Pitchbook US template - Jefferies Group · 2017. 6. 16. · securities to be made in the United States must be made by means of a prospectus that may be obtained from the issuer or

J u n e 2 0 1 7

1

DisclaimerNOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS NOT PERMITTED UNDER THE LAW

OF THAT JURISDICTION

This document has been prepared by Genscript Biotech Corporation (the “Company”) for a limited number of recipients and for information purposes only. The information relating to the Company, its subsidiaries

and affiliates, and their respective businesses and assets contained in this document has not been independently verified. This document does not purport to provide a complete description of the matters to which it

relates. Some of the information is still in draft form and will only be finalized at the time of publication of the relevant prospectuses or offering circulars of the Company. No reliance shall be made in relation to the

information contained in this document. No representation, warranty or undertaking, express or implied, is or will be made in, or in relation to, and no responsibility or liability (including, without limitation, any liability in

negligence) is or will be accepted by the Company, Sole Sponsor, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers, or any of their shareholders, directors, officers, employees, affiliates,

advisors or representatives as to, or in relation to, this document or the accuracy, fairness, reasonableness, correctness, or completeness of the information or opinions contained herein or any other information or

opinions, whether written or oral, made available to any interested party or its advisors and any liability for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection

with this document therefore is hereby expressly disclaimed. The information contained in this document should be considered in the context of the circumstances prevailing at the time and is subject to change

without notice. By preparing this document, none of the Company, Sole Sponsor, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers, or any of their shareholders, directors, officers, employees,

affiliates, advisors or representatives undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any

inaccuracies in any such information which may become apparent.

This document contains statements that reflect the Company’s current beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are based on a number

of assumptions about the Company’s operations, information currently available to the Company, and factors beyond the Company’s control and are subject to significant risks and uncertainties, and, accordingly,

actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to

such dates.

This document does not constitute or form part of, and should not be construed as, an offer to sell or issue or a solicitation of an offer to purchase or subscribe for any securities of the Company nor shall there be

any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country. Public offering of

securities to be made in the United States must be made by means of a prospectus that may be obtained from the issuer or the selling security holder and that contains detailed information about the issuer, its

management and financial statements. No securities of the Company have been, or will be, registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or the securities laws of any state or

other jurisdiction of the United States and may not be offered or sold within the United States, except pursuant to a registered offering in compliance with or pursuant to an exemption from, or in a transaction not

subject to, the registration requirements of the US Securities Act and the applicable securities laws of any state or other jurisdiction of the United States. In Hong Kong, no securities of the Company may be offered to

the public unless a prospectus in connection with the offering for sale or subscription of such securities has been authorized by The Stock Exchange of Hong Kong Limited for registration by the Registrar of

Companies in Hong Kong under the provisions of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32 of the Laws of Hong Kong), and has been so registered. No part of this document

shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. Any decision to purchase any securities of the Company in any offering for sale,

distribution or subscription (as the case may be) in the United States, Hong Kong or anywhere else should be made solely on the basis of information contained in the relevant prospectuses or offering circulars of the

Company which will be published in due course. The recipients and readers of this document should not construe the contents of this document as legal, tax, accounting or investment advice and should consult their

own financial, tax, accounting or legal advisors or other consultants in case of doubt. This document, and any further information made available to you, are highly confidential and should not be distributed, published

or reproduced (in whole or in part) or disclosed to any other person, directly or indirectly.

This document must not be copied, reproduced, distributed or passed, in whole or in part, to any other person, directly or indirectly, at any time, by any medium, in any form, for any purpose without the prior written

consent of the Company, Sole Sponsor, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers. Unauthorized copying or reproduction, or redistribution of this document of any information contained

herein to any person, could result in material delay to, or otherwise prejudice the success of the global offering of the Company. No part of this document may be distributed, reproduced, taken or transmitted into the

United States, Canada or Japan, or to any resident thereof.

You acknowledge and represent to the Company, Sole Sponsor, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers that you are a professional investor, have the knowledge, experience and

capability to conduct your own assessment of the Company and its securities and that you have conducted and will conduct your own investigation with respect to the Company and its securities and have obtained or

will obtain your own independent advice relating to any investment in the securities of the Company.

