Core Insights - The recent bio-manufacturing forum in Suzhou focuses on cutting-edge technologies and aims to facilitate technology transfer and industrial collaboration in the bio-manufacturing sector [1] - Bio-manufacturing is seen as a key driver of the "Fourth Industrial Revolution" and is crucial for developing new productive forces across various fields such as pharmaceuticals, agriculture, and food [1] - Suzhou Industrial Park is actively positioning itself in the bio-manufacturing sector, leveraging its strong industrial foundation and complete supply chain to seize development opportunities [1] Industry Development Plans - In March, Suzhou Industrial Park announced a three-year action plan to accelerate the development of the bio-manufacturing industry, focusing on synthetic biology, biopharmaceuticals, food, bio-based materials, and bio-manufacturing equipment [1][2] - The plan aims to enhance innovation capabilities, achieve scale effects, and improve the industrial ecosystem by 2027, with specific support in R&D, platform construction, innovation incubation, and collaborative development [2] Company Highlights - Suzhou has over 40 companies related to synthetic biology technology, accounting for nearly 60% of the total in the city [2] - Jinweizhi Biotechnology Co., Ltd. specializes in genomic research and technology applications, collaborating with 80% of the top 20 global pharmaceutical companies and serving multiple regions including China, North America, Europe, Southeast Asia, and Australia [2] - Jima Gene Co., Ltd. is a leading provider of RNA drug technology services in China, focusing on small nucleic acid technology and has established a pilot platform for nucleic acid drug research in collaboration with the National Biopharmaceutical Technology Innovation Center [3] Collaborative Models - The collaboration between national research centers and leading enterprises in Suzhou accelerates the overall industrial process of bio-manufacturing through a "national team + enterprise group" model [3] - The park plans to establish common technology platforms and resource libraries, including a microbial strain preservation library, to support high-throughput, intelligent, and automated pilot platforms [3]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $144 million, flat year over year on a reported basis and down 2% on an organic basis [17][19] - Adjusted EBITDA margin expanded by approximately 260 basis points year over year to 12.3%, reflecting operational turnaround efforts [9][18] - Free cash flow for the quarter was $15 million, driven primarily by improved working capital [18] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $78 million, down 4% year over year on a reported basis and down 6% on an organic basis, primarily due to softer bookings and timing delays [20] - Multiomics segment delivered revenue of $66 million, up 4% on a reported basis and up 3% on an organic basis, driven by growth in next-generation sequencing [21][22] - Non-GAAP gross margin for SMS was 53.6%, up 760 basis points year over year, while Multiomics gross margin was 42.6%, down approximately 500 basis points year over year [20][23] Market Data and Key Metrics Changes - China posted 10% organic growth in the Multiomics segment despite macro and geopolitical headwinds [22] - The company anticipates a 1% headwind to full year 2025 revenue due to reductions in NIH funding levels [10][90] Company Strategy and Development Direction - The company is focused on long-term value creation and operational turnaround, with key growth priorities including strengthening commercial excellence and investing in R&D [6][7] - The Azenta Business System (ABS) is being leveraged to enhance operational efficiency and drive growth [8][68] - The company plans to prioritize investments in gross margin productivity, organic growth offerings, and strategic M&A opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management remains committed to full year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points [9][25] - The company is optimistic about capitalizing on opportunities arising from the current dynamic environment [11] - Management noted that the operational improvements have allowed them to reaffirm guidance despite external challenges [11] Other Important Information - The company ended the quarter with $550 million in cash and no outstanding debt, positioning it well for future investments [12][24] - An Investor Day is planned for later in the calendar year to discuss achievements and outlook [13] Q&A Session Summary Question: Guidance for fiscal 2025 and thoughts on fiscal 2026 - Management indicated confidence in a step-up in Q4 due to momentum in NGS and sufficient backlog, with a commitment to 5% to 8% CAGR for fiscal 2026 [29][34] Question: Weakness in SMS core products - Management clarified that there are no cancellations, but orders are being pushed out due to capital equipment purchase delays [35][36] Question: Gene synthesis headwinds - Management noted softness in gene synthesis from pharma accounts but expects improvements in Q4 [39][40] Question: Q4 revenue expectations - Management highlighted a seasonal step-up from Q3 to Q4 and strong funnel visibility, indicating confidence in achieving revenue targets [44][46] Question: Leadership changes impact - Management discussed new commercial leadership in North America and positive early signs from the regional model [48][50] Question: M&A funnel focus - Management emphasized a disciplined approach to M&A, focusing on core biorepositories and multiomics opportunities [52][54] Question: NIH funding headwinds - Management maintained a consistent view on NIH funding as a 1% headwind but expressed optimism about potential increases in funding [89][90]

