HONG KONG, March 28, 2024 /PRNewswire/ —
Highlights of the Annual Results as of December 31, 2023:
Revenue reached RMB2,155.6 million
Gross profit amounted to RMB738.5 million
Adjusted non-IFRS net loss improved to RMB208.8 million, representing a significant turnaround from a negative position compared to the corresponding period of last year
Successfully attracted strategic investors such as Temasek, Highlight Capital, True Light Capital and Investment Corporation of Dubai with a total financing size of nearly US$225 million
On March 28, 2024, Viva Biotech Holdings Group (“Viva Biotech”, “the Group” or “the Company”, stock code: 1873.HK) announced that the Group’s revenue during the Reporting Period achieved RMB2,155.6 million; and our gross profit amounted to RMB738.5 million. In 2023, the Group’s net loss amounted to RMB99.8 million, a significant improvement from a loss of RMB504.2 million for the corresponding period of last year. Adjusted non-IFRS net loss improved from RMB133.9 million for the corresponding period of last year to an adjusted non-IFRS net profit of RMB208.8 million, representing a significant turnaround from a negative position compared to the corresponding period of last year, which was mainly attributable to the stabilization of valuation of certain incubation portfolio companies of the Group as well as the improvement in profitability as a result of the Group’s initiatives to reduce costs and increase efficiency.
In addition, in 2023, the Group achieved breakthrough progress in overall financing and the introduction of strategic investors. We successfully attracted strategic investors such as Temasek, Highlight Capital, True Light Capital and Investment Corporation of Dubai with a total financing size of nearly US$225 million. The completion of the Group’s financing endeavors and the successful introduction of strategic investors have propelled the Company towards a trajectory of smooth and rapid development. On one hand, the substantial financing obtained has allowed the Company to fully repay its previously issued convertible bonds, leading to a substantial improvement in the Company’s balance sheet and cash flow. On the other hand, the successful inclusion of strategic investors will play a pivotal role in enhancing corporate governance, facilitating business operation, optimizing investment and financing plans, and driving strategic development. This collective effort will greatly support the Company’s long-term growth and the successful implementation and continuous advancement of its integrated strategy.
CRO Business Shows an Attractive Outlook in the Long Run Despite Slight Fluctuation in the Short Term
In 2023, the Company’s revenue from CRO business achieved RMB844.9 million, and gross profit of RMB363.7 million. The revenue for 2023 decreased compared to last year, primarily due to the impact of the global slowdown in biopharmaceutical investment and financing on the R&D of innovative drugs, as well as the strategic contraction of the Company’s EFS business. Nevertheless, the Company effectively implemented measures such as cost reduction and efficiency enhancement to maintain a solid profitability for the CRO business.
As at December 31, 2023, the Company had delivered more than 65,035 protein structures to our clients, approximately 16,110 of which were newly delivered in 2023, and conducted R&D on over 1,886 independent drug targets, 8 of which were newly delivered in 2023. Currently, the Company maintains a leading position in the industry worldwide in the field of protein structure analysis. Furthermore, the Company has two key strategies in place. Firstly, it aims to maximize the value from existing customers by fostering synergistic development in biochemistry. Secondly, it is actively enhancing the integration of online digital marketing and offline BD, while expanding its overseas BD team in order to stimulate the recovery and growth of orders. Additionally, the Company is continuously expanding its emerging technology platforms to create new growth drivers and provide sustained support for its existing CRO business.
The cumulative number of CRO clients served had increased to 1,398, including the global top 10 pharmaceutical companies (by reported total revenue for 2023), and revenue from the top ten customers accounted for 25.7% of our total revenue. Clients of our CRO business are geographically diverse, of whom those from overseas contributed approximately 87.1% of our total revenue, and those from Chinese Mainland contributed approximately 12.9% of our total revenue.
During the Reporting Period, our utilization of synchrotron radiation source reached 2,059 hours. The Company established long-term cooperation with 13 synchrotron radiation source centers around the world, which are distributed in ten countries/regions, i.e., Shanghai, China, the United States, Canada, Japan, Australia, the United Kingdom, France, Germany, Switzerland and Taiwan, China, thus guaranteeing uninterrupted data collection all year round.
Expanding CDMO Capacity and Increasing CMC Projects
During the Reporting Period, the Group laid great emphasis on strategic cooperation and synergy with Langhua Pharmaceutical. In particular, we strengthened the capacity expansion and adjusted the business structure of CDMO. In addition, efforts were made to optimize and channel resources towards the CMC business.
In 2023, Langhua Pharmaceutical’s revenue amounted to RMB1,310.7 million, and its adjusted gross profit amounted to RMB388.8 million, which was primarily attributable to the impact of delay of orders of certain CDMO clients.
As at December 31, 2023, Langhua Pharmaceutical had served a total of 880 clients, with the top ten clients accounting for …