Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 28.75, indicating a potential upside of 124.6% from the current price of HKD 12.80 [1][6]. Core Insights - The core business segments are expected to recover in the second half of 2024, with new business lines anticipated to reach a growth inflection point. The adjusted revenue and net profit for 2024 are in line with expectations, with significant growth expected in the life sciences and CDMO businesses in 2025 [2][6]. - The company has shown a strong recovery momentum in its core business segments, particularly in the life sciences sector, which reported a year-on-year revenue increase of 10%. The protein business experienced nearly 50% growth, enhancing the delivery capacity of gene services [6][7]. Financial Performance Summary - Revenue projections for 2025 are set at USD 912 million, reflecting a 28.6% increase from previous forecasts. The gross profit is expected to reach USD 541 million, a 58.1% increase, with a gross margin of 59.3% [5][13]. - The net profit attributable to shareholders is projected at USD 239 million for 2025, with a net profit margin of 26.2%, significantly up from 9.0% in the previous year [5][13]. - The company anticipates a strong performance in 2025, with guidance indicating a 10-15% revenue growth in the life sciences business and a 15-20% growth in the CDMO segment [6][7]. Stock Performance and Valuation - The stock has shown a year-to-date increase of 30.08%, with a 52-week high of HKD 17.28 and a low of HKD 8.23 [4][6]. - The SOTP (Sum of the Parts) valuation model estimates the total valuation at approximately USD 8.795 billion, with the life sciences services segment contributing significantly to the overall valuation [7][6].

Genscript Biotech (01548) H2 2024 Earnings Call March 12, 2025 08:40 AM ET Company Participants Shiniu Wei - Chief Financial OfficerWeihui Shao - CEO & COORay Chen - President of GenScript Life Science Group Conference Call Participants Daisy Cheng - AnalystLinhai Percy Zhao - Equity Research AnalystNone - Analyst Operator Good day and thank you for standing by. Welcome to Gentscript BioTech twenty twenty four Annual Results Conference Call. At this time, all participants are in a listen only mode. After th ...

Core Insights - The company reported a revenue increase to approximately $594.5 million for the year ending December 31, 2024, representing a 6.1% growth from about $560.5 million in 2023, driven by enhanced brand influence in the European and American markets and the introduction of new services and products [1] - The company achieved a significant profit turnaround, moving from a loss of approximately $355.1 million in 2023 to a profit of about $2.9 billion in 2024, largely due to the demerger of its cell therapy business [1] - Adjusted net profit from continuing operations grew by 2.9% to approximately $59.8 million [1] Revenue Composition - Life sciences services and products accounted for 75.8% of total revenue, biopharmaceutical development services made up 14.8%, and industrial synthetic biology products represented 9.0% [1] Expense Analysis - Sales and distribution expenses increased by 10.0% to approximately $88.1 million, attributed to increased marketing efforts and investment in commercial talent [1] - Administrative expenses rose by 7.1% to about $114.4 million, mainly due to capacity expansion and enhanced administrative functions [1] - Research and development expenses grew by 2.1% to approximately $53.8 million [2]

Financial Data and Key Metrics Changes - The group's revenue increased by 6.1% year over year to approximately $590 million [38] - The net profit recorded was around $2.9 billion, primarily due to a one-time investment gain from the deconsolidation of Legend [38] - Adjusted net profit from continuing operations remained stable at approximately $59.8 million [38] - The Life Science Group's revenue was approximately $455 million, representing a 10.2% year-over-year growth [38] - Adjusted operating profit for the Life Science Group was about $90.4 million, reflecting a 15.5% increase year over year [39] Business Line Data and Key Metrics Changes - The Protein segment, representing about 25% of Life Sciences revenue, achieved nearly 50% revenue growth in 2024 [6][22] - ProBio's revenue was $95 million, experiencing a decline of about 13.2% year over year [39] - Bestime's revenue grew by about 24.6% to $53.7 million, achieving an adjusted operating profit of approximately $2.1 million [39][44] Market Data and Key Metrics Changes - Revenue from industrial customers increased largely due to the development of more multinational companies [40] - Revenue from China accounted for about 19% of Bestime's revenue, indicating a strong market presence [34] - The addressable market for protein regions is over $4.5 billion, with growing demand driven by antibody drug discovery and AI-driven protein engineering [22] Company Strategy and Development Direction - The company aims for full-year revenue growth for the Life Science business to be around 10% to 15% in 2025 [49] - ProBio is targeting a revenue growth of 15% to 20% for 2025, excluding the impact of the Lenovo deal [49] - Bestime is targeting constant currency revenue growth of 20% to 25% with a gross margin around 45% [49] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the second half of 2024, driven by robust demand from AI-related applications and antibody drug research [40] - The company is confident in maintaining growth trends due to continuous R&D investment and expansion into overseas markets [56] - Management expressed optimism about improving profitability in the coming years despite short-term margin pressures [64] Other Important Information - The company has over 250 patents and more than 480 patents in the application process, positioning it as a global leader in the industry [11] - The company joined the United Nations Global Compact, solidifying its commitment to sustainability [12] - A new facility for Bestime is under construction, representing a total investment of RMB 800 million, slated for completion by 2027 [37] Q&A Session Summary Question: Order trend and outlook for 2025 - Management expects faster growth in Europe and the U.S., with moderate growth in China and Asia Pacific [54] Question: Net margin outlook for Life Science segments - Life Science business is targeting growth of 10% to 15% with flat gross margin [55] Question: Impact of global tariffs - Management believes tariffs will not significantly impact business results, focusing on quality and delivery speed [62][63] Question: Gross profit margin for Life Science Group - Short-term profit margins may decrease due to local production expansion, but long-term profitability is expected to improve [64] Question: CapEx guidance for 2025 - Overall CapEx spending will be roughly flat compared to 2024, with increases in specific segments like Bestime [76]

Financial Performance - The adjusted net profit for the continuing operations was approximately $59.8 million, an increase of 2.9% compared to approximately $58.1 million in the previous period[7]. - The revenue from continuing operations was approximately $594.5 million, representing a 6.1% increase from approximately $560.5 million in the prior year[6]. - The gross profit for continuing operations was approximately $272.1 million, remaining stable compared to the previous year[6]. - The company reported a profit of approximately $2.9 billion for the reporting period, compared to a loss of approximately $355.1 million in the previous period[6]. - The loss from continuing operations was approximately $173.8 million, compared to a profit of approximately $162.9 million in the prior year[6]. - The company achieved a significant gain of approximately $3.2 billion from the merger with Legend, which contributed to the overall profit[9]. - The basic earnings per share for the year was 139.63 cents, compared to a loss of 4.53 cents in the previous year[10]. - The total comprehensive income for the year was approximately $2.79 billion, compared to a loss of approximately $335.6 million in the previous year[12]. - The company reported a pre-tax loss of $170,797,000 for the year ended December 31, 2024, compared to a profit of $168,885,000 in 2023[31]. - The company reported a significant profit increase due to the revenue from the deconsolidated cell therapy business, with profits rising to approximately $2.9 billion from a loss of approximately $355.1 million in the previous year[76]. Revenue Breakdown - Revenue for the period was $186,522 thousand, with a net loss of $(71,524) thousand[56]. - Revenue from the life sciences services and products segment accounted for 75.8% of total revenue, while biopharmaceutical development services and industrial synthetic products accounted for 14.8% and 9.0%, respectively[76]. - Revenue from the life sciences services and products segment was approximately $454.9 million, a 10.2% increase from approximately $412.9 million in the previous year[79]. - Revenue from biopharmaceutical development services was approximately $95.0 million, a decrease of 13.2% from approximately $109.5 million in the previous period[82]. - Revenue from industrial synthetic biological products increased by 24.6% to approximately $53.7 million, up from approximately $43.1 million in the previous period[85]. Expenses and Liabilities - The company incurred research and development expenses of approximately $53.8 million, an increase from approximately $52.7 million in the previous year[9]. - The total administrative expenses for 2024 were $114,375,000, an increase from $106,820,000 in 2023, indicating a rise of approximately 7%[25]. - Selling and distribution expenses rose by 10.0% to approximately $88.1 million, primarily due to increased marketing efforts and investment in commercial talent[91]. - The financing costs rose to $8,032,000 in 2024 from $5,739,000 in 2023, marking an increase of approximately 40%[33]. - The company incurred a fair value loss on preferred shares amounting to $123,581,000 in 2024, compared to a gain of $129,207,000 in 2023[25]. Cash Flow and