By accepting delivery of this document or the information contained herein, you are deemed to represent to the Company, Sole Sponsor, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers, and

their shareholders, directors, officers, employees, agents, affiliates, advisors and representatives, that you are and any person you are representing, if any, a person outside the United States within the meaning of

Regulation S under the US Securities Act, or a professional investor within a category of person described in the Securities and Futures (Professional Investor) Rules (Chapter 571D of the Laws of Hong Kong).

By accepting delivery of this document or the information contained herein, you are agreeing that (i) you have read and agree to comply with the requirements of this disclaimer; (ii) you will maintain absolute

confidentiality regarding this document and the information contained herein; and (iii) you will not make direct contact with (a) the Company’s customers, partners or subcontractors; (b) any governmental,

administrative or regulatory bodies which supervise or regulate the Company; or (c) employees of the Company in order to seek non publicly available information of the Company.

2

Background of the Industry

Business and Finance

Future Strategies

Company Overview

Research Progress

Investment Highlights

3

GenScript’s mission

Our aspiration – to change the world by using breakthrough technologies

• Make research easier for scientists by using gene synthesis technology• Make our life better by using synthetic biology technologies• Provide better cell therapies to the cancer patients

4

GenScript’s business blueprint

• GenScript proprietary technologies

• Core business generating cash flow for future development

• New area of business development generating higher return

Life sciences research and

application services and products

Gene synthesis

Industrial enzymes CAR T-Cell Immunotherapy

5

• GenScript is a well-recognized life sciences research, and application service and product provider. As the leader in gene synthesis, GenScript has developed a number of services and products in for synthetic

biology

• Largest provider of gene synthesis services globally • Global provider of life sciences research and application services and products• Well recognized and trusted provider of for synthetic biology research and application services

and products

• Founded in 2002 in the U.S.• GenScript holds multiple IPs and know-how proprietary technology in the area of synthetic biology• Key locations in New Jersey, Nanjing, Europe, and Japan• Research and manufacturing facilities globally• Over 1,500 employees globally1

• 5,000+ customers1 which includes global pharmaceutical and biotech companies, colleges and universities, research institutes, government organizations and distributors in over 100 countries

• Renowned Investors which include Kleiner Perkins Caufield & Byers, Shipston Group Limited, China Resource Group and The Balloch Group

GenScript overview

1 Note: as of December 31, 2016

6

2002 2004 20082009

2011

2014

GenScript’s history and key milestones

• Introduced Gene Synthesis

Service

• Introduced Custom Protein

and Antibody

Service

• Established presence in Europe

• Selected as the only commercial entity to

participate in the Synthetic

Yeast Genome Sc2.0

Project

• Established subsidiary in Japan

• Employee headcount reached 1,000

• Founded in New Jersey • Established

research and

manufacturing

center in

Nanjing, China• KPCB / TBIG

Healthcare investment

• New Nanjing research and

production facility

opened

• Developed GenPlusTM next generation gene

synthesis technology

• Developed the industrial-leading composite

glucosydase product for

starch processing industry

• Developed the half-life extension technology for

single domain antibody

drugs

• CRO Leadership award

2013

• Launched the industrial

synthetic

biology product

segment

2003

2015

• Listed in HKEX(Stock code:1548)

2016

• Merged NornoonCompany

• Invested in Zhenjiang

• Launched eStainL1,an innovative

instrument

• Launched new and stable cell lines

• Achieved breakthrough for

CAR T-Cell

Immunotherapy

7

Senior Management

Venture Capital Investors

GenScript’s management team

Mr. Robin MENG, VP Finance

Manager, Schering-Plough, China, 2000-2004

Controller, Saint-Gobain, 2004-2007

CFO, Quay Magnesium, 2008-2010

VP Finance, GenScript, 2010

Dr. Frank ZHANG, CEO

PhD, Duke University, 1995

Schering-Plough, 1995-2002

GenScript Co-founder, 2002

Ms. Sally WANG, COO

MS, Wuhan University, 1993

Shenzhen Futian, Environmental Protection

Surveillance Station, 1993-2000

GenScript Co-founder, 2002

Dr. Li ZHU, VP Strategy

VP Research, Cathay Biotech, Inc., 2006-2008

VP Strategy, GenScript, 2010

http://fashinvest.com/wp-admin/www.kpcb.com/http://fashinvest.com/wp-admin/www.kpcb.com/http://www.ballochgroup.com/http://www.ballochgroup.com/http://www.加通贝祥.com/http://www.加通贝祥.com/

