Genscript Biotech (1548) H1 2025 earnings summary

Executive summary

• Revenue from continuing operations rose 81.9% year-over-year to $518.8 million, driven by strong license revenue and growth across all core business segments.

• Adjusted net profit from continuing operations reached $178.0 million, up 509.6% year-over-year; reported net loss narrowed to $24.5 million, mainly due to a $193.7 million share of loss from Legend Group.

• Cash, bank balances, and wealth management products totaled $966.6 million as of June 30, 2025, supporting global expansion, R&D, and capacity growth.

• Deconsolidation of Legend Group in 2024 led to its reclassification as an associate, impacting net loss and financial reporting.

• No interim dividend declared for the period.

Financial highlights

• Revenue: $518.8 million (+81.9% YoY); Gross profit: $320.6 million (+140.1% YoY).

• Adjusted net profit: $178.0 million (+509.6% YoY); Net loss: $24.5 million (vs. $215.6 million loss prior year).

• Life Science Group revenue up 11.3% to $247.6 million; ProBio up 511.1% to $246.9 million; Bestzyme up 8.4% to $28.3 million.

• Significant license revenue from LaNova contributed to the surge in biologics development services.

• Cash and equivalents: $943.9 million; unutilized bank facilities: $532.7 million.

Outlook and guidance

• FY 2025 revenue growth target revised to 13%-15% for core business, with Life Science Group expecting flat adjusted gross profit and 18% operating margin.

• ProBio expects 15%-20% fee-for-service revenue growth, continued LaNova out-licensing payments, and a $300 million Lenovo milestone payment in H2.

• Bestzyme targets 20%-25% revenue growth and ~45% adjusted gross profit margin, with faster H2 growth due to seasonality and new product launches.

• Group to focus on automation, digitalization, global market penetration, and brand transformation.

• Sufficient resources are available to support planned capital investments and manufacturing expansion in the US, Singapore, and China.