Sichuan Kelun Pharmaceutical Co (002422) investor relations material

Executive summary

• Reported first year of commercialization with significant R&D, clinical, and market access progress, with over 30 pipeline assets, 10+ NDAs submitted, and multiple products on the market as of June 30, 2025.

• Strategic partnerships, especially with MSD and other global partners, have driven global clinical development and market reach, with several assets licensed out for development outside Greater China.

• Commercialization team expanded, covering over 2,000 hospitals and 1,000 pharmacies across China, with sales in 300+ cities.

• Sac-TMT led sales, accounting for 97.6% of pharmaceutical product revenue in 1H25.

• Cash and cash equivalents at period end were RMB4.5–5.95 billion, supporting ongoing R&D and innovation.

Financial highlights

• 1H25 revenue ranged from RMB950 million (innovative drugs segment) to RMB1,377.98 million (consolidated), with sac-TMT as the main contributor.

• Gross profit for 1H25 was RMB660 million, with gross margin stable at 47.9%.

• Net loss for 1H25 was RMB145 million, with adjusted loss after one-off items at RMB69 million.

• Sales and marketing expenses increased to RMB190 million due to commercialization.

• Cash and financial assets totaled up to RMB5,952.89 million as of June 30, 2025.

Outlook and guidance

• Sales revenue guidance for the year remains at RMB1 billion, with expectations for higher sales in the second half.

• Focus on optimizing integrated operations, expanding global footprint, and advancing differentiated pipelines for high medical need indications.

• Multiple NDA submissions and Phase III trial readouts expected by year-end and into 2026.

• Anticipates reduced sales expenses ratio after inclusion in national medical insurance.

• Management expects continued pressure on revenue and profit margins due to market and industry headwinds.