Xuanzhu Biopharmaceutical (2575) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 72.0% YoY to RMB51.8m, while loss narrowed 55.9% to RMB245.5m, as two newly approved oncology drugs began contributing sales and operating expenses fell.

• Three marketed products now span digestive diseases and oncology; the October 2025 Hong Kong listing provided net proceeds of HKD679.9m to fund R&D and commercialization.

Financial highlights

• Revenue increased to RMB51.772m from RMB30.094m; cost of sales rose 35.3% to RMB18.4m on higher sales volume.

• Gross profit rose to RMB33.4m from RMB16.5m; gross margin increased to 64.5% from 54.8%, driven by sales of Xuan Yue Ning and Xuan Fei Ning.

• Selling, R&D and administrative expenses totaled RMB251.3m, down 56.6%; R&D expense fell 33.4% to RMB124.2m and administrative expense declined to RMB77.8m from RMB339.7m.

• Net loss narrowed to RMB245.5m from RMB556.4m; basic and diluted loss per share improved to RMB0.53 from RMB1.23.

Outlook and guidance

• 2026 priorities: expand commercialization, deepen innovative R&D and refine cost management, with a goal of progressing toward sustainable profitability.

• Plans include pursuing NRDL access for Xuan Fei Ning, expanding hospital access for Xuan Yue Ning, and growing An Jiu Wei channels following its NRDL renewal at an unchanged price.

• Plans call for submitting An Jiu Wei’s reflux esophagitis marketing application in Q2 2026 and an H. pylori eradication clinical-trial application during 2026.

• Cost initiatives include qualifying additional production sites and API suppliers, improving manufacturing yields, and optimizing marketing spend and resource allocation.