Highlights:
NANJING, China, March 27, 2021 /PRNewswire/ -- Genscript Biotech (HKEX: 1548.HK) (GenScript), a global leading biotech company, today announced its audited financial results for the year ended December 31, 2020.
"In 2020, the outbreak of COVID-19 pandemic presented both challenges and opportunities to the life science community. Thanks to concerted efforts of all GenScript people, the Group delivered historically strong results amid the outbreak," said Patrick Liu, Rotating CEO of GenScript. "In the past year, our business segments tided over difficulties, turned challenges into opportunities and achieved many breakthroughs. In the future, we will move forward with dedication and create more value for both our investors and customers. We are committed to our mission of "making people and nature healthier through biotechnology" and strive for human wellbeing."
Financial Results Highlits for the Year Ended December 31, 2020
Revenue
In 2020, the Group recorded revenue of approximately US$390.8 million, representing an increase of 42.9% from approximately US$273.4 million in 2019. This was primarily attributable to (i) the strong growth in business of specially-functioned protein and antibody which meet market demands on key products related to COVID-19, (ii) the continuing increase from life-science services and products from major strategic customers and new competitive services and products, (iii) the increase of contract revenue derived from Legend's collaboration with Janssen with new milestone achieved, and (iv) the increase in both the number of customers and their purchase volume of industrial synthetic biology products.
Gross Profit
In 2020, the Group's gross profit increased by 41.9% to approximately US$255.9 million from approximately US$180.3 million in 2019. The increase in gross profit was primarily attributable to the (i) strong growth in life-science and biologics development business and high gross margin products, especially for COVID-19, and (ii) significant improvement on capacity utilization of materials and labor efficiency in industrial synthetic biology products.
Selling and distribution expenses
The selling and distribution expenses increased by 52.4% to approximately US$107.3 million in 2020 from approximately US$70.4 million in 2019. This was mainly attributable to the (i) increased investment into the commercial talent pool by recruiting more experienced personnel and improving incentive packages, and (ii) increased expenses for the global expansion of our business.
Administrative expenses
In 2020, the administrative expenses increased by 63.3% to approximately US$90.3 million from US$55.3 million in 2019. This was mainly caused by (i) competitive compensation package for our employees including shared-based payment provided to recruit experienced talents for all business segments, (ii) the reinforcement of some key administrative functions such as information technology, supply chain and finance to build up capable and professional administrative team to support the Group's overall business expansion, and (iii) the expansion of the European and Asia- Pacific Regional centers to accelerate the Group's global market penetration.
Research and development expenses
The research and development expenses increased by 41.6% to approximately US$263.4 million in 2020 from approximately US$186.0 million in 2019. This was mainly due to the (i) investment in COVID-19 related projects and other new challenging research and development projects, which significantly strengthened our competitiveness in the market and improved our production efficiency, (ii) increase in clinical trial expenses and preclinical study costs, especially in the cell therapy segment, and (iii) increase in compensation package including shared-based payment for research and development personnel.
