Concord Biotech Ltd

Dear shareholders,

It is with immense pride and privilege that I present Concord Biotech's annual report for FY 2023-24. Our remarkable journey this year has been marked by a robust financial performance, rapid expansion, and a strong commitment for sustaining high growth.

Navigating Global Economic Challenges

The global economic landscape has seen significant volatility and uncertainties. These challenges have tested the resilience of countries and businesses alike. Geopolitical tensions, inflationary pressures, and pandemic aftershocks have reshaped the economic narrative. This has further led to supply chain disruptions, fluctuating commodity prices, and shifts in consumer behaviour. Despite these headwinds, the world economy has demonstrated resilience, with pockets of growth emerging across regions.

India's Economic Ascent

In this challenging environment, India has emerged as an economic leader, providing hope and strength. The RBI forecasts an impressive 7% real GDP growth for FY 2024-25, marking the third consecutive year of such robust projections. India's strong domestic demand, pragmatic reforms, and prudent policies have propelled it to global prominence, attracting attention from investors worldwide. While central banks temporarily paused interest rate hikes as inflation moderated, efforts to sustain downward inflationary pressure limited the scope for rate cuts. India's manufacturing sector, bolstered by initiatives like ‘Make in India' and the PLI scheme, is poised to become a USD 1 Tn industry by FY 2025-26.

Concord Transformative Journey

We started our Company in 2000, focused on a single product. Over the years, our determination and hard work has helped us grow into a leading provider of fermentation-based active pharmaceutical ingredients (APIs) across multiple therapeutic areas. Some of our key milestones in this journey include securing global regulatory approvals, setting up advanced manufacturing facilities, and launching innovative products. The crowning moment was our successful IPO launch in FY 2023-24, which witnessed an overwhelming investor response, strengthening our financial position for sustainable value creation.

Operational Highlights

During the year, we achieved oper milestones significant that fortified our growth trajectory.

The successful regulatory inspections such as ANVISA and other inspections during the year have strengthened our position to cater to regulated and emerging markets globally. We expanded our geographical footprint through applications and registrations in emerging and regulated markets. Our comprehensive 30 fermentation-based API product portfolio will get further strengthened with additional launches, particularly in oncology and anti-infective, over coming years. Our formulation business exhibited remarkable revenue growth, showcasing our operational prowess.

We made significant progress towards commercial production of our injectable facility, which is expected to start in FY 2024-25, enhancing our integrated offerings. Recognising immense potential, we made inroads and progressed towards Contract Development and Manufacturing Organisation (CDMO) space. Financially, we recorded a 19% year-on-year (y-o-y) revenue growth and a 28% increase in profit after tax, while maintaining nearly debt-free status e years, we as on 31^st March 2024, reflecting our financial prudence and operational excellence.

Digital Transformation and Technology Adoption

In the rapidly evolving pharmaceutical landscape, we recognise the importance of embracing digital transformation and leveraging new technologies. We are actively exploring opportunities in areas such as AI, data analytics, and digital platforms to enhance our operational efficiency, decision-making, and customer experiences. This strategic focus will enable us to stay ahead of the curve and serve our stakeholders better.

Commitment to Sustainability

Paving the way for a greener future, our commitment remains steadfast towards sustainable manufacturing processes that have minimal environmental impact. Through advanced water treatment methods, we aim to enhance water quality, lower chemical oxygen demand levels, and ensure cleaner water availability. Moreover, we prioritise environmental protection by minimising our ecological footprint. By planting trees in and around our premises, we actively contribute to reducing harm to ecosystems and preserving biodiversity.

Future Growth Strategies

Our future prospects are promising, with a diverse fermentation-based API portfolio catering to multiple therapeutic areas. Introducing new products, foraying towards CDMO services, and commercialising our injectable facility in FY 2024-25 will fortify our integrated supplier position. Our cutting-edge capabilities, robust R&D, stringent regulatory approvals, and backward integration advantages position us for market leadership, global expansion, and sustainable growth. Over next threeto plan to introduce 3-5 new products, focusing on oncology and anti-infectives, driving long-term revenue growth and market position.

Gratitude Note

I am grateful to our shareholders, customers, employees, and all stakeholders for their support and trust in our vision. Your belief in our journey has been the driving force behind our success. Together, we will continue scaling new heights, and innovating for human health and the global pharmaceutical industry.

As we embark on the next phase, we remain steadfast in our commitment to excellence, innovation, and sustainable growth. We look forward for creating stakeholder's value and contributing to the pharmaceutical industry's advancement while positively impacting people's lives worldwide.

Thank you for your continued support and confidence in our Company.

Yours Sincerely,

Leveraging Nature's Blueprint and Our Expertise to Emerge as a Global Leader