Hangzhou Jiuyuan Genetic Biopharmaceutical (2566) H1 2025 earnings summary

Executive summary

• H1 revenue was RMB638.8 million, down 9.1% YoY, and profit was RMB90.2 million, down 14.4% YoY.

• Gross margin improved to 82.2% from 77.0%, supported by lower raw-material costs and a lower share of pharmaceutical services.

• Orthopedics product sales volume grew more than 10% YoY, with hospital penetration continuing to improve.

Financial highlights

• Gross profit decreased 2.8% to RMB525.2 million from RMB540.6 million; cost of sales fell 29.8% to RMB113.6 million.

• Selling and marketing expenses were RMB345.4 million versus RMB341.5 million; R&D costs rose to RMB49.6 million from RMB37.3 million, while administrative expenses fell to RMB30.2 million from RMB33.8 million.

• Profit before tax was RMB104.3 million versus RMB129.8 million; income tax expense fell to RMB14.1 million from RMB24.5 million.

• Other expenses rose to RMB8.9 million from RMB3.5 million, mainly due to higher credit impairment losses.

Outlook and guidance

• Priorities include advancing late-stage R&D and marketing applications, expanding orthopedic, macromolecule and peptide capacity, reducing costs, and strengthening global commercialization.

• JY23 marketing application is planned for H1 2026; JY29-2 semaglutide obesity studies continued after patient enrollment was completed in December 2024.

• JY29-2 diabetes indication completed required supplementary studies and clinical, statistical and compliance reviews for its marketing application.

• Semaglutide registration and GMP certification applications in Brazil were expected to be submitted within 2025.