Assets - Net cash flow from operating activities improved to $75,647 thousand in 2024 from a negative $286,911 thousand in 2023[17]. - Investment activities resulted in a net cash outflow of $1,456,363 thousand in 2024, compared to $357,728 thousand in 2023, indicating increased investment[17]. - Total current liabilities decreased from $494,811 thousand in 2023 to $307,342 thousand in 2024, a reduction of approximately 38%[16]. - Cash and cash equivalents decreased dramatically from $1,446,403 thousand in 2023 to $131,990 thousand in 2024, a decline of about 90.9%[17]. - The company reported a cash outflow from operating activities of $61,955,000 for the nine months ended September 30, 2024, compared to an outflow of $393,276,000 for the entire year of 2023, showing a significant reduction in cash burn[42]. Equity and Assets - Total equity increased from $2,044,354 thousand in 2023 to $4,323,362 thousand in 2024, reflecting a growth of approximately 111.1%[16]. - The company reported a significant reduction in trade receivables from $217,443 thousand in 2023 to $116,291 thousand in 2024, a decrease of about 46.6%[14]. - The company’s total liabilities decreased from $1,342,948 thousand in 2023 to $954,907 thousand in 2024, indicating a reduction of approximately 29%[16]. - The total assets as of September 30, 2024, amounted to $1,735,825,000, a decrease from $1,848,609,000 as of December 31, 2023[38]. - The group’s property, plant, and equipment decreased by 14.8% to approximately $518.0 million, primarily due to the deconsolidation of Legend and impairment losses[108]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[9]. - The company plans to invest in R&D to accelerate innovation in antibody drug development, AI drug development, and other advanced therapies[80]. - The company aims to enhance global production capacity and provide localized supply chain solutions in the U.S., Singapore, and mainland China[80]. - The company is diversifying its global production footprint and supply chain partners to mitigate risks associated with geopolitical factors and international trade agreements[142]. - The company continues to seek potential partnerships to advance its cell therapy pipeline and explore new business opportunities[154]. Governance and Compliance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and responsibility[165]. - The audit committee, consisting of four independent non-executive directors, is responsible for reviewing and supervising the company's financial reporting system and risk management[168]. - The company has adopted a self-developed "Standard Code for Securities Transactions by Directors and Relevant Persons," ensuring compliance with the standards set out in the listing rules[167]. - The company will continue to review and strengthen its corporate governance practices to ensure compliance with the corporate governance code[166]. Workforce and Employee Investment - Employee compensation expenses totaled approximately $264.7 million, accounting for about 44.5% of total revenue, reflecting a commitment to talent investment[156]. - The workforce consists of approximately 5,568 employees, with 53.6% in production and 11.2% in sales and marketing[156].

Investment Rating - The report maintains a "Buy" rating for King’s Ray Bio (1548 HK) with a target price of HKD 28.75, indicating a potential upside of 140% from the current price of HKD 11.98 [2][3]. Core Insights - King’s Ray Bio is expected to achieve a significant increase in net profit in 2024, primarily driven by a one-time unrealized gain of approximately USD 3.2 billion from the sale of Legend Biotech, which exceeds previous estimates of USD 2-3 billion [1]. - The company is projected to fully enter the profit zone starting in 2024, with a recovery in the GCT (Gene Cell Therapy) business expected to continue through 2025-2026, leading to a revenue growth rate of around 20% for non-cellular business [1]. - The improvement in the company's fundamentals, coupled with a recovery in investor sentiment, is anticipated to drive valuation recovery, as geopolitical factors and favorable policies for innovative drug payments are expected to enhance investment sentiment in the CXO sector [1]. Summary by Sections Financial Performance - The report highlights that the adjusted net profit for non-cellular business in 2024 will remain stable compared to 2023, with no significant changes expected [1]. - The tax losses from Legend Biotech prior to its merger will be accounted for in non-continuing operations, while post-merger, it will be accounted for using the equity method [1]. Market Outlook - The report notes a strong recovery trend in new orders for protein/antibody drugs and GCT, with first-half 2024 new orders recovering to 13 and 24 respectively, compared to 10 and 21 in the first half of 2023 [1]. - The sentiment in the market is improving, with King’s Ray's stock price rising 34% from its year-to-date low, significantly outperforming the Hang Seng Medical Index and the Hang Seng Index, both of which increased by 19% [1].

