KEXING BIOPHARM CO.(SH:688136)2024-04-26 11:34Financial Performance - The company reported a profit distribution plan for 2023, which includes no cash dividends, no stock bonuses, and no capital reserve transfers to increase share capital [5]. - The company has not achieved profitability since its listing, indicating ongoing financial challenges [4]. - The company's operating revenue for 2023 was approximately ¥1,259 million, a decrease of 4.32% compared to ¥1,316 million in 2022 [21]. - The net profit attributable to shareholders was a loss of approximately ¥190 million in 2023, compared to a loss of ¥90 million in 2022 [21]. - The basic earnings per share for 2023 was -¥0.96, down from -¥0.45 in 2022 [22]. - The weighted average return on equity decreased to -11.11% in 2023, down from -4.87% in 2022, a decline of 6.24 percentage points [23]. - The net cash flow from operating activities was a negative ¥87 million in 2023, compared to a negative ¥86 million in 2022 [21]. - The company's total assets at the end of 2023 were approximately ¥3,031 million, a decrease of 4.22% from ¥3,165 million at the end of 2022 [21]. - The company reported a total of 1,091,415 shares held at the end of the reporting period, with no changes in shareholding during the year [154]. - The company reported a total revenue of ¥1,259,035,602.11, a decrease of 4.32% compared to the same period last year [84]. Research and Development - Research and development expenses accounted for 27.39% of operating revenue in 2023, an increase of 12.70 percentage points from 14.69% in 2022 [23]. - The company has introduced 12 new products, focusing on key oncology areas, including six major products for breast cancer treatment [34]. - The company’s R&D expenses reached RMB 344.80 million, a year-on-year increase of 78.38%, accounting for 27.39% of total revenue [38]. - The company has initiated 10 innovative drug projects focused on key disease areas, with several projects entering the process development stage [66]. - The company has achieved the creation of 6 innovative drugs during the reporting period, demonstrating strong in vitro activity and specificity compared to peers [58]. - The company is focusing on innovative biotechnologies such as CRISPR-Cas gene editing, mRNA drugs, and artificial intelligence, which are expected to reshape the pharmaceutical industry [55]. - The company has completed process validation for its albumin paclitaxel production line and interferon production line, with the interferon line obtaining GMP certification [42]. - The company has established a comprehensive biopharmaceutical innovation research and development system, focusing on unmet clinical needs in oncology, immunology, and degenerative diseases [118]. - The company has 163 R&D personnel, representing 15.58% of the total workforce, with an average salary of ¥31.34 thousand, an increase from ¥27.53 thousand in the previous period [70]. Market and Sales - The company has established a marketing distribution network covering nearly 22,700 various terminal points in the domestic market [50]. - The company has expanded its marketing network to approximately 22,700 medical institutions, a 13.5% increase from the previous year, including over 7,500 hospitals [46]. - The market share of the company's "Sairuo Jin®" short-acting interferon injection remains the highest in China [41]. - The company has established a comprehensive overseas commercialization platform covering over 40 countries, with significant growth in emerging markets [34]. - The company achieved total revenue of RMB 1,259.04 million in 2023, a slight decrease year-on-year [33]. - The company is actively pursuing international collaborations and has established strategic partnerships with several pharmaceutical companies for the commercialization of key drugs [45]. - The company has signed cooperation agreements with Beijing Yabao Pharmaceutical and Zhengda Tianqing Pharmaceutical, obtaining exclusive agency rights for Sorafenib and commercial rights for Palbociclib in multiple countries [48]. Governance and Compliance - The audit report issued by Da Hua Certified Public Accountants confirmed the financial statements' accuracy and completeness [5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties [7]. - There are no violations of decision-making procedures regarding external guarantees [7]. - The company has not disclosed any special arrangements for corporate governance [8]. - The company has established a sound organizational structure, ensuring independence in operations, assets, personnel, and finance from the controlling shareholder [147]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors, and has received an award for excellent practice in annual report performance presentation [148]. - The board of directors and supervisory board operate independently, effectively reducing operational risks and safeguarding the rights of shareholders [147]. - The company has received recognition for its effective governance practices, aligning with legal and regulatory requirements [148]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the report's risk factors section [4]. - The company has a comprehensive risk statement regarding forward-looking statements, advising investors to be cautious [6]. - The company faces risks related to core personnel turnover, potential leakage of trade secrets, and reliance on overseas suppliers for key raw materials [76][77]. - The company continues to maintain a leading position in domestic niche markets despite a slight decline in revenue due to regional procurement impacts, with ongoing clinical trials for multiple R&D projects [82]. Future Outlook - The company aims to accelerate its internationalization strategy, focusing on maximizing product commercialization value in emerging markets [140]. - The company plans to push forward with clinical trials for 4 projects and submit IND applications for 2 projects, aiming to enhance its innovative drug pipeline [141]. - The company intends to explore external licensing and collaboration to maximize the commercial value of self-developed products [142]. - The company plans to submit at least 6 invention patents in 2024 as part of its commitment to innovation [141]. - The company aims to enhance operational efficiency through intelligent management and lean practices, targeting cost reduction and efficiency improvement [143]. - Future guidance includes maintaining a net profit margin of at least 15% for the upcoming fiscal year [162].