Genscript Biotech (1548) H2 2025 earnings summary

Executive summary

• Revenue rose 61.4% year-over-year to $959.5 million, with adjusted net profit up 285% to $230.3 million, driven by global expansion, productization, and platform synergy.

• All business units—Life Science Group, ProBio, and Bestzyme—delivered sustainable growth, with ProBio revenue surging 309.1% year-over-year.

• Net loss of $532.4 million was recorded, mainly due to a $320.4 million share of loss and $398.1 million impairment on the Legend Group investment.

• Significant ESG achievements: MSCI AA rating, FTSE4Good inclusion, EcoVadis silver medal, S&P Global Sustainability Yearbook recognition, and net-zero target by 2050.

• Prior year profit was inflated by a one-time $3.2 billion gain from Legend Group deconsolidation.

Financial highlights

• Total revenue reached $959.5 million (+61.4% YoY); gross profit more than doubled to $553.2 million (+103.3% YoY).

• Adjusted net profit was $230.3 million, up from $59.8 million in 2024 (+285% YoY); net loss was $532.4 million.

• Adjusted gross profit margin at 51.2%, with adjusted operating profit of $95.4 million.

• ProBio revenue included nearly $280 million from the LaNova license deal.

• Cash and bank balances plus wealth management products totaled $843.1 million (+14.3% YoY).

Outlook and guidance

• 2026 revenue growth guidance: Life Science Group 15–18%, ProBio services 25–30%, Bestzyme 10–15%.

• Adjusted gross margin expected to reach 52% for Life Science Group, with operating profit margin around 19–20%.

• Focus on high-quality growth, profitability, automation, digitalization, and global expansion.

• ProBio targets 20–25% fee-for-service revenue growth and aims for positive EBITDA by 2027.

• Maintains long-term strategic investment in Legend Group, optimistic about its future value.