Hangzhou Tigermed Consulting Co., Ltd. Class A · SZSE:300347
Hangzhou Tigermed Consulting Co., Ltd. Class A — FY2023 Earnings Presentation
37 slides from Hangzhou Tigermed Consulting Co., Ltd. Class A's earnings presentation, March 2024
Slide 1: 2023 Annual Results
2023 Annual Results Hangzhou Tigermed Consulting Co., Ltd. 300347.SZ / 3347.HK March 2024 www.tigermedgrp.com
Slide 2: Disclaimer
Disclaimer This document is for information purposes only and is not intended to provide any representation, in whole or in part, of the relevant matters. Please refer to the 2023 annual results announcement and other relevant announcements published on the websites of the Shenzhen Stock Exchange (w
Slide 3: 2023 Results Overview
01 2023 Results Overview www.tigermedgrp.com
Slide 4: 2023 Business Highlights
2023 Business Highlights Business Recap Ongoing Projects(1) Corporate Updates(1) Provided services to 22 Class I new drugs and 6 752 Drug Clinical Trials 9,701 total employees in 28 countries worldwide, innovative medical devices in China in 2023 including 1,632 overseas employees 253 Overseas Clini
Slide 5: 2023 Key Financials
2023 Key Financials Adjusted Net Profit Attributable to the Owners Revenue Gross Profit and Margin of the Company and Margin(1) (RMB mm) (RMB mm) (RMB mm) 39.3% 38.2% 23.5% 24.2% +4.2% +1.3% +7.2% 7,085.5 7,384.0 2,785.4 2,820.6 1,786.0 1,665.8 2,960.3 3,215.9 1,248.6 1,247.3 4,125.2 4,168.1 1,536.8
Slide 6: Revenue Breakdown by China and Overseas Markets
Revenue Breakdown by China and Overseas Markets China Revenue Overseas Revenue Revenue Breakdown by Region (RMB mm) (RMB mm) +17.6% -9.6% 51% FY2022 49% 4,234.5 3,601.6 3,483.9 China Overseas 3,149.5 43% FY2023 57% FY2022 FY2023 FY2022 FY2023 China Overseas 6
Slide 7: Cost of Services
Cost of Services Cost of Services Breakdown by Nature and as % of Revenue (RMB mm) 60.7% 61.8% 4,300.0 +6.1% 4,563.4 10.6% 9.7% 19.4% 22.7% 31.8% 28.3% FY2022 FY2023 Direct labor costs Direct project-related costs Overhead costs 7
Slide 8: Operating Expenses
Operating Expenses Selling and Marketing Expenses Administrative Expenses and R&D Expenses and as Share-based Compensation and as % of Revenue as % of Revenue % of Revenue and as % of Revenue (RMB mm) (RMB mm) (RMB mm) (RMB mm) 2.1% 2.5% 9.1% 9.0% 3.3% 3.5% 0.8% 0.2% +24.9% +3.0% +11.5% -70.1% 643.3
Slide 9: Business Updates: Clinical Trial Solutions
02 Business Updates Clinical Trial Solutions www.tigermedgrp.com
Slide 10: Clinical Trial Solutions ("CTS")
Clinical Trial Solutions (“CTS”) Segment Revenue Segment Gross Profit and Margin (RMB mm) (RMB mm) 37.3% 37.7% +1.0% +2.4% 4,125.2 4,168.1 1,536.8 1,573.3 FY2022 FY2023 FY2022 FY2023 10
Slide 11: CTS Key Business Updates
CTS Key Business Updates Number of Ongoing Drug Clinical Number of Ongoing Drug Clinical Research Projects by Phase(1) Research Projects by Region(1) 800 772 752 800 772 752 74 62 680 84 680 59 700 700 35 67 31 62 600 34 600 207 194 185 171 188 500 160 500 400 146 136 400 134 300 300 503 499 200 200
Slide 12: CTS Key Business Updates (Cont'd)
CTS Key Business Updates (Cont’d) Overseas Clinical Operation Business Updates Number of Ongoing Overseas Drug Clinical Research Projects(1) 194 ongoing single region overseas clinical trials as of December 31 2023, primarily in South Korea, Australia and the 269 United States 250 253 59 ongoing MRC
Slide 13: CTS Key Business Updates (Cont'd)
CTS Key Business Updates (Cont’d) Overseas Clinical Operation Business Updates North America EMEA Asia Pacific Our US clinical operation business saw rapid growth Our EMEA team completed the integration of As of December 31, 2023, our team in South of revenue and backlog in 2023, mainly covering Mar
