APELOA(000739)2025-03-27 10:00Financial Performance - In 2024, the company's revenue increased by 4.77% year-on-year, while the net profit attributable to shareholders decreased by 2.29%, marking the first instance of negative growth [2] - The gross margin for the API segment declined by 2.59 percentage points to 14.79%, and CDMO revenue fell by 6.05% year-on-year [2] - The formulation business showed minimal growth of only 0.51% [2] Challenges and Responses - Profit growth slowdown is attributed to market conditions, industry policies, and increased fixed asset depreciation and R&D investment [3] - The company is focusing on enhancing the integration of API and formulation businesses to improve competitiveness and sustainability [3] - The company is actively addressing risks from policy changes and market fluctuations, including price volatility in traditional products like antibiotics and veterinary drugs [4] R&D and Talent Management - R&D expenses increased by 2.66% year-on-year, but the number of R&D personnel decreased by 4.07%, indicating a challenge in converting technical investment into human resource optimization [3] - The company plans to maintain a moderate increase in R&D personnel in 2025 to support business development [3] Strategic Initiatives - The company has optimized its development strategy for 2024, focusing on strengthening its core areas: refining APIs, enhancing CDMO capabilities, and expanding into medical aesthetics [8] - Plans to accelerate the development of new formulation products, with an expectation to initiate 25 new projects annually [9] Market Expansion and Internationalization - The company is advancing its internationalization strategy, establishing BD offices in the US, Europe, and Japan to enhance overseas market penetration [10] - The impact of the US Biodefense Act on the company's operations is expected to be minimal [13] Product Development and Future Outlook - The company’s clinical trial for the semaglutide project is progressing well, currently in the Phase III enrollment stage [5] - The company anticipates that the veterinary drug market will perform better than the previous year and will adjust production plans accordingly [5] - New production lines for solid formulations and APIs are expected to be operational in 2025 [13]