Pharmaron Beijing (300759) Q2 2024 earnings summary

Executive summary

• Achieved revenue of ¥5.60 billion, down 0.63% year-over-year; Q2 revenue up 9.85% sequentially.

• Net profit attributable to shareholders rose 41.64% year-over-year to ¥1.11 billion, driven by significant non-recurring gains.

• Adjusted net profit (excluding non-recurring items) fell 25.93% year-over-year.

• Over 2,200 global clients served; new contract value up over 15% year-over-year.

• ESG rating AA; included in A-share ESG Top 100 and governance best practices lists.

Financial highlights

• Operating cash flow was ¥1.10 billion, down 14.10% year-over-year.

• Basic EPS was ¥0.6282, up 41.42% year-over-year.

• Gross margin for laboratory services was 44.46%, CMC (small molecule CDMO) 28.30%, clinical research 12.55%, and large molecule/cell & gene therapy -31.34%.

• Major non-recurring gains: ¥562.7 million from sale of Proteologix, Inc. and ¥89.2 million from convertible bond repurchase.

Outlook and guidance

• Strategy remains focused on full-process, integrated, international drug R&D service platform.

• Expects continued recovery in global biotech funding and client demand in H2 2024.

• Plans to strengthen technology innovation, expand multi-therapy R&D platforms, and enhance talent recruitment.