Pharmesis International (BFK) H2 2024 earnings summary

Executive summary

• Returned to profitability in FY2024, with net profit attributable to equity holders of RMB8.3 million versus a RMB5.0 million loss in FY2023, after two consecutive years of losses.

• Growth reflects a two-pronged strategy of strengthening pharmaceutical revenue streams and expanding the TCH procurement business.

Financial highlights

• Revenue rose 48.2% to RMB67.6 million in FY2024 from RMB45.6 million in FY2023.

• Gross profit increased 16.0% to RMB24.1 million from RMB20.8 million.

• Other income increased to RMB7.4 million from RMB3.5 million, with FY2024 mainly reflecting a reversal of impairment on construction in progress.

Outlook and guidance

• Strategy remains focused on growing TCH procurement while enhancing existing pharmaceutical revenue streams.

• Rental income from one property is expected to begin in FY2025; evidence-based research on Gansu and ATT is intended to support continued demand growth.