Chongqing Boteng Pharmaceutical Technology Co., Ltd. 2025 Annual Report Summary

Stock Code: 300363 Stock Short Name: Boteng Co., Ltd. Announcement No.: 2026-022

I. Important Notice

The summary of this annual report comes from the full text of the annual report. To fully understand the Company’s operating results, financial position, and future development plan, investors should read the full text carefully in the media designated by the CSRC.

All directors attended the board meeting deliberating on this report.

The audit opinion of the accounting firm Tianjian (Special General Partnership) on the Company’s financial statements for this fiscal year is: a standard unmodified opinion.

Notice on Non-Standard Audit Opinion

□Applicable √Not applicable

The Company did not make a profit at the time of listing and has not achieved profitability to date

□Applicable √Not applicable

Profit distribution proposal for the reporting period considered by the Board of Directors, or proposal for capitalization of capital reserve to increase share capital

The profit distribution proposal approved by this Board of Directors is as follows: based on the total share capital of 542,182,176 after deducting the shares already repurchased from the Company’s share repurchase special account, distribute cash dividends of RMB 0.90 per 10 shares to all shareholders (including tax), send bonus shares of 0 shares per 10 shares to all shareholders (including tax), and increase share capital to all shareholders by capitalizing capital reserve fund with 0 shares per 10 shares.

Profit distribution proposal for preferred stock of the reporting period approved by the Board of Directors

□Applicable √Not applicable

II. Basic Information of the Company

1. Company Profile

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Note: On November 6, 2025, Chongqing officially established the Liangjiang New Area as an administrative district, and the street where the Company’s office is located was consolidated into the newly established Liangjiang New Area administrative district.

2. Introduction to the Company’s Main Businesses or Products During the Reporting Period

The Company is a contract development and manufacturing organization (CDMO) that provides end-to-end, full-category services globally for pharmaceutical companies, biotech firms, research institutions, and others. It can provide CDMO services for different types of drugs and therapies, including small-molecule drugs, biologics, cell and gene therapies, and new molecular entities. Specifically, the Company includes: (1) small-molecule APIs business, which is the Company’s core foundation business. It mainly provides customers with a series of customized R&D and manufacturing services, including process route design, process development, process optimization, analytical method development, pilot-scale production, CMC registration support, quality research and analytical R&D, and commercial production, for starting materials, intermediates, and APIs required in the chemical drug development and approval process; (2) small-molecule formulations business, which mainly provides customized R&D and manufacturing services and joint development services to customers, such as formulation prescription process development and optimization, analytical method development and validation, complex formulation development, improved dosage form development, and other related services required for small-molecule drug development; (3) cell and gene therapy business, which primarily operates through its controlled subsidiary Suzhou Boteng. It has built CDMO platforms covering plasmids, cell therapy, gene therapy, oncolytic viruses, nucleic acid therapy, and live-cell therapy, providing end-to-end services from plasmid library construction to process and analytical method development, cGMP production, and formulation filling; (4) new molecular entities business, which mainly provides customized R&D and manufacturing services for drugs such as peptides and oligonucleotides, proteins and conjugated drugs.

During the reporting period, the revenue contribution of the Company’s core foundation business—small-molecule APIs—accounted for approximately 90%, increasing by approximately 13% year over year. Emerging businesses (small-molecule formulations business, cell and gene therapy business, and new molecular entities business) accounted for approximately 9% of revenue, increasing by approximately 26% year over year.

As of the end of the reporting period, the Company had cumulatively served 1,400+ customers, with successful delivery records for more than 5,000 projects. The end-market drugs served include treatments for major diseases such as antivirals, anti-tumor and immune function regulation, anti-infectives, the nervous system, cardiovascular diseases, the digestive tract and metabolism, and rare diseases.

3. Major Accounting Data and Financial Indicators

(1) Major accounting data and financial indicators for the past three years

Does the Company need to retroactively adjust or restate accounting data for previous years?

