Sino Biopharmaceutical (1177) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 10.7% year-over-year to RMB17.57 billion, driven by strong growth in innovative products and increased dividend income.

• Profit attributable to owners from continuing operations surged 140.2% year-over-year to RMB3.39 billion; underlying profit (adjusted/non-HKFRS) up 101.1% to RMB3.09 billion.

• Innovative products revenue grew 27.2% year-over-year, accounting for 44.4% of total revenue, with oncology medicines contributing 38.1%.

• The Group completed the disposal of its osteoporosis and marine pharmaceuticals business in March 2024 to focus on four core therapeutic areas: oncology, liver/metabolic, respiratory/infectious diseases, and surgery/analgesia.

• Interim dividend of HK5 cents per share was declared for the period.

Financial highlights

• Gross profit margin improved to 82.5% in 2025 H1 from 82.1% in 2024 H1.

• Selling and administrative expenses to revenue ratio remained stable at 42.9%.

• R&D costs were RMB3.19 billion, representing 18.1% of revenue.

• Cash and bank balances (current assets) at period end were RMB11.1 billion; total fund reserves (including bank deposits and wealth management products) reached RMB30.5 billion.

• Basic EPS from continuing operations increased 145.7% year-over-year to RMB18.82 cents.

Outlook and guidance

• Nearly 20 innovative products are expected to be approved for marketing between 2025 and 2027, with over half projected as blockbusters (peak sales >RMB2 billion).

• By 2027, innovative products are projected to account for 60% of total sales.

• Internationalization and out-licensing anticipated to become new recurring revenue streams, accelerating performance growth.

• Major data readouts expected in 2025–2026 for key pipeline assets in oncology, respiratory, and other areas.

• Strategic acquisitions, such as LaNova Medicines, to strengthen innovation and R&D capabilities.