Sichuan Kelun-Biotech Biopharmaceutical (6990) H2 2024 earnings summary

Executive summary

• Revenue rose 25.5% year-over-year to RMB 1,933 million, driven by R&D milestones, new product sales, and global partnerships, notably with MSD and Ellipses Pharma.

• Gross profit increased 67.8% to RMB 1,274 million, with margin improving to 65.9% from 49.3%.

• Net loss narrowed by 53.5% to RMB 267 million; adjusted net loss narrowed by 73.7% to RMB 118 million.

• Over 30 pipeline assets, 3 products on market, and 10+ NDAs submitted as of December 31, 2024.

• Expanded commercialization in China with multiple product launches and a mature sales network targeting major hospitals.

Financial highlights

• Revenue: RMB 1,933 million, up 25.5% year-over-year.

• Gross profit: RMB 1,274 million, up 67.8%; gross margin at 65.9%.

• R&D expenses: RMB 1,206 million, up 17% due to pipeline advancement and increased staff/material costs.

• Net loss: RMB 267 million (down from RMB 574 million); adjusted loss: RMB 118 million.

• Cash and financial assets at year-end: RMB 2,785–3,076 million, supporting ongoing operations.

Outlook and guidance

• Plans to launch trastuzumab botidotin (A166) in China and submit NDA for A400 in 2025.

• Ongoing refinement of commercialization strategies for late-stage assets, prioritizing breast, lung, and GI cancers.

• Continued expansion of global clinical trials and strategic partnerships to maximize pipeline value.

• Focus on expanding ADC and novel DC pipelines, global partnerships, and commercialization.

• Continued investment in R&D, manufacturing, and AI-enabled drug discovery.