Sichuan Kelun-Biotech Biopharmaceutical (6990) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, was RMB950.4 million, down 31.3% year-over-year, mainly due to lower milestone payments from license and collaboration agreements.

• Net loss for the period was RMB145.2 million, compared to a profit of RMB310.2 million in the prior year; adjusted loss was RMB69.4 million.

• Commercial sales reached RMB309.8 million, with sac-TMT accounting for 97.6% of sales.

• Achieved significant commercialization milestones with multiple product launches and regulatory approvals in oncology and immunology, including first-in-class ADCs and mAbs for lung, breast, and nasopharyngeal cancers.

• Expanded global clinical collaborations, notably with MSD, and out-licensed key assets for international development.

Financial highlights

• Gross profit for 1H25 was RMB660.0 million, with gross margin at 69.4%, down from 77.9% year-over-year.

• R&D expenses for 1H25 totaled RMB611.5 million, reflecting ongoing investment in pipeline development.

• Selling and distribution expenses rose 334.8% to RMB178.9 million due to expanded commercialization.

• Cash and financial assets totaled RMB4,527.8 million as of June 30, 2025, up 47.2% from year-end 2024.

• No borrowings; net cash from financing activities was RMB1.77 billion, primarily from a June 2025 share placement.

Outlook and guidance

• Focus on advancing differentiated pipelines targeting high medical need indications, especially in oncology and non-oncology diseases.

• Plans to launch trastuzumab botidotin in China and file NDA for A400 in H2 2025.

• Continued investment in R&D, AI-enabled drug discovery, and expansion of global partnerships.

• Ongoing efforts to optimize commercialization strategies and expand market access, with sales revenue target for 2025 at RMB1 billion.

• Anticipates reduced sales expenses ratio after inclusion in national medical insurance.