Sichuan Kelun Pharmaceutical (002422) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 4.39 billion, down 29.42% year-over-year; net profit attributable to shareholders was RMB 584 million, down 43.07% year-over-year.

• Cash flow from operating activities decreased 64.86% year-over-year to RMB 449 million.

• Company continued to invest in R&D and product development, with several new drugs approved or in clinical trials.

Financial highlights

• Revenue: RMB 4.39 billion (down 29.42% YoY); Net profit: RMB 584 million (down 43.07% YoY).

• Basic and diluted EPS: RMB 0.37 (down 44.78% YoY).

• Operating cash flow: RMB 449 million (down 64.86% YoY).

• Total assets at period end: RMB 37.83 billion (up 1.37% from year-end 2024).

• Shareholders' equity: RMB 23.09 billion (up 2.74% from year-end 2024).

Segment performance

• Sales expenses decreased 42.7% YoY due to enhanced management and national drug procurement policy.

• Financial expenses fell 75.48% YoY as financing amount and rates declined.

• Investment income and government subsidies both decreased significantly YoY.