3SBio (1530) H1 2024 earnings summary

Executive summary

• Revenue grew 16.0% year-over-year to RMB4,389.4 million, driven by strong sales of TPIAO and Mandi.

• Net profit attributable to owners rose 11.1% to RMB1,089.9 million; adjusted net profit up 1.5%.

• EBITDA increased 23.4% to RMB1,641.5 million; adjusted EBITDA up 17.0%.

• Major product launches and approvals included Mandi Foam and TPIAO for pediatric ITP.

• R&D pipeline expanded to 28 candidates, with multiple late-stage clinical trials and 25 innovative drugs in development.

Financial highlights

• Gross profit rose 18.6% to RMB3,797.4 million; gross margin improved to 86.5%.

• Selling and distribution expenses increased 15.9% to RMB1,594.0 million, stable at 36.3% of revenue.

• R&D costs surged 55.3% to RMB476.2 million, now 10.8% of revenue.

• Basic EPS increased to RMB0.45 from RMB0.40 year-over-year.

• Net cash inflow from operations was RMB1,092.7 million; cash and bank balances at RMB7,944.5 million.

Outlook and guidance

• Expects annual commercialization of new drugs from 2024 onward.

• Focus on innovative drug development in nephrology, autoimmune, hair/skin, hematology, and oncology.

• Strategic expansion in acne and weight management markets, and plans to expand commercialization of long-acting rhEPO, eltrombopag suspension, and anti-IL-17A mAb.

• Continued investment in digital marketing and brand building for Mandi and new indications.