Investment Rating - The report maintains a "Buy" rating for King’s Ray Bio (1548 HK) with a target price of HKD 28.75, indicating a potential upside of 140% from the current price of HKD 11.98 [2][3]. Core Insights - King’s Ray Bio is expected to achieve a significant increase in net profit in 2024, primarily driven by a one-time unrealized gain of approximately USD 3.2 billion from the sale of Legend Biotech, which exceeds previous estimates of USD 2-3 billion [1]. - The company is projected to fully enter the profit zone starting in 2024, with a recovery in the GCT (Gene Cell Therapy) business expected to continue through 2025-2026, leading to a revenue growth rate of around 20% for non-cellular business [1]. - The improvement in the company's fundamentals, coupled with a recovery in investor sentiment, is anticipated to drive valuation recovery, as geopolitical factors and favorable policies for innovative drug payments are expected to enhance investment sentiment in the CXO sector [1]. Summary by Sections Financial Performance - The report highlights that the adjusted net profit for non-cellular business in 2024 will remain stable compared to 2023, with no significant changes expected [1]. - The tax loss from Legend Biotech prior to its merger will be accounted for in non-continuing operations, while post-merger, it will be accounted for using the equity method [1]. Market Outlook - The report notes a strong recovery trend in new orders for protein/antibody drugs and GCT, with first-half 2024 new orders recovering to 13 and 24 respectively, compared to 10 and 21 in the first half of 2023 [1]. - The sentiment in the market is improving, with the company's stock price rising 34% from its low this year, outperforming the Hang Seng Medical Index and the Hang Seng Index, both of which increased by 19% [1].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 28.75, indicating a potential upside of 123.2% from the current closing price of HKD 12.88 [1][4]. Core Insights - The recent decision to deconsolidate Legend Biotech and treat it as an associate company is expected to have a positive one-time profit impact, clarifying the company's profit trajectory [1]. - The accounting treatment change will result in a non-cash tax-exempt gain estimated between USD 2 billion to USD 3 billion, reflecting the fair market value of the investment in Legend Biotech [1]. - The company anticipates achieving profitability starting in 2024, driven by a clearer reflection of its non-cell therapy business performance and a recovery in revenue growth [1]. Financial Forecasts - Revenue projections for 2024-2026 have been adjusted to USD 1.056 billion, USD 709 million, and USD 842 million, respectively, with a significant increase in net profit forecasted for 2024 at USD 2.293 billion [2][3][6]. - The gross profit for 2024 is expected to be USD 567 million, with a gross margin of 53.7% [3][6]. - The net profit margin is projected to improve significantly, reaching 217.2% in 2024, indicating a strong recovery from previous losses [6]. Market Performance - The company's stock has experienced a year-to-date decline of 35.15%, with a 52-week high of HKD 24.45 and a low of HKD 8.23 [2][4]. - The market capitalization stands at approximately HKD 27,050.70 million, with an average daily trading volume of 27.76 million shares [2][4]. Valuation Metrics - The price-to-earnings (P/E) ratio for 2024 is projected at 1.5, indicating a low valuation relative to expected earnings [2][6]. - The book value per share is expected to rise to USD 1.70 by 2024, with a price-to-book (P/B) ratio of 0.98 [2][6]. Conclusion - The report highlights a significant turnaround potential for the company following the deconsolidation of Legend Biotech, with expectations of improved financial performance and a clear path to profitability starting in 2024 [1][3][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 23.95 [3][9] Core Views - CARVYKTI achieved Q3 2024 sales of USD 286 million, a 54% quarter-on-quarter increase, with cumulative sales for the first three quarters reaching USD 629 million [3] - The company is expected to achieve full-year sales of over USD 900 million for CARVYKTI, driven by new capacity ramp-up and rapid commercialization of 2-4L indications [3] - The SOTP valuation for the company is HKD 51 billion, with non-cell therapy business valued at HKD 26.45 billion and cell therapy business at HKD 24.54 billion [9] Cell Therapy Business - CARVYKTI sales in Q1/Q2/Q3 2024 were USD 157 million, USD 186 million, and USD 286 million, respectively, showing significant growth compared to TECVAYLI [4] - The