Asymchem Laboratories (Tianjin) (002821) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥5.80 billion, down 25.82% year-over-year due to the absence of large orders delivered in the prior year.

• Net profit attributable to shareholders was ¥949 million, a 58.17% decrease year-over-year, mainly due to high-margin orders in 2023 and lower utilization in new business lines.

• Fourth quarter revenue grew 15.41% year-over-year and 15.35% sequentially, with net profit up 12.99% quarter-over-quarter.

• Excluding the impact of last year's large orders, revenue grew 7.40% year-over-year.

Financial highlights

• Operating cash flow was ¥1.25 billion, down 64.66% year-over-year.

• Basic and diluted EPS were both ¥2.69, down 57.03% year-over-year.

• Gross margin for small molecule CDMO was 47.95%; new business gross margin was 21.67%.

• Total assets at year-end were ¥19.29 billion, down 2.42% from the previous year.

• Net assets attributable to shareholders were ¥16.85 billion, down 3.63% year-over-year.

Outlook and guidance

• Management expects double-digit revenue growth in 2025, with profit growth outpacing revenue.

• Focus on cost reduction, efficiency, and expanding high-growth segments such as peptides, oligonucleotides, and ADCs.

• Overseas capacity expansion, especially leveraging the UK Sandwich site, is a strategic priority.