*Adjusted net profit/(loss)
Non-cell |
Cell therapy |
Total |
||||
Net profit/(loss) |
22,054 |
(303,477) |
(281,423) |
|||
Excluding: Share-based payment expenses, net of tax |
10,904 |
4,760 |
15,664 |
|||
Exchange differences, net of tax |
6,526 |
(66) |
6,460 |
|||
Consultation expenses for the Investigation, net of tax |
1,086 |
— |
1,086 |
|||
Impairment loss on goodwill, other intangible assets and |
3,806 |
— |
3,806 |
|||
Fair value loss of convertible redeemable preferred shares |
— |
79,984 |
79,984 |
|||
Service fee for the issuance of Legend Series A Preference Shares |
— |
4,014 |
4,014 |
|||
Spin-off expenses relating to the separate listing of Legend |
24 |
1,439 |
1,463 |
|||
Adjusted net profit/(loss) |
44,400 |
(213,346) |
(168,946) |
|||
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
|||
REVENUE |
2020 |
2019 |
|
Cost of sales |
(134,953) |
(93,064) |
|
Gross profit |
255,893 |
180,290 |
|
Other income and gains |
24,795 |
21,185 |
|
Selling and distribution expenses |
(107,341) |
(70,358) |
|
Administrative expenses |
(90,341) |
(55,256) |
|
Research and development expenses |
(263,401) |
(186,022) |
|
Fair value loss of convertible redeemable preferred shares |
(79,984) |
— |
|
Finance costs |
(5,432) |
(781) |
|
Other expenses |
(15,497) |
(589) |
|
Share of losses of associates |
(599) |
(308) |
|
Reversal of/(provision for) impairment of financial assets, net |
7 |
(1,851) |
|
LOSS BEFORE TAX |
(281,900) |
(113,690) |
|
Income tax credit/(expense) |
477 |
(3,826) |
|
LOSS FOR THE YEAR |
(281,423) |
(117,516) |
|
Attributable to: Owners of the parent |
(204,945) |
(96,912) |
|
Non-controlling interests |
(76,478) |
(20,604) |
|
(281,423) |
(117,516) |
||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|||
NON-CURRENT ASSETS |
2020 US$'000 |
2019 US$'000 |
|
Property, plant and equipment |
345,215 |
235,986 |
|
Advance payments for property, plant and equipment |
5,906 |
8,585 |
|
Investment properties |
7,726 |
7,442 |
|
Right-of-use asset |
34,017 |
29,642 |
|
Goodwill |
14,116 |
15,245 |
|
Other intangible assets |
26,020 |
25,482 |
|
Investment in associates |
3,433 |
2,615 |
|
Financial assets at fair value through profit or loss |
10,555 |
4,667 |
|
Other non-current asset |
3,542 |
— |
|
Deferred tax assets |
3,702 |
5,701 |
|
Total non-current assets |
454,232 |
335,365 |
|
CURRENT ASSETS |
31,745 |
16,486 |
|
Contract costs |
5,785 |
3,369 |
|
Trade and notes receivables |
141,748 |
73,067 |
|
Prepayments, other receivables and other assets |
32,834 |
31,621 |
|
Financial assets at fair value through profit or loss |
5,866 |
25,434 |
|
Loans to an associate |
2,422 |
2,007 |
|
Restricted cash |
7,471 |
972 |
|
Time deposits |
136,245 |
148,693 |
|
Cash and cash equivalents |
629,058 |
252,397 |
|
Total current assets |
993,174 |
554,046 |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|||
CURRENT LIABILITIES |
2020 |
2019 |
|
Trade and bills payables |
23,376 |
17,627 |
|
Other payables and accruals |
168,980 |
125,035 |
|
Interest-bearing bank borrowings |
44,642 |
17,008 |
|
Lease liabilities |
2,588 |
1,769 |
|
Tax payable |
3,532 |
2,846 |
|
Contract liabilities |
84,414 |
60,130 |
|
Government grants |
379 |
90 |
|
Total current liabilities |
327,911 |
224,505 |
|
NET CURRENT ASSETS |
665,263 |
329,541 |
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,119,495 |
664,906 |
|
NON-CURRENT LIABILITIES |
1,260 |
1,748 |
|
Lease liabilities |
6,513 |
3,608 |
|
Contract liabilities |
277,052 |
277,827 |
|
Deferred tax liabilities |
7,030 |
5,582 |
|
Government grants |
11,495 |
3,843 |
|
Other non-current liability |
554 |
— |
|
Total non-current liabilities |
303,904 |
292,608 |
|
NET ASSETS |
815,591 |
372,298 |
|
EQUITY |
|||
Equity attributable to owners of the parent |
1,954 |
1,879 |
|
Treasury shares |
(16,712) |
(7,774) |
|
Reserves |
916,463 |
388,699 |
|
901,705 |
382,804 |
||
Non-controlling interests |
(86,114) |
(10,506) |
|
TOTAL EQUITY |
815,591 |
372,298 |
|
About GenScript Biotech Corporation
GenScript Biotech Corporation (Stock Code: 1548.HK) is a global biotechnology group. Based on its leading gene synthesis technology, GenScript has developed four major platforms including the global cell therapy platform, the biologics contract development and manufacturing organization (CDMO) platform, the contract research organization (CRO) platform and the industrial synthesis product platform. GenScript's business operation spans over 100 countries and regions worldwide with legal entities located in the US, the Chinese mainland, Hong Kong of China, Japan, Singapore, Netherlands and Ireland.