Sichuan Kelun Pharmaceutical (002422) H1 2025 earnings summary

Executive summary

• Achieved first year of commercialization with RMB 950 million in revenue for 1H 2025, including over RMB 300 million from commercialized drugs.

• Revenue for H1 2025 was ¥9.08 billion, down 23.20% year-over-year; net profit attributable to shareholders was ¥1.00 billion, down 44.41%.

• Expanded product pipeline with three drugs on the market, multiple NDAs submitted, and several pivotal trials initiated globally.

• Major product launches and regulatory approvals in innovative drugs and high-end infusion products.

• Significant progress in clinical development, with large-scale phase III trials for breast and lung cancer and promising early results in PFS and OS.

Financial highlights

• Revenue reached RMB 950 million in 1H 2025, with RMB 300 million from drug sales and the remainder from R&D partnerships.

• Operating income: ¥9.08 billion (–23.20% YoY); net profit: ¥1.00 billion (–44.41% YoY).

• Gross profit was RMB 660 million, comparable to the previous year.

• Gross margin for infusion products: 56.08%; non-infusion: 45.46%.

• Net loss for 1H 2025 was RMB 145 million; adjusted loss (excluding one-off items) was RMB 69 million.

Outlook and guidance

• Sales revenue guidance for 2025 remains at RMB 1 billion, with expectations for higher sales in the second half, especially from lung cancer indications.

• Company expects continued pressure from centralized procurement and market demand but will focus on innovation, cost control, and product pipeline expansion.

• Anticipates further growth as products enter medical insurance coverage and as more indications are approved.

• Strategic focus on innovative drugs, high-end infusions, and international expansion.

• Plans to expand commercialization into lower-tier cities and increase hospital coverage.