Sichuan Kelun Pharmaceutical (002422) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥11.83 billion, up 9.52% year-over-year; net profit attributable to shareholders was ¥1.80 billion, up 28.24% year-over-year.

• Non-infusion drug sales grew 6.38% to ¥2.02 billion; API/intermediate sales surged 38.09% to ¥3.27 billion.

• Infusion sales declined 7.15% to ¥4.67 billion, but parenteral nutrition triple-chamber bag sales rose 24.91%.

• Overseas revenue increased 14.97% to ¥1.87 billion, with expanded international registrations and certifications.

Financial highlights

• Operating income: ¥11.83 billion (+9.52% YoY); net profit attributable to shareholders: ¥1.80 billion (+28.24% YoY).

• Basic EPS: ¥1.15 (+18.56% YoY); diluted EPS: ¥1.15 (+26.37% YoY).

• Gross margin for infusion products: 62.27%; non-infusion: 42.30%; R&D project margin: 78.07%.

• Operating cash flow: ¥2.53 billion (down 25.86% YoY); total assets: ¥38.04 billion (+4.35% from year-end 2023).

• Net assets attributable to shareholders: ¥22.31 billion (+13.39% from year-end 2023).

Outlook and guidance

• Plans to accelerate clinical development of over 10 innovative drugs in H2 2024 and submit multiple INDs.

• Focus on expanding ADC pipeline, international alliances, and milestone income.

• Continued investment in R&D, digitalization, and production upgrades.