Shanghai Henlius Biotech (2696) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 2.7% YoY to RMB2,819.5 million, driven by drug sales, R&D services, and license income.

• Net profit reached RMB390.1 million, with a net margin of 13.8%.

• International expansion accelerated, with products approved in nearly 60 countries/regions, benefiting over 850,000 patients globally.

• Key products achieved significant regulatory milestones in the EU, US, and other major markets.

• Major out-licensing and licensing agreements contributed to global reach and cash inflow.

Financial highlights

• Gross profit reached RMB2,199.2 million, up 10.5% YoY.

• R&D expenses increased to RMB995.4 million, representing 20.8% of revenue.

• Selling and distribution expenses were RMB987.8 million, mainly for HANQUYOU, HANSIZHUANG, and HANBEITAI.

• Cash and bank balances stood at RMB889.2 million as of 30 June 2025.

• Basic and diluted EPS were RMB0.72, compared to RMB0.71 in the prior year.

Outlook and guidance

• Revenue and profit from overseas markets are expected to grow considerably in H2 2025 and 2026.

• Anticipated approvals for HANSIZHUANG, HLX11, and HLX14 in additional countries.

• Plans to launch over 10 products overseas in the next 3-5 years, including key biosimilars and innovative drugs.

• Continued expansion of the product pipeline, with several IND applications planned.

• Ongoing investment in production capacity to support global supply.