BOJI CRO(300404)2022-08-25 16:00Financial Performance - The company achieved total operating revenue of ¥175,064,487.73, an increase of 44.96% compared to the same period last year[39]. - Net profit attributable to shareholders was ¥14,876,925.54, reflecting a growth of 5.68% year-on-year[39]. - The net profit after deducting non-recurring gains and losses decreased by 48.54% to ¥3,792,695.91[4]. - The net cash flow from operating activities increased by 92.24% to ¥20,669,699.97[4]. - Clinical research services revenue reached ¥114,848,813.14, a year-on-year increase of 70.40%, with new contracts amounting to ¥265 million, up 40.95%[40]. - Preclinical research services generated revenue of ¥30,173,123.29, a decrease of 4.24%, while new contracts totaled ¥71,125,300, reflecting a growth of 104.5%[41]. - Other consulting services revenue was ¥20,017,967.82, an increase of 8.29%, with new contracts amounting to ¥37,518,100, up 81.13%[42]. - The company's operating revenue for the reporting period reached ¥175,064,487.73, representing a year-on-year increase of 44.96% due to steady project progress[59]. - Operating costs increased by 60.25% to ¥105,485,076.30, primarily driven by the rise in operating revenue[59]. - Research and development expenses rose by 51.69% to ¥18,721,687.34, reflecting the company's increased investment in R&D and the hiring of additional personnel[59]. - The gross margin for clinical research services decreased by 4.18% to 32.37%, mainly due to rising labor costs during the reporting period[62]. - The total profit for the first half of 2022 was CNY 16,773,484.54, compared to CNY 17,782,431.69 in the same period of 2021, indicating a decrease of 5.7%[185]. - The company reported a basic earnings per share of CNY 0.0406, slightly down from CNY 0.0424 in the previous year[186]. - The total comprehensive income for the first half of 2022 was CNY 17,529,192.22, compared to CNY 16,444,393.82 in the same period of 2021, showing an increase of 6.6%[186]. - The company reported a net profit of CNY 620.2 million from its subsidiary Guangzhou Boji, contributing over 10% to the overall net profit[91]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,181,416,435.83, up 3.80% from the end of the previous year[4]. - Cash and cash equivalents at the end of the reporting period amounted to ¥348,074,200, representing 29.46% of total assets, a decrease of 4.32% compared to the previous year[66]. - Accounts receivable stood at ¥71,504,036.5, accounting for 6.05% of total assets, a slight decrease of 0.25% year-on-year[66]. - Contract assets increased to ¥38,775,518.9, which is 3.28% of total assets, reflecting a growth of 0.58% from the previous year[66]. - Inventory reached ¥165,528,179, making up 14.01% of total assets, an increase of 0.98% compared to last year[66]. - Long-term equity investments rose to ¥4,615,096.59, representing 0.39% of total assets, up by 0.28% year-on-year[66]. - The company's total assets as of June 30, 2022, amounted to ¥1,181,416,435.83, compared to ¥1,138,209,210.53 at the beginning of the year, reflecting a growth of 3.8%[179]. - Current liabilities decreased to ¥259,298,904.19 from ¥270,844,957.87, a reduction of 4.5%[179]. - The company's equity attributable to shareholders increased to ¥838,244,367.91, up from ¥813,994,073.02, representing a growth of 3.0%[179]. - The company's non-current liabilities totaled ¥51,254,920.03, significantly higher than ¥20,986,445.90 at the start of the year, indicating a rise of 144.5%[179]. Investments and Financing - Investment activities generated a net cash outflow of -¥72,473,614.29, a significant increase of 231.37% compared to the previous year, primarily due to payments for equipment and project investments[59]. - The company reported a decrease of 95.43% in cash flow from financing activities, totaling ¥13,808,920.81, due to the previous year's fundraising activities[59]. - The company reported a total guarantee amount of 17,000 million RMB during the reporting period, with an approved guarantee limit of 30,000 million RMB[137]. - The actual guarantee amount accounted for 20.28% of the company's net assets[138]. - The company increased its financing credit limit from 300 million RMB to 500 million RMB, and the financing guarantee limit for subsidiaries from 200 million RMB to 300 million RMB[141]. - The company has committed to using up to 100 million yuan of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months[81]. - The total amount of raised funds was ¥33,641.67 million, with ¥1,125.62 million invested during the reporting period[76]. - Cumulative investment of raised funds reached ¥14,551.65 million, with a remaining balance of ¥19,503.52 million in the dedicated account[77]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The company emphasizes compliance with national drug supervision regulations and quality management standards[16]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[118]. - There were no violations regarding external guarantees during the reporting period[119]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[112]. - The company emphasizes the protection of shareholder rights and adheres to legal regulations for corporate governance[113]. Market and Industry Outlook - The global CRO market is projected to reach 6.8 billion in 2019 to $22.2 billion by 2024, with a compound annual growth rate of approximately 26.5%[36]. - The company has identified risks related to policy changes in the new drug approval process, which could impact revenue and R&D investments[92]. - The company faces risks from long contract execution periods in new drug development, which may lead to delays and potential cost overruns[93]. - The company is exposed to market competition risks due to the rapid growth of domestic CRO companies, necessitating enhanced marketing and service levels[94]. - The company plans to leverage its full industry chain service advantages to improve core competitiveness and strategic planning[94]. Stock Options and Incentives - The company plans to grant 2.7 million stock options at an exercise price of 12.27 CNY per share under the 2022 stock option incentive plan[107]. - The company has adjusted the total number of stock options under the 2020 incentive plan from 1,823,260 to 2,552,564, with a new exercise price of 9.56 CNY per share[106]. - The company has canceled 82,900 stock options from the 2020 incentive plan due to the departure of four incentive targets[105]. - The stock option incentive plan was adjusted from 87 participants to 86, with a total of 2,699,000 options granted[108]. - The total number of unexercised stock options increased from 2,697,000 to 3,775,800 following the completion of the 2021 annual equity distribution[109]. Legal Matters - The company is currently involved in two major lawsuits, one with an amount of 259.95 million RMB and another with 148 million RMB, both of which are not expected to significantly impact operations[122]. - The first lawsuit was dismissed by the Guangzhou Intellectual Property Court, rejecting all claims from the plaintiff[122]. - The second lawsuit is in the second instance stage, awaiting a decision, but is also not expected to have a major impact on the company's operations[122]. Employee and Management - Employee benefits include competitive salaries and a stock ownership plan to share company growth[113]. - The company has strengthened internal management and integration efforts to mitigate management risks associated with business expansion[95]. - The company has introduced specialized management talent to improve operational efficiency[95]. - The company has faced challenges in new business development due to insufficient market expansion capabilities and project experience[95].