□Yes √No

Yuan

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(2) Major accounting data by quarter

Unit: Yuan

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Whether the above financial indicators or their aggregated figures have any material differences from the financial indicators of the quarterly report and semi-annual report previously disclosed by the Company

□Yes √No

4. Share Capital and Shareholder Information

(1) Number of ordinary shareholders and preferred shareholders with voting rights restored, and table of shareholding by the top 10 shareholders

Unit: Shares

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Holding of 5% or more shareholders, participation of the top 10 shareholders and the top 10 holders of unrestricted tradable shares in the securities lending and borrowing (securities lending/transfer financing) business

□Applicable √Not applicable

Changes in the top 10 shareholders and the top 10 holders of unrestricted tradable shares compared with the prior period due to reasons such as lending/return of shares through the securities lending and borrowing business

□Applicable √Not applicable

Does the Company have any arrangements that result in different voting rights

□Applicable √Not applicable

(2) Total number of Company’s preferred shareholders and table of shareholding by the top 10 preferred shareholders

□Applicable √Not applicable

(3) Disclosure of the Company’s ownership and control relationships between the Company and the actual controller in the form of a block diagram

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5. Bond Information That Exists as of the Date of Approval for Release of the Annual Report

□Applicable √Not applicable

III. Matters of Importance

1. Overall Operating Performance in 2025

In 2025, driven by the impact of Biotech’s short-term financing environment and the regionalization of the innovation drug supply chain, China’s CDMO industry continued to face challenges of market demand and competition. However, the industry still has significant business opportunities and growth drivers in high-value pipeline assets and the field of emerging molecules. 2025 was the Company’s breakthrough year in turning losses into profits and returning to growth. After the Company achieved a turnaround in the second quarter, it maintained profitability in the second half and successfully accomplished the key annual operating objective of “revenue resuming growth and profits turning losses into profits.” In 2025, while achieving revenue and profit growth, the Company’s operating cash flows continued to improve steadily, realizing net operating cash flow of RMB 757 million, representing a substantial year-over-year increase of 87%.

In 2025, the Company achieved operating revenue of RMB 3.420 billion, representing an increase of approximately 14% year over year. In terms of business segments, the growth in operating revenue during the reporting period came from the small-molecule APIs business and two major new business segments—cell and gene therapy and new molecular entities. Specifically, the revenue from the small-molecule APIs business increased by approximately 13% year over year; revenue from the cell and gene therapy business increased by approximately 36% year over year; and revenue from the new molecular entities business increased by approximately 224% year over year. The revenue from the small-molecule formulations business decreased by approximately 4% year over year, mainly due to the decline in market demand for domestic generic drug formulations brought about by the centralized procurement (volume-based procurement) policy. By market unit, in 2025, the Company’s U.S. market grew by 21% year over year; the Chinese market grew by 39% year over year; the European market declined by 12% year over year; and other overseas markets such as Japan and South Korea increased by 20% year over year. In 2025, the distribution of operating revenue by business segment and market unit is as follows:

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In 2025, the Company achieved net profit attributable to shareholders of listed companies of RMB 96.3399 million, achieving a turnaround into profitability and improving earnings mainly due to: 1) operating revenue increased by nearly 14% year over year, with the benefits of scale taking effect, thereby lifting the Company’s overall gross profit margin; 2) the Company reinforced cost-reduction and efficiency-enhancement measures, with expenses continuing to decline steadily; the total of the four expense categories decreased by approximately 3% year over year.

During the reporting period, the Company’s overall gross profit margin was close to 30%, increasing by approximately 5 percentage points year over year. By market region, the gross profit margin of overseas markets was approximately 41%, while that of domestic markets was approximately 6%. After excluding the impact of losses from new businesses, the Company’s overall gross profit margin was approximately 39%, increasing by approximately 7 percentage points year over year; the gross profit margin of domestic markets was approximately 21%, increasing by 5 percentage points year over year.

As shown in the table below, in 2025, the combined impact of new businesses on net profit attributable to shareholders of listed companies was approximately -RMB 208 million, representing a reduction in losses of approximately RMB 7.34 million. Among them, the small-molecule formulations business incurred losses of RMB 85 million, reducing losses by RMB 6.44 million year over year; the cell and gene therapy business incurred losses (meaning the amount affecting the consolidated statements of listed companies) of RMB 49.31 million, reducing losses by RMB 9.18 million year over year; and the new molecular entities business incurred losses of RMB 73.55 million, increasing losses by RMB 8.28 million year over year, mainly due to additional depreciation of approximately RMB 14.67 million from the Shanghai Fengxian and Waigaoqiao bases for the new molecular entities business.

