Financial Performance - Revenue for the six months ended June 30, 2023, was $128.4 million, an increase of 8.0% from $118.9 million in the same period of 2022[2]. - Gross profit decreased to $39.0 million with a gross margin of 30.4%, down from $44.2 million and a gross margin of 37.2% in 2022, representing a decline of 11.8%[2]. - Adjusted EBITDA for the period was $29.8 million, a decrease of 14.1% compared to $34.7 million in the prior year[2]. - Net profit for the six months was $4.6 million, a significant decline of 64.9% from $13.1 million in the same period last year[2]. - Basic earnings per share decreased to $0.0023, down 63.5% from $0.0063 in 2022[2]. - The company reported a total comprehensive income of $4.6 million for the period, down from $13.1 million in the previous year[4]. - Adjusted net profit for the six months ended June 30, 2023, was $10,223 thousand, a decrease of 45.7% from $18,768 thousand in the same period last year[68]. - The company’s EBITDA for the six months ended June 30, 2023, was $27,500 thousand, a decrease of 15.4% from $32,500 thousand in the prior year[70]. - Adjusted EBITDA decreased by 14.1% from approximately $34.7 million for the six months ended June 30, 2022, to approximately $29.8 million for the six months ended June 30, 2023, with an EBITDA margin decline from 29.2% to 23.2%[71]. Revenue Breakdown - Laboratory testing services generated $51.909 million in revenue, up from $45.867 million in the previous year, reflecting a growth of about 13.4%[17]. - Early clinical/bioequivalence services saw significant growth, with revenue increasing to $9.672 million from $3.448 million, marking an increase of approximately 180.5%[17]. - Preclinical research services contributed $50.849 million, slightly up from $48.878 million, indicating a growth of about 4%[17]. - Chemical, manufacturing, and control services reported a decline in revenue to $10.826 million from $13.191 million, a decrease of approximately 18.0%[17]. - North America contributed $99,983 thousand to total revenue, while China contributed $28,373 thousand, indicating North America's dominance in revenue generation[19]. - Revenue from the United States was $95,030 thousand, accounting for 74.0% of total revenue, compared to $89,113 thousand and 74.9% in the prior year[58]. Assets and Liabilities - Total assets as of June 30, 2023, were $456.8 million, compared to $453.1 million as of December 31, 2022[6]. - Current liabilities decreased to $80.2 million from $97.5 million at the end of 2022, improving the net current asset position[6]. - The total equity attributable to owners of the company was $336.323 million, compared to $333.079 million in the previous period, showing a slight increase[8]. - Total equity reached $338.959 million, up from $335.848 million, reflecting an increase of approximately 0.6%[8]. - Trade receivables from third parties amounted to $53,610,000 as of June 30, 2023, compared to $50,081,000 as of December 31, 2022[33]. - Trade payables to third parties increased to $11,209 thousand as of June 30, 2023, compared to $10,923 thousand as of December 31, 2022[37]. Operational Highlights - The company continues to focus on enhancing operational efficiency and exploring market expansion opportunities[3]. - The company continues to focus on providing laboratory and related services to pharmaceutical and pesticide companies, with a strong emphasis on research and development[9]. - The company aims to leverage its growing expertise to become a global contract research organization, providing high-quality services to clients[46]. - The company has established a total of 11 laboratories and production facilities in China, covering an area of 810,000 square feet, enhancing its service capabilities[52]. - The company has initiated new services in cell and gene therapy (CGT), providing analytical development and GMP analysis services for large molecules and CGT products[50]. Governance and Compliance - The company has adhered to the corporate governance code principles, except for the separation of roles between the Chairman and CEO as per code C.2.1[92]. - The Audit and Risk Management Committee reviewed the interim performance and confirmed that the financial statements fairly reflect the group's financial position[94]. - The company is committed to maintaining compliance with the listing rules and has made necessary disclosures regarding director changes[93]. - The company has a strong governance framework in place, ensuring effective risk management and internal controls[94]. Future Outlook - The company plans to expand and enhance existing capacity to meet anticipated growth service demands, allocating approximately 20% of the net proceeds for this purpose[88]. - The company has recognized the importance of market trends in shaping its business outlook, particularly in the evolving life sciences industry[86]. - Despite a significant decline in investment activities in the global and Chinese biopharmaceutical capital markets since 2023, the demand for R&D outsourcing services remains on the rise[51].
方达控股(01521) - 2023 - 中期业绩