Sichuan Kelun-Biotech Biopharmaceutical (6990) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 2.9% year-over-year to RMB978.3 million, driven by a 112% increase in pharmaceutical product sales to RMB657.0 million and strong commercialization of innovative oncology and immunology drugs.

• Gross profit increased 11.7% to RMB736.9 million, with gross margin improving to 75.3% from 69.4%.

• Net profit reached RMB388.0 million, reversing a net loss of RMB145.2 million in the prior year period, aided by a one-off settlement income; adjusted profit was RMB479.4 million.

• R&D expenses rose 25.7% to RMB768.4 million, reflecting expanded clinical development and pipeline growth.

• The company advanced its pipeline with multiple regulatory approvals, new indications, and global collaborations, especially for ADC assets.

Financial highlights

• Revenue: RMB978.3 million (+2.9% YoY); pharmaceutical sales: RMB657.0 million (+112% YoY).

• Gross profit: RMB736.9 million (+11.7% YoY); gross margin: 75.3%.

• Net profit: RMB388.0 million (vs. net loss RMB145.2 million YoY); adjusted profit: RMB479.4 million.

• R&D expenses: RMB768.4 million (+25.7% YoY); selling and distribution: RMB390.6 million (+118.3% YoY).

• Cash and financial assets: RMB4.78 billion as of June 30, 2026.

Outlook and guidance

• Plans to accelerate clinical development of over 10 clinical-stage assets and expand ADC/novel DC pipelines.

• Focus on expanding ADC adoption in lung and breast cancer, broadening hospital and reimbursement access, and increasing international market presence.

• Sufficient resources to support ongoing R&D and commercialization, with RMB4.78 billion in cash and financial assets.

• Break-even anticipated soon, with long-term profitability targeted as commercialization and milestone payments ramp up.