Core Performance Highlights

 

● Strong Growth: Full-year revenue reached RMB 31.83 billion (YOY +10.3%), net profit attributable to the parent company (underlying profit) was RMB 4.54 billion (YOY +31.4%), achieving consecutive double-digit growth. 

● Innovation-Driven: Innovative product revenue reached RMB 15.22 billion (YOY +26.2%), becoming the core engine for business growth. 

● Profitability Efficiency: Gross profit margin increased to 82.1%, with AI empowering dual improvements in quality and efficiency across the entire chain of R&D, production, and sales. 

● Financial Stability: Cash reserves reached RMB 33 billion, with net cash of RMB 16.9 billion, maintaining a stable dividend payout ratio of over 30%. 

 

On March 26, Sino Biopharm (1177.HK) released its 2025 annual results. Driven by the in-depth advancement of its comprehensive innovation and development strategy and the rapid volume growth of innovative products launched intensively over the past three years, the company has delivered impressive results of double-digit growth in both revenue and net profit for four consecutive reporting periods. Its profitability and operational efficiency continue to climb, fully ushering in a new era of international development. 

 

 

Innovative Products Become the Main Engine for Business Growth, with Industry-Leading Profitability

 

The past three years have been an intensive harvest period for Sino Biopharm's innovative R&D and a crucial three years for translating innovation achievements into performance. From 2023 to 2025, the Group received approval for a total of 16 innovative products (including 7 national Class 1 innovative drugs). In 2025, the Group's innovative product revenue surpassed the RMB 15 billion mark, reaching RMB 15.22 billion, with a compound annual growth rate of over 24% and a year-on-year growth rate of 26.2%, becoming the core engine driving the company's consecutive double-digit performance growth. 

 

In 2025, the Group had 4 innovative products approved for marketing, including: Zongertinib Tablets (Hernexeos^®), the world's first oral targeted drug for HER2-mutant advanced non-small cell lung cancer; Culmerciclib Capsules (Saitanxin^®), the world's first CDK2/4/6 inhibitor; Recombinant Human Coagulation Factor VIIa for Injection N01 (Anqixin^®), the first domestically produced version; and Meloxicam Injection (II) (Putanning^®), China's first 24-hour long-acting NSAID analgesic new drug to receive FDA marketing approval. Meanwhile, the core product Anlotinib Hydrochloride Capsules (Fucovii^®) added 3 first-line indications, bringing the total number of indications to 10, continuously solidifying its market position as a core anti-angiogenic drug in China; Penpulimab Injection (Annike^®) added 1 first-line indication. 

 

While innovative revenue grew rapidly, the Group's profit structure was continuously optimized. In 2025, the Group's gross profit margin reached 82.1%, an increase of 0.6 percentage points from the previous year. Leveraging the capacity leap brought by the 10,000L biopharmaceutical production line, combined with its full-dosage-form production capabilities and full-cycle intelligent management, the Group has achieved a triple lead in production cost, efficiency, and quality. Meanwhile, sales and administrative expenses were precisely controlled, with the expense ratio further decreasing to 41.3%, and major per capita output significantly increasing by 22.5%. 

 

 

Theresa Tse, Chairwoman of the Board of Sino Biopharm

 

As one of the benchmark enterprises for innovative transformation among large domestic pharmaceutical companies, Sino Biopharm has achieved double-digit growth in revenue and net profit for four consecutive reporting periods. This achievement fully validates the effectiveness of the company's years of deep cultivation in all areas, including innovative drug R&D, BD cooperation, and M&A integration. Moreover, 2026 marks a new inaugural year for Sino Biopharm's comprehensive internationalization. The blockbuster out-licensing deal at the beginning of the year established a milestone for the company's internationalization, opening up vast global valuation space for its subsequent innovative pipeline. 

 

R&D Investment Continues to Climb, AI Accelerates Differentiated Innovation Layout

 

As one of China's largest prescription pharmaceutical companies, Sino Biopharm has maintained a high proportion of R&D investment for many consecutive years. In 2025, the Group's full-year R&D expenses reached RMB 5.87 billion, accounting for 18.4% of revenue; in the past 3 years, cumulative R&D expenses exceeded RMB 15 billion. Currently, the Group has established ten core technology platforms covering small molecules, monoclonal antibodies, bispecific/multispecific antibodies, ADCs, small interfering RNA (siRNA), Proteolysis-Targeting Chimera (PROTAC), and more. It has set up R&D centers in multiple locations including Shanghai, Nanjing, Beijing, and Guangzhou, and has assembled a professional R&D team of over 2,900 people, efficiently advancing more than 130 clinical studies throughout the year. 

