|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which
registered
|
||
|
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01 |
Exhibits.
|
Exhibit
Number
|
Description
|
|
Unaudited interim condensed consolidated financial statements of Beijing Continent as of and for the six months ended June 30, 2023.
|
||
104
|
Cover Page Interactive Data File (formatted as Inline XBRL).
|
CATALYST BIOSCIENCES, INC.
|
||
Date: August 14, 2023
|
By:
|
/s/ Nassim Usman, Ph.D.
|
Name:
|
Nassim Usman, Ph.D.
|
|
Title:
|
President and Chief Executive Officer
|
Pages
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the six months ended June 30, 2023
and 2022
|
1 |
Unaudited interim condensed consolidated statements of financial position as of June 30, 2023 and audited consolidated statements of
financial position as of December 31, 2022
|
2 |
Unaudited interim condensed consolidated statements of changes in equity for the six months ended June 30, 2023 and 2022
|
3 |
Unaudited interim condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022
|
4 |
Notes to the unaudited interim condensed consolidated financial statements
|
5 |
Notes
|
For the six months ended June 30,
|
|||||||||||
2023
|
2022
|
|||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Revenue
|
4
|
379,265
|
312,673
|
|||||||||
Cost of revenue
|
(15,170
|
)
|
(14,286
|
)
|
||||||||
Gross profit
|
364,095
|
298,387
|
||||||||||
Other income and gains
|
9,993
|
2,184
|
||||||||||
Selling expenses
|
(214,503
|
)
|
(161,141
|
)
|
||||||||
Administrative expenses
|
(22,071
|
)
|
(25,376
|
)
|
||||||||
Research and development expenses
|
(23,435
|
)
|
(29,311
|
)
|
||||||||
Other expenses
|
(3,729
|
)
|
(3,919
|
)
|
||||||||
Finance costs
|
( 94
|
)
|
(172
|
)
|
||||||||
Profit before tax
|
110,256
|
80,652
|
||||||||||
Income tax expense
|
5
|
(29,058
|
)
|
(16,776
|
)
|
|||||||
Net profit
|
81,198
|
63,876
|
||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
||||||||||
Total comprehensive income
|
||||||||||||
81,198
|
63,876
|
Notes
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
||||||||
ASSETS
|
|||||||||
Non-current assets
|
|||||||||
Property, plant and equipment
|
6
|
145,226
|
123,339
|
||||||
Right-of-use assets
|
13,633
|
15,282
|
|||||||
Prepayments and deposits
|
24,519
|
21,730
|
|||||||
Intangible assets
|
181,628
|
161,249
|
|||||||
Deferred tax assets
|
2,941
|
2,589
|
|||||||
Bank deposits
|
10
|
133,486
|
51,500
|
||||||
Total non-current assets
|
501,433
|
375,689
|
|||||||
Current assets
|
|||||||||
Inventories
|
7
|
38,167
|
42,639
|
||||||
Trade receivables
|
8
|
93,738
|
108,753
|
||||||
Debt investments at fair value through other comprehensive income
|
9 |
1,875
|
10,597
|
||||||
Prepayments, deposits and other receivables
|
12,524
|
8,493
|
|||||||
Cash and bank balances
|
10
|
158,880
|
163,420
|
||||||
Total current assets
|
305,184
|
333,902
|
|||||||
Total assets
|
806,617
|
709,591
|
|||||||
LIABILITIES AND EQUITY
|
|||||||||
Current liabilities
|
|||||||||
Trade payables
|
1,021
|
850
|
|||||||
Other payables and accruals
|
11
|
73,828
|
61,084
|
||||||
Lease liabilities
|
3,421
|
3,467
|
|||||||
Tax payable
|
14,199
|
12,668
|
|||||||
Total current liabilities
|
92,469
|
78,069
|
|||||||
Non-current liabilities
|
|||||||||
Customers’ deposits
|
346
|
380
|
|||||||
Lease liabilities
|
19
|
1,525
|
|||||||
Deferred government grants
|
5,977
|
5,150
|
|||||||
Total non-current liabilities
|
6,342
|
7,055
|
|||||||
Total liabilities
|
98,811
|
85,124
|
|||||||
Equity
|
|||||||||
Share capital
|
61,318
|
61,318
|
|||||||
Capital reserve
|
250,801
|
248,660
|
|||||||
Surplus reserve
|
31,449
|
31,449
|
|||||||
Retained profits
|
364,238
|
283,040
|
|||||||
Total equity
|
707,806
|
624,467
|
|||||||
Total liabilities and equity
|
806,617
|
709,591
|
Note
|
Share capital
|
Capital reserve
|
Surplus reserve
|
Retained profits
|
Total
|
||||||||||||||||||
As of January 1, 2023 (unaudited)
|
61,318
|
248,660
|
31,449
|
283,040
|
624,467
|
||||||||||||||||||
Profit for the period
|
-
|
-
|
-
|
81,198
|
81,198
|
||||||||||||||||||
Equity-settled share option arrangements
|
12
|
-
|
2,141
|
-
|
-
|
2,141
|
|||||||||||||||||
