Financial Highlights for Interim Results ended 30 June 2025
Revenue reached RMB831.9 million
Gross profit amounted to RMB339.4 million
Gross profit margin was 40.8%, an increase of 6.3 percentage point
Net profit amounted to RMB148.6 million, increased by 3.1% YoY
Adjusted non-IFRS net profit reached RMB183.5 million, increased by 9.1% YoY

SHANGHAI, Aug. 28, 2025 /PRNewswire/ -- On August 28, 2025, Viva Biotech Holdings Group ("Viva Biotech", "the Group" or "the Company", stock code: 1873.HK) announced that the Group's revenue amounted to RMB831.9 million, and the Group's gross profit of RMB339.4 million. The Group's gross profit margin was 40.8%, an increase of 6.3 percentage points from the corresponding period of last year, primarily attributable to the optimization and adjustment of Langhua's business structure, improved operational efficiency in CRO business, and contributions from new business segments. In the first half of 2025, the Group's net profit amounted to RMB148.6 million, representing a year-over-year increase of 3.1%; adjusted non-IFRS net profit of RMB183.5 million, representing a year-on-year increase of nearly 9.1%. This was mainly driven by the positive growth in both revenue and adjusted non-IFRS net profit from CRO business, as well as enhanced profitability resulting from the optimization of Langhua's business structure.

CRO Revenue Returned to Positive Growth

During the Reporting Period, the Company's revenue from CRO business amounted to RMB 422.8 million, representing a year-over-year increase of approximately 9.6%, and the adjusted gross profit amounted to RMB194.6 million, representing a year-over-year increase of approximately 16.4%. The growth in CRO revenue during the first half of 2025 was primarily attributable to the recovery in global biopharmaceutical investment and financing in 2024, which boosted overseas business and significantly drove revenue in China.

The cumulative number of CRO clients increased to 1,669, including all of the top 10 global pharmaceutical companies, with revenue from the top 10 clients accounting for 25.9%. The CRO business maintains a diversified client base geographically, with overseas revenue contributing approximately 85.0%, while revenue from mainland China clients accounted for approximately 15.0%.

The Company has cumulatively delivered more than 90,739 protein structures to our clients, approximately 8,023 of which were newly delivered in the first half of 2025. Our R&D has accumulated over 2,187 independent drug targets, 89 of which were newly delivered. Additionally, the utilization of synchrotron radiation source reached 834 hours. Moreover, during the Reporting Period, new modalities (including peptides, antibodies, XDCs, PROTACs/molecular glues, etc.) accounted for approximately 15.0% of CRO revenue, growing nearly 19.0% year-on-year. This indicates that new modalities are gradually becoming a new growth driver for CRO revenue.

The Company recognizes the critical role of AI in drug discovery. The improved efficiency and success rates through a combined dry/wet experiment approach, it drives continuous growth in the number and scale of new projects. AIDD has been applied in 175 projects, with 67 clients purchasing CADD/AIDD. AI-enabled projects have contributed to nearly 10.0% of the total revenue of CRO business, and the Company has reached well-known collaboration cases on packaged AI discovery solutions in certain niche segments.

New CDMO Commercialization Projects Showed Promise with Significant Profitability Improvement in CMC Business

The Group is committed to building a one-stop service platform for global innovative drugs from research and development to production. During the Reporting Period, active preparations were made for the implementation of new CDMO commercialization projects, with PPQ production already initiated within the Reporting Period. In addition, the Company has achieved significant improvement of profitability of its CMC business.

Langhua Pharmaceutical's revenue amounted to RMB409.0 million, its adjusted gross profit amounted to RMB155.1 million, and served a total of 905 clients, with the top ten clients accounting for 68.3% of its total revenue and a 100% retention rate of top ten clients. In addition to revenue contribution from its existing commercialization projects, Langhua Pharmaceutical's CDMO business has two important new commercialization projects currently in the PPQ stage, which are expected to be commercially launched in 2026 and 2027 respectively, providing a new growth driver to its CDMO business in the future. The Company's current available capacity has reached 860 cubic meters, and it is also constructing a new production capacity of 400 cubic meters to meet future demand for increased volume of commercial production of new molecules.

Since its establishment, CMC has completed and is currently progressing with a total of 279 new drug projects, driven by a CMC R&D team of 100 members. The profitability of CMC business has shown significant improvement following adjustments. In addition, the projects channeled by the Group progressed smoothly, and one pipeline has rapidly advanced to Phase III clinical trials, showcasing the success of the Group's integrated strategy.

Exit of Incubation Portfolio Companies to Realize Partial Investment Returns

During the Reporting Period, the Company successfully achieved investment exits from various portfolio companies, realizing corresponding investment returns and generating total proceeds of nearly RMB76.5 million. The Group had invested in a total of 93 portfolio companies. 8 of our portfolio companies completed or were close to completing a new round of financing, raising approximately US$293.6 million in total. The R&D efforts of the portfolio companies were advancing smoothly, with the total number of pipeline projects reaching close to 228, of which 186 pipelines are in the preclinical stage and 42 pipelines are in the clinical stage. So far, the Group has successfully realized 18 investment exits or partial exits.

Dr. Cheney Mao, Chairman and Chief Executive Officer of Viva Biotech Holdings, stated, "With unique advantages in structure-based drug R&D, the Company will increase the cross-sell between biological and chemical businesses, continue to strengthen the construction of a one-stop drug R&D and manufacturing service platform, deepen the synergy between CRO and CDMO business, improve the capacity building for front-end services and drive business to back-end services to further enhance the business funnel effect. The Company is in an effort to establish an open eco-system for global biopharma innovators."

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