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Note: During the reporting period, considering the actual situation that the small-molecule formulations and new molecular entities businesses had cross-system operations, in order to better reflect the actual operating conditions of the relevant businesses, the relevant business data scope was adjusted, and at the same time the corresponding data for the same period in 2024 was updated.

In 2025, the Company’s facilities received and passed a total of 181 quality audits, including 16 quality audits by regulatory authorities and 165 quality audits by customers and third parties. During the reporting period, the Company’s Shanghai Waigaoqiao, Shanghai Fengxian, and Chongqing Liangjiang New Area formulation factories all successfully passed the European Union QP audits, laying a solid foundation for overseas market development of the new molecular entities business and the formulations business.

2. Operating Conditions of Each Business Segment

(1) Small-Molecule APIs Business

In 2025, the Company, around the key work plan at the beginning of the year, consolidated the results of the CRM (market-to-leads, leads-to-orders, management of customer relationships) transformation. Through in-depth and comprehensive market insights and customer development plans, it increased the market share of high-value customers and high-value pipelines and improved coverage in the overseas biotech market. In addition to existing pharmaceutical industry customers, relying on its existing process R&D technologies and integrated supply chain capabilities, the Company actively developed the health consumer products market and successfully entered a supply chain of an overseas large customer. During the reporting period, the Company expanded its marketing teams in the U.S. and Asia-Pacific markets, laying the foundation for future market coverage and share growth. In 2025, the Company provided small-molecule API services to more than 390 customers globally and introduced 98 new customers (51 in the U.S. region, 28 in the China region, 10 in the Europe region, and 9 in other Asia-Pacific regions such as Japan and South Korea).

In terms of project pipelines, in 2025, the Company’s small-molecule APIs business received a total of 1,500+ customer inquiries, representing a decline year over year. This was mainly because the Company started to execute the early-stage project order gatekeeping mechanism beginning at the end of 2024, driving business focus at the front end from “increasing volume” to “improving quality.” During the reporting period, the number of signed order projects (excluding J-STAR) was 671, including 193 new projects. The number of delivery projects achieved was 645, including 276 in preclinical and Phase I, 104 in Phase II, 58 in Phase III, 23 at the new drug application stage, and 184 at the post-approval stage (see Figure 1). In 2025, among the innovation drug pipelines serviced by the Company, 9 innovation drugs received regulatory approval domestically and overseas, of which 5 were approved by the FDA and 4 were approved by the NMPA.

Figure 1: Number of delivered projects under the small-molecule APIs business (Unit: projects)

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In 2025, the Company serviced 203 API product types, which was basically flat year over year. API products generated revenue of RMB 545 million, accounting for 16% of the Company’s total revenue, representing an increase of approximately 6% year over year (see Figure 2). The Company completed 6 process validation (Process Validation, abbreviated as PV) projects and executed 20 PV projects in progress. As process validation is an important work prior to drug approval, by accumulating through PV projects, the Company can effectively enhance the stickiness of its service projects and expand its pool of potential commercialized projects.

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Figure 2: API product revenue and number of projects

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(2) Small-Molecule Formulations Business

In 2025, although the innovation drug formulations CDMO business maintained growth on both the order and revenue fronts, due to the impact of the domestic centralized procurement (volume-based procurement) policy, the market demand for the generic drug formulations CDMO business declined significantly, and the Company’s small-molecule formulations business faced challenges overall, with revenue decreasing by approximately 4% year over year. Although revenue slightly declined during the reporting period, the Company achieved its goal of reducing losses through internal optimization of lean operations, and the small-molecule formulations business met the operating objective of reducing losses.

In 2025, the small-molecule formulations business served 136 order-customer accounts, with 159 order projects served, introduced 30 new customers, and newly signed orders of approximately RMB 134 million. During the reporting period, the Company continued to strengthen coordinated services between the U.S. and China. There were 48 coordinated service customers for an integrated service model of “API + formulations.” The revenue from formulation services of the Company’s U.S. subsidiary J-STAR increased by approximately 112% year over year.

