Asymchem Laboratories (Tianjin) (002821) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 2.70 billion, down 41.63% year-over-year due to the absence of large orders delivered in the prior year.

• Net profit attributable to shareholders was RMB 499 million, a 70.40% decrease year-over-year.

• The company maintained growth in core small molecule CDMO business (excluding last year's large order), and continued to expand in emerging business segments.

• New orders signed increased over 20% year-over-year, with strong growth from US and European clients.

• The company accelerated global expansion, with its first European R&D and pilot base operational.

Financial highlights

• Operating income: RMB 2.70 billion, down 41.63% year-over-year.

• Net profit attributable to shareholders: RMB 499 million, down 70.40% year-over-year.

• Operating cash flow: RMB 874 million, down 61.23% year-over-year.

• Gross margin for small molecule CDMO: 47.19%; for emerging businesses: 20.29%.

• Basic and diluted EPS: RMB 1.40, down 69.89% year-over-year.

• Total assets at period end: RMB 18.86 billion, down 4.60% from year-end 2023.

Outlook and guidance

• The company expects continued growth in small molecule CDMO and emerging business orders, with robust commercial order reserves for the remainder of 2024.

• Global market expansion and new capacity (especially in peptides and biologics) are expected to support long-term growth.