3SBio (1530) H2 2024 earnings summary

Executive summary

• Revenue grew 16.5% year-over-year to RMB 9.1 billion, driven by strong sales of TPIAO, Mandi, and Cipterbin, with gross profit up 17.9% and net profit attributable to parent up 34.9%.

• Gross profit margin reached 86.0%, and adjusted net profit rose 18.8% year-over-year.

• EBITDA grew 32.8% to RMB3,173.8 million; adjusted EBITDA up 22.9% to RMB3,402.3 million.

• Major product launches, regulatory approvals, and BD collaborations expanded the portfolio and market reach.

• Final dividend of HKD 0.25/share proposed; total dividends and repurchases exceeded 40% of 2023 net profit.

Financial highlights

• Revenue: RMB 9.1 billion, up 16.5% year-over-year.

• Gross profit: RMB 7.8 billion, up 17.9% year-over-year; gross margin 86.0%.

• Net profit attributable to parent: RMB 2.1 billion, up 34.9% year-over-year.

• Adjusted net profit: RMB 2.3 billion, up 18.8% year-over-year.

• Operating net cash inflow: RMB 3.2 billion; financial resources at RMB 8.1 billion.

Outlook and guidance

• Continued focus on innovative R&D and pipeline expansion, with multiple NDAs and ANDAs accepted.

• Focus on launching innovative drugs in oncology, auto-immunity, nephrology, and high-potential areas like hair, acne, and weight loss.

• Expectation of key new drugs entering commercialization annually from 2025.

• Strategic BD collaborations to drive growth in obesity, oncology, and hematology.

• Emphasis on expanding commercialization and international market presence.