8



Future Strategies

Company Overview

Research Progress


9

Gene, DNA, protein and antibody

Gene and DNA

• A gene is a molecular unit of heredity of a living organism• DNA is a polynucleotide formed from covalently linked

deoxyribonucleotide units

• There are four types of bases: A, T, C, G. A pairs with T, and G pairs with C

• Each chromosome is made up of DNA and proteins called histones. The protein tightly coils the DNA to support the

chromosome’s structure

• Human has 23 pairs of chromosome – in particular men have XY chromosome while women have XX chromosome

Protein and antibody

Source: http://29lifescience.wikispaces.com

Source: https://www.smartpatients.com

10

Background information:

what are gene synthesis and synthetic biology?

Gene synthesis

Synthetic biology

• Do not rely on natural source for genes• Synthesize genes from chemicals• Able to synthesize genes as designed

• The design and construction of novel biological parts, devices, and systems,

and the re-design of existing, natural

biological systems for the purposes of

improving usefulness

One of the fundamental techniques in synthetic biology

HealthDisease

treatment

Anti-aging

EnergyFuel

Energy crops

IndustrialChemicals

AgricultureBreeding

Nitrogen

fixation

EnvironmentDetection

Bioremediation

Using

Genes…

to Program Cells

to Become

Cellular

Factories…to Make High

Value Products

(e.g. artemisinin…)

……

Application

11

Development of synthetic biology

1812555-001

In 1972, the Chinese scientist Tu Youyou and her colleagues

extracted artemisinin from the herb Qinghao and received

Nobel Prize in 2015.

Jay Keasling’s laboratory at the University of California, Berkeley

has engineered both Escherichia coli and Saccharomyces cerevisiae

to produce of artemisinic acid, a precursor to artemisinin.

12

• A segment of biology that emerged in the 21st century focusing on the artificial design and engineering of biological systems

• Aims to create life molecules with new properties that can be applied to drug discovery, industrial raw materials and fuel substitutes


Synthetic Biology

Research method

Bottom-up

Top-down

Sources: http://syntheticbiology.org/

13

• Basic molecules of life are redesigned, synthesized, assembled, and consolidated through metabolic pathways and networks, to systematically construct a brand new

biological system


A) Bottom-up

Oligonucleotide

Individual geneSynthesis

Package

Gene modules Assemble

Metabolic pathway

Consolidate

Metabolic network

Allocate

Functional Bacteria

Complex new system

Construct

Source: [1] The Making of the Fittest: DNA and the Ultimate Record of Evolution ,W.W. Norton, 2006,

[2] http://fdatraining.wifss.ucdavis.edu

14


B) Top-down

Sources: Andrianantoandro, et al., Mol Syst Biol, 2006.

Modification and redesign of

existing natural biological

system to achieve better

performance

Systematically search and

modify key cells, pathways,

and biochemical reactions

layer by layer, down to the

most fundamental proteins,

DNA, and RNA, in order to

achieve target modification

15


Examples of synthetic biology applications

Industry enzyme Oil-eating bacteria CAR T-cell Therapy

Blood from patients

T cell

Modified T cell

Re-introduce to the

patients

Virus

16


Examples of synthetic biology applications (cont’d)

Synthetic organs Biofuel

Green chemistry Animal breeding

Antibiotics, amino acids and vitamins Natural products

• To create artificial organs from hybrid animals, instead of transplant

• Artificial cornea or liver can be made from genetically engineered pigs or other animals

• For cornea alone, there are 4mn patients in China

• Synthetic biology technologies are widely used in biofuel generation

• The emergence of advanced conversion pathways and non-food feedstocks could unlock considerable production potential

• Multi-billion dollar market potential

• Many of the chemical processes can be converted into biological processes, using synthetic enzymes as catalyst

• Multi-billion dollar market potential through direct cost savings and avoided liability for environmental and social impacts

• By using synthetic biology, new microbes can be made from de novo, and the most productive microbes can be obtained in

record time

• Huge market globally for antibiotics, amino acids and vitamins products

• Synthetic biology are widely used in animal breeding.• Compared with traditional breeding, synthetic biology is much

faster and saves cost. Totally new species can be developed

using this method.

