GENSCRIPT BIO(HK:01548)2019-04-15 12:59Revenue and Financial Performance - The company generated approximately $141.0 million from bioscience services and products, accounting for about 61.0% of total revenue for the year ended December 31, 2018[20]. - For the year ended December 31, 2018, the group's revenue increased by 51.4% to approximately $231.0 million from about $152.6 million in 2017[25]. - Gross profit for the year ended December 31, 2018, rose by 51.5% to approximately $158.5 million, compared to about $104.6 million in 2017[25]. - The adjusted net profit attributable to the company's owners increased by 4.2% to approximately $30.1 million, up from about $28.9 million in 2017[25]. - The overall revenue for the reporting period was approximately $231.0 million, an increase of 51.4% compared to $152.6 million for the year ended December 31, 2017[36]. - Gross profit was approximately $158.5 million, up 51.5% from about $104.6 million for the year ended December 31, 2017[36]. - The profit for the period was approximately $20.8 million, a decrease of 23.0% from about $27.0 million for the year ended December 31, 2017[36]. Business Segments and Contributions - The biopharmaceutical development services contributed approximately $20.7 million, representing about 9.0% of total revenue[20]. - Industrial synthetic biological products generated approximately $17.7 million, making up about 7.7% of total revenue[20]. - Cell therapy products accounted for approximately $51.6 million, which is about 22.3% of total revenue[20]. - Revenue from the four major segments was approximately $141.0 million (bioscience services), $20.7 million (biopharmaceutical development), $17.7 million (industrial synthetic biology), and $51.6 million (cell therapy), representing 61.0%, 9.0%, 7.7%, and 22.3% of total revenue respectively[36]. Research and Development - Research and development expenses surged by 309.4% to approximately $74.1 million, with $52.1 million related to the cell therapy segment[25]. - The company aims to enhance and innovate its technology, production, management, and marketing strategies in the coming years[27]. - The company aims to further invest in R&D and capacity in cell therapy, expanding its allogeneic platform to treat various diseases[32]. - The company has invested significantly in R&D and talent acquisition to strengthen its technological advantages and ensure sustainable long-term growth[35]. Market Presence and Sales Strategy - The company maintains a strong sales and marketing team, contributing to stable and continuous growth[20]. - The company has established a vast direct sales network across over 100 countries, enhancing market presence[21]. - Sales from North America, China, Europe, Asia Pacific (excluding China and Japan), Japan, and others were approximately $132.7 million, $48.0 million, $18.5 million, $12.9 million, $4.4 million, and $14.5 million, respectively[21]. - The company aims to enhance its sales and marketing team to increase market share in the U.S. and China, particularly for the LCAR-B38M product[67]. Corporate Governance and Management - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[71]. - The company emphasizes compliance with applicable laws and regulations through mandatory training for employees[70]. - The company has a structured board with designated committees, including a remuneration committee and a nomination committee[72]. - The company is focused on strategic and operational management, with key personnel having extensive backgrounds in finance, biotechnology, and corporate governance[76][78]. Employee and Workforce Development - The company expanded its workforce to over 2,620 employees, a 35.6% increase from 2017, with over 73.6% holding a bachelor's degree or higher[30]. - The total employee compensation expense for the reporting period was approximately $94.0 million, accounting for about 40.7% of the company's total revenue[69]. - The company invests in continuous education and training programs for employees to enhance their skills and knowledge[70]. Strategic Initiatives and Future Plans - The company aims to seek strategic acquisition opportunities to enhance internal capacity and accelerate overall growth[33]. - The company plans to enhance its CDMO service platform and expand GMP capacity to integrate biopharmaceutical development and production capabilities[33]. - The company aims to apply its proprietary technology across various fields, from basic life sciences research to translational biomedicine R&D, industrial synthetic products, and cell therapy solutions[88]. Financial Position and Assets - As of December 31, 2018, the company's total assets reached approximately $916.8 million, with cash and cash equivalents amounting to about $494.6 million[26]. - The net asset value increased significantly to approximately $493.3 million by the end of 2018, compared to $228.3 million in 2017[26]. - Cash and cash equivalents increased significantly to $494.6 million in 2018 from $123.9 million in 2017, with no restricted funds or borrowings reported[59]. Compliance and Risk Management - The company has implemented procedures to ensure compliance with regulatory requirements, minimizing the risk of business license revocation[163]. - The company has established risk management procedures to identify and prioritize key risks related to its operations and strategic objectives[193]. - The board of directors is responsible for maintaining adequate risk management and internal control systems to protect shareholder investments and company assets[192]. Shareholder Relations and Corporate Actions - The company confirmed that it maintained a sufficient public float of over 25% of its issued share capital as required by the Listing Rules[154]. - The company made charitable donations totaling $54,332 to non-profit organizations for community purposes during the year ending December 31, 2018[151]. - The company has not made any significant changes to its articles of association during the reporting period[199].