The United Laboratories International (3933) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB13,210.6 million, down 4.0% year-over-year, with gross profit falling 9.3% to RMB5,514.1 million and EBITDA down 17.6% to RMB3,247.2 million.

• Profit attributable to owners declined 21.6% to RMB2,085.9 million, and basic EPS dropped 24.4% to 110.65 RMB cents; full-year dividend was RMB42 cents per share, a 25% decrease.

• Finished product segment revenue (including out-licensing) surged 41.7% year-over-year to RMB6,697.8 million, now 50.7% of total revenue, driven by a 57.4% increase in insulin series sales.

• Entered an exclusive global licensing agreement with Novo Nordisk for UBT251, receiving a USD200 million upfront payment and potential milestones up to USD1.8 billion, plus royalties.

• R&D investment reached RMB1,005.0 million, with 23 Class 1 new drugs in development and several clinical and regulatory milestones achieved.

Financial highlights

• Revenue: RMB13,210.6 million (-4.0% YoY); Gross profit: RMB5,514.1 million (-9.3% YoY); EBITDA: RMB3,247.2 million (-17.6% YoY).

• Profit attributable to owners: RMB2,085.9 million (-21.6% YoY); Basic EPS: 110.65 RMB cents (-24.4% YoY); Full-year dividend per share: 42.0 RMB cents (-25.0% YoY); payout ratio maintained at 38%.

• Net cash from operating activities: RMB3,662.9 million (up from RMB3,199.3 million in 2024); net cash position improved to RMB4,027.1 million; total assets rose to RMB30,900.5 million.

• Finance costs rose 99.5% to RMB69.7 million; borrowing costs capitalized increased to RMB57.5 million.

• Current ratio stable at 1.83; equity attributable to owners increased to RMB17,393.0 million.

Outlook and guidance

• Plans to further increase innovation investment and R&D efficiency, focusing on key therapeutic areas and technological upgrades.

• Will expedite international expansion, strengthen vertical integration, and enhance product matrix, leveraging economies of scale.

• Aims to optimize debt structure, control financial costs, and ensure robust cash flow for strategic projects.

• The sector is positioned as an “emerging pillar industry” with policy support for innovative drugs.

• Proceeds from recent share placement to be fully utilized by 2028 for facility expansion and R&D.