Sichuan Kelun Pharmaceutical (002422) H2 2025 earnings summary

Executive summary

• Achieved significant progress in R&D, commercialization, and international partnerships in 2025, with four launched products and eight indications, and over 30 R&D projects in the pipeline.

• Expanded commercialization team to nearly 600, covering 300 cities and 1,200 hospitals, with three products and four indications included in national medical insurance.

• Strengthened global collaborations, notably with MSD, leading to 17 global phase III trials and multiple licensing agreements.

• Published six pivotal studies in major congresses and journals, including NEJM and ESMO Presidential Forum.

Financial highlights

• 2025 revenue reached RMB 2.06 billion, up 6.5% year-over-year; commercialized revenue was RMB 540 million.

• Gross margin rose 16.1% to RMB 1.47 billion, outpacing revenue growth due to favorable income mix.

• Net loss increased to RMB 380 million, mainly due to higher sales and marketing expenses in the first year of commercialization; adjusted loss (excluding stock incentives) was RMB 210 million.

• R&D expenditure was RMB 1.32 billion, up 9.4% year-over-year, reflecting stable investment in pipeline expansion.

• Total assets grew 40% to nearly RMB 6 billion, with cash and financial assets at RMB 4.6 billion, bolstered by a $250 million Hong Kong placement.

Outlook and guidance

• Expects further product approvals and indication expansions in 2026, with commercialization revenue projected to double.

• NRDL revenue anticipated to account for over 80% of total revenue next year.

• Ongoing focus on expanding international footprint and advancing innovative ADC and bispecific antibody platforms.