Shenzhen YHLO Biotech (688575) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 433.83 million, down 7.69% year-over-year; net profit attributable to shareholders was RMB 45.61 million, down 68.21% year-over-year.

• For the first nine months, revenue was RMB 1.39 billion, down 9.78% year-over-year; net profit attributable to shareholders was RMB 218.64 million, down 23.29% year-over-year.

• Excluding non-recurring items, net profit for the first nine months grew 19.01% year-over-year to RMB 207.69 million.

• Decline in overall profit mainly due to significant drop in COVID-related business and non-recurring gains.

Financial highlights

• Basic and diluted EPS for Q3 were RMB 0.08, down 68% year-over-year; nine-month EPS was RMB 0.38, down 24%.

• Gross margin and operating margin not explicitly stated; R&D investment for nine months was RMB 230.94 million, up 16.57% year-over-year.

• Net cash from operating activities for nine months was RMB 317.92 million.

• Total assets at quarter-end were RMB 4.09 billion, up 7.4% from year-end 2023.

• Shareholders’ equity at quarter-end was RMB 2.65 billion, up 3.6% from year-end 2023.

Outlook and guidance

• Non-COVID business revenue for nine months grew 24.40% year-over-year; domestic and overseas chemical luminescence business up 29.15% and 45.71% respectively.

• Overseas chemical luminescence reagent revenue up 60.24% year-over-year; domestic up 30.23%.

• Company expects continued growth in non-COVID diagnostics and international markets.