Core Insights - The article highlights the growing focus and development of the synthetic biology and biomanufacturing industry in Jiangsu Province, China, emphasizing its strategic importance and the supportive policies in place [2][3]. Policy and Industry Support - Jiangsu Province has identified biomanufacturing as a key development area in its "14th Five-Year Plan," with specific policies aimed at fostering a robust industrial ecosystem [2]. - Local governments in cities like Nanjing, Suzhou, Wuxi, and Changzhou are increasing financial support and subsidies for synthetic biology enterprises [2]. Talent and Research Capabilities - Jiangsu boasts a strong talent pool with leading life sciences universities and research institutions, such as Nanjing University and Southeast University, contributing to advancements in key technologies like gene editing and enzyme engineering [2]. - The province ranks highly in the number of research papers and patents in critical technology areas [2]. Industry Chain Development - The synthetic biology industry chain in Jiangsu is well-structured, covering upstream technologies like gene synthesis and DNA storage, midstream platforms with fermentation and purification capabilities, and downstream applications in pharmaceuticals, agriculture, and materials [2][3]. - Wuxi and Taizhou are noted for their significant biomanufacturing capacity, accounting for over 30% of the national output [2]. Industrial Parks and Company Listings - Jiangsu is accelerating the establishment of synthetic biology industrial parks, including several innovation parks in the Yangtze River Delta region [3]. - A total of 80 companies from Jiangsu have been recognized in the "Top 500 Biomanufacturing Companies in China" list, showcasing the province's competitive landscape [3]. Upcoming Events and Future Plans - The "China Biomanufacturing Industry Map (2025)" will be released in August 2025, featuring over 500 representative companies [1]. - The Fourth Synthetic Biology and Green Biomanufacturing Conference will take place from August 20-22, 2025, in Ningbo, Zhejiang, focusing on key trends and innovations in the industry [17].

Financial Data and Key Metrics Changes - The group's revenue increased by 6.1% year over year to approximately $590 million [38] - The net profit recorded was around $2.9 billion, primarily due to a one-time investment gain from the deconsolidation of Legend [38] - Adjusted net profit from continuing operations remained stable at approximately $59.8 million [38] - The Life Science Group's revenue was approximately $455 million, representing a 10.2% year-over-year growth [38] - Adjusted operating profit for the Life Science Group was about $90.4 million, reflecting a 15.5% increase year over year [39] Business Line Data and Key Metrics Changes - The Protein segment, representing about 25% of Life Sciences revenue, achieved nearly 50% revenue growth in 2024 [6][22] - ProBio's revenue was $95 million, experiencing a decline of about 13.2% year over year [39] - Bestime's revenue grew by about 24.6% to $53.7 million, achieving an adjusted operating profit of approximately $2.1 million [39][44] Market Data and Key Metrics Changes - Revenue from industrial customers increased largely due to the development of more multinational companies [40] - Revenue from China accounted for about 19% of Bestime's revenue, indicating a strong market presence [34] - The addressable market for protein regions is over $4.5 billion, with growing demand driven by antibody drug discovery and AI-driven protein engineering [22] Company Strategy and Development Direction - The company aims for full-year revenue growth for the Life Science business to be around 10% to 15% in 2025 [49] - ProBio is targeting a revenue growth of 15% to 20% for 2025, excluding the impact of the Lenovo deal [49] - Bestime is targeting constant currency revenue growth of 20% to 25% with a gross margin around 45% [49] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the second half of 2024, driven by robust demand from AI-related applications and antibody drug research [40] - The company is confident in maintaining growth trends due to continuous R&D investment and expansion into overseas markets [56] - Management expressed optimism about improving profitability in the coming years despite short-term margin pressures [64] Other Important Information - The company has over 250 patents and more than 480 patents in the application process, positioning it as a global leader in the industry [11] - The company joined the United Nations Global Compact, solidifying its commitment to sustainability [12] - A new facility for Bestime is under construction, representing a total investment of RMB 800 million, slated for completion by 2027 [37] Q&A Session Summary Question: Order trend and outlook for 2025 - Management expects faster growth in Europe and the U.S., with moderate growth in China and Asia Pacific [54] Question: Net margin outlook for Life Science segments - Life Science business is targeting growth of 10% to 15% with flat gross margin [55] Question: Impact of global tariffs - Management believes tariffs will not significantly impact business results, focusing on quality and delivery speed [62][63] Question: Gross profit margin for Life Science Group - Short-term profit margins may decrease due to local production expansion, but long-term profitability is expected to improve [64] Question: CapEx guidance for 2025 - Overall CapEx spending will be roughly flat compared to 2024, with increases in specific segments like Bestime [76]