3SBio (1530) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB4,355.5 million, down 0.8% year-over-year, with gross profit margin declining to 85.3% from 86.5%.

• Net profit attributable to owners rose 24.6% to RMB1,358.2 million, driven by fair value gains and lower finance costs.

• Adjusted net profit increased 2.1% to RMB1,135.8 million, while adjusted EBITDA fell 3.2% to RMB1,610.1 million.

• Major licensing deal with Pfizer for PD-1/VEGF BsAb (707) included a USD1.25 billion upfront payment and potential total payments up to USD6.05 billion.

• Pfizer subscribed for 31.1 million shares at a 17% discount, raising HKD785 million for R&D and corporate purposes.

Financial highlights

• Gross profit: RMB3,715.8 million, down 2.1%; gross margin at 85.3%.

• EBITDA grew 11.6% to RMB1,832.5 million; adjusted EBITDA fell 3.2% to RMB1,610.1 million.

• Basic EPS: RMB0.57, up 26.7%.

• Operating cash inflow was RMB969.6 million, down 11.3% year-over-year.

• Gearing ratio dropped to 9.9% from 19.7% at year-end 2024 due to bond repayment.

Outlook and guidance

• Focus on accelerating R&D and commercialization in oncology, autoimmune, and nephrology.

• Plans to leverage dual-track strategy of internal R&D and external partnerships, with continued global expansion.

• Capital expenditure over the next three years expected to be RMB800–1,000 million, funded by internal and external sources.

• Industry shift in China toward innovation-driven, high-quality pharmaceutical development.