency [32]. - The group confirmed zero share-based payment expenses related to pre-IPO stock options for the six months ended June 30, 2023, compared to RMB 2,583,000 for the same period in 2022 [83]. - The company has not recognized any share-based payment transactions related to the pre-IPO share option plan, which would have reduced the loss per share [66]. - The company did not declare or propose any dividends during the reporting period [140]. - The group received government subsidies totaling RMB 41,039,000 as of June 30, 2023, down from RMB 42,510,000 at the beginning of the year [94].
永泰生物(06978) - 2023 - 中期业绩