Financial Data and Key Metrics Changes - The Group recorded net revenues of EUR 1.34 billion in the first quarter, up 13% at constant exchange rates compared to the same period last year [9] - Retail sales reached EUR 1.22 billion, also up 13% at constant FX, driven by like-for-like and full-price sales [9] - Wholesale sales increased by 7% year-on-year, while royalties delivered a 13% growth, supported by eyewear and fragrances [10] Business Line Data and Key Metrics Changes - Prada brand's retail sales remained stable against high comparisons from the previous year, while Miu Miu experienced a remarkable growth of 60% at constant FX, increasing its contribution to Group retail sales from 22% to 31% [11][10] - Leather goods were highlighted as one of the fastest-growing categories, particularly for Miu Miu, with significant success in the first three months [29][30] Market Data and Key Metrics Changes - Asia Pacific sales were up 10% at constant FX, Europe increased by 14%, the Americas grew by 10%, and Japan saw an 18% rise, with the Middle East delivering the best performance at 26% [12] - The Chinese market showed volatility, with local transactions negatively impacting performance, while traveler transactions remained positive [20] Company Strategy and Development Direction - The company aims to build Prada's desirability and product innovation to maintain positive growth despite challenging market conditions [4] - Miu Miu's expansion in the U.S. is a focus, with plans for further store openings and refurbishments to enhance brand presence [35] Management's Comments on Operating Environment and Future Outlook - Management noted that the market remains complicated, with regular trends and some differences across regions, but expressed optimism about maintaining positive growth [14] - The company is not expecting significant changes in consumer behavior in the short term but hopes for gradual improvements in local demand, particularly in China [68] Other Important Information - The company is observing pricing strategies closely, considering potential impacts from tariffs and currency fluctuations, with a maintenance pricing strategy of 2-4% every six months [41] - The online channel for both brands has seen growth, particularly in North America, contributing to 8-10% of total revenue [59] Q&A Session Summary Question: Trends by nationality and product brand EBITDA - Management noted volatility in the Chinese cluster, with a return to negative performance in Q1 compared to a strong Q4 [20] Question: Changes in American consumer behavior and future acceleration - Management indicated that the U.S. market remains unstable, with ongoing investments aimed at improving performance [23] Question: Drivers of leather goods growth - Miu Miu's leather goods category showed strong performance, with a mix of iconic and new products driving success [30] Question: Update on store expansion plans - The company confirmed ongoing plans for store expansions, particularly for Miu Miu in North America, with a successful refurbishment of the Soho store [35] Question: Pricing strategy in light of tariffs - Management stated that maintenance pricing increases would likely be sufficient to offset potential tariffs, but consumer confidence remains a concern [50] Question: Overlap between Prada and Miu Miu customer demographics - Management emphasized that both brands are managed independently, with no intentional overlap in customer targeting [54] Question: Profitability outlook and seasonality - Management indicated that growth remains the priority, with a focus on maintaining moderate margin expansion [58] Question: Performance of online channels - Online sales have grown slightly in North America, maintaining a consistent contribution to total revenue [59] Question: Competitive landscape and new product cycles - Management acknowledged the reshuffling in the luxury industry and expressed confidence in gaining market share through stability and creativity [65] Question: Investments in China and local demand outlook - Management remains positive about long-term prospects in China, with expectations for easier comparisons in the second half of the year [68]

Financial Data and Key Metrics Changes - The group achieved revenue of US$401.5 million, meeting the midpoint of revenue guidance [3][7] - Group bookings totaled US$431.2 million, showing a 2.9% quarter-on-quarter growth and 4.8% year-on-year growth [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6][8] - Adjusted net profit was HKD83.2 million, up 1.6% quarter-on-quarter but down 53.1% year-on-year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group's revenue, with revenue of US$255.6 million, up 0.6% quarter-on-quarter and 44.7% year-on-year [9][10] - Semi bookings were US$222.9 million, down 19.5% quarter-on-quarter but up 11.4% year-on-year [10][11] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter-on-quarter and 35.6% year-on-year [12] - SMT bookings were US$208.4 million, up 46.5% quarter-on-quarter, driven by strong seasonal demand [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, with growth trajectory difficult to forecast [6][14] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12][14] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5][14] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14][105] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better-than-expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management remains optimistic about the overall market growth [14][26] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4][5] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21][22] Question: Impact of tariffs on SMT business and capacity expansion - Management noted that while there hasn't been significant direct impact on operations, some customers are evaluating their investment timing and location due to tariffs [26][27] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but are considered meaningful, with two orders already received [42] Question: Progress on chip on wafer tools and customer decisions - Management indicated significant progress from qualification to pilot production, with expectations for orders in the second half of 2025 [50][52] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is actively engaging with multiple HBM players [62] Question: OpEx management and future profitability - Management emphasized a balance between protecting future R&D investments and maintaining sensible cost control measures [99][100]

