Essex Bio-Technology (1061) H2 2025 earnings summary

Executive summary

• Turnover increased by 8.6% year-over-year to HK$1,813.8 million, with profit for the year up 3.5% to HK$318.1 million.

• Growth was driven by flagship biologics in ophthalmology and surgical segments, with new product launches and expanded R&D pipeline.

• Major investments in late-stage clinical assets (SkQ1 for dry eye disease, anti-VEGF for wet-AMD) and strategic collaborations in China and Southeast Asia.

Financial highlights

• Gross profit margin remained high at 89.2%, net profit margin at 17.5%, and return on equity at 13.2%.

• Cash and cash equivalents rose 40.5% to HK$782.7 million; net assets increased 13.6% to HK$2,413.1 million.

• R&D expenditure (including capitalised) was HK$177.2 million, 9.8% of turnover.

• Interim and final dividends totaled HK$0.14 per share, up 16.7% year-over-year.

Outlook and guidance

• New VAT law in PRC effective 2026 will increase tax rate on biologics, estimated to impact turnover by HK$133 million and gross profit by HK$116 million in 2026.

• The group is recalibrating costs to mitigate VAT impact and remains focused on R&D and market expansion.