Sichuan Kelun Pharmaceutical (002422) H2 2025 earnings summary

Executive summary

• Achieved significant progress in R&D, commercialization, and international partnerships in 2025, with four launched products and eight indications, and over 30 R&D projects in the pipeline.

• Expanded commercialization team to nearly 650, covering 300 cities and 1,200 hospitals, with three products and four indications included in national medical insurance (NRDL).

• Strengthened global presence through collaborations with MSD and other partners, resulting in 17 global phase III trials and multiple licensing agreements.

• Published six pivotal studies in major congresses and journals, including ESMO and NEJM.

Financial highlights

• 2025 revenue reached RMB 2.06 billion, up 6.5% year-over-year; commercialized revenue was RMB 540 million.

• Gross profit margin rose 16.1% to RMB 1.47 billion, outpacing revenue growth due to favorable income mix.

• Total loss was RMB 380 million, slightly higher than prior year, mainly due to increased sales and marketing expenses in the first year of full commercialization.

• R&D expenditure was RMB 1.32 billion, up 9.4% year-over-year, with stable investment trend.

• Total assets reached nearly RMB 6 billion, with cash and financial assets at RMB 4.6 billion, boosted by a $250 million Hong Kong share placement.

Outlook and guidance

• Expects further product approvals and indication expansions in 2026, with continued focus on pipeline advancement and global commercialization.

• Commercial revenue projected to double in 2026, with NRDL revenue expected to account for over 80% of total revenue.

• Ongoing data readouts from phase II/III studies anticipated at major conferences (ASCO, ESMO), supporting future regulatory submissions.