Shanghai Henlius Biotech (2696) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 reached RMB 2.75B, up 9.8% year-over-year, driven by drug sales, R&D services, and license income.

• Net profit rose 61% year-over-year to RMB 386.3M, attributed to commercialisation of core products and sales expansion, with a net margin of 14.1%.

• HANQUYOU (trastuzumab) and HANSIZHUANG (serplulimab) led revenue growth, supported by international approvals and market expansion in the US, Canada, Southeast Asia, and Latin America.

• The company completed the acquisition of Henlius Pharmaceutical Trading, expanding in-licensing and commercialisation capabilities.

• Five products (23 indications) are marketed in Mainland China, with three products approved in Europe, the US, Canada, Australia, and Indonesia.

Financial highlights

• Gross profit rose to RMB 1.99B, up 11.9% year-over-year.

• R&D expenses were RMB 825.6M, up RMB 151.8M year-over-year, reflecting increased investment in innovation and clinical trials.

• Selling and distribution expenses were RMB 900.2M, mainly due to sales growth of HANQUYOU and HANSIZHUANG.

• Cash and bank balances stood at RMB 649.4M as of 30 June 2024.

• Basic and diluted EPS were RMB 0.71, up from RMB 0.44 in 2023.

Outlook and guidance

• Plans to expand global market coverage and commercialise more products, with continued focus on oncology, autoimmune diseases, and new therapeutic areas.

• Anticipates approvals for new indications and biosimilars in China, the EU, and the US in 2H 2024 and early 2025.

• Continued investment in R&D, international cooperation, and production capacity expansion to support innovation and global growth.