和元生物曾以“基因治疗CDMO第一股”的身份登陆科创板，发展至今，其目前的主要业务包括为细胞和基因治疗的基础研究提供基因治疗载体研制、基因功能研究、基因检测等CRO服务，以及为细胞和基因药物研发及再生医学产品提供CDMO服务。其中，基因治疗CDMO服务是其核心收入来源。Henan Biology is still deeply mired in a loss 'whirlpool', with a net loss attributable to the mother of 0.19 billion yuan in the first three quarters of this year, a year-on-year decrease of 166.90%, compared to a net loss of 71.0996 million yuan in the same period last year. Henan Biology revealed that customers are more price-sensitive due to tight financing, and the prices of different types of CDMO orders are at historically low levels.
"Star Daily" October 24th news (Reporter Zheng Bingxun) On the evening of the 23rd, cell and gene therapy CXO enterprise Henan Biology (688238.SH) released the third quarter report of 2023, still deeply mired in a loss 'whirlpool'.
In the third quarter of 2024, Henan Biology achieved a revenue of 70.8058 million yuan, an increase of 32.99% year-on-year, with a net loss attributable to the mother of 76.4214 million yuan. As a result, Henan Biology achieved a revenue of 0.184 billion yuan in the first three quarters, a year-on-year increase of 34.22%, with a net loss attributable to the mother of 0.19 billion yuan, a decrease of 166.90% year-on-year.
Henan Biology once landed on the star board as the 'first stock of gene therapy CDMO'. To date, its main business includes providing CRO services such as gene therapy vector development, gene function research, gene testing for basic research in cell and gene therapy, as well as providing CDMO services for the research and development of cell and gene drugs and regenerative medical products. Among them, gene therapy CDMO services are its core source of income.
Since entering 2023, Henan Biology has turned from profit to loss, with a net loss of 0.128 billion yuan for the whole year of 2023. In 2024, the net loss for the first half of the year alone has reached 0.113 billion yuan.
In the first half of this year, Henan Biology revealed that due to continued impact from the external investment and financing environment, downstream customers in the domestic cell and gene therapy industry still face financing difficulties, with market order prices at a relatively low level. At the same time, due to the initial operation of the Lingang industrial base, the company's depreciation and amortization, daily operating costs have increased significantly in the short term, leading to a decrease in gross margin and net income.
In the third quarter report, Henan Biology stated that the growth in expenses related to market expansion decreased the profit level. In the first three quarters of this year, Henan Biology's administrative expenses and sales expenses were 57.1873 million yuan and 36.9555 million yuan respectively, an increase of 35.73% and 28.14% year-on-year.
The significant increase in sales expenses reflects to some extent the "struggle" of Heyuan Biotech in market expansion, while the continuous decline in gross margin also reflects market competition pressure. Wind data shows that Heyuan Biotech's gross margin in 2021 was 51.34%, decreasing to -6.55% by 2023, and further dropping to -21.95% in the first three quarters of 2024.
Against this backdrop, Heyuan Biotech, while announcing its third quarter results, declared impairment testing of related assets and made corresponding asset impairment provisions. The total amount of asset impairment losses and credit impairment losses confirmed in the first three quarters of 2024 amounted to 26.7798 million yuan.
Heyuan Biotech stated that this would result in a reduction of 26.7798 million yuan in the total pre-tax profit of the consolidated financial statements for the first three quarters of 2024, and a corresponding decrease in the equity of the owners at the end of the reporting period.
When will Heyuan Biotech's performance turn around has clearly become a focus of market attention. At a recent investor conference, investors inquired about the order prices of Heyuan Biotech's gene therapy CDMO business, as well as future trends in gross margin.
Heyuan Biotech responded that in recent years, although the scale of CDMO business orders and operating income have increased, customers' increased sensitivity to prices due to financing difficulties has led to different types of CDMO order prices being at historically low levels.
However, Heyuan Biotech also indicated that the company's business is positioned to serve advanced therapies in cell and gene therapy, with relatively high technological process thresholds. It is expected that as the market warms up and capacity utilization improves, the gross margin levels will gradually rebound and profitability will be enhanced.