• Multi-billion dollar market potential.

• Plant genes and pathways can be moved into bacteria and microbes by synthetic biology technologies to produce taxol,

artemisinin, isoprene rubber, saffron, vanillin, and flavor and

fragrance

• Multi-billion dollar market potential

17



Future Strategies

Company Overview

Research Progress


18

GenScript’s service, product & research overview

• Comprehensive research services in 6 key sub-segments: gene synthesis, oligonucleotide synthesis, DNA sequencing, protein production, peptide

synthesis and antibody development

• Widely used in and fundamental to life sciences research and application

• Pre-packaged, ready-to-use, and off-the-shelf products

• Integrated services in 3 key sub-segments: antibody and protein engineering, in vitro pharmacology service, and in vivo pharmacology service

• Applied in disease studies and drug discovery process

• Launched first product series: glucoamylases, pullulanase and amylase

• Fundamental life sciences research• Early stage pharmaceutical

development

• Translational biomedical research• Industry users of industrial enzymes

Life sciences research

services

Life sciences research

catalog products

Preclinical drug

development services

Se

rvic

es

Pro

du

cts

Industrial synthetic

biology products

Target customer industry /

applications

• Achieved promising results in the research and development in immunotherapy technology for multiple myeloma cure

• Achieved promising results in the joint research and development in design and synthesis of the saccharomyces cerevisiae chromosomes (Project Sc2.0), the

relevant paper was published in Science

Cell Therapy

Development

Re

se

arc

h

Other research on

biotechnology

19

Key service Applications Sample picture

Gene synthesis

Synthesized gene products are used for

functional research of genes and protein

production for synthetic biology, life science

research, and biologics drug discovery

Protein production

Proteins produced are used for functional

studies of proteins, such as in vivo and in

vitro biochemical and immunological studies,

and as antigens for antibody development

Antibody development

Antibodies developed are used for

immunology experiments and assays and

preclinical antibody drug lead generation

Peptide synthesis

Synthesized peptides are used for protein

structural studies, protein-protein interactions

studies, and as antigens for antibody

development

GenScript service and product offerings –

life sciences research services

20


industrial synthetic biology products

Industrial enzyme products market

• Industrial enzyme can be used in a variety of industries, such as the food processing, feed pharmaceutical, and chemical industries

• Industrial enzyme market globally totals approx. US$4.5bn, Chinese market approx. US$900mn

2016 China market

breakdown by

product category

Enzymes

Household Care

Technical & Pharma

Bioenergy

Feed & Agriculture

Food & Beverage

21

1812555-001

New segment with growth potential

• Launched in 2013• Growing by leveraging our technical expertise in gene synthesis and synthetic biology• Successfully created a series of industrial enzyme products to meet the wide demands and stringent requirements in the

starch processing industry

GenScript’s launched products and pipelines

• Blended glucoamylases: HighDEX series• Advanced Thermo / acid-stable alpha-amylase:SuperLIQ


industrial synthetic biology products

Thermostable

α-amylase

Glucoamylase

Pullulanase

Glucose

isomerase Glucose

oxidase Catalase

Fungal

amylase

22

GenScript has multiple breakthrough IPs and know-how in the area

of synthetic biology

OptimumGeneTM gene design system, which

optimizes gene sequences to achieve increased

levels of production in subsequent protein

expression

1 :as of the Latest Practicable Date

20 registered patents and 48 pending patent applications in the U.S. and the PRC1

CloneEZ® cloning system, which provides a

quick and efficient DNA cloning system

including techniques and reagent kits

GENE-ON-DEMAND® gene synthesis

technology, which is used for high-through put

gene synthesis

GenPlusTM next generation technology,

which synthesizes genes using chip-based

oligos

23

Developed services and products

• MonoexpressTM antibody production• GenPlusTM gene synthesis services• eStain® protein staining related products• eBlot® protein transfer related products• ExpressPlus PAGE gel• Monoaffinity Protein A resins• Antibodies, cytokines, etc.Ongoing R&D projects

• Microbial knock-out and knock-in technology• Next-generation high-throughput gene synthesis• Industrial microbial strain generation and process development• CAR T-Cell Immunotherapy

Continue to invest in R&D

In-house R&D efforts

• More than 140 R&D staff as of Dec. 31, 2016• Over 13% of our R&D staff possess doctoral degrees in

life sciences- related disciplines in biology, molecular

biology, genetics, biological engineering, immunology, etc.

