Hangzhou Jiuyuan Genetic Biopharmaceutical (2566) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.4% YoY to RMB1,369.2m; profit attributable to owners increased 15.7% to RMB138.6m, with basic EPS of RMB0.68.

• Gross margin improved to 79.0% from 77.0%, supported by higher Guyoudao sales mix and lower manufacturing costs.

Financial highlights

• Gross profit rose 9.2% to RMB1,081.7m; profit before tax was RMB168.6m versus RMB134.9m in 2023.

• Sale-of-goods revenue increased 6.6% to RMB1,299.0m; pharmaceutical-services revenue was RMB70.2m versus RMB68.9m.

• Selling and marketing expenses increased to RMB720.0m from RMB663.7m, mainly due to expanded prefecture- and county-level market promotion.

• Administrative expenses rose to RMB88.4m from RMB59.9m, including higher listing-related professional consulting fees; listing expenses were RMB24.0m versus RMB9.9m.

• R&D costs declined to RMB108.9m from RMB127.8m, primarily as JY29-2 Jikeqin entered Phase III and eligible costs were capitalized.

Outlook and guidance

• 2025 priorities include following up on the JY29-2 diabetes NDA review, pursuing expected domestic approval, and continuing its Phase III obesity and overweight trial.

• JY23 registration testing and animal studies are expected to be completed in 2025, followed by planned initiation of clinical trials in China.

• 2025 plans include filing an IND for JY54, advancing JY47 into Phase I, and pursuing expected marketing approval for JY49.

• Capacity expansion and new or upgraded GMP production lines are planned for Guyoudao, semaglutide and pipeline products, alongside domestic and overseas market development.