 

At the same time, the company is comprehensively advancing its digital strategy, empowering drug R&D with AI. Its AI-powered R&D platform, OAPD^®, has produced two new-generation protein degraders with BIC potential, TQB3019 (a Bruton's tyrosine kinase (BTK) OAPD) and TQH5528 (a Signal Transducer and Activator of Transcription 6 (STAT6) OAPD). It has improved preclinical candidates (PCCs) discovery time by over 50%, shortened the clinical screening cycle by about 30%, and increased clinical risk identification efficiency by 85%, achieving a dual leap in R&D efficiency and innovation quality. 

Focusing on broader clinical needs, Sino Biopharm has laid out a pipeline matrix with clear tiers and ample reserves. In the next three years, the Group will enter a new phase of explosive growth, with an estimated 20 innovative drugs and new indications expected to be approved for marketing. This includes multiple blockbuster products with global First-in-Class (FIC)/Best-in-Class (BIC) potential. The total number of innovative drug products is expected to exceed 40 by the end of 2028. 

 

 

Eric Tse, Chief Executive Officer of Sino Biopharm

 

While deeply cultivating the local market and consolidating its existing advantages, the company is firmly advancing its internationalization strategy and accelerating innovative development. Several major innovative assets have already demonstrated strong global competitiveness. Moreover, the Group is also firmly advancing its digital strategy, empowering drug R&D with AI. It is building an intelligent R&D platform that covers key stages such as target discovery and molecular design, which is widely applied in fields like small molecules and protein degraders, resulting in significant improvements in both R&D efficiency and innovation quality. 

 

Creating a Benchmark for Global Two-Way Empowerment, High-Potential Pipeline Makes a Stunning Debut

 

In the past few years, Sino Biopharm has reached over 30 external collaborations through various forms such as out-licensing, investment and M&A, pipeline in-licensing, and strategic cooperation, becoming a core bridge truly connecting Chinese innovation with the global market. From 2025 to the present, Sino Biopharm has continued to make breakthrough progress in the BD and internationalization tracks, becoming a typical benchmark for two-way empowerment in both domestic and overseas markets. 

 

Last July, the Group fully acquired LaNova Medicines for USD 950 million, gaining a world-leading antibody discovery and ADC technology platform. This deepened its cutting-edge layout in the field of immuno-oncology and also pioneered a new model for large domestic pharmaceutical companies to acquire biotechs. This January, it fully acquired Hygieia Pharmaceuticals for RMB 1.2 billion, completing its core technology platform in the field of small nucleic acid drugs and making a strong entry into the trillion-dollar chronic disease track. In February, the Group reached a USD 1.53 billion licensing cooperation with Sanofi for Rovadicitinib Tablets (Anxu^®), setting a record for the largest transaction in China's transplant field and officially launching the second growth curve of international innovation revenue. 

 

Driven by the dual wheels of Internal R&D + External M&A, Sino Biopharm has stockpiled a large number of blockbuster assets with global FIC/BIC potential that meet global clinical needs, forming the core reserve for its international layout. 

 

In the oncology field, LM-302 (a Claudin 18.2 ADC) is the first product globally to complete enrollment for a Phase III registrational clinical trial, demonstrating clear anti-tumor activity in gastrointestinal cancers    such as gastric cancer, pancreatic carcinoma, and biliary tract cancer. LM-108 (a CCR8 monoclonal antibody) is one of the fastest-developing CCR8-targeted antibodies in the world. It has entered Phase III for second-line gastric cancer, and Phase II data for first-line gastric cancer and first-line pancreatic carcinoma are planned to be read out at this year's European Society for Medical Oncology (ESMO) conference. 

 

In the fields of liver disease and cardiovascular metabolism, Kylo-11 (an LPA siRNA) is the world's first ultra-long-acting Lp(a) siRNA administered once a year, with Phase I data to be disclosed at this year's European Society of Cardiology (ESC) conference. Kylo-12 (an APOC3 siRNA) is expected to be administered once every six months or even at longer intervals, with a Phase II clinical trial planned for the second half of this year, and complete Phase I data will be announced at the American Heart Association (AHA) conference. A dual-target PCSK9 siRNA is also expected to enter clinical trials this year. 

 

In addition, in the field of weight loss and muscle gain, HJY-10 (an INHBE siRNA) is expected to enter the clinical stage this year. The weight loss and glucose-lowering indications for an oral small-molecule GLP-1 receptor agonist have been approved for clinical trials in both China and the US. An ActRIIA/B antibody will be submitted for dual filing in China and the US mid-year.

 

As of the end of 2025, the company's cash reserves amounted to RMB 33 billion, with net cash reaching RMB 16.9 billion. This provides ample financial support for the company's R&D investment, BD and M&A activities, and global layout. It also equips the company with a strong ability to resist risks, allowing it to calmly navigate industry cycle fluctuations and changes in the external environment. In addition to its solid financial fundamentals, the Group has always valued continuous and stable shareholder returns, maintaining a stable dividend payout ratio of over 30% for many consecutive years, bringing sustained and stable cash dividend returns to investors. 

 

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