• 4 R&D teams serving four business segments including Biotechnology Research Institute and Molecular Biology

Research Institute

R&D teams

R&D investment

6.1 5.6

7.1

9.5

2013 2014 2015 2016

0

2

4

6

8

10

R&D expenses ($mm)

• As of Dec. 31, 2016, over 22,610 international peer-reviewed journal articles had cited the use of GenScript’s life sciences research and application services and products

• In March 2017, GenScript published promoting result on Science regarding the joint research and development in the Synthetic Yeast Genome Sc2.0 Project

24

Europe

Direct Sales

Austria

Bosnia Herzegovina

Belgium

Bulgaria

Switzerland

Czech

Germany

Denmark

Estonia

Spain

Finland

France

United Kingdom

Gibraltar

Greece

Croatia

Hungary

Ireland

Iceland

Italy

Lithuania

Luxembourg

Latvia

Monaco

Moldova

Malta

Netherlands

Norway

Poland

Portugal

Romania

Scotland

Sweden

Slovenia

Slovakia

Distributors

Belgium

Czech Republic

Denmark

France

Germany

Hungary

Italy

Poland

Spain

Switzerland

The Netherlands

UK

Asia

Direct Sales

The United Arab

Emirates

Armenia

Bangladesh

Bahrain

Palestine

Brunei Darussalam

China

Cyprus

Georgia

Hong Kong

Indonesia

Israel

India

Jordan

Japan

Cambodia

South Korea

Kuwait

Kazakhstan

Sri Lanka

Malaysia

Nepal

Oman

Philippines

Pakistan

Qatar

Saudi Arabia

Singapore

Thailand

Turkey

Taiwan

Vietnam

Distributors

Bangladesh

China

India

Indonesia

Israel

Japan

Korea

Malaysia

Pakistan

Singapore

Taiwan

Turkey

Africa

Direct Sales

Benin

Botswana

Cameroon

Ethiopia

Gabonese

Gambia

Kenya

Morocco

Namibia

Nigeria

Senegal

Swaziland

Tunisia

Uganda

South Africa

ZambiaAustralia

Direct Sales

American Samoa

Australia

Northern Mariana

Islands

New Zealand

French Polynesia

Distributors

Australia

New Zealand

South America

Direct Sales

Argentina

Bolivia

Brazil

Chile

Colombia

Ecuador

French Guiana

Peru

Uruguay

Venezuela

Distributors

Brazil

North America

Direct Sales

Bermuda

Canada

Costa Rica

Cuba

Mexico

Trinidad & Tobago

United States

Puerto Rico

The United States Virgin

Islands

Distributors

Canada

USA

The locations of our major operating

subsidiaries and representative office

Nanjing, China

Hong Kong

New Jersey, US

Tokyo, Japan

Amsterdam, Netherland

Subsidiaries

Representative

office

Global presence

• Founded in New Jersey, USA in 2002• Major operating subsidiaries and representative office in PRC, Hong Kong, U.S.

Japan and the Netherlands

• Established on extensive direct sales network, reaching over 100 countries in North America, Europe, the PRC, Asia Pacific excluding the PRC and Japan, and Japan

25

Strong sales and marketing team

Well trained sales and marketing specialists

Interactive online ordering system

• Our success is attributed to our sales and marketing teams with presence in the U.S, EU, Japan. and the PRC

• Nearly 90% of our U.S. sales and marketing team have doctoral or master’s degrees in life sciences- related

discipline

• Customers navigate directly to our websites to browse online information of most of our services and products

• Our system allows for specification and customization of each order through the option to choose features and

components from an online menu

Purchase order data

On the ground52.6%

Online47.4%

No. of purchase orders as of Dec. 31, 2016

26

Diverse and global customer base

Customer breakdown by customer category1

Pharmaceutical and biotech co.