Financial Data and Key Metrics Changes - HKEX reported record-breaking trading volumes and exceptional financial results for 2024, with a revenue increase of 32% compared to the previous quarter and a profit after tax increase of 37% [12][56]. Business Line Data and Key Metrics Changes - The company highlighted a robust IPO pipeline and strong daily market turnover despite recent market volatility, indicating stability in its business lines [13]. Market Data and Key Metrics Changes - HKEX's market has remained stable with strong daily turnover, reflecting resilience in the face of macroeconomic and geopolitical challenges [12][13]. Company Strategy and Development Direction - The company aims to focus on its strengths in China, drive international connectivity, and foster innovation and sustainability across its markets to position itself for sustained growth [12]. - HKEX has made a strategic investment by purchasing office floors at Exchange Square to establish its permanent headquarters, enhancing stakeholder engagement and providing long-term cost savings [13]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in HKEX's ability to navigate challenges and emphasized the importance of continuous improvement in trading systems to remain competitive [46]. - The CEO noted that despite an increase in profit tax from around 10% to approximately 16%, the company is focused on increasing turnover to offset the impact [51][52]. Other Important Information - HKEX achieved carbon neutrality across its operations by the end of 2024, demonstrating its commitment to sustainability [9]. - The company is considering changes to its auditor for the 2026 financial year, emphasizing the importance of corporate governance [27]. Q&A Session Summary Question: Concerns about PwC's quality of work due to team changes - Management acknowledged the concern and stated that they are evaluating the situation and will consider changing auditors for the 2026 financial year [27][28]. Question: Inquiry about capitalization costs and profit tax impact - The CEO confirmed an investment of approximately HKD 1 billion in system improvements and noted that profit tax is expected to rise to around 16% [48][51]. Question: Suggestion for increasing dividends for family offices - Management reiterated the company's tradition of paying 90% of profit attributable to shareholders and emphasized that dividend increases depend on profit growth [55][56]. Question: Concerns about minority shareholder interests and stock price manipulation - Management acknowledged the issue and stated that they monitor practices related to placements and are open to feedback [60][61]. Question: Inquiry about the recent property purchase price and AGM participation for Mainland investors - Management defended the property purchase as a strategic investment and indicated that they are considering system upgrades to allow Mainland investors to participate in AGMs [64][66].

Hong Kong Exchanges and Clearing (00388) Q1 2025 Earnings Call April 29, 2025 09:30 PM ET Speaker0 Ladies and gentlemen, the Annual General Meeting will start shortly. Today's meeting will be conducted in English. Please use the headphones to listen to the simultaneous interpretation in Cantonese, Channel two or Pudong Hua, Channel three. For those joining us through the webcast, you may select the corresponding audio channel on the top right hand corner of your screen Thank you. As mentioned in our circula ...

Financial Data and Key Metrics Changes - The company achieved group revenue of US$401.5 million, meeting the midpoint of revenue guidance [3] - Group bookings totaled US$431.2 million, showing a 2.9% growth quarter on quarter and 4.8% growth year on year [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6] - Adjusted net profit was HKD83.2 million, up 1.6% quarter on quarter but down 53.1% year on year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group’s revenue, with revenue growing to US$255.6 million, up 0.6% quarter on quarter and 44.7% year on year [9] - Semi bookings were US$222.9 million, down 19.5% quarter on quarter but up 11.4% year on year [10] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter on quarter and 35.6% year on year [12] - SMT bookings were US$208.4 million, up 46.5% quarter on quarter, driven by strong seasonal system in package (SiP) bookings [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, making growth difficult to forecast [6] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better than expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management is monitoring the situation closely [25][100] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21] Question: Impact of tariffs on SMT business and capacity expansion - Management noted no significant direct impact on operations but acknowledged that some customers are evaluating their investment timing and location due to tariffs [25] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but meaningful, with two orders received [46] Question: Progress on chip on wafer tools and customer decisions - Significant progress has been made from qualification to pilot production, with expectations for orders in the second half of 2025 [58] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is working hard to secure them [70] Question: Shareholder returns and potential buyback policies - The company is evaluating options for returning capital to shareholders but does not believe it is the right time for a share buyback due to macro uncertainties [107] Question: OpEx management and future profitability - The company is mindful of cost levels and has conducted restructuring programs, balancing R&D investments with cost control [110]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 23.1% year over year to RMB9.39 billion, while total revenue achieved RMB9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit grew 40% year over year to RMB2.68 billion, with a record backlog for continuing operations of RMB52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to the owners of the company increasing by 89.1% year over year [26][27] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB7.39 billion, with adjusted non-IFRS gross profit margin improving 4.2 percentage points year over year to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved RMB2.24 billion revenue in the first quarter, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue generated from clinical CRO and SMO business was down 2.2% year over year to RMB0.61 billion, attributed to market price impact [21][22] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance is maintained, expecting revenue from continuing operations to resume double-digit growth of 10% to 