As of June 30, 2023 (unaudited)
|
61,318
|
250,801
|
31,449
|
364,238
|
707,806
|
Share capital
|
Capital reserve
|
Surplus reserve
|
Retained profits
|
Total
|
|||||||||||||||||||
As of January 1, 2022 (unaudited)
|
61,318
|
240,055
|
16,346
|
147,109
|
464,828
|
||||||||||||||||||
Profit for the period
|
-
|
-
|
-
|
63,876
|
63,876
|
||||||||||||||||||
Equity-settled share option arrangements
|
12
|
-
|
4,302
|
-
|
-
|
4,302
|
|||||||||||||||||
As of June 30, 2022 (unaudited)
|
61,318
|
244,357
|
16,346
|
210,985
|
533,006
|
Note
|
For the six months ended June 30,
|
||||||||||
2023
|
2022
|
||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||||||
Profit before tax
|
110,256
|
80,652
|
|||||||||
Finance costs
|
94
|
172
|
|||||||||
Interest income
|
(1,510
|
)
|
(287
|
)
|
|||||||
Loss on disposal of property, plant and equipment
|
6
|
24
|
|||||||||
Depreciation of property, plant and equipment
|
3,660
|
2,965
|
|||||||||
Depreciation of right-of-use assets
|
1,909
|
1,635
|
|||||||||
Amortization of intangible assets
|
1,640
|
1,630
|
|||||||||
Recognition of equity-settled share option expenses
|
12
|
2,141
|
4,302
|
||||||||
Provision for inventories
|
103
|
219
|
|||||||||
(Reversal) provision for the impairment of trade receivables
|
(371
|
)
|
97
|
||||||||
Amortization of deferred government grants
|
(141
|
)
|
(75
|
)
|
|||||||
117,787
|
91,334
|
||||||||||
Decrease in inventories
|
4,369
|
144
|
|||||||||
Decrease (increase) in trade receivables and debt investments at fair value through other comprehensive income |
22,249
|
(18
|
)
|
||||||||
(Increase) decrease in deposits and other receivables
|
(4,015
|
)
|
3,928
|
||||||||
Increase (decrease) in trade payables
|
2,030
|
(175
|
)
|
||||||||
Increase in other payables and accruals
|
11,934
|
19,684
|
|||||||||
Cash generated from operations
|
154,354
|
114,897
|
|||||||||
Income tax paid
|
(27,879
|
)
|
(31,767
|
)
|
|||||||
Net cash generated from operating activities
|
126,475
|
83,130
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase of property, plant and equipment
|
(26,710)
|
(8,042
|
)
|
|||||
Additions to intangible assets
|
(21,923)
|
(20,968
|
)
|
|||||
Purchase of long-term bank deposits
|
(80,476)
|
(50,302
|
)
|
|||||
Net cash used in investing activities
|
(129,109)
|
(79,312
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Principal portion of lease payments
|
(1,812)
|
(1,457
|
)
|
|||||
Interest paid on lease liabilities
|
(94)
|
(172
|
)
|
|||||
Net cash used in financing activities
|
(1,906)
|
(1,629
|
)
|
|||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(4,540)
|
2,189
|
||||||
Cash and cash equivalents at beginning of period
|
163,420
|
166,294
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
158,880
|
168,483
|
1. |
CORPORATE INFORMATION
|
• |
research and development of new drugs
|
• |
manufacture and sale of the Class 1.1 new drug “ETUARY” for the treatment of idiopathic pulmonary fibrosis
|
• |
manufacture and sale of other pharmaceutical products
|
2. |
BASIS OF PREPARATION
|
3 |
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
|
Amendments to IAS 1 and IFRS Practice Statement 2
|
Disclosure of Accounting Policies
|
Amendments to IAS 8
|
Definition of Accounting Estimates
|
Amendments to IAS 12
|
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
|
Amendments to IAS 12
|
International Tax Reform – Pillar Two Model Rules
|
3 |
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (continued)
|
(a) |
Amendments to IAS 1 require entities to disclose their material accounting policy information rather than their significant accounting policies. Accounting policy information is material if, when
considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those
financial statements. Amendments to IFRS Practice Statement 2 provide non-mandatory guidance on how to apply the concept of materiality to accounting policy disclosures. The Group has applied the amendments since January 1, 2023. The
amendments did not have any impact on the Group’s interim condensed consolidated financial information but are expected to affect the accounting policy disclosures in the Group’s annual consolidated financial statements.
