Mabwell (Shanghai) Bioscience (688062) Q4 2024 earnings summary

Executive summary

• Revenue rose 56.28% YoY to RMB199.78m as marketed denosumab products expanded, while the business remained loss-making amid high R&D spending and commercialization costs.

• Three products were commercialized; the 16-asset pipeline included 12 innovative drugs and four biosimilars, with two assets in pivotal Phase III trials.

• The 2024 financial statements received an unmodified audit opinion; no cash dividend, stock dividend, or capital-reserve conversion was proposed.

Financial highlights

• FY revenue was RMB199.78m, up 56.28% YoY; product sales reached RMB144.59m, up 243.53%, including denosumab sales of RMB138.97m.

• FY attributable net loss was RMB1,043.92m versus RMB1,053.43m in 2023; adjusted for non-recurring items, net loss was RMB1,069.61m versus RMB1,059.93m.

• Q4 revenue was RMB58.69m; attributable net loss was RMB349.83m and adjusted net loss was RMB354.97m.

• R&D expense was RMB782.87m, down 6.33% YoY; selling expense rose 34.12% to RMB191.67m as commercialization expanded.

• Operating cash outflow was RMB956.44m; financing cash inflow was RMB831.70m, mainly reflecting higher bank borrowing.

Outlook and guidance

• 2025 plans call for one additional product approval, one asset entering the marketing-application process, three post-market studies, and continued work across 30+ clinical studies.

• 8MW0511’s marketing application remained under review after site inspection and GMP checks; approval was anticipated in 2025.

• 9MW0813 completed Phase III in December 2024; after pre-NDA feedback, an NDA was planned for 2025.

• The 2025 focus includes advancing trials, increasing production capacity and quality, broadening sales access, and diversifying financing; an H-share application was submitted in January 2025 and remained subject to review.