Sino Biopharmaceutical (1177) H2 2025 earnings summary

Executive summary

• Achieved double-digit growth in both revenue and profit attributable to owners from continuing operations year-over-year for 2025, with revenue reaching RMB31.83 billion, up 10.3%, and innovative product sales rising 26.2% to RMB15.22 billion, now 47.8% of total revenue.

• Underlying profit attributable to owners increased 31.4% to RMB4.54 billion, reflecting strong core operational performance and higher dividend income.

• Four innovative products and four new indications approved in 2025; robust R&D pipeline with 39 oncology, 10 liver/cardiometabolic, 14 respiratory/autoimmune, and 6 surgery/analgesia candidates in clinical stages.

• Major strategic collaborations and acquisitions, including a USD1.53bn out-licensing deal with Sanofi and full acquisition of LaNova Medicines (USD950mn) and Hygieia (RMB1.2bn).

• Exclusive global license of Rovadicitinib to Sanofi, with potential payments up to USD1.53 billion and double-digit royalties.

Financial highlights

• Revenue from continuing operations increased 10.3% year-over-year to RMB31.83bn; innovative products contributed 48% of total revenue in 2025, up from 38% in 2023.

• Profit attributable to owners (as reported) grew 22.0% year-over-year to RMB2.34bn; basic EPS from continuing operations up 24.0% to RMB13.02 cents.

• Underlying profit attributable to owners reached RMB4.54bn, up 31.4% year-over-year.

• Gross profit margin improved to 82.1% in 2025 (+0.6ppt).

• R&D expenses accounted for 16.8%–19.8% of total revenue, totaling up to RMB6.32bn.

• SG&A expenses as a percentage of revenue decreased to 41.3%, with output per salesperson up 22.5%.

• Cash and bank balances at year-end: RMB12.18bn; total fund reserve (including deposits and wealth management products): RMB32.99bn.

• Final dividend of HK5 cents per share, total annual dividend HK10 cents per share.

Outlook and guidance

• Pipeline expected to deliver nearly 20 new innovative products and indications launches from 2026–2028, targeting 40 marketed innovative products.

• Focus on expanding global partnerships and accelerating international revenue streams, with out-licensing and global partnerships to become significant revenue sources.

• Continued investment in R&D and digital transformation, with focus on four core therapeutic areas and AI-driven R&D to sustain innovation and operational efficiency.