Jiangsu Hengrui Medicine (600276) H2 2024 earnings summary

Executive summary

• Achieved revenue of RMB 27.98 billion in 2024, up 22.63% year-over-year; net profit attributable to shareholders reached RMB 6.34 billion, up 47.28% year-over-year.

• Innovation-driven growth: innovative drug sales (excluding out-licensing) rose 30.60% year-over-year to RMB 13.89 billion.

• Received significant out-licensing payments from Merck Healthcare (€160 million) and Kailera Therapeutics ($100 million), boosting profits.

• R&D investment reached RMB 8.23 billion, accounting for 29.4% of revenue, with 5,598 R&D staff (27.66% of total employees).

Financial highlights

• Operating income: RMB 27.98 billion, up 22.63% year-over-year.

• Net profit attributable to shareholders: RMB 6.34 billion, up 47.28% year-over-year.

• Net profit after non-recurring items: RMB 6.18 billion, up 49.18% year-over-year.

• Operating cash flow: RMB 7.42 billion, down 2.89% year-over-year.

• Basic EPS: RMB 1.00, up 47.06% year-over-year.

• Gross margin for oncology products: 92.57%.

Outlook and guidance

• Plans to launch approximately 47 new innovative products/indications from 2025–2027.

• Focus on global expansion, accelerating international clinical trials and out-licensing.

• Continued high R&D investment and pipeline diversification across oncology, metabolism, cardiovascular, immunology, and neuroscience.