|
(b) |
Amendments to IAS 8 clarify the distinction between changes in accounting estimates and changes in accounting policies. Accounting estimates are defined as monetary amounts in financial statements
that are subject to measurement uncertainty. The amendments also clarify how entities use measurement techniques and inputs to develop accounting estimates. The Group has applied the amendments to changes in accounting policies and changes
in accounting estimates that occur on or after January 1, 2023. Since the Group’s policy of determining accounting estimates aligns with the amendments, the amendments did not have any impact on the financial position or performance of the
Group.
|
(c) |
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction narrow the scope of
the initial recognition exception in IAS 12 so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences, such as leases and decommissioning obligations. Therefore, entities are required
to recognize a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability for temporary differences arising from these transactions. The amendments had an insignificant impact on the Group’s
interim condensed consolidated financial statements.
|
(d) |
Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules introduce a mandatory temporary exception from the
recognition and disclosure of deferred taxes arising from the implementation of the Pillar Two model rules published by the Organization for Economic Co-operation and Development. The amendments also introduce disclosure requirements for
the affected entities to help users of the financial statements better understand the entities’ exposure to Pillar Two income taxes, including the disclosure of current tax related to Pillar Two income taxes separately in the periods when
Pillar Two legislation is effective and the disclosure of known or reasonably estimable information of their exposure to Pillar Two income taxes in periods in which the legislation is enacted or substantively enacted but not yet in effect.
Entities are required to disclose the information relating to their exposure to Pillar Two income taxes in annual periods beginning on or after January 1, 2023, but are not required to disclose such information for any interim periods
ending on or before December 31, 2023. The Group has applied the amendments retrospectively. Since the Group did not fall within the scope of the Pillar Two model rules, the amendments did not have any impact to the Group.
|
4. |
REVENUE
|
For the six months ended June 30,
|
||||||||
2023
|
2022
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue from contracts with customers
|
||||||||
Sales of pharmaceutical products
|
379,265
|
312,673
|
|
For the six months ended June 30,
|
|||||||
2023
|
2022
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Timing of revenue recognition
|
||||||||
Products transferred at a point in time
|
379,265
|
312,673
|
5. |
INCOME TAX
|
For the six months ended June 30,
|
||||||||
2023
|
2022
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Current income tax charge in Mainland China
|
29,410
|
16,847
|
||||||
Deferred income tax
|
(352
|
)
|
(71
|
)
|
||||
Total tax charge for the period
|
29,058
|
16,776
|
6. |
PROPERTY, PLANT AND EQUIPMENT
|
7. |
INVENTORIES
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Raw materials
|
6,650
|
7,354
|
||||||
Work in progress
|
4,999
|
2,749
|
||||||
Semi-finished goods
|
13,622
|
22,790
|
||||||
Finished goods
|
13,061
|
9,808
|
||||||
38,332
|
42,701
|
|||||||
Provision for inventories
|
(165
|
)
|
(62
|
)
|
||||
38,167
|
42,639
|
8. |
TRADE RECEIVABLES
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Trade receivables
|
94,229
|
109,615
|
||||||
Allowance for impairment
|
(491
|
)
|
(862
|
)
|
||||
93,738
|
108,753
|
9.
|
DEBT INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
|
10. |
CASH AND BANK BALANCES
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Cash and bank balances
|
292,366
|
214,920
|
||||||
Less: Long-term bank deposits
|
(133,486
|
)
|
(51,500
|
)
|
||||
Cash and cash equivalents
|
158,880
|
163,420
|
11. |
OTHER PAYABLES AND ACCRUALS
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Payroll and welfare payables
|
35,043
|
34,911
|
||||||
Accrued expenses
|
24,786
|
1,970
|
||||||
Other payables
|
12,365
|
22,081
|
||||||
Deferred government grants*
|
6,259
|
5,300
|
||||||
Others
|
1,698
|
2,352
|
||||||
80,151
|
66,614
|
|||||||
Less:
|
||||||||
Non-current portion of customers’ deposits
|
(346
|
)
|
(380
|
)
|
||||
Non-current portion of deferred government grants
|
(5,977
|
)
|
(5,150
|
)
|
||||
Current portion
|
73,828
|
61,084
|
* |
The balance represents government grants which were used for research and development projects and development of the manufacturing plants in two cities in the PRC.
