3SBio (1530) H2 2025 earnings summary

Executive summary

• Revenue surged 94.3% year-over-year to RMB17,695.7 million, driven by a major out-licensing deal with Pfizer for the PD-1/VEGF BsAb 707, which contributed RMB9,425.9 million in licensing income.

• Net profit attributable to owners rose 305.8% to RMB8,482.2 million, with adjusted net profit up 264.6% to RMB8,454.2 million.

• EBITDA increased 248.6% to RMB11,063.4 million, with adjusted EBITDA up 224.4% to RMB11,035.4 million.

• Basic earnings per share rose to RMB3.51 from RMB0.86 year-over-year.

• Final dividend of HKD25 cents per share proposed, unchanged from prior year.

Financial highlights

• Gross profit increased 108.8% to RMB16,347.3 million, with gross margin at 92.4%.

• Cost of sales rose to RMB1,348.4 million, mainly due to increased production costs for 707.

• Selling and distribution expenses rose 8.3% to RMB3,630.9 million, but as a percentage of revenue fell to 20.5% from 36.8%.

• Administrative expenses increased 29.7% to RMB651.2 million, mainly due to higher share-based compensation.

• R&D costs rose 14.6% to RMB1,520.4 million, reflecting accelerated project activity.

• Finance costs dropped 60% to RMB76.4 million due to changes in borrowing structure.

• Effective tax rate was 15.4%, down from 18.4% in 2024.

Outlook and guidance

• Focus on leveraging capital and resources for innovation in oncology, autoimmune, and nephrology.

• Plans to accelerate market access and academic promotion for new products and seek global partnerships.

• Estimated capital expenditure of RMB1,200–1,500 million over the next three years for facility maintenance and expansion.