3SBio (1530) H2 2024 earnings summary

Executive summary

• Revenue rose 16.5% year-over-year to RMB9,108.0 million, driven by strong sales of TPIAO, Mandi, and Cipterbin.

• Net profit attributable to owners increased 34.9% to RMB2,090.3 million; adjusted net profit up 18.8% to RMB2,318.8 million.

• EBITDA grew 32.8% to RMB3,173.8 million; adjusted EBITDA up 22.9% to RMB3,402.3 million.

• Final dividend of HKD25 cents per share proposed, unchanged from prior year.

Financial highlights

• Gross profit increased 17.9% to RMB7,828.4 million; gross margin improved to 86.0%.

• Cost of sales rose to RMB1,279.6 million, 14.0% of revenue.

• Selling and distribution expenses up 11.5% to RMB3,351.3 million, 36.8% of revenue.

• R&D costs surged 66.9% to RMB1,326.5 million, 14.6% of revenue.

• Effective tax rate decreased to 18.4% from 19.8%.

• Basic EPS increased 34.4% to RMB0.86.

Outlook and guidance

• Focus on launching innovative drugs in oncology, auto-immunity, nephrology, and high-potential areas like hair, acne, and weight loss.

• Expectation of key new drugs entering commercialization annually from 2025.

• Continued dual-track strategy of internal R&D and external partnerships.