Sichuan Kelun-Biotech Biopharmaceutical (6990) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB 978.3 million, driven by a 112% increase in pharmaceutical product sales to RMB 657 million and strong commercialization of innovative oncology and immunology drugs.

• Four products successfully commercialized, with a robust pipeline of 30 assets, including multiple ADCs and innovative therapies, and a fifth product (A400) launching soon.

• Significant clinical progress, especially for sac-TMT (TROP2 ADC) in lung and breast cancer, with positive phase III results and multiple new indications approved.

• Strengthened global partnerships, notably with MSD, and expanded international collaborations and licensing revenue.

• Expansion of commercialization and R&D teams, now over 800 strong, supporting growth and market penetration across China.

Financial highlights

• H1 2026 revenue: RMB 978.3 million (+2.9% YoY); pharmaceutical sales: RMB 657 million (+112% YoY); gross profit: RMB 736.9 million (+11.7% YoY); gross margin: 75.3%.

• Net profit: RMB 388 million (vs. net loss RMB 145.2 million YoY), aided by a one-off settlement income; adjusted profit: RMB 479.4 million.

• R&D expenses: RMB 768.4 million (+25.7% YoY); selling and distribution expenses: RMB 390.6 million (+118.3% YoY).

• Cash and financial assets: RMB 4.78 billion as of June 30, 2026; liabilities: RMB 984.9 million; asset-liability ratio: 9.7%-15%.

• Net cash from operating activities: RMB 338.8 million in H1 2026.

Outlook and guidance

• Commercialization revenue expected to double for the full year, driven by new indications, expanded reimbursement, and further hospital penetration.

• Continued investment in R&D, especially for ADC plus IO combinations, next-generation ADCs, and expansion of clinical-stage assets.

• Anticipated further headcount increases in commercialization and R&D teams.

• Ongoing global clinical trials and regulatory submissions expected to drive future growth.

• Break-even expected soon, with long-term profitability targeted.