InnoCare Pharma (9969) investor relations material

Executive summary

• Achieved first full-year profitability with net profit of RMB 644.2 million in 2025, reversing a loss in 2024, driven by strong drug sales, commercial product ramp-up, and global licensing revenue.

• Total revenue surged 135.3% year-over-year to RMB 2.38 billion, led by orelabrutinib and the launch of tafasitamab.

• Advanced internationalization strategy with major licensing deals, expanding global presence and pipeline value realization.

• Strong cash position of RMB 7.8 billion at year-end, supporting ongoing R&D and globalization.

• Significant progress in hematologic oncology, autoimmune diseases, and solid tumors, with multiple regulatory approvals and late-stage clinical advancements.

Financial highlights

• Product sales reached RMB 1.44 billion, up 43.4% year-over-year, with gross profit up 150.7% to RMB 2,183.8 million and gross margin at 92.0%.

• Diluted EPS was RMB 0.38 for 2025, turning positive from a loss per share of RMB 0.26 in 2024.

• Adjusted profit for the year was RMB 675.4 million, excluding non-cash items.

• R&D expenses were RMB 950 million, growing 16.9% year-over-year; operational expenses rose 22.4% to RMB 1,735.1 million.

• Cash and related accounts balances remained robust at RMB 7.8 billion as of year-end 2025.

Outlook and guidance

• Drug sales expected to grow by more than 35% in 2026, driven by new indications and expanded hospital coverage.

• Management anticipates 2026 to be catalyst-rich, with multiple late-stage assets approaching regulatory submissions and commercialization.

• Confident in sustaining breakeven and profitability through 2026 and 2027, even without new BD deals.

• R&D expenses projected to grow around 20% in 2026, with no near-term financing pressure.

• Continued focus on globalization, selective out-licensing, and regional partnerships to maximize asset value.