GENSCRIPT BIO(HK:01548) Jin Rong Jie·2025-08-18 05:59Core Viewpoint - King’s Ray Biotechnology achieved a significant turnaround in profitability for 2024, reporting a net profit of approximately $2.962 billion, compared to a loss of $95.477 million in 2023, primarily due to accounting changes and a one-time gain from the merger cancellation with Legend Biotech [1][3] Financial Performance - The company reported revenues of approximately $594.5 million for 2024, a 6.1% increase from $560.5 million in the previous year [1] - Adjusted net profit from ongoing operations was approximately $59.8 million, reflecting a modest growth of 2.9% compared to $58.1 million in the prior year [3] Business Segments - The life sciences segment, which constitutes about 75.8% of total revenue, saw a revenue increase of 10.2%, driven by enhanced brand presence in Europe and the U.S. and the introduction of new competitive services and products [4] - The biopharmaceutical development services segment underperformed, with external revenue accounting for 14.8% of total revenue, declining by 13.2% to approximately $95.0 million, and adjusted operating losses widening by 46.1% to about $43.4 million [5] Financial Structure - The company's debt-to-asset ratio improved significantly from 39.65% to 18.09%, indicating a stronger financial structure [7] - The current ratio decreased from 4.76 to 2.72, remaining at a relatively safe level [7] Cash Flow and Management - The company reported a negative cash flow per share of -$0.61, worsening from $0.20 in the previous year, while operating cash flow per share improved slightly from -$0.14 to $0.04 [7] - The accounts receivable conversion cycle improved from 69 days to 59 days, indicating better management of customer payments, although the accounts payable conversion cycle decreased significantly from 21 days to 12 days, potentially straining cash flow management [7]