APELOA(SZ:000739)2025-04-21 07:14Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 2.73 billion CNY, with a net profit of 248 million CNY, and a non-recurring net profit of 205 million CNY, reflecting a year-on-year revenue decline of 14.63% but a net profit increase of nearly 2% [3] - The API business generated revenue of 1.883 billion CNY with a gross profit of 255 million CNY and a gross margin of 13.52% [3] - The CDMO business reported revenue of 549 million CNY, gross profit of 222 million CNY, and a gross margin of 40.43% [3] - The pharmaceutical business earned revenue of 298 million CNY, gross profit of 179 million CNY, and a gross margin of 60.09% [3] Group 2: Business Segment Performance - The API segment faced significant pressure with a revenue decline of 20% and a gross profit drop of 35%, leading to a gross margin decrease of 3.1 percentage points [3] - The CDMO segment showed strong performance with a 10% increase in sales and nearly 20% growth in gross profit, with a gross margin increase of 3.31 percentage points [3] - The pharmaceutical segment experienced a revenue decline of 12.8% and a gross profit decrease of 6.54%, but the gross margin improved by 4 percentage points [3] Group 3: Market Trends and Projections - The company anticipates a shift in business trends between 2024 and 2025, expecting a lower performance in the first half of 2025 compared to the previous year [4] - The CDMO business is projected to grow by 20% to 30% in 2025, with a normal gross margin range of 40% to 45% [6] - The company is actively expanding into new markets, including Southeast Asia and Africa, to mitigate domestic market pressures [7] Group 4: Share Buyback and Capital Management - The company has executed three share buyback plans, with the first in 2022 repurchasing 9.2 million shares for 200 million CNY, fully canceled [5] - The second buyback in 2024 involved 10.88 million shares for 153 million CNY, which was also approved for cancellation [5] - The third buyback plan is currently in process, with future stock incentive plans contingent on its completion [5] Group 5: R&D and Innovation - The company has enhanced its R&D capabilities significantly, particularly in the CDMO sector, by hiring experts from top international firms [6] - AI is being utilized to optimize fermentation processes, resulting in a nearly 70% increase in fermentation efficiency for certain products [13] - The company is developing new products and improving existing ones, with expectations of over 15 new product approvals by 2026 [8]