Financial Performance - Revenue for the year ended December 31, 2022, was $250.4 million, representing a 35.8% increase from $184.4 million in 2021[2] - Gross profit was $89.2 million with a gross margin of 35.6%, compared to $66.7 million and a gross margin of 36.2% in 2021, indicating a 33.7% increase in gross profit[2] - Adjusted EBITDA for the year was $73.2 million, with an adjusted EBITDA margin of 29.3%, up from $60.8 million and a margin of 33.0% in the previous year, reflecting a 20.4% increase[2] - Net profit for the year was $25.9 million, maintaining a net profit margin of 10.3%, compared to $18.9 million and the same margin in 2021, marking a 37.0% increase[2] - Basic earnings per share (EPS) increased to $0.0126 from $0.0090, representing a 40.0% growth year-over-year[2] - The company reported a pre-tax profit of $36.10 million for 2022, compared to $25.07 million in 2021, indicating a year-over-year increase of 43.9%[19] - The company's earnings for 2022 were $25,735,000, an increase of 39.5% compared to $18,428,000 in 2021[32] - Adjusted net profit rose by 12.4% to approximately $36.2 million, with an adjusted net profit margin of 14.4% in 2022, down from 17.5% in 2021[88] - The company's tax expense increased by 67.2% to approximately $10.2 million, attributed to higher pre-tax income and effective tax rates[86] - EBITDA for the year ended December 31, 2022, was approximately $69.9 million, a 35.5% increase from $51.6 million in 2021[89] Assets and Liabilities - Total assets as of December 31, 2022, were $453.1 million, up from $402.8 million in 2021[6] - Current assets decreased to $171.8 million from $211.1 million, while current liabilities increased to $97.5 million from $73.0 million, resulting in a net current asset value of $74.4 million[6] - Non-current assets increased to $378.8 million from $264.8 million, driven by significant investments in property, plant, and equipment[7] - The company reported a total equity of $335.8 million, up from $323.1 million in 2021, indicating a solid capital position[9] - The company reported cash and cash equivalents of approximately $31,000 as of December 31, 2022, down from approximately $825,000 in 2021[39] - Trade receivables from third parties increased to $50,081,000 in 2022 from $37,465,000 in 2021, reflecting a growth of 33.6%[35] - The total customer advances increased to $34,797,000 in 2022 from $23,632,000 in 2021, representing a growth of 47.2%[42] - The company's property, plant, and equipment increased by 26.8% from approximately $90.7 million as of December 31, 2021, to approximately $115.0 million as of December 31, 2022, primarily due to capacity expansion in R&D and manufacturing[93] - Goodwill rose by 108.7% from approximately $71.5 million as of December 31, 2021, to approximately $149.2 million as of December 31, 2022, mainly due to the acquisition of Experimur and Clinical[95] Revenue Breakdown - Total revenue for the year ended December 31, 2022, was $250.36 million, an increase of 35.7% from $184.44 million in 2021[14] - Laboratory testing services generated $93.44 million in revenue, up 13.9% from $82.61 million in 2021[14] - Preclinical research services saw significant growth, with revenue increasing to $102.33 million from $47.09 million, representing a 117.9% increase[14] - Early clinical/bioequivalence services revenue rose to $14.32 million, a 33.9% increase from $10.74 million in 2021[14] - The chemical, manufacturing, and control services segment generated $24.40 million, a decrease of 13.4% from $28.05 million in the previous year[14] - Revenue from laboratory testing in North America reached $71.22 million, while in China it was $22.22 million, contributing to a total of $93.44 million for this segment[18] - Revenue from innovative drug projects contributed over 70% to total revenue in China for the year ending December 31, 2022, with future contract revenue contribution at approximately 80%[56] - Revenue from new facilities and service platforms accounted for approximately 14% of the company's total revenue in China during the reporting period[61] Operational Developments - The company operates primarily in North America and China, with all consolidated assets and liabilities located in these regions[17] - The company established 11 laboratories and production facilities in China, covering a total area of 810,000 square feet, significantly enhancing service capabilities[56] - The company commenced operations at a 215,000 square feet preclinical animal research facility in Suzhou in January 2022, achieving AAALAC certification by March 2023[57] - A new 34,000 square feet pharmacology unit in Wuhan began operations in June 2022, enhancing the company's drug efficacy research capabilities[57] - The Shanghai Lingang laboratory, covering 67,000 square feet, started operations in September 2022, significantly improving DMPK and bioanalysis services[57] - The company integrated RMI Laboratories, LLC into its DMPK unit, creating a center of excellence for metabolite identification and analysis[53] - The company expanded logistics services to support global clinical trials, enhancing reliability and efficiency in sample management[54] - The company is focused on enhancing capabilities in bioanalysis, biomanufacturing, and biomarker analysis across its operations in the U.S. and China[54] Employee and Governance - The company has approximately 1,700 employees across 23 facilities in three countries[50] - Employee costs, including director remuneration, rose to $112.89 million in 2022 from $83.77 million in 2021, an increase of 34.8%[27] - The company has adopted various employee incentive plans to reward contributions from eligible participants[105] - The company has established a training system for all employees to enhance their knowledge and skills, including management training for senior management[105] - The company has complied with corporate governance codes, with a recent change in leadership to separate the roles of Chairman and CEO[113] Market and Strategic Initiatives - The company aims to become a leading contract research organization by leveraging its expanding expertise and capabilities[50] - The company plans to enhance interactions between its China and North America markets to leverage its unique advantages in both regions[61] - The company is exploring market expansion opportunities in Southeast Asia, targeting a 30% growth in that region by 2024[124] - The company plans to launch three new products in the next quarter, aiming for a 25% increase in market share[124] - The company anticipates continued growth in the life sciences industry driven by increasing complexity in drug development and a rising demand for specialized expertise[73] Compliance and Quality Assurance - The quality assurance team has implemented a risk-based internal audit plan to manage regulatory requirements and customer expectations[63] - During the reporting period, the group's facilities in the US and Canada underwent inspections by various regulatory bodies, with a noted issue leading to a $125,000 settlement with the DEA[64] - The group emphasizes animal welfare and adheres to strict procedures to maintain animal rights, with no compliance reports received from the USDA or FDA during the reporting period[65] Future Outlook - The company has set a performance guidance of RMB 1.8 billion for the next fiscal year, indicating a projected growth of 20%[124] - The company is investing in new technologies to enhance operational efficiency, with an expected ROI of 15% over the next two years[124] - The company plans to utilize the remaining unutilized proceeds by December 31, 2023, for organic expansion and capacity broadening[107]
方达控股(01521) - 2022 - 年度业绩