Zhaoke Ophthalmology (6622) H2 2024 earnings summary

Executive summary

• 2024 revenue rose to RMB69.3m from RMB18.8m; net loss narrowed to RMB237.5m from RMB385.0m, supported by sales growth, milestone income and lower R&D spending.

• Commercialization expanded across seven approved ophthalmic products, while late-stage candidates advanced toward regulatory filings and potential launches.

Financial highlights

• Revenue was RMB69.324m vs RMB18.750m; gross profit RMB51.797m vs RMB14.247m; loss for the year RMB237.493m vs RMB385.038m.

• Adjusted loss, excluding equity-settled share-based payment expenses, was RMB228.828m vs RMB363.015m; share-based expenses were RMB8.665m vs RMB22.023m.

• Drug-product sales were RMB30.443m vs RMB4.736m; licensing income was RMB33.523m vs RMB8.414m, including a RMB33.5m milestone payment for Adapalene/Clindamycin Hydrochloride Compound Gel.

• Other income was RMB87.314m vs RMB82.044m; other net loss increased to RMB18.311m from RMB3.515m, mainly due to FX losses amid RMB depreciation.

• Total comprehensive loss narrowed to RMB156.906m from RMB323.931m; basic and diluted loss per share were RMB0.43 vs RMB0.71, respectively.

Outlook and guidance

• NVK002 ANDA was accepted by the NMPA in Jan 2025; approval is targeted as early as H1 2026.

• CsA Ophthalmic Gel aims to resubmit its NDA in H1 2025; TAB014 targets BLA submission in H1 2025 following positive Phase III results.

• Phase I/II trials for BRIMOCHOL PF and CARBACHOL PF are targeted for completion in 2025; Epinastine HCl approval is anticipated in the coming months.

• FDA discussions are underway for CsA Ophthalmic Gel; an FDA IND filing is targeted by end-2025 to begin a potential Phase III trial.

• Commercial preparations and partner channels are being expanded ahead of anticipated innovative-drug launches over the next 12–24 months.