Financial Performance - Revenue for 2021 reached $184.441 million, a 46.5% increase from $125.811 million in 2020[8] - Gross profit for 2021 was $66.701 million, representing a gross margin of 36.2%[8] - Adjusted net profit for 2021 was $32.238 million, up 58.5% from $20.346 million in 2020[11] - The company reported a net profit margin of 10.3% for 2021, down from 13.8% in 2020[8] - The adjusted net profit margin for 2021 was 17.5%, compared to 16.2% in 2020, showing an improvement[11] - Revenue for the fiscal year 2021 was approximately $184.4 million, a significant increase from $125.8 million in 2020, reflecting robust growth across all reportable segments[69] - North American revenue rose by 42.5% from approximately $87.9 million in 2020 to approximately $125.3 million in 2021, driven by marketing efforts and recovery in market demand due to COVID-19[105] - Revenue from China increased by 46.8%, from approximately RMB 259.9 million (about $37.9 million) in 2020 to approximately RMB 381.5 million (about $59.1 million) in 2021[105] - The gross profit rose by 60.7% from approximately $41.5 million in 2020 to approximately $66.7 million in 2021, with a gross margin increase from about 33.0% to approximately 36.2%[113] - Net profit increased by 8.6% from approximately $17.4 million for the year ended December 31, 2020, to approximately $18.9 million for the year ended December 31, 2021, with a net profit margin of 10.3%[127] - Adjusted net profit grew by 58.6% from approximately $20.3 million for the year ended December 31, 2020, to approximately $32.2 million for the year ended December 31, 2021, with an adjusted net profit margin of 17.5%[130] - EBITDA increased by 51.8% from approximately $34.0 million for the year ended December 31, 2020, to approximately $51.6 million for the year ended December 31, 2021, with an EBITDA margin of 28.0%[131] - Adjusted EBITDA rose by 73.7% from approximately $35.0 million for the year ended December 31, 2020, to approximately $60.8 million for the year ended December 31, 2021, with an adjusted EBITDA margin of 33.0%[132] Assets and Liabilities - Total assets increased to $475.842 million in 2021, compared to $382.714 million in 2020, reflecting a growth of 24.4%[8] - Total liabilities rose to $152.758 million in 2021, up from $93.842 million in 2020, indicating a 62.7% increase[8] - Cash and cash equivalents decreased to $144.629 million in 2021 from $212.087 million in 2020, a decline of 31.9%[8] - The group's property, plant, and equipment increased by 113.9% from approximately $42.4 million on December 31, 2020, to approximately $90.7 million on December 31, 2021, primarily due to expansion in R&D and manufacturing capacity[138] - Right-of-use assets rose by 39.4% from approximately $39.8 million on December 31, 2020, to approximately $55.5 million on December 31, 2021, mainly due to new leases established to support business growth[139] - Trade and other receivables increased by 55.7% from approximately $27.3 million on December 31, 2020, to approximately $42.5 million on December 31, 2021, driven by business growth[142] - Unbilled revenue grew by 59.7% from approximately $7.7 million on December 31, 2020, to approximately $12.3 million on December 31, 2021, reflecting business expansion[144] - The group's cash and cash equivalents decreased from approximately $212.1 million on December 31, 2020, to approximately $144.6 million on December 31, 2021, due to payments for property, plant, and equipment, and acquisitions[148] Operational Expansion - The company plans to continue expanding its market presence and investing in new technologies[2] - Future outlook remains positive, with expectations of further revenue growth driven by new product developments and market expansion strategies[2] - The company expanded its laboratory space by 71,000 square feet in Pennsylvania and is renovating a new 25,000 square feet bioanalytical lab in California, expected to be operational in Q1 2022[19] - The company aims to triple its capacity in China with the completion of renovations at its Suzhou and Shanghai facilities, expected to be operational in Q1 2022[19] - The company plans to focus on operational efficiency, integration of new acquisitions, and expansion of existing service capabilities in 2022[20] - The company has established ten facilities in North America as of December 31, 2021, to support its operations and client needs[73] - The company has ten facilities in China as of December 31, 2021, including four in Shanghai and four in Suzhou[75] - A new laboratory facility of approximately 200,000 square feet was leased in Wuhan, China, to expand early drug discovery capacity[100] Acquisitions and Partnerships - Three companies were acquired during the year, including Ocean Ridge, Quintara, and 合研生物科技, enhancing the company's capabilities in DNA sequencing and drug discovery[19] - Frontage Labs acquired Ocean Ridge Biosciences, Inc. for $1,000,000, enhancing its genomics services portfolio[85] - The acquisition of Quintara Discovery, Inc. involved a maximum cash consideration of $72,000,000, aimed at expanding ADME analysis capabilities[88] - Frontage Labs purchased a 70% stake in 合研生物 for approximately $6,349,000, enhancing drug discovery services[91] - An investment of $5,333,000 was made for a 48.57% stake in 誠弘製藥, expanding capabilities in API commercial manufacturing[92] - The acquisition of Experimur LLC was completed for up to $76,000,000, strengthening capabilities in pharmacology safety assessment and toxicology services[95] - Following the acquisition of Experimur, Frontage Labs aims to enhance its service offerings through additional scientists, equipment, and facilities[96] Employee and Management - The company employed over 1,300 staff across more than 22 locations in three countries as of December 31, 2021, despite a challenging labor market[19] - As of December 31, 2021, the group had a total of 1,322 employees, with 567 in North America and 755 in China[160] - Employee costs for the year ended December 31, 2021, were approximately $73.7 million, up from $49.8 million for the year ended December 31, 2020, representing a year-over-year increase of about 47.5%[160] - Approximately 85% of employees hold a bachelor's degree or higher, with 469 employees holding advanced degrees[160] - The group has implemented various employee training programs, including onboarding and ongoing training, to enhance knowledge and technical skills[161] - The management team has extensive experience in pharmaceutical development and has held significant positions in various companies prior to joining the group[163][168] - The management team includes individuals with diverse backgrounds in finance, pharmaceuticals, and research, enhancing the company's strategic capabilities[172] Strategic Focus and Future Outlook - The company plans to enhance operational efficiency through capacity utilization and optimization strategies aimed at improving profit margins[67] - The company aims to expand its global business presence by selectively establishing sales, marketing, and service infrastructure in regions with low penetration and significant growth opportunities, particularly outside North America and China[66] - The company intends to invest in internal growth and strategic acquisitions to strengthen its scientific capabilities and enhance global product development[66] - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[177] - The company is exploring new strategies for market expansion and product development to drive future revenue growth[177] - The ongoing COVID-19 pandemic has positively impacted revenue, operating profit, and cash flow, with clients increasingly utilizing strategic outsourcing for early research programs[69] Compliance and Governance - The company successfully passed multiple regulatory inspections, including assessments by the DEA and FDA at its facilities in Pennsylvania and Ohio, with no significant adverse findings reported[76] - The company emphasizes animal welfare and has implemented standard operating procedures to ensure humane treatment of animals, with no compliance reports received from the USDA or FDA during the reporting period[77] - The company has a commitment to compliance and regulatory oversight, ensuring adherence to industry standards[194] - The board actively participates in risk management and audit committees, ensuring robust governance and oversight[177] - The company is committed to maintaining high professional standards across its various board roles, ensuring effective governance[177]
方达控股(01521) - 2021 - 年度财报