Financial Performance - Revenue increased by 67.9% from approximately $50.7 million for the six months ended June 30, 2020, to approximately $85.1 million for the six months ended June 30, 2021[8]. - Adjusted net profit for the six months ended June 30, 2021, was $14.5 million, compared to $5.5 million for the same period in 2020, representing a 163.5% increase[5]. - Gross profit increased by 103.4% from approximately $14.6 million for the six months ended June 30, 2020, to approximately $29.7 million for the six months ended June 30, 2021, with a gross margin rise from 28.9% to 34.8%[37]. - Net profit surged by 102.2% from approximately $4.5 million to approximately $9.1 million, with a net profit margin of 10.6% compared to 8.8% in the previous period[44]. - EBITDA rose by 80.7% from approximately $11.9 million to approximately $21.5 million, with an EBITDA margin of 25.3%[47]. - Adjusted EBITDA increased by 112.4% from approximately $12.1 million to approximately $25.7 million, with an adjusted EBITDA margin of 30.1%[48]. - Total comprehensive income for the period was $9,874,000, compared to $3,784,000 in the previous year, marking a 161% increase[100]. - The company reported revenues of approximately $85.1 million for the reporting period, a significant increase from approximately $50.7 million in the same period of 2020[19]. Assets and Liabilities - Total assets as of June 30, 2021, were $408.6 million, up from $382.7 million as of December 31, 2020, reflecting a growth of 6.9%[5]. - Cash and cash equivalents decreased to $182.6 million as of June 30, 2021, from $212.1 million as of December 31, 2020[5]. - Property, plant, and equipment increased by 54.2% from approximately $42.4 million to $65.4 million due to expansion in R&D and manufacturing capacity[52]. - Trade and other receivables increased by 32.2% from approximately $27.3 million to $36.1 million, driven by business growth[56]. - The company's total liabilities as of June 30, 2021, were $48,759 thousand, a slight increase from $48,315 thousand at the end of 2020, representing an increase of approximately 0.9%[102]. Revenue Breakdown - North America revenue rose by 53.8% from approximately $36.6 million to approximately $56.3 million during the same period[31]. - Revenue from China increased by 88.4%, from approximately RMB 99.1 million (about $14.1 million) to approximately RMB 186.7 million (about $28.8 million)[31]. - Revenue contribution from innovative drug projects in China exceeded 50% for the six months ending June 30, 2021, with future contract revenue contribution from innovative drugs accounting for over 60% of total future contract revenue in China[9]. - Revenue from the top five customers grew by 61.4% to approximately $21.3 million, accounting for 25.0% of total revenue for the six months ended June 30, 2021[34]. - Revenue from external customers reached $85,125 thousand for the six months ended June 30, 2021, compared to $50,659 thousand for the same period in 2020, representing a 68% increase[128]. Operational Expansion - The company is focused on expanding its operations in North America and China, capitalizing on growth opportunities in these markets[8]. - The chemical unit's new GMP kilo-scale laboratory in Shanghai, covering 7,000 square feet, is expected to commence operations in the second half of 2021, enhancing the ability to provide GMP active pharmaceutical ingredient (API) manufacturing services[10]. - A new microbiology laboratory in Exton, Pennsylvania, has been completed, offering comprehensive microbiological development and quality control testing services[11]. - The construction of an 89,000 square foot facility in Suzhou is underway, aimed at expanding manufacturing capabilities for various dosage forms, expected to partially commence operations in the first half of 2022[11]. - The company plans to begin construction on a new 25,000 square foot facility in Hayward, California in the second half of 2021[15]. Employee and Governance - The company has over 1,000 employees and operates 20 facilities across three countries[8]. - As of June 30, 2021, the group had a total of 1,133 employees, with 503 located in the US and Canada, and 630 in China[62]. - Employee costs for the six months ended June 30, 2021, were approximately $33.1 million, compared to $22.9 million for the same period in 2020, representing a 44% increase[62]. - The company has adhered to the corporate governance code, with some deviations due to the dual role of the executive director as both chairman and CEO[70]. Acquisitions and Investments - The acquisition of Ocean Ridge Biosciences, Inc. in April 2021 enhanced the company's genomics services, including novel therapies related to biofluid analysis and RNA sequencing[15]. - Frontage Labs acquired Quintara Discovery, Inc. for a maximum cash consideration of $72 million, which includes $44.1 million as the base cash amount at closing and up to $9 million contingent on performance targets over three years[28]. - The company completed the acquisition of Ocean Ridge Biosciences, Inc. for $1,000,000, enhancing its capabilities in genomic services for the healthcare and life sciences sectors[178][179]. - The company acquired Acme Bioscience, Inc. for a total consideration of $27,397,000, with fair value adjustments pending as of the acquisition date[118]. COVID-19 Impact - The company’s operations were significantly disrupted by the COVID-19 pandemic, but delivery efficiency improved from Q3 2020 onwards, positively impacting revenue and cash flow[19]. - The ongoing impact of the COVID-19 pandemic on the company's future performance remains uncertain, with potential disruptions to operations and supply chains[21]. - The company continues to implement measures to mitigate the adverse effects of the COVID-19 pandemic on its projects and client relationships[20]. Compliance and Reporting - The company confirmed that the unaudited condensed consolidated financial statements fairly reflect its financial position and performance for the reporting period[74]. - The company is committed to adhering to international accounting standards and has received a clean review report from auditors[97]. - The financial statements are prepared in accordance with International Accounting Standards and the applicable disclosure requirements of the Hong Kong Stock Exchange[110].
方达控股(01521) - 2021 - 中期财报