15% year over year, targeting total revenue of RMB41.5 billion to RMB43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB7 billion to RMB8 billion [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full year guidance despite external uncertainties, emphasizing the importance of operational resilience [30][31] - The company is committed to rewarding shareholders with a proposed 30% annual cash dividend payout ratio and additional one-time special cash dividend [31][32] Other Important Information - The company has successfully supported about 40% of successful out-licensing deals from Chinese biotech since 2022 [20] - The total amount of cash dividends and share repurchases is expected to exceed RMB6 billion, accounting for more than 60% of the company's net profit attributable to owners in 2024 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - The growth is attributed to both strong demand and capacity ramping up from a low base last year [37] Question: How does the company view the impact of tariffs on business segments? - Tariffs are seen as a systemic challenge, with less than 10% of total revenue coming from exports to the U.S. [45][46] Question: What is the projected CapEx for 2025 and its allocation? - Projected CapEx is RMB7 billion to RMB8 billion, primarily for expanding D and M manufacturing capacity in various locations [50][54] Question: How does the company plan to address pricing pressures in testing and biology segments? - The company aims to focus on contracts with higher margins and differentiate its services to improve margins gradually [68] Question: What is the expected contribution from late-stage D and M projects in the next few years? - Specific numbers are difficult to provide, but the CRDMO business model is expected to sustain growth through a strong pipeline [71]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached $6.554 billion, a 6% increase year over year [3] - EBITDA was $786 million, reflecting a 16.6% increase compared to the previous year [3] - Operating profit stood at $598 million, up 19.4% year over year [3] - Profit attributable to owners was $364 million, a 20.9% increase from last year [3] - Basic earnings per share were $2.84, also a 20.9% increase year over year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit in Q1 2025 [4] - The pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [9] - In China, operating profit was $250 million, down 14.3% year over year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year over year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year over year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year over year [7] - The number of slaughter hogs in China increased by 0.1% year over year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, improve product mix, adjust pricing, and control costs [10] - Key business priorities include improving the pork business, expanding market networks, and optimizing the business portfolio [11] - The focus remains on industrialization, diversification, internalization, and digitalization to enhance market position [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and enhanced marketing efforts [14][16] - Management expects the second quarter to show recovery in packaged meat volume and profit [16] Other Important Information - The hog production business is seen as a supporting business rather than a core focus, with strategies tailored to local market conditions [42][43] - The company plans to maintain a vertical integration level of 20% to 30% in hog production, focusing on fresh pork and packaged meat as core businesses [65] Q&A Session Summary Question: Reasons for decline in China packaged meat business - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: Outlook for packaged meat business in Q2 2025 - Management expects the packaged meat business to stop declining and gradually recover in Q2, with full-year growth anticipated [16] Question: Impact of tariffs on hog prices - Management believes tariffs will have limited short-term impact on hog prices, with supply and demand balance being the primary driver [34][35] Question: Hog production improvement drivers - The improvement in hog production is driven by reduced raising costs and improved KPIs rather than hog prices [21] Question: U.S. pork business outlook - Management expects profitability in the U.S. pork business to improve in Q2 and Q3, aligning with seasonal trends [67]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $6.554 billion, a 6% increase year-over-year [3] - EBITDA reached $786 million, up 16.6% from the previous year [3] - Operating profit was $598 million, reflecting a 19.4% increase year-over-year [3] - Profit attributable to owners was $364 million, a 20.9% increase compared to last year [3] - Basic earnings per share rose to $2.84, marking a 20.9% increase year-over-year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit [4] - Pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [8] - In China, operating profit was $250 million, down 14.3% year-over-year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year-over-year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year-over-year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year-over-year [7] - The number of slaughter hogs in China increased by 0.1% year-over-year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, enhance market competitiveness, and focus on industrialization, diversification, internalization, and digitalization [10] - Priorities include improving the pork business, expanding the market network, and optimizing the business portfolio [10][11] - The company plans to adapt to market changes and strengthen competitive edges to drive steady improvements in sales volume and results [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and increased marketing investments [14][16] - Management expects the packaged meat business to stabilize in the second quarter and grow in the second half of 2025 [16] - The hog production business is expected to improve significantly in 2025, driven by reduced raising costs and improved KPIs [21] Other Important Information - The company anticipates that the profit per ton for packaged meats will be lower than last year but will remain at a relatively high level [17] - The hog production business in China is expected to see significant improvements, with a projected profit increase of around RMB 500 million year-over-year [21] - The company is focusing on maintaining a strong position in the global pork industry while tailoring strategies based on local market conditions [43][44] Q&A Session