Financial Performance - For the year ended December 31, 2024, the company generated revenue of RMB980.7 million (US$134.3 million), representing an increase of RMB758.7 million, or 341.8%, compared to RMB221.0 million for the year ended December 31, 2023[1012]. - The net loss for the year ended December 31, 2024, was RMB405.7 million (US$55.6 million), compared to a net loss of RMB925.7 million for the year ended December 31, 2023[984]. - The loss for the reporting period decreased by RMB520.0 million, or 56.2%, to RMB405.7 million (US$55.6 million) for the year ended December 31, 2024, down from RMB925.7 million in 2023[1022]. - Other income and gains for the year ended December 31, 2024 decreased by RMB2.0 million, or 3.3%, to RMB57.4 million (US$7.9 million) compared to RMB59.3 million for 2023, primarily due to a decrease in government grants[1014]. Research and Development - Research and development expenses for the year ended December 31, 2024, were RMB947.2 million (US$129.8 million), representing 67.5% of total operating expenses[993]. - Research and development expenses increased by RMB240.3 million, or 34.0%, to RMB947.2 million (US$129.8 million) for the year ended December 31, 2024, up from RMB707.0 million in 2023, driven by increased clinical research expenses[1016]. - The company has ten ongoing U.S. and/or international registrational trials for its six key clinical-stage assets, including two that are FDA-regulated[983]. - The company is the only one in the world with active clinical programs targeting all three known classes of key apoptosis regulators[983]. Expenses and Costs - The cost of sales for the year ended December 31, 2024, was RMB29.1 million (US$4.0 million), a decrease of RMB1.5 million, or 4.8%, compared to RMB30.5 million for the year ended December 31, 2023[1013]. - Selling and distribution expenses for the year ended December 31, 2024, were RMB196.0 million (US$26.9 million), compared to RMB195.4 million for the year ended December 31, 2023[1011]. - Selling and distribution expenses increased by RMB0.6 million, or 0.3%, to RMB196.0 million (US$26.9 million) for the year ended December 31, 2024, attributed to commercialization efforts[1015]. - Finance costs decreased by RMB31.6 million, or 32.9%, to RMB64.5 million (US$8.8 million) for the year ended December 31, 2024, due to lower interest rates on bank borrowings[1018]. Cash Flow and Financing - Net cash used in operating activities for the year ended December 31, 2024 was RMB111.4 million (US$15.3 million), primarily due to a loss before tax of RMB395.3 million (US$54.2 million)[1029]. - Net cash provided by financing activities for the year ended December 31, 2024 was RMB314.8 million (US$43.1 million), primarily from net proceeds of RMB533.9 million (US$73.1 million) from the issuance of shares[1033]. - The company entered into an exclusive option agreement with Takeda Pharmaceuticals in June 2024, receiving US$100.0 million related to intellectual property income and option payment, with potential total payments up to approximately US$1.2 billion[1027]. - The company believes that net proceeds from public and private financings, along with existing cash and cash equivalents, will fund operating expenses and capital expenditures for at least the next 12 months[1293]. Borrowings and Liabilities - As of December 31, 2024, total current borrowings amounted to RMB 779.1 million (US$ 106.7 million), an increase from RMB 616.4 million in 2023[1039]. - The total non-current borrowings decreased to RMB 889.4 million (US$ 121.9 million) in 2024 from RMB 1,179.2 million in 2023[1039]. - The total interest-bearing borrowings as of December 31, 2024, were RMB 1,668.5 million (US$ 228.6 million), down from RMB 1,795.6 million in 2023, reflecting a reduction of approximately 7.1%[1039]. - The total current portion of long-term bank loans was RMB 213.2 million (US$ 29.2 million) in 2024, down from RMB 322.5 million in 2023[1039]. Risk Factors - The company’s liquidity risk arises primarily from mismatches in the maturities of financial assets and liabilities[1291]. - The company does not currently have significant direct foreign exchange risk, but the value of investments in ADSs will be affected by the exchange rate between the U.S. dollar and RMB[1296]. - The RMB has fluctuated against the U.S. dollar significantly and unpredictably in recent years, making future predictions difficult[1297]. - Appreciation of RMB against the U.S. dollar would reduce the RMB amount received from conversions for operational needs[1298]. - Conversely, appreciation of the U.S. dollar against the RMB would reduce the U.S. dollar amounts available for dividends or debt servicing[1298].
Ascentage Pharma Group International(AAPG) - 2024 Q4 - Annual Report