Slide 14: CTS Key Business Updates (Cont'd)
CTS Key Business Updates (Cont’d) Regulatory Affairs (“RA”) ⚫ As of December 31, 2023, we have a total of 1,009 accumulated RA project experience ⚫ Added 29 new US FDA IND projects in 2023, of which 16 of them have been cleared for clinical trial as of December 31, 2023 ⚫ Assisted 9 products to rece
Slide 15: CTS Key Business Updates (Cont'd)
CTS Key Business Updates (Cont’d) Decentralized Clinical Trials (“DCT”s) ⚫ In 2023, our in-house DCT technology has been widely used in various projects including pivotal clinical trials, post-marketing studies, real-world studies, investigator-initiated trials etc., covering therapeutic areas inclu
Slide 16: CTS Key Business Updates (Cont'd)
CTS Key Business Updates (Cont’d) Pharmacovigilance (“PV”) ⚫ Completed the integration of Marti Farm’s PV teams with our existing PV team in China in 2023 with a team of c. 150, providing global safety monitoring solutions to both pre-NDA and post-market projects for drugs, medical devices, vaccines
Slide 17: Business Updates: Clinical-related and Lab Services
03 Business Updates Clinical-related and Lab Services www.tigermedgrp.com
Slide 18: Clinical-related and Lab Services ("CRLS")
Clinical-related and Lab Services (“CRLS”) Segment Revenue Gross Profit and Margin (RMB mm) (RMB mm) 42.2% 38.8% +8.6% -0.1% 2,960.3 3,215.9 1,248.6 1,247.3 FY2022 FY2023 FY2022 FY2023 18
Slide 19: CRLS Key Business Updates
CRLS Key Business Updates Project Status for Key CRLS Services Data Management and Statistical Analysis Site Management Laboratory Services Completed Conducted 327 by team based overseas Completed 1,952 5,818 4,411 4,667 Conducted 499 by team Completed based 2,872 in China 306 157 273 83 203 228 202
Slide 20: CRLS Key Business Updates (Cont'd)
CRLS Key Business Updates (Cont’d) Data Management & Statistical Analysis (“DMSA”) ⚫ Provided DMSA services to multiple new drug approvals in China, including Pfizer’s Nurtec® and Cejemly® and oral-dose COVID-19 drug ⚫ As of December 31, 2023, our DMSA team had over 850 professionals based in China,
Slide 21: CRLS Key Business Updates (Cont'd)
CRLS Key Business Updates (Cont’d) Site Management (“SMO”) ⚫ Had 1,952 ongoing SMO projects as of December 31, 2023 and completed 273 SMO projects in 2023 ⚫ Team size of over 2,700 Clinical Research Coordinators (“CRC”s) as of December 31, 2023. covering over 1,100 clinical sites in over 140 cities
Slide 22: Other Updates
04 Other Updates www.tigermedgrp.com
Slide 23: Updates of Investment Activities
Updates of Investment Activities Realized Investment Gain and Fair Value Gain(1) (RMB mm) 549.7 ⚫ Portfolio included 170 companies in the healthcare industry and 55 investment funds as of December 31, 2023 352.8 ⚫ RMB 10,288.3 mm balance as of December 31, 2023 ⚫ Invested RMB 513.1 mm in unlisted eq
Slide 24: Employee Base
Employee Base Total employees increased to 9,701 as of December 31, 2023 from 9,455 as of June 30, 2023 Employees Mix by Function(1) Employees Mix by Geography(1) Management and administration Overseas and Hong Kong China, Macau China, Taiwan China Marketing and business 573 1,632 development 6% 519
Slide 25: Industry Trends and Growth Strategies
05 Industry Trends and Growth Strategies www.tigermedgrp.com
Slide 26: Innovative Drug Market in China is Growing…
