Disruptions from China’s strict Covid control measures this year have hurt not only consumer-facing companies, but also the country’s growing field of contract research outsourcing (CRO) companies that provide R&D, testing and manufacturing services to drug makers. But don’t tell that to Joinn Laboratories (China) Co. Ltd. (6127.HK; 603127.SH), a leader in the field, which has maintained strong growth so far this year in defiance of market expectations.
Showing off its apparent Covid immunity, Joinn last week pre-announced blockbuster results for its first three quarters of 2022, registering a net profit of 607 million yuan ($83.7 million) to 657 million yuan for the period, up about 150% year-on-year. That means the company has already exceeded its entire profit for last year, which totaled 557 million yuan.
Joinn attributed the strong performance to its continued rising investment in drug R&D, which has boosted trust among its customers. Also contributing to the gains were increased production capacity, higher capacity utilization through better project scheduling, and continuous efforts to strengthen its upstream supply chain.