Pharmaron Beijing Co., Ltd — Earnings Release 2021

Mar 10, 2022

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Pharmaron Beijing Co., Ltd.[*] 康龍化成（北京）新藥技術股份有限公司

(A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3759)

PRELIMINARY FINANCIAL DATA FOR YEAR 2021

This announcement is made by Pharmaron Beijing Co., Ltd. (the “ Company ” and together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09 of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Important notes: The Financial data for the year of 2021 set out in this announcement was preliminary accounting data and has not been audited by accounting firm, which may be different from the final data disclosed in 2021 annual report. Investors are hereby reminded to exercise caution when dealing in the shares of the Company.

Save for the non-IFRSs adjusted net profit attributable to owners of the parent or otherwise noted, the financial data set out in this preliminary financial data has been prepared in accordance with CASBE.

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I. KEY FINANCIAL DATA AND FINANCIAL INDICATORS FOR THE YEAR OF 2021

Reporting period: January 1, 2021 to December 31, 2021 (the “ Reporting Period ”)

Currency: RMB million

	For the	For the
	year ended	year ended	Year-on-
	December	December	year change
Item	31, 2021	31, 2020	(%)
Revenue	7,443.7697	5,133.5968	45.00
Operating profit	1,914.3373	1,323.8346	44.61
Profit before tax	1,910.9955	1,319.3695	44.84
Net profit attributable to owners of the parent	1,661.0286	1,172.3824	41.68
Net profit attributable to owners of the
parent excluding non-recurring gains or losses	1,340.8023	800.6803	67.46
Non-IFRSs adjusted net profit attributable
to owners of the parent	1,461.9844	1,064.0292	37.40
Basic earnings per share (RMB)	2.0982	1.4825	41.53
Return on net assets on weighted average basis	17.31%	14.13%	increase of
			3.18 percentage
			point
	As at	As at	Year-on-
	December 31,	January 1,	year change
	2021	2021	(%)
Total assets	18,389.1244	11,908.7927	54.42
Equity attributable to the owners of the parent	10,129.2409	8,870.3199	14.19
Share capital	794.1771	794.3875	-0.03
Net asset per share attributable to
the owners of the parent (RMB)	12.75	11.17	14.15

Note: 1. The data in this table is the Company’s consolidated statement data;

1. Unless otherwise specified, the units above are in RMB million.

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II. DISCUSSION OF OPERATING RESULTS AND FINANCIAL POSITION

(I) Operating Results

During the Reporting Period, the Company generated revenue of RMB7,443.7697 million, representing an increase of 45.00% compared with the same period of last year; operating profit of RMB1,914.3373 million, representing an increase of 44.61% compared with the same period of last year; net profit attributable to owners of the parent of RMB1,661.0286 million, representing an increase of 41.68% compared with the same period of last year; net profit attributable to owners of the parent excluding non-recurring gains or losses of RMB1,340.8023 million, representing an increase of 67.46% compared with the same period of last year; non-IFRSs adjusted net profit attributable to owners of the parent of RMB1,461.9844 million, representing an increase of 37.40% compared with the same period of last year.

During the Reporting Period, each service segment achieved rapid growth, among which generated revenue of RMB4,565.8016 million in laboratory services, representing an increase of 41.09% compared with the same period of last year; revenue of RMB1,746.1675 million in CMC (small molecule CDMO) services, representing an increase of 42.90% compared with the same period of last year; revenue of RMB956.3577 million in clinical development services, representing an increase of 51.96% compared with the same period of last year; revenue of RMB150.9665 million in biologics and CGT services, representing an increase of 466.58% compared with the same period of last year.

(II) Financial Position

During the Reporting Period, as a result of the increase in net profit, received net proceeds of approximately RMB3,776.0407 million from the issuance of H shares convertible bonds and capacity expansion through the advancement of various construction projects, the total assets of the Company increased by 54.42% from RMB11,908.7927 million as at the beginning of the Reporting Period to RMB18,389.1244 million as at the end of the Reporting Period.

The equity attributable to owners of the parent as at the end of the Reporting Period reached RMB10,129.2409 million, representing an increase of 14.19% compared with the beginning of the period; share capital as at the end of the Reporting Period reached RMB794.1771 million, representing a slight decrease compared with the beginning of the period; net assets per share attributable to owners of the parent as at the end of the Reporting Period reached RMB12.75, representing an increase of 14.15% compared with the beginning of the period.

(III) Main Factors Affecting Operating Results

During the Reporting Period, the Company further improved its small molecule drug R&D and manufacturing services platform throughout the drug discovery, preclinical, clinical development and commercial stages by further integrating its service offerings both vertically and horizontally. Also, the Company further accelerated the establishment of R&D service capabilities for biologics and CGT products and committed to becoming a global leader in pharmaceutical R&D services across multiple therapeutic modalities.

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While we continued to develop the overseas market and strengthened the solid relationship with our existing customers base, we put significant efforts in cultivating the domestic market and adopt a specific market strategy to address the domestic needs. With the robust business demand and our increased capacities, the Company’s revenue increased significantly during the Reporting Period. With the benefit from economies of scale and the growth in revenue, and the Company’s operating profit, profit before tax, net profit attributable to owners of the parent, net profit attributable to owners of the parent excluding non-recurring gains or losses, non-IFRSs adjusted net profit attributable to owners of the parent, basic earnings per share all achieved significant improvement. Looking forward to 2022, with the continuous robust demand from customers, the improvement of service capabilities, and the expansion of the R&D team and production capacity, each business segment is expected to continue the growth momentum in 2021.

III. DISCUSSION OF THE DIFFERENCE WITH THE PREVIOUS RESULTS FORECAST

The operating results disclosed in this preliminary financial data are consistent with the estimate results data in “THE ESTIMATE FOR ANNUAL RESULTS OF 2021” disclosed on January 21, 2022, and there is no significant difference.

IV. OTHER INFORMATION

This preliminary financial data is the preliminary results estimated by the finance department of the Company and has not been audited by accounting agency. Details of the specific financial data will be disclosed in the 2021 annual report by the Company. Investors are advised to exercise caution and pay attention to the risks involved.

V. DOCUMENTS FOR INSPECTION

1. The comparative balance sheet and the profit and loss statement, which are signed and sealed by the current legal representative, the responsible person(s) of accounting affairs and the responsible person(s) of the accounting department (the accounting supervisor(s)) of the Company;

2. Other documents as required by the SZSE.

By order of the Board Pharmaron Beijing Co., Ltd.* 康龍化成（北京）新藥技術股份有限公司 Dr. Lou Boliang Chairman

Beijing, People’s Republic of China March 10, 2022

As at the date of this announcement, the Board of Directors comprises Dr. Lou Boliang, Mr. Lou Xiaoqiang and Ms. Zheng Bei as executive Directors; Mr. Chen Pingjin, Mr. Hu Baifeng, Mr. Li Jiaqing and Mr. Zhou Hongbin as non-executive Directors; Mr. Dai Lixin, Ms. Chen Guoqin, Mr. Tsang Kwan Hung Benson and Mr. Yu Jian as independent non-executive Directors.

• For identification purposes only

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