Sichuan Kelun-Biotech Biopharmaceutical (6990) H1 2024 earnings summary

Executive summary

• Revenue rose 32.2% year-over-year to RMB1,382.8 million in H1 2024, driven by milestone payments from MSD and R&D services.

• Net profit reached RMB310.2 million, reversing a loss of RMB31.1 million in the prior year period.

• Gross profit increased 59.4% to RMB1,076.7 million, with gross margin improving to 77.9% from 64.6% a year earlier.

• R&D pipeline advanced with multiple late-stage oncology assets, including sac-TMT, A166, A167, and A140, targeting regulatory approvals and launches in China in late 2024 or early 2025.

• Strong cash and financial assets position of RMB2,885.2 million as of June 30, 2024, bolstered by share placements and milestone receipts.

Financial highlights

• Revenue for H1 2024 was RMB1,382.8 million, up 32.2% year-over-year, mainly from MSD milestone payments.

• Gross profit: RMB1,076.7 million, up 59.4%; gross margin rose to 77.9% from 64.6%.

• R&D expenses increased to RMB652.3 million in H1 2024, up 33.0% from H1 2023.

• Net profit for H1 2024 was RMB310.2 million, reversing a net loss of RMB31.1 million in H1 2023.

• Adjusted profit for H1 2024 was RMB385.6 million, up 1,068% year-over-year.

Outlook and guidance

• Plans to launch sac-TMT, A166, A167, and A140 in China in late 2024 or early 2025, subject to regulatory approval.

• Focus on advancing over 10 clinical-stage drug candidates and submitting multiple IND applications in H2 2024.

• Continued expansion of commercialization infrastructure and recruitment of oncology-focused talent.

• Ongoing pursuit of global partnerships and milestone payments from collaborations.

• Strategic emphasis on innovation, global expansion, and operational optimization.