Shanghai Henlius Biotech (2696) H1 2020 earnings summary

Executive summary

• Total revenue for the six months ended 30 June 2020 rose to RMB110.4 million, up from RMB17.0 million year-over-year, driven by drug sales, R&D services, and license revenue.

• Loss for the period increased to RMB448.0 million from RMB316.9 million, mainly due to expanded R&D activities.

• Achieved major milestones in product approvals, manufacturing capacity, and global partnerships in 1H20.

• HLX01 and HLX02 achieved significant regulatory and commercial milestones, including approvals in China and the EU.

• Advanced pipeline with multiple products in late-stage clinical trials and expanded international collaborations.

Financial highlights

• Revenue reached RMB110.4 million in H1 2020, mainly from profit sharing of core product.

• Gross profit reached RMB52.0 million, an 812.3% increase year-over-year.

• R&D expenditure increased by 43.2% year-over-year to RMB756.9 million in H1 2020.

• Cash and cash equivalents stood at RMB1,146.4 million as of 30 June 2020.

• Total bank borrowings were RMB403.4 million as of 30 June 2020.

Outlook and guidance

• Plans to accelerate commercialisation and NDA approval for HLX02 and HLX03, with HLX03 expected to launch in late 2020 or early 2021.

• Songjiang Plant 2 completion and pilot production expected in 2021 to support future growth.

• Multiple IND filings for bispecific antibodies and focus on innovative drug R&D, including NDAs for HLX10 and HLX04, expected in 2021.

• Strengthening international commercialisation and strategic partnerships.

• Continued expansion of production capacity, including completion of Songjiang First Plant and ongoing construction of Songjiang Second Plant.