Jiangsu Hengrui Medicine (600276) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 6.59 billion, up 12.72% year-over-year; net profit attributable to shareholders was RMB 1.19 billion, up 1.91% year-over-year.

• For the first nine months, revenue totaled RMB 20.19 billion, up 18.67% year-over-year; net profit attributable to shareholders was RMB 4.62 billion, up 32.98% year-over-year.

• Significant profit growth was driven by recognition of a €160 million upfront licensing payment from Merck Healthcare.

Financial highlights

• Operating cash flow for the first nine months was RMB 4.59 billion, up 6.42% year-over-year.

• Basic and diluted EPS for the first nine months were RMB 0.73, up 32.73% year-over-year.

• Total assets at quarter-end were RMB 48.34 billion, up 10.40% from the previous year-end.

• Owner's equity attributable to shareholders was RMB 43.77 billion at quarter-end.

Key financial ratios and metrics

• Weighted average ROE for the first nine months was 10.88%, up 1.97 percentage points year-over-year.

• Gross margin for the first nine months was approximately 25.3%.

• Net margin for the first nine months was about 22.9%.