Shanghai Junshi Biosciences Co (1877) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 reached RMB786 million, up 17% year-over-year, driven by a 50% increase in domestic sales of core product TUOYI® (toripalimab) to RMB671 million.

• Loss attributable to owners narrowed by 35% to RMB646 million, reflecting improved commercialization, cost control, and reduced R&D expenses.

• R&D expenses decreased by 42% to RMB546 million due to cost optimization and completion of key clinical milestones.

• Cash and equivalents stood at RMB3,311 million, supporting ongoing development and ensuring sufficient liquidity.

Financial highlights

• Gross profit rose 51% to RMB575 million, with gross margin improving to 73% from 57% year-over-year.

• Selling and distribution expenses increased 15% to RMB428 million, mainly for new indication launches and expanded marketing.

• Administrative expenses rose 4% to RMB253 million, primarily due to higher depreciation as assets came online.

• Net cash outflow from operating activities was RMB869 million; net cash inflow from financing was RMB739 million.

• Basic and diluted loss per share improved to RMB0.66 from RMB1.01 year-over-year.

Outlook and guidance

• Focus remains on accelerating late-stage pipeline R&D and expanding commercialization globally, especially for TUOYI® and other innovative drugs.

• Continued investment in innovative drug modalities, international regulatory approvals, and plans to increase production capacity are expected to drive future growth.

• International expansion continues, with regulatory submissions and approvals in the US, EU, and other regions.