Yuexiu Services Group (6626) H2 2025 earnings summary

Executive summary

• Revenue declined 10.4% year-over-year to RMB 26,006M, with gross profit down 16% and gross margin falling to 65.6% from 70.0%.

• R&D expenses rose 11.9% to RMB 5,809M, reflecting continued investment in innovation.

• Major licensing deals and collaborations, including a record $18.5B agreement with AstraZeneca, drove a surge in licence fee income.

• Shareholder returns included HK$453M in share repurchases and a full-year dividend of HK29 cents per share.

• Revenue for 2025 reached RMB3,901.9 million, up 0.9% year-over-year, with non-commercial property management and value-added services contributing RMB3,153.4 million (+0.6%) and commercial property management and operational services RMB748.5 million (+2.0%).

Financial highlights

• Underlying profit attributable to shareholders dropped 24.5% year-over-year to RMB 3,534M.

• Basic EPS based on reported profit fell 7.8% to RMB 33.98 cents.

• Licence fee income soared to RMB 1,789M from RMB 17.83M, up 9,931.4%.

• Finished drugs revenue declined 13.3%, while bulk vitamin C grew 11.9%.

• Cost of sales increased 12.1% to RMB3,325.2 million, outpacing revenue growth.

Outlook and guidance

• Over 20 generic drugs are expected to launch in 2025-2026, with 30 more in research.

• Multiple innovative drugs and new formulations are planned for launch between 2026-2028.

• Data read-outs for key oncology and biologics assets are scheduled for 2026.

• Focus for 2026 is on refined services, management innovation, structure optimization, and cost efficiency.

• Continued investment in digitalization, ESG, and sustainable development initiatives.