company expects to support an annual capacity of 10,000 cases by the end of 2025, with new capacities from Belgium and collaborations with Novartis [4] - R&D expenses for the cell therapy division are expected to peak in 2024, with most costs for CARTITUDE-5 likely completed this year [4] Non-Cell Therapy Business - Life sciences revenue is expected to grow by 10-15% annually, with operating profit growing faster than revenue [5] - CDMO revenue is projected to decline by 10-15% due to investment pressures and market competition [5] - Synthetic biology revenue is forecasted to grow by 25-35%, with adjusted operating margins stable at 4-5% [5] Financial Forecasts - Revenue for 2024E/2025E/2026E is projected at USD 1.166 billion, USD 1.82 billion, and USD 3.02 billion, respectively [6] - Net profit attributable to shareholders is expected to be USD -118.4 million, USD 146.38 million, and USD 595.54 million for 2024E/2025E/2026E [6] - EPS for 2024E/2025E/2026E is forecasted at USD -0.06, USD 0.07, and USD 0.28, respectively [6] Valuation Methodology - The non-cell therapy business is valued at HKD 26.45 billion based on a 2025E PS of 5.00x, a 20% discount to comparable companies [10] - The cell therapy business is valued at HKD 24.54 billion, based on a 20% discount to the Nasdaq-listed Legend Biotech's market capitalization [12]

Company Overview and Operations - The company's professional team consists of 7,284 members as of June 30, 2024[3] - The company operates in over 100 countries and regions globally[3] - The company has established four major platforms: Life Science Services and Products, Biologics CDMO, Industrial Synthetic Products, and Global Cell Therapy[3] - The company's CDMO platform provides end-to-end services for biologics discovery, development, and commercial production[3] - Legend Biotech, a subsidiary, focuses on developing novel cell therapies for oncology and other indications, with its lead candidate cilta-cel co-developed with Janssen for multiple myeloma[3] - Bestzyme, another subsidiary, leverages enzyme engineering for products in feed, alcohol, food, and home care industries[4] - The company's Life Science Services and Products division offers gene synthesis, oligonucleotide synthesis, peptide synthesis, protein production, antibody development, and life science equipment[3] - The company's mission is to use biotechnology to improve human and environmental health, with a focus on customer needs and long-term development[3] - The company aims to optimize operational processes for high-quality end-to-end delivery and enhance strategic collaboration with business partners[3] - The company's global presence includes legal entities in China, the US, Hong Kong, Japan, Singapore, the Netherlands, Ireland, the UK, South Korea, Belgium, Spain, and Australia[3] - The company has 7,284 employees as of June 30, 2024, with 53.0% in production, 8.7% in sales and marketing, 14.9% in administration, 11.8% in R&D, and 11.6% in management[56] - The company is focusing on accelerating the clinical and commercial development of CARVYKTI and enhancing production capacity for frontline patient treatment[53] - The company is exploring new opportunities in synthetic biology, aiming to serve a wide range of industrial applications with potential health and environmental benefits[53] - The company plans to continue leveraging investigator-initiated trials (IIT) in China for cost-effective clinical data generation and may use IIT data for U.S. clinical trials when beneficial[53] - The company has over 100,000 internationally peer-reviewed academic journal articles citing its services and products as of June 30, 2024[52] - The company acquired a plasmid and viral vector production facility in the United States to address customer concerns about supply chain risks and data storage/protection[52] - The company secured its first 2000L-scale GMP order for antibody production and a viral vector production order to support a CAR-T product's Biologics License Application submission[52] - The company is focusing on differentiated services and solutions to gain market share and accelerate growth in the CDMO industry[52] - The company is mitigating geopolitical risks by diversifying its global production footprint and supply chain partnerships[47] Financial Performance - Revenue increased by 43.5% to $561.4 million, with non-cell therapy revenue slightly decreasing by 0.2% to $281.1 million and cell therapy revenue significantly increasing by 156.0% to $280.3 million[9] - Gross profit surged by 75.4% to $307.0 million, with non-cell therapy gross profit slightly decreasing