Financial Performance - In 2023, Asymchem Laboratories achieved a total revenue growth of 23.67% year-on-year, excluding the impact of large orders[7]. - The company's revenue for the year ended December 31, 2023, was approximately RMB 7,781,436 thousand, a decrease of 23.94% compared to RMB 10,230,186 thousand for the year ended December 31, 2022[18]. - Gross profit for the reporting period was approximately RMB 3,959,636 thousand, down 18.06% from RMB 4,832,588 thousand in the previous year[18]. - Net profit attributable to shareholders for the reporting period was approximately RMB 2,268,811 thousand, a decline of 31.28% from RMB 3,301,635 thousand in the prior year[18]. - The gross margin for the reporting period improved to 50.89%, compared to 47.24% in the previous year[19]. - Adjusted net profit attributable to shareholders was RMB 2,302.09 million, a decrease of 23.23% compared to 2022[80]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[165]. - The company reported a 5% increase in gross margin, reaching 45% for the fiscal year[165]. Business Growth and Development - Revenue from small molecule CDMO business grew by 75.56% year-on-year, indicating strong collaboration with multinational pharmaceutical companies[7]. - The company celebrated its 25th anniversary in 2023, marking significant commercial breakthroughs and major orders in the small molecule CDMO sector[7]. - The company has increased its production capacity in China, including commercial production capabilities for peptides and ADCs, to meet the demands of emerging businesses[13]. - The company reported a significant increase in employee count from 3,840 at the end of 2019 to 9,788 currently, reflecting its growth trajectory[16]. - The company aims to expand its global presence and is optimistic about the recovery of domestic markets and the growth of emerging businesses[13]. - The company aims to enhance operational efficiency and reduce costs while expanding its market presence in Europe and Japan[24]. - The company aims to diversify its multinational pharmaceutical client base and has made significant breakthroughs in the Japanese market after years of penetration[36]. - The company has established long-term partnerships with 16 out of the top 20 global pharmaceutical companies, demonstrating strong customer loyalty[132]. Research and Development - Continuous production technology and synthetic biology technology have been developed into comprehensive platforms for external technology output, enhancing efficiency and reducing costs[9]. - The company is prioritizing the advancement of its R&D platform to maintain its leading technological position in the industry[9]. - R&D expenditure exceeded RMB 707.86 million, accounting for 9.10% of total revenue, with plans for continued investment in R&D[61]. - The establishment of the biopharmaceutical technology center (CBTI) in Shanghai aims to enhance R&D capabilities and improve process development[56]. - The company has published 41 research papers in leading international journals, with 14 papers having an impact factor exceeding 10[60]. - The company is committed to continuous R&D investment to strengthen its technology-driven approach and maintain its competitive edge in the CDMO sector[137]. Market Trends and Challenges - The global innovation drug development landscape faced challenges in 2023, impacting the entire CXO industry[6]. - Asymchem's strategic deployment has strengthened its capabilities despite the pressures from market uncertainties[6]. - The company is currently conducting 356 clinical research projects, with 123 in Phase II or later[53]. - The company faces potential risks including major innovative drug recalls, operational challenges in clinical projects, and core technical personnel turnover[149]. Operational Efficiency and Cost Management - The company aims to maximize the utilization of newly added production capacity while minimizing raw material waste and reducing operating costs[72]. - Sales costs for 2023 were RMB 3,821.80 million, a decrease of 29.19% compared to RMB 5,397.60 million in 2022, attributed to improved gross margins and strict cost control measures[84]. - The overall gross margin increased by 3.65% to 50.92% in 2023, driven by a higher gross margin from commercial projects and effective cost management[86]. - The company emphasizes optimizing profitability by improving the gross margin of its small molecule CDMO business and controlling production costs through efficiency and management[145]. Strategic Initiatives - The company is actively seeking investments to enrich its service offerings and expand its overseas presence, focusing on commercial production for multinational companies[141]. - The company plans to enhance its delivery capabilities and expand overseas markets by strengthening management and operational systems[146]. - The company aims to deepen relationships with existing clients while expanding its global customer base, particularly targeting small and medium-sized innovative pharmaceutical companies[139]. - The company is focused on diversifying into new drug categories and service types, including biopharmaceutical CDMO services and clinical research[140]. Corporate Governance and Management - The management team has an average of over 20 years of experience in their respective fields, contributing to stable governance and strategic direction[136]. - Zhang Da serves as the Chief Financial Officer and Chief Operating Officer, responsible for financial operations and investment activities[153]. - The supervisory board consists of three members, including two shareholder representatives and one employee representative[162]. Dividend and Shareholder Information - The company plans to distribute a final dividend of RMB 1.80 per share, totaling approximately RMB 664,080,355.80, subject to shareholder approval[18]. - The board proposed a profit distribution plan for 2023, recommending a dividend of RMB 18.00 per 10 shares of common stock, totaling approximately RMB 664,080,355.80 (including tax) based on 369,471,533 shares issued[186]. - The proposed profit distribution plan for 2023 is subject to approval at the annual general meeting of shareholders and is expected to be paid within two months after the meeting[186].
凯莱英(06821) - 2023 - 年度财报