(3) Cell and Gene Therapy Business

In 2025, through continuous strengthening of internal operations management and implementing cost reduction and efficiency improvement measures, the cell and gene therapy business achieved a reduction in losses for two consecutive years. During the reporting period, the cell and gene therapy business served 107 order-customer accounts, with 186 order projects served. It introduced 81 new customers, 119 new projects, and newly signed orders of RMB 189 million. During the reporting period, the Company’s subsidiary Boteng Bio made multiple breakthroughs in the market: added 5 CMC projects at clinical-stage and commercialization process-change phases; successfully signed multiple in vivo CAR-T pipeline projects involving lentivirus/mRNA-tLNP; successfully signed multiple emerging therapy projects including CIK, TCR-T, CAR-NK/NK, UCAR-T, iPSC, MSC, etc.; obtained its first order from a Korean customer; and in the European market successfully signed its first overseas in vivo lentivirus CAR-T order. In the delivery segment, Boteng Bio helped clients obtain 7 China-U.S. clinical batch approvals, covering CAR-T, UCAR-T, dual-target CAR-T, NK, CAR-NK, and oncolytic virus therapies, maintaining an excellent track record of “zero batch failures.” It completed process development for its first in vivo CAR lentivirus project and production of three batches of GMP batches.

(4) New Molecular Entities Business

In 2025, the Company’s new molecular entities business newly signed orders of RMB 78.75 million, served 59 order-customer accounts, and had 98 order projects, covering different stages such as early clinical (IND), Phase III, and NDA, and delivered 67 projects at milestone phases, covering complex project types such as RDC, AOC, and APC. In 2025, the ADC business achieved a breakthrough in overseas orders and deliveries, obtaining overseas Dual-Payload ADC IND package project orders. The peptide and effective payload-linker (Payload-linker) businesses also achieved breakthroughs in obtaining NDA project orders. With the pilot production capacity at the Fengxian plant becoming operational, in 2025, the Fengxian plant delivered a total of 20 new molecular entity projects, gradually establishing a good delivery record. In June 2025, the Company’s Shanghai Fengxian plant and Waigaoqiao R&D and production facilities passed EU Qualified Person (QP) audits one after another, laying the foundation for expanding the new molecular entities business into the global market.

3. Capability Building

In 2025, the Company continued to advance digitalization and AI capability building around core business areas such as marketing, R&D, and production. During the reporting period, by deeply integrating digital intelligence and artificial intelligence technologies into the full industrial chain of pharmaceutical R&D and manufacturing, the Company received multiple honors, including being recognized as one of the first batch of “Excellence-Level Smart Factories” by the Ministry of Industry and Information Technology and “AI-enabled Demonstration Factories” by Chongqing, among others. The Company initially built a digital intelligence enablement system covering all scenarios across marketing, R&D, production, and office work, promoting the transformation of AI technology from auxiliary tools into core production elements, thereby enhancing efficiency in core businesses and improving operating benefits. In 2025, through digital enablement to improve business efficiency, the Company identified 32 efficiency-improvement special scenario items, such as sharing material and equipment resources across plants, the AI-based inspection plan for long-life factories, and R&D equipment utilization rate analysis. Across different dimensions including increasing business revenue, lowering costs, improving efficiency, and enhancing quality, there were improvements and optimizations to varying degrees. In 2025, the Company completed the drafting of its five-year AI development strategy plan, laying a solid foundation for long-term intelligent development.

In 2025, the Company firmly practiced the concept of sustainable development, maintained proactive communication with all stakeholders, and continued to promote improvements in ESG management performance to support the Company’s long-term stable development. During the reporting period, the Company’s near-term carbon emissions reduction targets were successfully validated by SBTi. At the same time, the Company also formulated 2030 environmental targets covering energy consumption, water resources, and waste management, using targets to guide green development. It steadily advanced the implementation of these targets through operational improvements, green electricity procurement, and other measures. In addition, the Company formulated the “Supplier Code of Conduct,” further integrating ESG-related requirements into the entire supply chain management process, working together with partners to build a sustainable supply chain. In 2025, in EcoVadis’ evaluation—an internationally well-known provider of corporate social responsibility rating services—the Company’s Chongqing Changshou plant obtained its first “Gold” certification and ranked among the top 5% of companies globally that participate in the assessment. The Company also successfully was selected as a 2025 outstanding practice case in sustainable development by China Association of Listed Companies, and as an outstanding case in corporate social responsibility of private enterprises in Chongqing (2025).

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