Summary Question: What are the reasons for the decline in the packaged meat business in Q1? - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: What measures are being taken to return the packaged meat business to growth? - Eight measures were outlined, including specialized sales forces, expanding the point of sales, and increased marketing investments [14][16] Question: What is the outlook for hog prices and production in China? - Management expects hog prices to be lower than last year, but improvements in hog production are anticipated due to reduced raising costs [20][21] Question: How will tariffs impact the hog production business? - Tariffs are expected to have limited short-term impact on hog prices, but may affect raising costs in the long term [35][56] Question: What is the expected contribution of different product categories in the packaged meat business? - Frozen and snack products are expected to grow faster, with contributions increasing from around 5% to 8% by the end of the year [62]

Financial Data and Key Metrics Changes - In Q1 2025, revenue from continuing operations grew 23.1% year over year to RMB 9.39 billion, while total revenue reached RMB 9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit increased 40% year over year to RMB 2.68 billion, with a record backlog for continuing operations of RMB 52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to owners increasing by 89.1% year over year [25][26] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB 7.39 billion, with adjusted non-IFRS gross profit margin improving by 4.2 percentage points to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB 3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved revenue of RMB 2.24 billion in Q1, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue from Wuxi Testing decreased by 4% year over year to RMB 1.29 billion, with lab testing revenue down 4.9% due to market pricing impacts [18][19] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance remains at 10% to 15% revenue growth, targeting total revenue of RMB 41.5 billion to RMB 43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB 7 billion to RMB 8 billion [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full year guidance despite external uncertainties, emphasizing the resilience of the management team [29][30] - The company is closely monitoring changes in the global macro environment and will communicate any changes in guidance promptly [30][31] Other Important Information - The Board of Directors proposed maintaining a 30% annual cash dividend payout ratio, totaling approximately RMB 2.8 billion, along with a one-time special cash dividend of RMB 1 billion [31] - The company announced plans to repurchase and cancel RMB 1 billion worth of A shares in 2025 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - Management indicated that the strong growth in Tides was due to both capacity ramp-up and a relatively low base from the previous year [37] Question: How does the company view the impact of tariffs on business segments? - Management acknowledged that tariffs are a systemic challenge affecting global operations, but emphasized efforts to optimize and diversify the supply chain to mitigate impacts [44][46] Question: What is the projected CapEx for 2025 and its allocation? - The projected CapEx is RMB 7 billion to RMB 8 billion, primarily focused on expanding D and M manufacturing capacity in various geographies [50][54] Question: How does the company plan to improve profit margins? - Management stated that continuous focus on operational efficiency and process development excellence will help improve margins, despite potential pressures from new capacity ramp-up [78][81]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 23.1% year over year to RMB9.39 billion, while total revenue achieved RMB9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit grew 40% year over year to RMB2.68 billion, with a record backlog for continuing operations of RMB52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to the owners of the company increasing by 89.1% year over year [26][27] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB7.39 billion, with adjusted non-IFRS gross profit margin improving 4.2 percentage points year over year to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved RMB2.24 billion revenue in the first quarter, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue generated from clinical CRO and SMO business was down 2.2% year over year to RMB0.61 billion, attributed to market price impact [21][22] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance is maintained, expecting revenue from continuing operations to resume double-digit growth of 10% to 15% year over year, targeting total revenue of RMB41.5 billion to RMB43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB7 billion to RMB8 billion [30] Management Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic and complex global environment, emphasizing the need for operational resilience [29] - Despite external uncertainties, the company maintains confidence in its business model and operational capabilities [30] - The management team is committed to enhancing shareholder value through dividends and share repurchase plans [31][32] Other Important Information - The company plans to maintain a 30% annual cash dividend payout ratio of net profit, totaling approximately RMB2.8 billion, along with a one-time special cash dividend of RMB1 billion [31] - The company will repurchase and cancel RMB1 billion worth of A shares when appropriate in 2025 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - The growth is attributed to both strong demand and capacity ramping up from a low base last year [37] Question: How does the company view the impact of tariffs on business segments? - Tariffs are seen as a systemic challenge, with less than 10% of total revenue coming from exports to the U.S. [45][46] Question: What is the expected CapEx distribution for 2025? - CapEx will focus on expanding new modality and small molecule capacities in China, Singapore, and the U.S., with over 70% allocated to D and M manufacturing capacity expansion [54] Question: How does the company plan to address pricing pressures in testing and biology segments? - The company aims to focus on contracts with higher margins and differentiation strategies to improve margins gradually [68] Question: What is the expected revenue contribution from late-stage D and M projects? - Specific numbers are difficult to provide, but the company expects sustained growth from its CRDMO business model [71]