by 0.9% to $133.5 million and cell therapy gross profit significantly increasing by 323.4% to $175.3 million[9] - Net loss narrowed to $215.6 million from $245.8 million in the previous period, with adjusted net loss improving to $69.0 million from $162.0 million[9] - Life science services and products revenue increased by 9.6% to $222.4 million, with adjusted gross profit rising by 8.5% to $119.9 million and adjusted operating profit increasing by 23.8% to $47.8 million[13] - Cell therapy segment accounted for 49.9% of total revenue, with external revenue reaching $280.3 million, a significant increase from $109.5 million in the previous period[11] - Adjusted gross margin for life science services and products remained stable, driven by platform innovation, automation upgrades, and improved production efficiency in Singapore, China, and the US[13] - Adjusted operating loss for the cell therapy segment improved to $119.4 million from $205.9 million, reflecting better cost management and operational efficiency[12] - Non-cell therapy segment's adjusted net profit decreased by 13.1% to $29.2 million, while the cell therapy segment's adjusted net loss improved to $98.3 million from $195.7 million[9] - The company's overall adjusted net loss improved significantly, driven by better performance in the cell therapy segment and cost control measures[9] - Revenue from biopharmaceutical development services decreased to $40.4 million from $65.1 million, reflecting a shift in focus towards higher-margin cell therapy operations[12] - Biologics development services revenue decreased by 37.9% to $40.4 million, with adjusted gross profit down 69.7% to $5.9 million, and adjusted gross margin dropping from 30.0% to 14.7%[14] - Industrial synthetic biology products revenue increased by 43.4% to $26.1 million, with adjusted gross profit up 52.8% to $11.0 million, and adjusted gross margin rising from 39.4% to 42.2%[15] - Cell therapy revenue surged by 155.7% to $280.5 million, driven by CARVYKTI sales and milestone payments from Janssen and Novartis agreements[16] - Total group revenue increased by 43.5% to $561.4 million, primarily due to growth in life sciences and industrial synthetic biology products, as well as CARVYKTI sales and milestone payments[18] - Group gross profit rose by 75.4% to $307.0 million, with adjusted gross profit increasing by 73.3%[19] - Sales and distribution expenses increased by 19.5% to $97.3 million, mainly due to cilta-cel sales costs and preparation for second-line indications[20] - Administrative expenses grew by 12.9% to $120.2 million, driven by capacity expansion and enhanced administrative functions[21] - R&D expenses increased by 14.0% to $236.4 million, primarily due to ongoing investments in cilta-cel and solid tumor projects[22] - Adjusted operating loss for cell therapy decreased to $119.4 million from $205.9 million, with adjusted R&D costs at $196.3 million[16] - Fair value loss of $113.5 million recorded due to changes in the fair value of Probio A and C class preferred shares and warrants[23] - The company's net loss for the reporting period was approximately $215.6 million, compared to $245.8 million in the previous period[27] - Cash and cash equivalents as of June 30, 2024, were approximately $399.3 million, down from $1.4 billion as of December 31, 2023[27] - Capital expenditures during the reporting period included $33.7 million for prepaid cooperative assets and $100.3 million for construction and purchase of property, plant, and equipment[28] - The company held significant investments in financial products with floating expected annual yields ranging from 2.5% to 5.9%[29] - As of June 30, 2024, the company's financial assets at fair value through profit or loss totaled $195.29 million, up from $137.51 million as of December 31, 2023[30] - Income tax expenses increased from approximately $1.1 million in the previous period to $10.0 million in the current reporting period, primarily due to valuation allowances on deferred tax assets from CDMO business[26] - The company had $231.0 million in available but unused bank credit facilities as of June 30, 2024[27] - The equity portion of Probio Class B preferred shares was valued at approximately $1.6 million, while the liability portion was valued at approximately $40.1 million as of June 30, 2024[25] - The company's investment in credit-linked notes with J.P. Morgan Structured Products B.V. yielded a fair value increase from $17,000,000 to $17,852,000, reflecting a 5.01% gain[32] - The company's investment in non-principal guaranteed floating income products with China Merchants Bank