Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [28] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [35][36] - Adjusted net profit exceeded RMB 2.8 billion, reflecting an 11.6% year-over-year increase [36] - Gross profit margin improved from 39.1% to 42.7%, with adjusted gross profit margin at 45.6% [7][40] Business Line Data and Key Metrics Changes - Research and Development (R&D) revenue grew over 35% year-over-year, driven by a strong pipeline of projects [30] - Late-phase and commercial manufacturing revenue grew close to 25%, representing over 43% of the total portfolio [30] - Early-phase revenue saw a decline due to timing issues with large-scale clinical manufacturing projects transitioning from phase two to phase three [30][31] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [23] - Europe contributed close to 20% of revenue, showing modest growth as the company shifts focus from CMO projects to early-phase programs [24] - China represented 13% of revenue, experiencing a single-digit decline primarily due to out-licensing of programs to global partners [25] - Asia, particularly Japan, Korea, and Singapore, showed significant growth, now accounting for nearly 7% of revenue with more than double the growth rate [26] Company Strategy and Development Direction - The company emphasizes a unique CRDMO model, focusing on both service-based and IP-driven revenue streams [50][57] - The strategy includes expanding capacity globally, with significant investments in facilities in the US, Ireland, and Singapore [47][79] - The company aims to leverage its strong portfolio in ADCs and bispecifics, which now account for over 40% of its project portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has absorbed post-COVID industry adjustments and is positioned for accelerated growth [28] - The backlog has shown significant growth, with milestone backlog increasing from RMB 7 billion to RMB 9 billion and service backlog from RMB 10 billion to RMB 11.3 billion [16][17] - The company expects to continue benefiting from global biotech trends, including M&A activities and out-licensing of Chinese assets to global partners [63][64] Other Important Information - The company achieved a 100% success rate in regulatory inspections, hosting 44 inspections [6] - Employee retention rate remains high at 98.8%, with no increase in total employee numbers over the past 18 months [42] - The company has a strong cash position with RMB 12.5 billion on hand and a conservative debt level of RMB 2.7 billion [43][47] Q&A Session Summary Question: What are the key drivers for revenue growth in the upcoming quarters? - Management highlighted the successful execution of the follow and win molecule strategies, with a strong pipeline of late-phase projects expected to ramp up [29] Question: How does the company plan to address the decline in early-phase revenue? - The decline is attributed to timing issues with large-scale projects transitioning to manufacturing, which is expected to be replenished by new projects in the pre-IND space [30][31] Question: What is the company's outlook on the global market trends? - Management expressed confidence in continued growth driven by M&A activities and the out-licensing of Chinese biotech programs to global partners, which typically results in significant revenue amplification [63][64]