Financial Performance - Total revenue for 2024 was $254.9 million, a decrease of 1.9% from $259.9 million in 2023[3] - Gross profit for 2024 was $69.8 million, down 11.0% from $78.4 million in 2023, resulting in a gross margin of 27.4%[3] - Net profit for 2024 plummeted to $0.6 million, a decline of 94.4% compared to $10.7 million in 2023, leading to a net profit margin of 0.2%[3] - Adjusted EBITDA for 2024 was $54.0 million, down 14.6% from $63.2 million in 2023, with an adjusted EBITDA margin of 21.2%[3] - Basic earnings per share (EPS) for 2024 was $0.0004, a decrease of 92.5% from $0.0053 in 2023[3] - The company's revenue decreased by 1.9% from approximately $259.9 million for the year ended December 31, 2023, to approximately $254.9 million for the year ended December 31, 2024[52] - The group's revenue decreased by 1.9% from approximately $259.9 million for the year ended December 31, 2023, to approximately $254.9 million for the year ending December 31, 2024[77] - The group's gross profit decreased by 11.0% from approximately $78.4 million for the year ended December 31, 2023, to approximately $69.8 million for the year ended December 31, 2024, with a gross margin decline from 30.2% to 27.4%[81] - Net profit dropped from approximately $10.7 million for the year ended December 31, 2023, to approximately $0.6 million for the year ended December 31, 2024, with a net profit margin decline from 4.1% to 0.2%[89] Revenue Breakdown - Revenue from the Drug Discovery segment was $31.2 million, down 6.9% from $33.5 million in 2023[18] - Revenue from the Drug Development segment was $81.9 million, a decrease of 13.7% from $95.1 million in 2023[18] - Revenue from the Laboratory Testing segment increased to $132.5 million, up 7.6% from $123.7 million in 2023[18] - Revenue from North America and Europe was $198.2 million, while revenue from China was $56.7 million, contributing to the total revenue[23] - Revenue from drug discovery decreased from approximately $33.5 million to approximately $31.2 million, while revenue from drug development decreased from approximately $95.1 million to approximately $81.9 million[78] - Revenue from China decreased by 5.9% from approximately RMB 428.9 million (approximately $60.8 million) to approximately RMB 403.5 million (approximately $56.7 million)[77] Expenses and Costs - Research and development expenses for 2024 were $5.6 million, slightly reduced from $6.0 million in 2023[5] - Selling and marketing expenses increased by 3.7% from approximately $8.2 million for the year ended December 31, 2023, to approximately $8.5 million for the year ended December 31, 2024, due to increased marketing and business development efforts[84] - Administrative expenses rose by 5.6% from approximately $44.6 million for the year ended December 31, 2023, to approximately $47.1 million for the year ended December 31, 2024, largely due to the consolidation of Nucro and Frontage Europe[85] - Financial costs increased by 35.2% from approximately $7.1 million for the year ended December 31, 2023, to approximately $9.6 million for the year ended December 31, 2024, due to increased borrowing for expansion and operations[87] Assets and Liabilities - Total assets decreased to $553.6 million in 2024 from $571.9 million in 2023[7] - The company's cash and cash equivalents decreased to approximately $44.1 million as of December 31, 2024, down from $53.2 million in 2023, attributed to payments for property, plant, and equipment[101] - The company's asset-liability ratio increased to 33.0% as of December 31, 2024, compared to 26.2% in 2023, mainly due to significant financing activities to support business expansion[107] - The company's lease liabilities decreased to approximately $58.7 million as of December 31, 2024, from $63.7 million in 2023[104] Shareholder Actions - The board of directors did not recommend any final dividend for the reporting period[3] - The company repurchased 50,788,000 shares at a cost of $11,203 thousand in 2024, compared to 15,848,000 shares at a cost of $4,231 thousand in 2023[48] - The company is committed to creating long-term value for shareholders through its share repurchase program, reflecting confidence in its business outlook[113] Strategic Initiatives - The company has restructured its operations into two main divisions: Global Drug Discovery and Development Services, and Global Laboratory Services[15][16] - The strategic adjustment aims to enhance operational efficiency and promote innovation across all business segments[16] - The company aims to enhance service capabilities through organic growth and strategic acquisitions despite macroeconomic fluctuations[53] - The company plans to invest RMB 200 million in new technology development to improve operational efficiency[124] Market Position and Growth - North America holds a 35% market share in the global contract research organization services market, maintaining the company's leading position[54] - The global contract research organization market is projected to grow from $83.49 billion in 2024 to $192.68 billion by 2032, with a CAGR of 11.1%[75] - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2025[124] Research and Development - The company established a liposome complex structure analysis system for the world's first liposome T cell engager drug, aiding in its clinical approval[63] - The company enhanced its ADC analysis platform and launched comprehensive biomarker testing services to support new drug development in the biopharmaceutical sector[64] - The Drug Metabolism and Pharmacokinetics Department expanded its product offerings to meet the growing demand from clients for complex discovery and development projects, with successful human absorption, metabolism, and excretion studies using 14C labeled drug substances in 2024[56] Compliance and Governance - The company has adhered to the corporate governance code principles applicable to it during the reporting period[115] - The audit and risk management committee reviewed the accounting principles and policies adopted by the group, confirming that the audited consolidated financial statements fairly reflect the group's financial position and performance for the reporting period[116] - The company adheres to international financial reporting standards, ensuring transparency and accuracy in financial reporting[124]
方达控股(01521) - 2024 - 年度业绩