showed a fair value increase from RMB 90,000,000 to RMB 13,016,000, reflecting a 3.07% gain[32] - The company's investment in Yuanming Prudence SPC — Healthcare Fund I resulted in a fair value increase from $261,000 to $294,000, reflecting a 12.64% gain[33] - The company's investment in Ruifu Medical Health Fund resulted in a fair value decrease from $9,370,000 to $8,152,000, reflecting a 12.99% loss[33] - The company recorded investment income of approximately $1.3 million from financial assets measured at fair value through profit or loss during the reporting period[34] - The company recorded a fair value gain of approximately $1.7 million from financial assets measured at fair value through profit or loss during the reporting period[34] - The company's investment in 7G BIOVENTURES I, L.P. resulted in a fair value decrease from $3,000,000 to $2,474,000, reflecting a 17.53% loss[33] - The company's investment in Fund B resulted in a fair value increase from $3,785,000 to $3,967,000, reflecting a 4.81% gain[33] - The company's investment in AffyXell Therapeutics Co., Ltd. resulted in a fair value decrease from $810,000 to $710,000, reflecting a 12.35% loss[33] - The company's investment in Shenzhen Aimabio Technology Co., Ltd. resulted in a fair value increase from $1,123,000 to $1,614,000, reflecting a 43.72% gain[33] - GS China borrowed a short-term interest-bearing loan of RMB 47.0 million (approximately USD 6.6 million) from Citibank with a fixed annual interest rate of 2.4%[36] - GS China, Nanjing Probio, and Jiangsu Probio borrowed short-term interest-bearing loans totaling RMB 174.1 million (approximately USD 24.4 million) from China Merchants Bank with fixed annual interest rates ranging from 2.38% to 2.6%[36] - Jiangsu Probio borrowed long-term interest-bearing loans totaling RMB 96.1 million (approximately USD 13.5 million) from China Construction Bank and Jiangsu Bank, with floating annual interest rates based on LPR, secured by leased land[36] - Legend received a prepayment of USD 250.0 million from a partner, with interest totaling USD 41.6 million, based on 12-month SOFR plus a spread adjustment[36] - The group's current ratio was approximately 4.2, and the debt-to-asset ratio was approximately 45.2% as of June 30, 2024[39] - The group plans to expand production capacity globally, including in the US, Singapore, and mainland China, to meet strong customer demand[41] - The group plans to expand CARVYKTI production capacity in North America and Europe following anticipated FDA and EC approvals for second-line treatment of MM[42] - The company has no outstanding foreign currency forward or option contracts as of June 30, 2024[43] - The company has approximately $170.8 million in financial products exposed to fair value interest rate risk, excluding floating-rate bank balances and fixed-rate time deposits[44] - A 50 basis point increase or decrease in interest rates would result in a $0.4 million decrease or increase in pre-tax loss, respectively, based on fair value interest rate risk sensitivity analysis[45] - A 50 basis point increase or decrease in interest rates would result in a $0.7 million increase or decrease in pre-tax loss, respectively, based on cash flow interest rate risk sensitivity analysis[45] - The company's trade and other receivables are subject to independent credit assessments, with quarterly reviews of prepayment requirements and credit limits[46] - The company's CARVYKTI product generated approximately $343 million in net trade sales during the reporting period[51] - Revenue increased to $561.371 million in 2024, up 43.5% from $391.311 million in 2023[109] - Gross profit rose to $306.986 million in 2024, a 75.4% increase from $175.048 million in 2023[109] - Net loss for the period improved to $215.631 million in 2024, compared to $245.757 million in 2023[109] - Research and development expenses increased to $236.384 million in 2024, up 14% from $207.331 million in 2023[109] - Total non-current assets grew to $1,117.544 million in 2024, up from $1,034.191 million in 2023[113] - Cash and cash equivalents decreased to $399.297 million in 2024, down from $1,446.403 million in 2023[113] - Total current liabilities increased to $532.997 million in 2024, up from $494.811 million in 2023[113] - Total equity decreased to $1,824.207 million in 2024, down from $2,044.354 million in 2023[115] - Exchange differences on translation of foreign operations resulted in a loss of $63.054 million in 2024, compared to $15.777 million in 2023[111] - Total comprehensive loss for the period was $278.685 million in 2024, compared to $261.534 million in 