Shenzhen YHLO Biotech (688575) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB 808.44 million, down 15.79% year-over-year due to weaker domestic demand and policy impacts.

• Net profit attributable to shareholders was RMB 26.27 million, a decrease of 84.82% year-over-year.

• Gross margin for main business was 61.58%, slightly down by 0.36 percentage points year-over-year.

• R&D investment reached RMB 142.99 million, accounting for 17.69% of revenue, with 14 new domestic reagent registrations.

• Overseas business grew, with overseas self-produced revenue up 26% year-over-year and overseas reagent sales up 60.82%.

Financial highlights

• Operating income: RMB 808.44 million, down 15.79% year-over-year.

• Net profit attributable to shareholders: RMB 26.27 million, down 84.82% year-over-year.

• Basic and diluted EPS: RMB 0.05, down 83.33% year-over-year.

• Operating cash flow: -RMB 2.37 million, compared to RMB 140.63 million last year.

• Gross margin: 61.58%; main chemical luminescence reagent margin: 80.15%.

Outlook and guidance

• The company expects continued pressure on domestic demand due to policy and market competition but sees growth opportunities in overseas markets and new product launches.

• Ongoing investment in R&D and product pipeline expansion, with a focus on internationalization and digital transformation.