3SBio (1530) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB 4,355.5 million, down 0.8% year-over-year, while net profit attributable to owners rose 24.6% to RMB 1,358.2 million, driven by fair value gains and lower finance costs.

• EBITDA increased by 11.6% to RMB 1,832.5 million, but adjusted EBITDA declined 3.2% to RMB 1,610.1 million.

• R&D investment remained robust, with over 30 pipeline candidates and a focus on innovative biologics and global expansion.

• Major licensing deal with Pfizer for bispecific antibody 707 included a USD 1.25 billion upfront payment and potential total payments up to USD 6.05 billion, plus Pfizer's equity investment of HKD 785 million.

• Mandi (Minoxidil) sales grew 24% year-over-year to RMB 681.5 million.

Financial highlights

• Gross profit for 2025H1 was RMB 3,715.8 million, down 2.1% year-over-year, with gross margin at 85.3%.

• R&D costs increased 15% year-over-year to RMB 547.5 million, raising the R&D cost ratio to 12.6%.

• Gearing ratio improved to 9.9% (down from 19.7%), with interest-bearing loans reduced to RMB 1,836.6 million.

• Basic EPS increased 26.7% to RMB 0.57.

• Operating cash inflow was RMB 969.6 million, down 11.3% year-over-year.

Outlook and guidance

• Continued focus on R&D investment and global commercialization, with over RMB 8 billion in available financial resources.

• Plans to accelerate international expansion, with products sold in 35+ markets and 70% year-over-year growth in overseas revenue.

• Near-term objectives include advancing global Phase 3 development of SSGJ-707 and expanding into multiple tumor types.

• Capital expenditure over the next three years expected to be RMB 800–1,000 million, funded by internal and external sources.

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