Tigermed Reports First Half 2020 Results with Steady Growth
August 28, 2020
Hangzhou, August 28, 2020 – Hangzhou Tigermed Consulting Co., Ltd. (stock code: 300347.SZ / 3347.HK), a leading China-based provider of comprehensive biopharmaceutical R&D services, reports its reviewed financial results for the six months ended June 30, 2020 (the “Reporting Period”).
This press release is purely as a summary and is not intended to provide any representation, in whole or in part, of the relevant matters. For further information, please refer to the 2020 interim report and relevant announcements published on the websites of the Shenzhen Stock Exchange (www.szse.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk).
All financials disclosed in this press release are prepared based on International Financial Reporting Standards (IFRS).
First Half 2020 Financial Highlights
Revenue up 9.3% YoY to RMB1,452.0 million despite the impact of COVID-19 outbreak
- Total revenue increased by 9.3% year-over-year from RMB1,328.2 million for six months ended June 30, 2019 to RMB1,452.0 million
- Clinical trial solutions realized revenue of RMB711.0 million during the Reporting Period, representing a year-over-year growth of 13.3%
- Clinical-related and laboratory services realized revenue of RMB741.0 million during the Reporting Period, representing a year-over-year growth of 5.7%
- Revenue generated in the PRC increased by 17.8% year-over-year to RMB845.8 million
- Revenue generated overseas slightly decreased by 0.6% year-over-year to RMB606.2 million
Gross profit up 13.0% YoY to RMB698.1 million and pross profit margin slightly increased to 48.1%
- Gross profit of our clinical trial solutions increased by 35.6% to RMB360.7 million. Gross profit margin of our clinical trial solutions increased to 50.7% during the Reporting Period, contributed by our acquisition of equity interest in Beijing Yaxincheng Medical InfoTech Co., Ltd. and Shanghai Mosim Medical Technology Co., Ltd., which historically had a higher gross profit margin compared to the gross profit margin of our clinical trial solutions
- Gross profit of our clinical-related and laboratory services decreased by 4.1% to RMB337.4 million. Gross profit margin of our clinical-related and laboratory services decreased to 45.5% during the Reporting Period, primarily due to the impact of the COVID-19 outbreak
Net profit attributable to owners of the company up 98.0% YoY to RMB1,011.9 million primarily due to the change in fair value of financial assets FVTPL (Fair Value Through Profit or Loss)
Diluted EPS up 95.7% YoY to RMB1.35
First Half 2020 Business Highlights
The first half of the year 2020 was challenging when the world was hit severely by the COVID-19 outbreak. During this difficult period of time, we remained committed to our customers by mobilizing internal resources and leveraging our project execution capabilities aiming to accelerate the temporarily delayed projects with an effort to meet the agreed delivery schedule and milestones and address the increasing demand of our customers, whilst keeping the safety and health of our employees as our first priority.
We had 349 ongoing drug clinical research projects as of June 30, 2020, up from 287 as of December 31, 2019. We also had 210 ongoing medical device clinical research projects, 100 ongoing bioequivalence projects as of June 30, 2020. By June 30, 2020, Tigermed completed a total of 520 global drug registration projects with 53 new projects acquired in the first half of 2020; and completed more than 20,000 medical translation projects with over 5.5 billion words accumulated. The translation quality management system is ISO 9001 certified. We also participated eight clinical trials of nucleic acid detection kit for COVID-19 in the first half of 2020. In January 2020, we also acquired Shanghai Mosim Medical Technology Co., Ltd. with an aim to provide more comprehensive early clinical development services to our clients.
We had 570 ongoing data management and statistical analysis projects as of June 30, 2020 with 393 projects being conducted by team based in China and 177 projects being conducted by team based overseas. Despite the impact of COVID-19 outbreak, our site management services continue to receive new projects with 979 ongoing projects as of June 30, 2020, up from 855 as of December 31, 2019. Our site management and patient recruitment service coverage also reached to 110 cities during the Reporting Period.
We had 1,941 ongoing projects for our laboratory services as of June 30, 2020, up from 1,303 as of December 31, 2019 despite impact of the COVID-19 outbreak in the United States and China. Our subsidiary Frontage Holdings continued to expand its capacity and capability in laboratory services in both the United States and China. In March 2020, it added more than 20,000 sq. m. lab space in Suzhou, China for potential expansion in DMPK (Drug metabolism and Pharmacokinetics) and Safety and Toxicology business in China. It also acquired US-based Biotranex in March 2020 with an aim to further expand its DMPK capabilities into transporter analysis.
During the reporting period, we and our subsidiaries enabled our clients to successfully launch several innovative pharmaceutical products for the benefit of patients, including the first innovative treatment for glioblastoma approved in mainland China — Optune®.
DreamCIS, a subsidiary of Tigermed, was successfully listed on Korea Stock Exchange on May 22, 2020. On August 7, 2020, Tigermed was also successfully listed on main board of Hong Kong Stock Exchange.
“We saw this year began by the outbreak of COVID-19 pandemic,” said Ms. Xiaochun Cao, President of Tigermed, “during this difficult period of time, we maintained financial growth, actively assumed corporate social responsibility, overcame numerous challenges, achieved milestones one after another, and contributed to the successful approval of innovative biopharmaceutical products, thanks to the joint efforts of all our employees, trust and strong support from our customers and partners around the world. In August 2020, Tigermed was successfully listed on the main board of the Hong Kong Stock Exchange, a major corporate milestone which will promote our company to further strengthen and expand our comprehensive biopharmaceutical R&D service capabilities, accelerate our globalization strategy, innovate our technology, and attract more talents. Looking ahead, Tigermed will continue to fulfill our mission with our “China Expertise, Global Excellence” strategy and enhance our service capabilities to serve global healthcare innovation with high quality standards and efficient operations with an aim to enable our global partners to bring more innovative treatments and products to patients for benefit of human health.”
The information communicated herein contains certain statements that are or may be forward looking, including predictions about future events based on beliefs of the Company and information currently available to the management of the Company. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future relating to, inter alia, the ability of the Company to compete effectively, the ability of the Company to develop new and market new services, the risks associated with listed subsidiaries of the Company, unforeseeable international tension, regulatory or governmental scrutiny in certain countries, the impact of emergencies and other force majeure events. Any investment in any securities issued by the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, you should not rely on these forward-looking statements. The Company undertakes no obligation to update forward-looking statements or to adapt them to future events or developments.
HANGZHOU TIGERMED CONSULTING CO., LTD. (Stock Code: 300347.SZ/3347.HK) is a China-based leading provider of comprehensive biopharmaceutical R&D services. Founded in 2004, Tigermed has established a comprehensive suite of biopharmaceutical R&D service offerings, high-quality relations with its customers, and a broad network of partners. Moreover, the Company has been a pioneer in global expansion of China-based clinical CROs, with a continuously expanding global presence. Tigermed’s mission is to improve health by accelerating the development of innovative and effective treatments for patients everywhere, and the Company is committed to promoting the efficient development of pharmaceutical products and providing innovative and clinically valuable therapies to patients and physicians worldwide for the benefit of human health.
Headquartered in China, the Company has more than 60 subsidiaries and more than 100 offices, laboratories and R&D bases worldwide, including 17 overseas operation sites across 12 countries and regions in the Asia-Pacific region, North America and Europe. Currently, Tigermed employs about 5000 professionals globally.
For more information, please visit the Company’s website at www.tigermedgrp.com
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