Stock code: 300759.SZ
Stock code: 3759.HK
2024
Interim Results
August 2024Disclaimer
The documents opinions and materials presented in this presentation (the “Document”) have been prepared by Pharmaron Beijing Co. Ltd. (康龍化成(北京)新藥技術股份有限公司) (the “Company”) for use in
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become apparent.
2C o n t e n t s
Performance Segment Financial Future
Overview Highlights Highlights Outlook
31234
CONTENT Performance Segment Financial Future
Overview Highlights Highlights Outlook
42Q2024 Revenue Achieved Strong QoQ Growth
RMB mm 2Q2024 1Q2024 QoQ 2Q2023 YoY
Revenue 2934 2671 9.9% 2916 0.6%
Net Profit 883 231 282.9% 438 101.6%
Non-IFRSs Adjusted Net Profit 351 339 3.7% 494 -28.8%
? 2Q2024 revenue achieved strong QoQ growth over 1Q2024 and slight YoY growth over
2Q2023
? Strong net profit growth driven by the disposal of equity interests in the Company’s minority
investment in PROTEOLOGIX which also improved the Company’s cash position
? Non-IFRSs adjusted net profit temporarily declined YoY as a result of increased labor costs
(mainly from the newly added employees in 2H2023) increased syndicated loans at the end
of 2023 and the operation of new production capacities at the end of 2023 and during the
Reporting Period
Data are rounded to the nearest million 51H2024 Financials & 2024 Outlook
RMB mm 1H2024 1H2023 YoY
Revenue 5604 5640 -0.6%
Net Profit 1113 786 41.6%
Non-IFRSs Adjusted Net Profit 690 932 -25.9%
? New POs: 1H2024 new POs YoY growth of 15%+. Modest recovery in two consecutive
quarters
? Revenue: new POs of laboratory services had gradually converted into revenue in 2Q2024.Due to different delivery cycles more POs of the CMC services will be delivered from 3Q2024
? Net Margin: expect QoQ improvement of Non-IFRSs adjusted net profit margin in 3Q2024 as
a result of increased revenue
? Guidance: maintain full-year 2024 guidance of 10%+ revenue growth
Data are rounded to the nearest million 61H2024 Business Highlights
Global Platform & Customers Rich Pipeline to Fuel Future Growth
360+ new customers 2200+ active Discovery projects: 666 drug discovery
customers including all of the TOP 20 projects increased by 2.5% YoY
global pharmas CMC projects: 16 in validation & commercial
19 in PhIII 162 in PhI/II 498 in preclinical
21 R&D & manufacturing facilities across
Clinical projects: 1112 CRO projects
China UK & US providing fully-integrated including 77 in PhIII. 1500+ SMO projects
services for SM LM & CGT CRC team covers 650+ hospitals & clinical
trial centers in 140+ cities
20342 employees including 1700+
CGT projects: 21 release testing projects
overseas employees. 18241 scientists &
including 2 commercial projects. 11 CDMO
technicians representing ~90% of total projects including 1 in PhIII 6 in PhI/II 4 in
employees preclinical
71H2024 Revenue Compositions
Segments Revenue Composition Global Customers Revenue Composition
Biologics & CGT ROW 3%
Services 4% NA Revenue Declined 0.2%
Clinical Development China
Services 15% EU Revenue Grew 10.0% 15%
CN Revenue Declined 13.2%
Laboratory North
Europe
Services 60% America
17%
65%
Small Molecule
CDMO Services
21%
China/Overseas Entities Revenue Composition Diversified Customer Base Revenue Composition
New Customers
3%
China Entities Overseas TOP 20 Pharmas TOP 20
Revenue Declined 1.3% Subsidiaries Revenue Declined 7.2% Pharmas
13%14%
Overseas Subsidiaries Other Customers
Revenue Grew 4.0% Revenue Grew 0.5%
China Entities Other Repeat
87% Customers 83%
8ESG Updates
Sustainability Diversity Equity & Inclusion ESG Ratings
The Company joined the Health The Company enhanced its DEI 2023 MSCI ESG rating of BBB
Working Group of the practice and strengthened its 2023 EcoVadis Bronze Prize
Sustainable Markets Initiative occupational health and safety
(SMI) China Council and worked management in accordance with 2024 SNSI ESG Rating of AA.together with value chain ISO 45001 Selected as one of the 2024 Top
partners of the industry to make 100 A-share Listed Companies in
concerted efforts for energy The Company also strengthened ESG Excellence and 2024 Top
saving and emission reduction the DEI management of its 20 A-share Listed Companies in
supply chain and expanded its Best Practices in Corporate
supplier network Governance (G) Dimension
91234
CONTENT Performance Segment Financial Future
Overview Highlights Highlights Outlook
10Laboratory Services
RMB mm 2Q2024 1Q2024 QoQ 2Q2023 YoY 1H2024 1H2023 YoY
Revenue 1767 1605 10.1% 1728 2.3% 3371 3380 -0.3%
GPM 44.3% 43.6% 0.7pct 45.3% -1.0pct 44.0% 44.8% -0.8pct
? QoQ improvement of laboratory chemistry services revenue since 4Q2023. Steady YoY
revenue growth of bioscience services revenue which accounted for 53%+ of the segment
revenue in 1H2024
? 1H2024 new POs increased by 10%+ YoY
? 1H2024 participated in 666 drug discovery projects a YoY increase of 2.5%
? Campus III in Ningbo began operation and increased the Company’s capacities in safety
assessment DMPK and in vivo pharmacology services. The safety assessment laboratory
