Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to RMB 1,986.7 million, down 7.8% from RMB 2,155.6 million in 2023[3]. - Gross profit for the same period was RMB 687.4 million, a decline of 6.9% compared to RMB 738.5 million in the previous year, with a gross margin of 34.6%[3][11]. - The net profit for 2024 was RMB 222.0 million, a significant turnaround from a net loss of RMB 99.8 million in 2023[3][11]. - Adjusted net profit under non-IFRS was RMB 314.6 million, representing a 50.6% increase from RMB 208.8 million in the prior year[3][11]. - The revenue of Langhua Pharmaceutical in 2024 totaled RMB 1,175.7 million, a decrease of about 10.3% year-on-year, primarily due to upgrades in the raw material drug workshop and delays in some CDMO orders[19]. - The company reported a pre-tax profit of RMB 295,705,000 for the year ended December 31, 2024, compared to a pre-tax loss of RMB 55,953,000 in 2023[124]. - The company reported a net foreign exchange loss of RMB 16,179,000 in 2024, compared to a gain of RMB 51,014,000 in 2023[1]. - The company reported a total of RMB 2,061,559,000 in customer contract revenue for the year ending December 31, 2023, with a significant contribution from CDMO and commercialization services[133]. Client and Market Growth - The number of service clients increased to 2,465 during the reporting period[11]. - The number of CRO clients increased to 1,568, with the top ten clients contributing 24.4% of revenue, while overseas revenue accounted for about 87.3% of total revenue, showing a year-on-year decline of approximately 3.9%[16]. - Revenue from external customers in the United States decreased to RMB 795,831,000 in 2024 from RMB 812,789,000 in 2023, reflecting a decline of 2.4%[126]. - The company experienced a significant drop in revenue from mainland China, which fell to RMB 267,227,000 in 2024 from RMB 323,671,000 in 2023, a decline of 17.5%[126]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[188]. Operational Efficiency and Strategic Initiatives - The operational efficiency improvements contributed to an increase in operating profit margins during the year[11]. - The management team is focused on leveraging strategic partnerships to enhance governance, operations, and investment strategies[12]. - The company aims to enhance the synergy between CRO and CDMO businesses to accelerate project funnel effects and build an open collaboration platform for global biopharmaceutical innovators[43]. - The company is focusing on integrating new technologies and expanding its service offerings to meet customer demands and drive continuous growth in CRO revenue[39]. - The company has established a Boston subsidiary to strengthen its global presence and enhance international cooperation networks[15]. Research and Development - The company delivered over 82,716 protein structures cumulatively by the end of 2024, with approximately 17,681 new deliveries in the year, maintaining its leading position in the protein structure analysis field[15]. - The company has identified over 2,098 independent drug targets, with 112 new targets delivered in the reporting period[27]. - The company has developed proprietary technology for membrane protein expression, enabling successful preparation of challenging membrane protein targets[30]. - The company has successfully developed a highly competitive early drug screening platform, V-DEL, which includes a DNA-encoded compound library with over 100 billion compounds[32]. - The R&D budget has been increased by 18% to support the development of new therapies and enhance pipeline diversity[188]. Financial Stability and Investments - As of December 31, 2024, total cash and cash equivalents amounted to RMB 941.6 million, a decrease of 9.1% from RMB 1,036.3 million as of December 31, 2023, primarily due to net repayment of bank loans[65]. - The debt-to-asset ratio was approximately 45.9% as of December 31, 2024, down from 50.5% as of December 31, 2023, indicating improved financial stability[66]. - The company has successfully exited from several incubated companies, realizing investment returns of nearly RMB 162.5 million, with a total of 93 startups incubated[23]. - The company has secured bank loans for the acquisition of a 20% stake in Langhua Pharmaceutical, using 100% equity of Langhua Pharmaceutical as collateral[183]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[89]. - The audit committee has reviewed the financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting principles[94]. - Ernst & Young has verified the financial figures for the year ending December 31, 2024, ensuring consistency with the audited financial statements[95]. - The board has announced changes to the nomination committee, with new appointments aimed at improving corporate governance[99]. Future Outlook - The company expects growth in the CRO industry to benefit from a recovery in global investment and financing trends[10]. - The company anticipates a revenue guidance of 50 million in revenue, with a focus on innovative drug delivery systems[188].
维亚生物(01873) - 2024 - 年度业绩