The United Laboratories International (3933) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 4.8% year-over-year to RMB7,518.7 million, with gross profit up 17.3%, EBITDA up 23.3%, and profit attributable to owners up 27.0% to RMB1,894.3 million; basic EPS was RMB104.26 cents.

• Finished product sales, including out-licensing, surged 65.9% YoY to RMB3,978.5 million, driven by insulin series and the launch of liraglutide injection.

• Entered an exclusive global licensing agreement with Novo Nordisk for UBT251, receiving a USD200 million upfront payment and potential milestones up to USD1.8 billion.

• R&D investment increased 14.9% YoY, with 22 Class 1 new drugs in development and significant pipeline progress in diabetes, obesity, and autoimmune areas.

• Overseas revenue accounted for 37.2% of total, with notable wins in Brazil and Malaysia and expanded animal healthcare registrations abroad.

Financial highlights

• Gross profit margin improved to 52.2% in 1H2025 from 46.6% in 1H2024; gross profit reached RMB3,923.9 million.

• EBITDA rose 23.3% YoY to RMB2,752.1 million; net profit margin increased to 25.2% from 20.8%.

• Interim dividend maintained at RMB16.0 cents per share; payout ratio decreased to 15.3%–16.7%.

• Net cash position grew to RMB2,531.2 million, with cash and equivalents at RMB9,014.5 million as of June 30, 2025.

• Net cash from operating activities reached RMB1,997.1 million in 1H2025.

Outlook and guidance

• Plans to further increase R&D investment, expand the new drug pipeline, and strengthen global strategic footprint.

• Focus on innovation-driven transformation, vertical integration, and robust cash flow to support expansion.

• New production bases expected to add over RMB5 billion in annual output value upon completion.

• Net proceeds from recent share placement to fund manufacturing expansion (60%) and R&D (40%).

• Plans to accelerate overseas registration and commercialization of key products.