3SBio (1530) H1 2024 earnings summary

Executive summary

• Revenue for 2024H1 reached RMB4,389.4 million, up 16.0% year-over-year, driven by strong sales of TPIAO and Mandi, with gross profit up 18.6% and net profit attributable to owners up 11.1%.

• EBITDA increased 23.4% to RMB1,641.5 million; adjusted EBITDA up 17.0%.

• R&D pipeline advanced with multiple late-stage assets, including NDA acceptance for SSS06 in CKD anemia, strong Phase III results for 608 (IL-17A Ab) in psoriasis, and expansion to 28 candidates.

• Major product launches and approvals included Mandi Foam and TPIAO for pediatric ITP, with robust sales growth across TPIAO, EPIAO, Yisaipu, Cipterbin, and Mandi.

• Secured a $200 million IFC long-term loan, optimizing capital structure and supporting international expansion.

Financial highlights

• Gross profit margin improved to 86.5% in 2024H1, with gross profit at RMB3,797.4 million.

• Adjusted EBITDA grew 17.0% year-over-year to RMB1,641.5 million.

• R&D costs surged 55.3% to RMB476.2 million, now 10.8% of revenue.

• Debt asset ratio reduced to 29.4%, with ROE rising to 13.1%.

• Cash and bank balances plus financial products at RMB7,944.5 million.

Outlook and guidance

• Multiple NDAs expected in 2024–2025, including for TPIAO (CLDT), SSS06 (long-acting EPO), and 608 (IL-17A Ab) for psoriasis.

• Focus on innovative drug development in nephrology, autoimmune, hair/skin, hematology, and oncology, with annual new product launches anticipated.

• Strategic BD initiatives to license in/out innovative assets and expand global reach, including expansion in acne and weight management markets.