Genscript Biotech Reports Full Year 2020 Financial Results

   2021-03-26 17:03

– Achieved Historical High Revenue- Non-Cell Therapy Segment Shows Over 100%+ Adjusted Net Profit Growth



Highlights:

  • Revenue of the Group for the year ended December 31, 2020 was approximately US$390.8 million, representing an increase of 42.9% as compared with approximately US$273.4 million for the year ended December 31, 2019
  • Gross profit of the Group for the year ended December 31, 2020 was approximately US$255.9 million, representing an increase of 41.9% as compared with approximately US$180.3 million recorded for the year ended December 31, 2019
  • The adjusted net profit* of non-cell therapy business was approximately US$44.4 million, representing an increase of 105.6% as compared with approximately US$21.6 million for the year ended December 31, 2019, and the adjusted net loss* of cell therapy business was approximately US$213.3 million, whilst the adjusted net loss* of cell therapy business was approximately US$131.9 million for the year ended December 31, 2019
  • Loss of the Group for the year ended December 31, 2020 was approximately US$281.4 million, whilst loss was approximately US$117.5 million for the year ended December 31, 2019. The adjusted net loss* of the Group was approximately US$168.9 million, whilst the adjusted net loss* of approximately US$110.3 million was recorded for the year ended December 31, 2019

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
therapy
US$’000

Cell therapy
US$’000

Total
US$’000

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
long-term investments, net of tax

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
US$’000
390,846

2019
US$’000
273,354

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
Inventories

 

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
US$’000

2019
US$’000

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
Interest-bearing bank loans

 

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
Share capital

 

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.

 


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