Bloomage BioTechnology (688363) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 2.81 billion, down 8.61% year-over-year; net profit attributable to shareholders was RMB 341.77 million, down 19.51% year-over-year.

• Operating cash flow increased 41.95% year-over-year to RMB 264.62 million, driven by tighter control of selling expenses.

• Management initiated comprehensive organizational reforms in 2024, aiming for high-quality, sustainable growth.

• Medical terminal business and raw materials showed strong growth, while functional skincare and functional foods faced short-term pressure due to ongoing transformation.

Financial highlights

• Gross margin for H1 2024 was 74.52%, up from the previous year.

• Basic and diluted EPS were RMB 0.71, down 19.32% year-over-year.

• R&D investment reached RMB 200.52 million, up 7.40% year-over-year, accounting for 7.13% of revenue.

• Net assets at period end were RMB 6.99 billion, up 0.60% from year-end 2023.

• Cash and equivalents at period end were RMB 657.89 million.

Outlook and guidance

• Management expects the effects of organizational reform to gradually materialize, supporting a shift from rapid to high-quality growth.

• Continued focus on innovation, R&D, and international expansion, with new product launches in raw materials and medical terminals planned.