3SBio (1530) H1 2026 earnings summary

Executive summary

• Revenue rose 3.9% year-over-year to RMB4,526.0 million, driven by licensing and CDMO growth despite a decline in biopharmaceutical sales.

• Net profit attributable to equity shareholders fell 15.6% to RMB1,146.6 million, but adjusted net profit (excluding non-operating items) increased 26.5% to RMB1,436.3 million.

• EBITDA dropped 17.7% to RMB1,508.7 million, while adjusted EBITDA rose 11.7% to RMB1,798.3 million.

• Gross profit margin decreased to 83.8% from 85.3% year-over-year.

Financial highlights

• Biopharmaceutical sales declined 19.3% to RMB3,443.0 million due to healthcare policy impacts.

• Licensing revenue reached RMB851.6 million, mainly from a milestone payment by Pfizer.

• CDMO revenue surged 160.9% to RMB231.4 million.

• Cost of sales increased to RMB731.4 million, 16.2% of revenue.

• Other income and net (losses)/gains fell to RMB-73.6 million, mainly due to foreign exchange losses.

• Selling and distribution expenses dropped 25.3% to RMB1,206.7 million.

• R&D costs rose 24.9% to RMB683.8 million, reflecting accelerated project activity.

• Finance costs decreased 41.7% to RMB30.9 million.

• Basic EPS was RMB0.45, down from RMB0.57 year-over-year.

Outlook and guidance

• Focus remains on commercialization, R&D, and external collaboration, with new product launches anticipated in H2 2026.

• Policy changes in China are expected to support innovative pharmaceuticals and expand reimbursement access.

• Continued investment in AI-assisted drug discovery and next-generation technology platforms.