|
12. |
SHARE OPTION SCHEME
|
For the six months ended
June 30, 2023
|
For the six months ended
June 30, 2022
|
|||||||||||||||
Number of
share
options
|
Weighted
average
exercise
price
RMB per
share
|
Number of
share options
|
Weighted
average
exercise
price
RMB per
share
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Outstanding at the beginning of the period
|
9,195,130
|
9.79
|
9,197,685
|
9.79
|
||||||||||||
Forfeited
|
(10,220
|
)
|
9.79
|
(2,555
|
)
|
9.79
|
||||||||||
Outstanding at the end of the period
|
9,184,910
|
9.79
|
9,195,130
|
9.79
|
13. |
CAPITAL COMMITMENTS
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Contracted, but not provided for:
|
||||||||
Property, plant and equipment
|
34,812
|
39,943
|
||||||
Research and development
|
215,134
|
206,023
|
||||||
249,946
|
245,966
|
14. |
RELATED PARTY TRANSACTIONS
|
Related party
|
Relationship with the Group
|
|
GNI Group Ltd.
|
The ultimate holding company of the Company
|
|
Shanghai Genomics, Inc.
|
Company controlled by the ultimate holding company, GNI Group Ltd.
|
(i) |
The Group had the following transactions with related parties during the periods:
|
For the six months ended June 30,
|
||||||||
2023
|
2022
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Capitalized expenditures
|
||||||||
Shanghai Genomics, Inc.
|
-
|
1,145
|
(ii) |
Outstanding balances with related parties
|
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Due to related parties, which are trade in nature
|
||||||||
GNI Group Ltd.
|
750
|
785
|
15. |
FINANCIAL INSTRUMENTS BY CATEGORY
|
Financial assets at fair value
through other comprehensive
income debt investments
|
Financial assets at
amortized cost
|
|||||||||||||||
June 30,
2023
|
December 31,
2022
|
June 30,
2023
|
December 31,
2022
|
|||||||||||||
(Unaudited)
|
(Audited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Trade receivables
|
-
|
-
|
93,738
|
108,753
|
||||||||||||
Debt investments at fair value through other comprehensive income
|
1,875
|
10,597
|
-
|
-
|
||||||||||||
Financial assets included in prepayments, deposits and other receivables
|
-
|
-
|
10,685
|
6,799
|
||||||||||||
Cash and bank balances
|
-
|
-
|
158,880
|
163,420
|
||||||||||||
Bank deposits
|
-
|
-
|
133,486
|
51,500
|
||||||||||||
1,875
|
10,597
|
396,789
|
330,472
|
Financial liabilities at amortized cost
|
||||||||
June 30, 2023
|
December 31, 2022
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Trade payables
|
1,021
|
850
|
||||||
Financial liabilities included in customers’ deposits, other payables and accruals
|
13,461
|
23,246
|
||||||
Lease liabilities
|
3,440
|
4,992
|
||||||
17,922
|
29,088
|
16. |
FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
|
As of June 30, 2023
|
Fair value measurement using
|
|||||||||||||||
Quoted prices
in active
markets
(Level 1)
|
Significant
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
Total
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Debt investments at fair value through other comprehensive income
|
-
|
1,875
|
-
|
1,875
|
As of December 31, 2022
|
Fair value measurement using
|
|||||||||||||||
Quoted prices
in active
markets
(Level 1)
|
Significant
observable
inputs
(Level 2)
|
Significant
unobservable
inputs (Level 3)
|
Total
|
|||||||||||||
(Audited)
|
(Audited)
|
(Audited)
|
(Audited)
|
|||||||||||||
Debt investments at fair value through other comprehensive income
|
-
|
10,597
|
-
|
10,597
|
16. |
FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)
|
As of June 30, 2023
|
Fair value measurement using
|
|||||||||||||||
Quoted prices
in active
markets
(Level 1)
|
Significant
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
Total
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Bank deposits, non-current portion
|
-
|
133,486
|
-
|
133,486
|
As of December 31, 2022
|
Fair value measurement using
|
|||||||||||||||
Quoted prices
in active
markets
(Level 1)
|
Significant
observable
inputs
(Level 2)
|
Significant
unobservable inputs
(Level 3)
|
Total
|
|||||||||||||
(Audited)
|
(Audited)
|
(Audited)
|
(Audited)
|
|||||||||||||
Bank deposits, non-current portion
|
-
|
51,500
|
-
|
51,500
|
17. |
EVENTS AFTER THE REPORTING PERIOD
|