Sino Biopharmaceutical (1177) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB31.83 billion for 2025, up 10.3% year-over-year, with innovative product sales rising 26.2% to RMB15.22 billion, now 47.8% of total revenue.

• Underlying profit attributable to owners increased 31.4% to RMB4.54 billion, driven by revenue growth and higher dividend income.

• Four innovative products and four new indications approved in 2025; robust R&D pipeline with 39 oncology, 10 liver/cardiometabolic, 14 respiratory/autoimmune, and 6 surgery/analgesia candidates in clinical stages.

• Major acquisitions: LaNova Medicines (US$950 million) and Hygieia (RMB1.2 billion) to strengthen R&D and global innovation footprint.

• Exclusive global license of Rovadicitinib to Sanofi, with potential payments up to US$1.53 billion and double-digit royalties.

Financial highlights

• Gross profit margin improved to 82.1% (+0.6ppt); selling/admin expenses to revenue ratio decreased to 41.3% (-0.8ppt); R&D costs to revenue ratio rose to 18.4% (+0.8ppt).

• Profit attributable to owners from continuing operations up 22.0% to RMB2.34 billion; basic EPS from continuing operations up 24.0% to RMB13.02 cents.

• Cash and bank balances at year-end: RMB12.18 billion; total fund reserve (including deposits and wealth management products): RMB32.99 billion.

• Final dividend of HK5 cents per share, total annual dividend HK10 cents per share.

Outlook and guidance

• Expects nearly 20 new national category 1 innovative drugs approved by 2028, targeting 40 marketed innovative products.

• Out-licensing and global partnerships to become significant revenue streams, supporting international expansion.

• Continued focus on four core therapeutic areas and AI-driven R&D to sustain growth.