Sichuan Biokin Pharmaceutical Co (688506) Q2 2024 earnings summary

Executive summary

• Revenue surged 1,685.19% year-over-year to RMB 5.55 billion, driven by an $800 million upfront payment from BMS for BL-B01D1 collaboration.

• Net profit attributable to shareholders reached RMB 4.67 billion, reversing a loss in the prior year.

• R&D investment increased 63.61% year-over-year to RMB 544.53 million, with 38.83% of staff in R&D roles.

• The company advanced multiple innovative biologics and chemical drugs, with several assets in late-stage clinical trials.

Financial highlights

• Operating income: RMB 5.55 billion, up 1,685.19% year-over-year.

• Net profit attributable to shareholders: RMB 4.67 billion, up from a loss of RMB 328 million year-over-year.

• Basic and diluted EPS: RMB 11.64, compared to -0.82 year-over-year.

• Operating cash flow: RMB 5.03 billion, up from negative RMB 323 million year-over-year.

• Gross margin: 98%+ due to high-margin licensing income.

Outlook and guidance

• Continued focus on global clinical development of BL-B01D1 and other innovative assets.

• Anticipates further milestone and potential royalty payments from BMS and other partners.

• Ongoing expansion of R&D pipeline and manufacturing capacity.