Xuanzhu Biopharmaceutical (2575) investor relations material

Executive summary

• H1 2026 revenue rose 288.1% YoY to RMB69.441m, driven by product launches, NRDL inclusion and expanding sales channels.

• Net loss narrowed 32.1% to RMB75.340m as R&D and administrative expenses fell, partly offset by higher selling costs and cost of sales.

• Commercial milestones included Bireociclib’s first-line indication approval, acceptance of Anaprazole Sodium’s reflux esophagitis NDA and MENA licensing for Bireociclib and Dirozalkib.

Financial highlights

• Revenue was RMB69.441m versus RMB17.893m; pharmaceutical product sales contributed RMB65.753m, out-licensing RMB3.133m and R&D services RMB0.555m.

• Gross profit increased to RMB15.333m from RMB10.206m, while gross margin declined to 22.1% from 57.0%, mainly due to Bireociclib’s NRDL price reduction.

• Operating expenses fell 22.2% to RMB93.4m; R&D expense decreased 67.1% to RMB27.5m, while selling and distribution expense rose to RMB41.5m from RMB5.7m.

• Administrative expense declined to RMB24.3m from RMB30.6m; other income and gains increased to RMB15.0m from RMB4.1m, primarily due to higher bank interest income.

• Basic and diluted loss per share was RMB0.15 versus RMB0.25; no specifically identified non-recurring items were reported.

Outlook and guidance

• 2026 priorities include commercial scale-up, innovative R&D and refined cost controls, with a goal of progressing toward sustainable profitability.

• Plans include wider hospital access for Bireociclib and Dirozalkib, deeper distribution for Anaprazole Sodium, indication expansion and early-stage pipeline development.

• Pipeline efforts target oncology, digestive diseases and metabolism, with continued investment in AI-enabled R&D and small-nucleic-acid platforms.

• Overseas BD plans include Europe, Hong Kong, Southeast Asia and South America; supply initiatives include new production-site filings, additional API suppliers and manufacturing controls.

• Remaining IPO proceeds are expected to be used by end-2026 for marketing and working capital, end-2028 for core-product R&D, and end-2029 for key and other candidate R&D; timing may change with market conditions.