59.7%

Colleges and universities

19.8%

Research institutes

12.8%

Government institutions

2.9%

Distributors and others

4.8%

1 :for the six months ended Dec. 31, 20162 :as of Dec. 31, 2016

Customer breakdown by region2

5,000+ customers2 which include global pharmaceutical and biotech companies, colleges and universities,

research institutes, government organizations and distributors in over 100 countries

North America53.5%

Europe15.9%

APAC (excl. PRC & Japan)

18.9%

PRC6.9%

Japan3.4%

Others1.4%

27

2016 Financial Results Overview

Achieved strong net profit YoY growth of 51.4%.

Achieved gross margin YoY increase of 0.6 percent.

Core services (life sciences research services) maintained

market leadership and growth momentum.

Revenue of life sciences research services amounted to

US$91.2 million, representing an increase of 18.6%.

Gross profit margin varied from 66.4% for the same period

last year to 65.8% this year, and maintained at a stable level.

Exerted considerable effort in simplifying the internal workflow

of gene synthesis to shorten the turnaround time, enabled to

maintain leadership position in gene synthesis.

Revenue of industrial synthetic biology products increased

by 400.0% to US$7.0 million. We have also been actively

developing new products in the field of special enzymes.

Continued to strengthen online ordering system. A new

and upgraded online ordering system has been launched

to improve the online ordering experience.

Key Highlights of 2016 Results 2016(US$MM)

2015(US$MM)

Change

Revenue 114.7 86.7 32.3%

Gross Profit 76.2 57.1 33.5%

Gross Margin 66.4% 65.8% 0.6

Net Profit 26.5 17.5 51.4%

Net Profit Margin

23.1% 20.01% 3.19

Adjusted EBITDA*

39.5 28.1 40.6%

Adjusted Net Profit*

26.5 14.3 85.3%

Adjusted Net Profit Margin

23.1% 16.5% 6.6

*Note: Adjusted EBITDA=EBITDA + IPO cost - one-off net gains

Adjusted net profit= Net profit + IPO cost - one-off net gains

28

12.8 16.328.1 39.5

21.3% 23.3%

32.4%34.4%

Adjusted EBITDA (US$mm)

Adjusted EBITDA margin

6.4 9.518.9

28.410.7%

13.5%

21.8%24.7%

Adjusted net profit (US$mm)

Adjusted net profit margin

60.1 70.086.7

114.7

2013 2014 2015 2016

38.3 44.157.1

76.2

63.7%63.0%

65.8%66.4%

2013 2014 2015 2016

Gross profit (US$mm)Gross margin

Financial highlights

Gross profit and gross marginRevenue

US$mm

US$mm

Adjusted net profit and adjusted net profit marginAdjusted EBITDA and adjusted EBITDA margin

• Dropping of adjusted EBITDA and adjusted net profit from 2013 to 2014/2015 mainly due to effect of increased operation size and hence increased administrative and other expenses

Note: Adjusted EBITDA=EBITDA + share-based payment + IPO cost - one-off net gains

Adjusted net profit= Net profit + share-based payment + IPO cost - one-off net gains

2013 2014 2015 2016 2013 2014 2015 2016

29

Financial highlights – segment revenue

Preclinical drug development servicesLife sciences research services

55.4 63.276.9

91.2

2013 2014 2015 2016

US$mm

Industrial synthetic biology products1Life sciences research catalog products

1 Note: this segment was launched in 2013 and started sales in 2014

3.2 4.46.0

11.2

2013 2014 2015 2016

US$mm

1.5 2.02.5

5.3

2013 2014 2015 2016

US$mm

0.0 0.3 1.4

7.0

2013 2014 2015 2016

US$mm

–

30

Financial highlights – segment gross profit and gross margin

Preclinical drug development services

35.4 39.951.5

63.2

64.0%63.2%

67.0%

69.3%

2013 2014 2015 2016

US$mm

Life sciences research services

0.9 1.41.6

3.5

58.3%66.5% 64.4% 66.0%

2013 2014 2015 2016

Life sciences research catalog products

US$mm

0 0 0.074

2.019

5.5%

28.8%

2013 2014 2015 2016

Industrial synthetic biology products1

US$mm

1 Note: this segment was launched in 2013 and started sales in 2014

1.9 2.83.9

7.560.2%

63.8%

65.2%

67.2%

0.56

0.58

0.6

0.62

0.64

0.66

0.68

2013 2014 2015 2016

US$mm

31

Financial highlights – key ratios

30 33 3335

2013 2014 2015 2016

Average trade receivables

turnover days

22 2226

35

2013 2014 2015 2016

Average trade payables

turnover daysAverage inventory turnover days

13.3%

16.5%17.9%

17.0%

2013 2014 2015 2016

8.1%

10.7%

13.8% 13.9%

2013 2014 2015 2016

Adjusted ROE1 Adjusted ROA2

1 Adjusted ROE was calculated based on adjusted net profit for the respective periods divided by the average total equity for the same periods and multiplied by 100%2 Adjusted ROA was calculated based on adjusted net profit for the respective periods divided by the average total assets for the same periods and multiplied by 100%