received China GLP certification in July 2024
Data are rounded to the nearest million 11CMC (Small Molecule CDMO) Services
RMB mm 2Q2024 1Q2024 QoQ 2Q2023 YoY 1H2024 1H2023 YoY
Revenue 594 582 2.0% 653 -9.1% 1176 1251 -6.0%
GPM 28.3% 27.3% 1.0pct 31.7% -3.4pct 27.8% 32.2% -4.4pct
? ~78% of CMC services revenue came from the existing customers of laboratory services
? 1H2024 new POs increased by 25%+ YoY. More projects will be delivered from 3Q2024
? Commercial Manufacturing: during the Reporting Period an innovative drug the Company
produced for its customer obtained NMPA approval and became its first commercial drug
product manufacturing project. In August 2024 another product also obtained NMPA approval
and marked a new milestone for the Company’s drug product commercial manufacturing
services
? Increased costs due to certain modules in Shaoxing facility transferred from CIP into fixed
assets in 4Q2023 and increased labor costs in CN & UK
Data are rounded to the nearest million 12CMC Projects Continued to Advance to Late Stage
1H2023 1H2024
+67
Preclinical Preclinical
431498
+26
Phase I/II Phase I/II
136162
-5
Phase III Phase III
2419
-13
No. of innovative drug
Validation&Commercial projects increased YoY Validation&Commercial
2916
13Clinical Development Services
RMB mm 2Q2024 1Q2024 QoQ 2Q2023 YoY 1H2024 1H2023 YoY
Revenue 452 392 15.4% 431 4.8% 843 805 4.7%
GPM 15.4% 9.3% 6.1pct 19.6% -4.2pct 12.6% 17.0% -4.4pct
? As a result of synergies of the Company’s integrated platform and increasing customer
recognitions of Pharmaron Clinical the Company has continued to increase its number of
projects and gain market share
? 1112 clinical CRO projects including 77 PhIII clinical trials 409 PhI/II clinical trials and 626
other clinical trials
? 1500+ SMO projects. CRC team covers 650+ hospitals & clinical trial centers in 140+ cities
? GPM declined due to revenue mix of different projects and competitions in China market.
2Q2024 GPM improved QoQ as a result of increased revenue
Data are rounded to the nearest million 14Biologics & CGT Services
RMB mm 2Q2024 1Q2024 QoQ 2Q2023 YoY 1H2024 1H2023 YoY
Revenue 120 91 31.0% 105 14.3% 211 200 5.5%
GPM -25.9% -38.6% 12.7pct -5.3% -20.6pct -31.4% -8.3% -23.1pct
? Strong QoQ revenue growth driven by the delivery of an innovative bispecific antibody project
? 21 CGT analytical release testing projects from 17 customers including 2 commercial projects
and 9 clinical projects
? 12 GLP & non-GLP tox studies for CGT products either had been completed or are in
progress
? 11 gene therapy CDMO projects including 1 in PhIII 6 in PhI/II & 4 in preclinical
? The emerging segment is still in the investment stage. Increased operating costs and
depreciation of the biologics CDMO capacity in Ningbo
Data are rounded to the nearest million 151 2 3 4
CONTENT Performance Segment Financial Future
Overview Highlights Highlights Outlook
161H2024 Expenses for the Period
Selling and Distribution Expenses as % of Total Revenue Administrative Expenses as % of Total Revenue (1)
13.4%12.7%12.8%13.4%
2.1%2.2%2.2%2.2%2.2%11.3%
2021 2022 2023 1H2023 1H2024 2021 2022 2023 1H2023 1H2024
R&D Costs as % of Total Revenue Net Finance Costs as % of Total Revenue (2)
3.9%3.7%
3.2%0.7%
2.9%
0.1%0.1%0.1%
2.0%
2021 2022 2023 1H2023 1H2024
(1.2)%
2021 2022 2023 1H2023 1H2024
1. Excluding share-based compensation expenses recognized in administrative expenses 17
2. Net finance costs including interest expenses on bank borrowings and lease liabilities interest income and bank wealth management products related gains or lossesExpect to Achieve Positive Free Cash Flow in 2024
RMB mm
29502865
2754
205820932143
1501
1280
1100
950
2021 2022 2023 1H2023 1H2024
Net Operating Cash Flow CAPEX
Data are rounded to the nearest million 181H2024 Non-IFRSs Adjusted Net Profit
RMB mm 1H2024 1H2023
Net Profit 1113 786
Add:
Share-based Compensation Expenses 66 110
Convertible Bonds Related Losses / (Gains) (7) 57
Foreign Exchange Related (Gains) / Losses 5 (4)
Realized and Unrealized Gains From Equity
(531)(17)
Investments
One-off Loss Made by Pharmaron Shanghai Co. Ltd.
44-
due to the Business Close
Non-IFRSs Adjusted Net Profit 690 932
Data are rounded to the nearest million 191 2 3 4
CONTENT Performance Segment Financial Future
Overview Highlights Highlights Outlook
202024 Outlook
The pursuit of health and longevity is eternal and the long-term industry
fundamentals remain intact. Seeing early signs of customer demand recovery
Fully integrated service platforms can meet the needs of different kinds of
customers improving efficiency reducing cost and providing flexibility
Expect to deliver 10%+ revenue growth in 2024
Disclaimer: These forward-looking statements reflects the current view of the Company with respect to future events are based on a number of assumptions about
the Company’s operations and factors beyond the Company’s control and are subject to significant risks and uncertainties and accordingly actual results may differ 21
materially from these forward-looking statementsTHANK YOU
