Asymchem Laboratories (Tianjin) Co., Ltd. 2025 Annual Report: Detailed Investor Highlights

Strong Financial Growth and Upward Momentum

• Revenue Growth: The Group achieved robust top-line expansion, with revenue rising to RMB 6.67 billion in 2025, up from RMB 5.80 billion in 2024, representing a year-on-year increase of approximately 15%.
• Profitability: Net profit attributable to shareholders surged by 19.35% to RMB 1,132.57 million, with the net profit margin improving to 16.98% from 16.35% in the previous year. This improvement in margins and bottom-line is a clear indicator of operational efficiency and successful execution of growth strategies.
• Earnings Per Share: Both basic and diluted earnings per share climbed to RMB 3.16, a substantial increase from RMB 2.69 in 2024, reflecting strong value creation for equity holders.
• Cash Position: The Group’s cash and bank balances grew by RMB 531.54 million or 9.18% year-on-year, indicating enhanced liquidity and robust cash flow management.
• Gearing Ratio: The Group maintained a very healthy capital structure, with a low gearing ratio of 12.98% at year-end.
• Dividend Payout: The Board has proposed a final dividend of RMB 13.00 per 10 shares (tax inclusive), up from RMB 11.00 in the previous year, totaling approximately RMB 467.6 million, subject to shareholder approval. The dividend is expected to be paid on or before July 24, 2026.

Operational and Strategic Developments

• Research and Development: R&D expenses reached RMB 593 million in 2025, accounting for 8.89% of total revenue. The company published 51 scientific papers by year-end, of which 17 had impact factors above 10, underlining its scientific leadership and innovation capabilities.
• Capacity Expansion: Asymchem continued its global expansion, with new R&D centers and production facilities established across China, the US, UK, and its first site in Europe. This strategic expansion positions the company for further international growth.
• Employee Metrics: The workforce expanded to 10,617 employees, up from 9,595, with ongoing investments in talent development, structured training programs, and competitive compensation schemes, including restricted share and ESOP plans.
• Foreign Exchange Risk: The majority of revenues are denominated in USD, while costs are mainly in RMB. The company actively manages foreign exchange risk, which can impact margins in the event of significant currency fluctuations.

Share Incentive Schemes and Capital Structure

• Share-Based Incentives: The company has implemented both A Share and H Share Restricted Share Schemes, with a total of 5,196,000 restricted A shares granted. Vesting is structured over 4 years, with performance and service conditions. The schemes are funded by existing shares, with no new shares available for issuance as of report date.
• Significant Post-Period Event: On March 13, 2026, the Board approved the repurchase and cancellation of 61,000 restricted A Shares due to participant resignations, at a total repurchase cost of RMB 2.3 million. This will result in a minor adjustment to the company’s registered capital and Articles of Association.
• Ongoing Amendments to Articles: Several amendments were made and proposed to the Articles of Association in 2025 and 2026 to reflect changes in capital structure following share repurchases and new share allotments under incentive schemes.

Capital Allocation and Investments

• No Major Acquisitions/Disposals: There were no significant acquisitions or disposals during the year, nor any material investments exceeding 5% of total assets.
• Use of Proceeds: The company provided a detailed disclosure on the allocation and expected timeline for the use of proceeds from its Global Offering and A Share Non-Public Offering, including biosynthesis solutions, R&D initiatives, and facility construction projects. Notably, the timeline for completion of the R&D Center Project has been extended to December 2028 due to delays in equipment procurement.
• Investment Policy: The company maintains a conservative investment approach, focusing on long-term, synergistic opportunities and short-term liquidity management, avoiding speculative and highly leveraged products.

Corporate Governance and Risk Management

• Audit and Internal Controls: The Audit Committee confirmed the effectiveness of the company’s internal audit, risk management, and financial reporting processes. No material litigation, contingent liabilities, or breaches of legal or regulatory requirements were reported.
• ESG Commitment: The Group updated its Environmental Management Policy and actively promoted green operations and energy efficiency. No material non-compliance was observed in relation to environmental, health, or employment laws.
• Shareholder Communication: The company enhanced its investor relations practices, increased global fund coverage, and expanded engagement with institutional investors and analysts, which may positively impact market perception and liquidity.

Other Notable Points for Shareholders

• Major Customer and Supplier Concentration: The largest customer accounted for 8.85% and the top five customers for 35.87% of revenue. The largest supplier accounted for 5.89% of purchases, with the top five at 19.06%.
• Director and Shareholder Interests: The report provides comprehensive disclosure of director and major shareholder shareholdings, with ALAB holding 34.57% of A shares, and major institutional investors holding significant H share positions.
• No Convertible Bonds or Significant Guarantees: The company did not issue any convertible bonds, nor did it provide loans or guarantees to directors or related parties during the period.

Potential Share Price Sensitive Issues

• Profitability and Dividend Increase: The significant growth in revenue, earnings, and the proposed higher dividend are likely to be positively received by the market.
• Delayed R&D Center Completion: The extension of the R&D Center Project timeline to December 2028 may be viewed as a minor negative, but management asserts that this will not materially impact long-term strategy or shareholder value.
• Share Repurchases and Capital Amendments: The repurchase and cancellation of restricted shares reflect prudent management of share incentive schemes and capital structure.
• ESG and Governance:** Enhanced ESG reporting and governance reforms, including stricter policies on related party transactions and external guarantees, may further improve investor confidence.