Jiangsu Hengrui Medicine (600276) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 31.63 billion in 2025, up 13.02% year-over-year; net profit attributable to shareholders was RMB 7.71 billion, up 21.69% year-over-year.

• Innovation-driven growth: innovative drug sales reached RMB 16.34 billion, up 26.09% year-over-year, accounting for 58.34% of pharmaceutical sales.

• Significant international expansion: overseas licensing income reached RMB 3.39 billion, with multiple global partnerships and clinical trials.

• R&D investment totaled RMB 8.72 billion, representing 27.58% of revenue, with 28 new molecules entering clinical stage and 14 innovative products approved.

Financial highlights

• Operating income: RMB 31.63 billion (+13.02% YoY); net profit: RMB 7.71 billion (+21.69% YoY); operating cash flow: RMB 11.24 billion (+51.36% YoY).

• Gross margin for oncology products: 93.48%; for metabolic/cardiovascular: 73.69%; for immunology/respiratory: 84.62%.

• Basic EPS: RMB 1.19 (+19% YoY); ROE: 14.26%.

• Total assets: RMB 69.87 billion (+39.36% YoY); net assets: RMB 61.27 billion (+34.61% YoY).

• H-share issuance raised RMB 10.29 billion net, strengthening capital base.

Outlook and guidance

• Targeting over 30% growth in innovative drug sales for 2026; expects further decline in generic drug revenue share.

• Plans to accelerate global clinical trials, expand international partnerships, and launch 53 new products/indications by 2028.

• Continued high R&D investment and focus on differentiated innovation platforms.