56 6065

61

2013 2014 2015 2016

32



Future Strategies

Company Overview

Research Progress


33

Strategies and development direction

1812555-001

Increase investment in research and development projects like cell therapy and other applications to expand our research and application service and product portfolio;

Enhance production capacity to capitalize on the strong demand for our life sciences research and application services and products;

Pursue strategic acquisitions and cooperation against the cutting-edge techniques to complement organic growth.

Increase penetration into the overseas and PRC markets by expanding and strengthening our sales and marketing team.

Strategic development

34

Investment in Zhenjiang

1812555-001

• Choose Zhenjiang New District as new production base after the careful evaluation.

• The investment agreement. was signed on June 20,2016.

• Investment and registered capital: US$30 million (in two phases).

• Zhenjiang will be one of our major production base in the future while Nanjing will play the

role of R&D base.

• Transfer part of the life sciences research services business.

35

Acquisition of 51% equity interests in Nornoon

• Approx. 140 Employees• The investment fund will be used to enhance Nornon’s

capacity in order to support the rapid growth of its sales

on the future.

• FY2015：Revenue:CNY37.6M,Net profit : CNY4.7M

Nornoon’s plant Nornoon’s facility

• The Investment and Cooperation Agreement was signed on April 6, 2016.

• Acquired 51% of the equity on June 30,2016• The Consideration payable is CNY53M (equivalent to

approximately US$8M).

36



Future Strategies

Company Overview

Research Progress


37

Legend global leading status in multiple myeloma cure

1812555-001

The sixth MM patient

The 18th day after treatmentBefore treatment The 83rd day after treatment

38

1812555-001

Legend global leading status in multiple myeloma cure

39

1812555-001

About Multiple Myeloma

MM is the second most common hematological malignancy after non-Hodgkin’s lymphoma

Morbidity rate

Developed countries

4/100,000

Treatment cost

$132,615/case

Estimated charge

$500,000/case

China

1/100,000

7.1/100,000 4.6/100,000

750,000 patients worldwide

approximately 114,000 new cases annually

40

Achievement on the Synthetic Yeast Genome Sc2.0 Project

The Group has achieved promising results in the joint research and

development effort with various international research and development

institutions in the field of synthetic genomics with the aim to newly design and

synthesize all 16 saccharomyces cerevisiae chromosomes, at the total length

of 12 million base pair (Project Sc2.0).

Under the Joint Research and Development Project, scientists from the Group

and various international institutions have completed the design, assembling

and synthesis of five chromosomes, of which the Group has been involved in

the synthesis of the number six chromosome. The result has been published in

Science, a leading international science journal, entitled “Synthesis,

Debugging, and Effects of Synthetic Chromosome Consolidation: synVI and

Beyond”, on March 10, 2017.

In this project, Genscript synthesized 17 long genes, the average length is

around 10kb and the total length is over 170kb.

1812555-001

41



Future Strategies

Company Overview

Research Progress


42

Investment highlights

• We have achieved world market leadership in the global gene synthesis service market with recognized stature in synthetic biology, and we offer a broad and integrated life sciences research and application service and product

portfolio

• We are a well-known and trusted brand underpinned by our high quality life sciences research and application services and products

• We maintain a strong sales and marketing team and operate an interactive online quotation and ordering platform to support our global sales

• We possess strong research and development capabilities, with a proven track record and a robust service and product pipeline

• We have an experienced and professional management team supported by a strong talent base

We have a complete and mature enzyme production line to serve the broad industrial market

• We have achieved innovative breakthrough for CAR T-Cell Immunotherapy in clinical trial

Documents

Pitchbook US template - Jefferies Group · 2017. 6. 16. · securities to be made in the United States must be made by means of a prospectus that may be obtained from the issuer or