Interpretation of Semi-annual Report|shengnuo biotechnologytechnology H1 increases revenue but does not increase profit Q3 new projects are put into use, it is expected to alleviate the bottleneck of production capacity

On the day when the interim report disclosed the closing date, shengnuo biotechnologytechnology (688117.SH), which was listed less than March, handed over the first report card of “increasing revenue but not profit”. In the first half of the year, the company achieved revenue of 194 million yuan, a year-on-year increase of 10.20%; realized a net profit of 24.009 million yuan attributable to the parent, a year-on-year decrease of 23.32%.

The company explained that the decline in net profit was due to the gradual review of CDMO service orders in 2020, and the need to occupy the company’s API GMP production workshop to produce APIs that meet GMP conditions to meet customer review requirements, resulting in the company from January to June this year.

The production schedule of APIs is restricted, the production capacity is insufficient, and the orders cannot be delivered on time; some of the CDMO service projects have not reached the milestone during the superimposed reporting period.

This part of the project has confirmed revenue and carried forward the corresponding costs at the actual costs incurred. Although the company’s profit has declined compared with the same period, the overall operating conditions are good, and various operating activities are operating steadily.

A related person of the company told the reporter of the Financial Association, “The CDMO service production base (capgemini peptide drug and intermediate product large-scale construction project) invested and constructed by the company through its own funds is expected to be put into operation in the third quarter, and it will be effectively relieved by then.

At present, the company’s raw material drug production capacity is insufficient.”

The prospectus disclosed that from 2018 to 2020, the capacity utilization rate of the 101 workshop (2 production lines) of the company’s peptide API/GMP standard custom production was 100.93%, 100.77%, 102.93%, and the 102 workshop (2 production lines) was 83.63% , 57.10%, 88.58%, 103 workshops (2 production lines) are 108.64%, 77.47%, 54.17%;

the capacity utilization rate of the freeze-dried powder production line customized for peptide preparations/GMP standards is 71.91%, 59.88%, 74.07%, small The volume injection production line is 96.91%, 110.49%, and 60.49%; the capacity utilization rate of the 104 workshop of small molecule APIs is 27.47%, 39.51%, and 16.05%.

According to the above-mentioned company sources, in accordance with the process differences and quality standards of different products, each workshop is designed to produce one or more products and cannot be cross-produced.

However, due to the different market demand of each product, the capacity occupancy of each workshop is different. In the first half of this year, the company’s capacity utilization was fully saturated, so there was insufficient capacity and orders could not be delivered on time.

shengnuo biotechnology is mainly engaged in the independent research and development, production and sales of peptide APIs and preparation products with large market capacity and strong competitiveness at home and abroad. At the same time, it provides pharmaceutical research services for peptide innovative drugs and peptide products for domestic and foreign pharmaceutical companies.

Customized production services and technology transfer services for peptide drug production. The interim report disclosed that the company has mastered the large-scale production technology of 15 varieties of APIs, of which 9 varieties have obtained domestic production approvals, 9 varieties have been registered with the US DMF (8 of which are active), and 8 are extended development Polypeptide preparation varieties have obtained 12 domestic production approvals, and the products cover areas where peptide drugs play an important role in immunity, digestive tract, antiviral, obstetrics and gynecology, diabetes, cardiovascular and cerebrovascular, rare diseases, orthopedics, etc.

However, it should be noted that shengnuo biotechnology business is still in the promotion stage, and the competition is very fierce. In the first half of the year, promotion service fees accounted for a relatively high proportion of preparation sales revenue.

The company stated that the company’s preparation business, after considering the promotion service fee, contributes less to the company’s gross profit, and the overall profitability of the preparation business is weak. If the company cannot continue to expand the sales scale of preparation products in the future, it may face the failure to improve the profitability of the preparation business. risk.

“On the one hand, the company’s preparation business started late, on the other hand, relatively speaking, the application of peptide drugs is relatively narrow, and the application scenario is point-to-point.” The above-mentioned company personages frankly said about the competition in the preparation business.

According to QYResearch statistics, the global peptide drug market was about 15.2 billion U.S. dollars in 2010 and reached 28.5 billion U.S. dollars in 2018, with a compound annual growth rate of 8.17%, compared with the global pharmaceutical market of about 1.3 trillion U.S. dollars in 2018. , The market size of peptide drugs accounted for only 2.19%, and the growth rate of the market size of peptide drugs was approximately twice that of the overall growth rate of the global drug market. However, it expects that the peptide drug market will grow at a compound annual growth rate of 7.9% in the future, and the market size will reach US$49.5 billion in 2027. The peptide drug market still has huge room for growth.