Adlai Nortye(ANL) - 2024 Q4 - Annual Report

Financial Performance - The company reported net losses of US$58.8 million, US$109.2 million (revised), and US$51.9 million for the years ended December 31, 2022, 2023, and 2024, respectively [625]. - The total operating loss for the years ended December 31, 2022, 2023, and 2024 was US$67.3 million, US$72.6 million, and US$52.5 million, respectively [647]. - The company has not generated any revenue from product sales to date, with no revenue reported for the years 2023 and 2024 [629][649]. - Loss for the period decreased from US$109.2 million in 2023 to US$51.9 million in 2024 [654]. Research and Development - Research and development expenses increased from US$54.5 million in 2022 to US$58.2 million in 2023, and decreased to US$44.9 million in 2024 [648]. - AN2025, the lead product, is undergoing a Phase III clinical trial across more than 180 sites in 18 jurisdictions, with patient enrollment completed in November 2023 [623]. - The company plans to submit IND filings for AN8025 and AN9025 in mid-2025 and the second half of 2025, respectively [623]. - Research and development expenses decreased by 22.8%, from US$58.2 million in 2023 to US$44.9 million in 2024, primarily due to a decrease in CRO service fees and payroll expenses [651]. Financial Position and Cash Flow - As of December 31, 2024, the company had US$60.9 million in cash and cash equivalents [662]. - Net cash used in operating activities was US$51.8 million in 2024, compared to US$56.7 million in 2023 [665]. - Net cash from investing activities was US$28.1 million in 2024, primarily due to recovery of investments at amortized cost [668]. - Net cash from financing activities was US$116.2 million in 2023, primarily due to the completion of the initial public offering [670]. Administrative and Other Expenses - The company anticipates increased administrative expenses to support ongoing research and development activities and compliance with public company requirements [631]. - Administrative expenses decreased by 34.9%, from US$15.3 million in 2023 to US$10.0 million in 2024 [650]. - Other income and gains decreased by 7.7%, from US$3.3 million in 2023 to US$3.0 million in 2024 [652]. Financial Liabilities and Risks - Fair value loss on financial liabilities at FVTPL decreased from US$39.2 million in 2023 to US$0 in 2024 [653]. - The fair value of financial liabilities, including convertible loans and warrants, is measured at FVTPL using valuation techniques such as discounted cash flow [688]. - The company is exposed to foreign currency risk due to income and expenditures in both U.S. dollars and Renminbi, with plans to fund expenditures in China using Renminbi [809]. - A 10% depreciation of the Renminbi against the U.S. dollar would result in a decrease of $4.3 million, or 7.1%, in cash and cash equivalents as of December 31, 2024 [810]. Accounting Policies - The company prepares its consolidated financial statements in accordance with IFRS, requiring estimates and assumptions that may differ from actual results [683]. - Research and development costs are expensed as incurred, while product development expenditures are capitalized only when technical feasibility is demonstrated [684]. - Impairment assessments for non-financial assets are conducted at the end of each relevant period, with calculations based on fair value less costs of disposal or value in use [691]. - Deferred tax assets are recognized for unused tax losses, requiring significant management judgment regarding future taxable profits [692]. - The incremental borrowing rate is estimated for lease liabilities when the interest rate implicit in a lease cannot be readily determined [693]. Capital Expenditures - Capital expenditures were US$1.2 million, US$0.2 million, and US$0.2 million in 2022, 2023, and 2024, respectively [675]. Liquidity Management - The company monitors liquidity to maintain adequate cash and cash equivalents for operations and to mitigate cash flow fluctuations [811]. Share-Based Payments - Share-based payments are recognized in employee benefit expense, reflecting the fair value at the grant date determined by an external valuer [686].