XtalPi Holdings (2228) H1 2024 earnings summary

Executive summary

• Revenue grew 28.3% year-over-year in 1H2024, reaching RMB 102.6 million, driven by drug discovery solutions and milestone payments.

• Adjusted net loss narrowed by 30% year-over-year to RMB 251.4 million, but net loss widened to RMB 1,237.6 million due to a significant non-cash CRPS fair value loss prior to IPO.

• Completed IPO in June 2024, raising HK$989 million and converting all CRPS into ordinary shares, improving the balance sheet.

• Expanded international presence with new partnerships and collaborations, including major pharmaceutical companies.

• Achieved FDA IND approval for an AI-integrated targeted drug for diffuse gastric cancer and received clinical milestone payments.

Financial highlights

• 1H2024 revenue: RMB 102.6 million, up 28.3% year-over-year.

• Adjusted net loss (non-IFRS): RMB 251.4 million, improved from RMB 357.5 million in the prior year.

• R&D expenses for 1H2024: RMB 210.4 million, down 10.3% year-over-year.

• Cash and cash equivalents as of June 30, 2024: RMB 3,841.7 million.

• Operating cash flow increased 32.3% year-over-year.

Outlook and guidance

• Revenue for 2024 expected to approach the commercial company threshold, with qualification anticipated by 2025.

• Continued focus on expanding AI + automation R&D into new sectors, including new energy materials and modernization of traditional Chinese medicine.

• Strategic R&D collaboration agreements, including a RMB 1 billion deal with GCL Group, signal growth in new business areas.