Hansoh Pharmaceutical Group (3692) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, reached RMB6,506 million, up 44.2% year-over-year, driven by innovative drugs and collaborative products, which contributed RMB5,032 million (77.4% of total revenue, up from 61.8%).

• Net profit surged 111.5% year-over-year to RMB2,726 million, with basic EPS at RMB0.46, also up 111.4%.

• R&D expenditure increased 28.7% to RMB1,196 million, representing 18.4% of revenue.

• Interim dividend declared at HK$20.10 cents per share, nearly triple the prior year’s interim dividend.

• Growth attributed to increased sales of innovative drugs and an upfront payment from GSK collaboration.

Financial highlights

• Gross profit rose to RMB5,926 million from RMB3,976 million year-over-year.

• Operating profit before tax was RMB3,118 million, up from RMB1,500 million.

• Cash and bank balances stood at RMB21,745 million as of June 30, 2024.

• Net cash inflow from operating activities was RMB2,682 million.

• Gearing ratio improved to 11.9% from 21.9% at year-end 2023.

Outlook and guidance

• Focus remains on expanding the innovative drug pipeline, accelerating clinical development, and rapid market launch of new medicines.

• Continued investment in R&D and external collaborations to drive future growth.

• Committed to sustainable development and creating value for stakeholders.

• Unutilized proceeds from prior equity and bond issuances will be fully deployed by 2030 for R&D and pipeline expansion.