GIANT BIOGENE (2367) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB5,518.5 million, remaining flat year-over-year; net profit declined 7.1% to RMB1,914.7 million; adjusted net profit dropped 8.9% to RMB1,959.9 million.

• Gross profit decreased 2.5% to RMB4,433.4 million; gross margin fell from 82.1% to 80.3% due to product mix changes.

• Direct sales accounted for 74.9% of revenue, with online DTC stores contributing 61.6%; sales to distributors made up 25.1%.

• KOMFYMED brand contributed 81% of revenue, Collgene 16.6%, and functional foods/others 0.4%.

• R&D expenditure was RMB88.8 million (1.6% of revenue), with over 140 ongoing projects and 42 new patents granted or applied.

Financial highlights

• Revenue: RMB5,518.5 million (-0.4% YoY); Net profit: RMB1,914.7 million (-7.1% YoY); Adjusted net profit: RMB1,959.9 million (-8.9% YoY).

• Basic EPS: RMB1.83 (-12.9% YoY); Diluted EPS: RMB1.81 (-12.1% YoY).

• Gross profit: RMB4,433.4 million (-2.5% YoY); Gross margin: 80.3% (down from 82.1%).

• Selling and distribution expenses rose 2.4% to RMB2,055.9 million; administrative expenses up 11.9% to RMB168.5 million.

• Cash and cash equivalents increased 56.5% to RMB6,306.2 million.

Outlook and guidance

• Focus on returning to growth in 2026, with emphasis on R&D, product innovation, and expanding both domestic and overseas markets.

• Acceleration of Class III medical device launches and continued investment in synthetic biology and new product pipelines.

• Continued dual-track brand strategy (B2C and C2B) and expansion of offline and online channels.