XtalPi Holdings (2228) H1 2024 earnings summary

Executive summary

• Revenue grew 28.3% year-over-year to RMB102.6 million for the six months ended 30 June 2024, driven by strong growth in drug discovery solutions and milestone payments.

• Adjusted net loss (non-IFRS) narrowed by 30% year-over-year to RMB251.4 million, while reported net loss widened to RMB1,237.6 million due to a significant non-cash fair value loss of convertible redeemable preferred shares (CRPS) prior to their conversion at IPO.

• Completed Hong Kong Stock Exchange listing in June 2024, raising gross proceeds of HK$989 million (RMB901 million) and converting all CRPS into ordinary shares, improving the balance sheet.

• Expanded international presence with new partnerships, major R&D collaborations, and inclusion in the Hang Seng Composite Index.

• Achieved clinical milestone payments and received FDA IND approval for an AI-integrated targeted drug for diffuse gastric cancer.

Financial highlights

• Revenue: RMB102.6 million, up 28.3% year-over-year.

• Adjusted net loss (non-IFRS): RMB251.4 million, improved from RMB357.5 million in the prior year.

• Net loss: RMB1,237.6 million, up 99.5% year-over-year, mainly due to non-cash CRPS fair value loss.

• R&D expenses: RMB210.4 million, down 10.3% year-over-year.

• Cash and cash equivalents as of June 30, 2024: RMB3,377.1 million.

Outlook and guidance

• Revenue for 2024 is expected to be close to the Commercial Company threshold under HKEX rules, with qualification as a Commercial Company anticipated by 2025.

• Focus on expanding global footprint, especially in the US, Hong Kong, Southeast Asia, Europe, and the Middle East.

• Continued investment in AI + automation R&D, with major new contracts in new energy materials and TCM automation.