Innovent Biologics (1801) H2 2025 earnings summary

Executive summary

• Achieved record revenue of RMB13.0bn in 2025, up 38.4% year-over-year, with product revenue at RMB11.9bn, up 45% year-over-year, and license fee income a key contributor.

• Reached first full year of profitability, with non-IFRS net profit of RMB1.7bn and IFRS net profit of RMB813.6mn, a turnaround from a loss in 2024.

• Expanded marketed product portfolio to 18, with 7 new launches and 12 listed on the NRDL, maintaining leadership in oncology and accelerating general biomedicine growth.

• Advanced three late-stage assets into or ready for global MRCT Ph3, supported by major partnerships with Takeda, Lilly, and Roche, unlocking over $60bn in addressable markets.

• Included in the Hang Seng Index, marking a milestone for China's innovative drug industry and maintaining industry-leading ESG performance.

Financial highlights

• Gross profit margin rose to 87.2% (Non-IFRS), up 2.3pp year-over-year, and IFRS gross margin at 86.5%.

• SG&A expenses as a percentage of revenue decreased by 2.9pp, demonstrating operating leverage.

• EBITDA surged to RMB2.0bn, up 384% year-over-year; Non-IFRS EBITDA reached RMB1,990.7 million.

• Cash and cash equivalents reached RMB24.3bn (US$3.5bn), supporting future investments.

• R&D expenses remained stable at RMB2,624.2 million; selling and marketing expenses rose to RMB5,712.9 million but decreased as a percentage of revenue.

Outlook and guidance

• Targeting RMB20bn product revenue by 2027, driven by dual-engine growth in oncology and general biomedicine.

• Strategic focus on global expansion, with international markets emerging as a new revenue engine.

• Sustained high-quality profitability expected through operational efficiency and top-tier pharma practices.

• At least five assets in global MRCT Ph3 by 2030, fueling future growth.

• 2026 will focus on global expansion, commercialization, and advancing late-stage assets.