Shanghai Henlius Biotech (2696) H2 2023 earnings summary

Executive summary

• 2023 revenue reached RMB 5.39B, up 67.8% YoY; net profit was RMB 546M after a 2022 net loss, with operating cash inflow of RMB 1.05B.

• Commercial growth was led by HANQUYOU and HANSIZHUANG; R&D advanced across oncology and newer areas including autoimmune disease, ophthalmology, metabolic disorders and rare diseases.

Financial highlights

• Revenue was RMB 5,394.9M, up 67.8% YoY; product sales were RMB 4,553.5M, up 70.2%, and business development and other revenue was RMB 841.4M, up 56.0%.

• Gross profit was RMB 3.92B, up 65.3% YoY; cost of sales was RMB 1,476.1M, up 74.8%.

• Net profit was RMB 546.0M, or 10.1% of revenue, versus a net loss of RMB 695.3M in 2022; operating cash flow was RMB 1,047.9M.

• Cash and bank balances were RMB 987.7M at year-end, up 45.1% YoY.

Outlook and guidance

• 2024 priorities include sustaining rapid revenue growth, consolidating profitability, generating positive operating cash flow for a third consecutive year, and improving returns on R&D, manufacturing and commercialization investment.

• Advance HANQUYOU toward US approval and overseas NDA filings, and progress HANSIZHUANG toward European marketing; accelerate late-stage pipeline programs and bring differentiated early-stage assets into clinical development.

• 2024 clinical milestones include HLX14 osteoporosis submissions in the EU and US, HLX11 breast cancer readouts, and multiple HLX10 indication submissions and data readouts; timelines are subject to change.