Sichuan Biokin Pharmaceutical Co (688506) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 171.20 million, down 96.92% year-over-year due to the absence of a large upfront payment from a prior BMS collaboration recognized in the previous year.

• Net loss attributable to shareholders was RMB -1.12 billion, compared to a net profit of RMB 4.67 billion in H1 2024.

• The company maintained high R&D investment, with R&D expenses up 90.74% year-over-year to RMB 1.04 billion.

• Cash flow from operating activities was negative RMB 1.13 billion, reflecting increased R&D spending and lower revenue.

Financial highlights

• Operating income: RMB 171.20 million, down 96.92% year-over-year.

• Net loss: RMB -1.12 billion, compared to a profit of RMB 4.67 billion in H1 2024.

• Basic and diluted EPS: RMB -2.79, down from RMB 11.64.

• Gross margin: 50.4% (calculated from disclosed revenue and cost figures).

• R&D expenses: RMB 1.04 billion, up 90.74% year-over-year.

• R&D as % of revenue: 606.69%, up from 9.81% in H1 2024.

• Net assets: RMB 2.80 billion at period end, down 27.97% from year-end 2024.

Outlook and guidance

• The company expects continued high R&D investment and potential ongoing losses as it advances its innovative drug pipeline.

• Management highlights the strategic focus on global clinical development and commercialization, with a robust pipeline and ongoing international trials.