Innovative Drug Market in China is Growing… Domestic Innovative Drugs Growing Overall Market Continued to Ramp Up More Innovative Drug Approvals Overall size of innovative drug market in China Historical sales of select domestic innovative Class-1 innovative drug approvals by NMPA (2) RMB in billion
Slide 27: …with Multiple Milestones and Highlights in 2023
…with Multiple Milestones and Highlights in 2023 40 80 41.1 billion USD A record-high number of Class-1 Out-licensing transactions in Total potential out-licensing innovative drug approvals in 2023(1) 2023(2) deal size(3) Surpassing historical record of 32 Billion-dollar out-licensing deals kept US$
Slide 28: A New Cycle of Innovation is Emerging
A New Cycle of Innovation is Emerging Stage 1 Stage 2 Stage 3 Catching Up A Closer Gap Global Recognition 2010-2017 2017-2021 2021 onwards • Majority of pipeline are pure followers • Leaders started to pursue fast- • Wave of out-licensing transactions to global • Large gap between global first PoC f
Slide 29: Light at the End of the Tunnel
Light at the End of the Tunnel Potential Recovery of PE/VC Funding Environment with Additional Funding Sources PE/VC financing in China’s biopharma industry Out-licensing payment emerging as a new R&D has shown sign of improvement(1) funding source(1) US$ in millions US$ in billions 41.1 1,594 Fundi
Slide 30: CRO Industry Outlook
CRO Industry Outlook A Growing CRO Market Funding Environment Foreign Sponsors Recovery in Overseas in China(1) Likely Improving(2) Continue to invest in Markets(4) China(3) • China's CRO market is expected • PE/VC financing in China’s • Number of clinical trials initiated • Company 1 expects revenu
Slide 31: Our Clinical Services are Evolving
Our Clinical Services are Evolving Regulatory Change Technology Innovation Global Expansion Keep abreast of the latest regulatory Navigate technology and launch new Sense the needs from our customers and regime and position for potential future services in the highly regulated clinical establish a g
Slide 32: Our Near Term Business Development Focus and Growth Strategy
Our Near Term Business Development Focus and Growth Strategy Strengthen BD(1) coverage of Establish operational business units global and local big pharmas by therapeutic area and modality to expand capabilities for more customized specialty solutions Continue to enhance our integrated Form clinical
Slide 33: Appendix
06 Appendix www.tigermedgrp.com
Slide 34: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss Year ended December 31, (RMB 000s) 2022 2023 Revenue 7,085,471 7,384,039 Cost of services (4,300,027) (4,563,378) Gross profit 2,785,444 2,820,661 Other income 284,961 311,707 Other gains and losses, net 620,322 552,201 Impairment losses (24,575) (68,098) Sel
Slide 35: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (RMB 000s) As of December 31, 2022 As of December 31, 2023 NON-CURRENT ASSETS 16,341,353 18,338,740 Property, plant and equipment 976,679 1,190,992 Intangible assets 276,147 309,852 Goodwill 2,485,018 2,764,189 Right-of-use assets 622,354 556,645 Interest
Slide 36: Consolidated Statement of Financial Position (Cont'd)
Consolidated Statement of Financial Position (Cont’d) (RMB 000s) As of December 31, 2022 As of December 31, 2023 CURRENT LIABILITIES 3,729,569 4,138,737 Trade and other payables 717,950 845,110 Contract liabilities 939,765 680,489 Bank borrowings 1,868,215 2,366,380 Income tax payables 85,875 123,87
Slide 37: Hangzhou Tigermed Consulting Co., Ltd. 300347.SZ / 3347.HK
Hangzhou Tigermed Consulting Co., Ltd. 300347.SZ / 3347.HK www.tigermedgrp.com
Hangzhou Tigermed Consulting — FY2023 Earnings Presentation on 6ix