2023[111] - The company reported a net loss of $175.115 million for the six months ended June 30, 2024, compared to a net loss of $93.581 million for the same period in 2023[117][119] - Total comprehensive income for the period was a loss of $207.5 million, primarily driven by the net loss and foreign exchange translation differences of $32.385 million[117] - The company's total equity decreased from $2.044 billion as of January 1, 2024, to $1.824 billion as of June 30, 2024, mainly due to the period's net loss and foreign exchange translation differences[117] - Cash flow from operating activities improved significantly, with a net inflow of $79.855 million for the six months ended June 30, 2024, compared to a net outflow of $187.168 million for the same period in 2023[120] - The company recognized a fair value loss of $113.509 million on preferred shares and warrants during the six months ended June 30, 2024[120] - Share-based compensation expenses increased to $53.349 million for the six months ended June 30, 2024, compared to $38.859 million for the same period in 2023[120] - The company's trade receivables and other receivables decreased by $61.38 million during the six months ended June 30, 2024, indicating improved collections[120] - Inventory levels increased by $26.739 million during the six months ended June 30, 2024, reflecting higher production or slower sales[120] - The company's contract liabilities increased by $23.708 million during the six months ended June 30, 2024, suggesting higher advance payments from customers[120] - Investment activities used a net cash flow of $1,133,054 thousand, compared to $454,543 thousand in the same period last year[121] - Financing activities generated a net cash flow of $5,565 thousand, significantly lower than $1,020,019 thousand in the previous year[121] - Cash and cash equivalents decreased by $1,047,634 thousand, ending at $399,297 thousand[121] - The company adopted revised Hong Kong Financial Reporting Standards, including HKFRS 16 and HKAS 1 amendments, with no material financial impact[124][126] - The company operates in five reportable segments: Life Science Services & Products, Biologics Development Services, Industrial Synthetic Biology Products, Cell Therapy, and Management Services[127] - Total revenue for the six months ended June 30, 2024, reached $561.371 million, compared to $391.311 million in the same period in 2023, representing a significant increase[132] - Revenue from external customers in the Life Sciences Services and Products segment was $217.722 million, while the Biologics Development Services segment contributed $37.132 million[129] - The Cell Therapy segment generated the highest revenue from external customers at $280.320 million, followed by the Life Sciences Services and Products segment at $217.722 million[129] - Gross profit for the Life Sciences Services and Products segment was $118.945 million, while the Cell Therapy segment recorded a gross profit of $175.324 million[129] - R&D expenses for the Cell Therapy segment were the highest at $213.590 million, reflecting significant investment in new technologies and product development[129] - The company reported a pre-tax loss of $205.588 million, primarily driven by losses in the Cell Therapy and Experience Management segments[129] - Revenue from customer contracts increased to $389.455 million in 2024 from $296.583 million in 2023, while revenue from partner contracts rose to $171.735 million from $94.432 million[132] - The Biologics Development Services segment saw a decrease in revenue from external customers, dropping to $37.132 million in 2024 from $64.652 million in 2023[129][131] - The Industrial Synthetic Biology Products segment recorded a modest increase in revenue from external customers, rising to $26.109 million in 2024 from $18.113 million in 2023[129][131] - The company's total gross profit for the six months ended June 30, 2024, was $306.986 million, compared to $175.048 million in the same period in 2023[129][131] - Other income and gains totaled $112.565 million for the six months ended June 30, 2024, a significant increase from $31.301 million in the same period in 2023, driven by foreign exchange gains and fair value gains on financial assets[136] - Pretax loss for the period was impacted by a $37.480 million impairment provision for long-term assets, which was not present in the prior year[137] - Employee benefit expenses, including salaries and wages, increased to $255.673 million from $210.101 million year-over-year, reflecting higher compensation costs[137] - The company recorded a fair value gain of $113.509