金斯瑞生物科技(01548) - 2025 - 中期业绩

Interim Results Highlights This section provides a concise overview of the Group's financial and operational performance for the interim period Financial Highlights For the six months ended June 30, 2025, the Group's continuing operations saw revenue grow 81.9% to $518.8 million and adjusted net profit surge 509.6% to $178.0 million, with overall net loss significantly narrowing despite a $193.7 million loss from associate Legend Biotech Key Financial Indicators for H1 2025 (Continuing Operations) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $518.8 million | $285.2 million | +81.9% | | Gross Profit | $320.6 million | $133.5 million | +140.1% | | Adjusted Net Profit | $178.0 million | $29.2 million | +509.6% | | Net Loss (Group Overall) | ($24.5 million) | ($215.6 million) | Loss narrowed by 88.6% | - The Group's net loss for the period was significantly impacted by a $193.7 million loss from its share of associate Legend Biotech; however, Legend Biotech itself achieved positive adjusted net profit in Q2 2025[3] - As of June 30, 2025, the Group held approximately $966.6 million in cash, bank balances, and wealth management financial products, indicating a robust financial position[3] Financial Statements This section presents the Group's interim condensed consolidated financial statements, including profit or loss, comprehensive income, financial position, and cash flows Interim Condensed Consolidated Statement of Profit or Loss During the reporting period, revenue from the company's continuing operations significantly increased to $518.8 million, with gross profit rising to $320.6 million; however, a substantial $193.7 million share of loss from a key associate (Legend Biotech) resulted in a pre-tax loss of $0.119 million and a loss from continuing operations of $24.5 million, a significant reduction from $137.7 million in the prior period Key Profit or Loss Statement Data (Continuing Operations) | Item | H1 2025 (USD '000) | H1 2024 (USD '000) | | :--- | :--- | :--- | | Revenue | 518,773 | 285,160 | | Gross Profit | 320,631 | 133,505 | | Research and Development Expenses | (31,321) | (24,909) | | Share of Loss of a Key Associate | (193,698) | - | | Loss Before Tax | (119) | (127,927) | | Loss from Continuing Operations for the Period | (24,547) | (137,739) | - Basic loss per share attributable to ordinary equity holders of the parent company narrowed from 8.27 US cents in the prior period to 1.18 US cents[9] Interim Condensed Consolidated Statement of Comprehensive Income Despite a net loss of $24.5 million for the period, total comprehensive income turned positive at $67.7 million, driven by other comprehensive income from a key associate ($87.4 million) and exchange gains, marking a significant improvement from a total comprehensive loss of $278.7 million in the prior period Total Comprehensive Income / (Loss) | Item | H1 2025 (USD '000) | H1 2024 (USD '000) | | :--- | :--- | :--- | | Loss for the Period | (24,547) | (215,631) | | Other Comprehensive Income from Continuing Operations | 92,234 | (4,526) | | Total Comprehensive Income / (Loss) for the Period | 67,687 | (278,685) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were $5.435 billion, total liabilities were $1.013 billion, and net assets were $4.421 billion, with core assets including an investment in associate Legend Biotech valued at approximately $3.578 billion, and current assets significantly increasing to $1.177 billion due to higher financial product investments and cash Key Balance Sheet Items | Item | June 30, 2025 (USD '000) | Dec 31, 2024 (USD '000) | | :--- | :--- | :--- | | Non-current Assets | 4,257,800 | 4,443,291 | | Of which: Investment in an associate | 3,578,174 | 3,667,731 | | Current Assets | 1,176,806 | 834,978 | | Of which: Cash and cash equivalents | 293,206 | 131,990 | | Current Liabilities | 600,529 | 307,342 | | Non-current Liabilities | 412,765 | 647,565 | | Net Assets | 4,421,312 | 4,323,362 | Interim Condensed Consolidated Statement of Cash Flows During the reporting period, net cash flow from operating activities significantly increased to $232.6 million, with net cash outflow from investing activities at $98.6 million and net cash inflow from financing activities at $26.4 million, resulting in an increase of $160.4 million in cash and cash equivalents to $293.2 million at period-end Cash Flow Statement Summary | Item | H1 2025 (USD '000) | H1 2024 (USD '000) | | :--- | :--- | :--- | | Net cash generated from operating activities | 232,619 | 79,855 | | Net cash used in investing activities | (98,645) | (1,133,054) | | Net cash generated from financing activities | 26,403 | 5,565 | | Net increase / (decrease) in cash and cash equivalents | 160,377 | (1,047,634) | Management Discussion and Analysis This section provides an in-depth review of the Group's business operations, financial performance, risk management strategies, and future strategic plans Company Positioning and Business Review The company is a global biotechnology firm with three core business platforms: Life Science Services and Products (GenScript), Biologics CDMO (Probio), and Industrial Synthetic Products (Bestzyme), alongside a significant investment in cell therapy leader Legend Biotech; during the period, total Group revenue grew 81.9% to $518.8 million, and gross profit increased 140.1% to $320.6 million, primarily driven by licensing revenue from the Biologics Development Services segment - The company's business platforms include: - GenScript: Providing one-stop life science research services and products[41] - Probio: Biologics CDMO platform[42] - Bestzyme: Industrial synthetic products platform[43] - Legend: A key associate focused on cell therapy development[43] External Revenue Contribution by Business Segment (H1 2025) | Business Segment | Revenue Contribution | | :--- | :--- | | Life Science Services and Products | 47.2% | | Biologics Development Services | 47.0% | | Industrial Synthetic Bioproducts | 5.5% | Life Science Services and Products This segment's revenue grew steadily by 11.3% to $247.6 million, with adjusted gross profit increasing by 5.3% to $126.3 million, driven by platform innovation, improved production efficiency, and enhanced customer engagement; adjusted operating profit slightly decreased due to increased investments in marketing transformation and R&D Life Science Segment Performance | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $247.6 million | $222.4 million | +11.3% | | Adjusted Gross Profit | $126.3 million | $119.9 million | +5.3% | | Adjusted Operating Profit | $46.4 million | $47.8 million | -2.9% | Biologics Development Services This segment demonstrated exceptional performance, with revenue surging 511.1% year-on-year to $246.9 million, primarily due to sub-licensing revenue from RemeGen; adjusted gross margin significantly improved from 14.7% to 73.6%, and adjusted operating profit turned profitable at $149.6 million, with core services and product sales also achieving double-digit growth excluding licensing revenue Biologics Segment Performance | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $246.9 million | $40.4 million | +511.1% | | Adjusted Gross Profit | $181.6 million | $5.9 million | +2978% | | Adjusted Operating Profit | $149.6 million | ($18.9 million) | Turned profitable | Industrial Synthetic Bioproducts This segment's revenue grew 8.4% to $28.3 million, primarily driven by expanded operations in China and overseas market penetration; however, adjusted operating profit turned to a loss of $0.6 million due to increased R&D expenses, which the company views as a necessary investment for future technological innovation Industrial Synthetic Bioproducts Segment Performance | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $28.3 million | $26.1 million | +8.4% | | Adjusted Gross Profit | $11.4 million | $11.0 million | +3.6% | | Adjusted Operating Profit | ($0.6 million) | $2.3 million | Turned from profit to loss | Financial Review During the reporting period, the Group demonstrated strong financial performance with total revenue growing 81.9%, primarily driven by licensing revenue from Biologics Development Services, and gross profit increasing 140.1%; operating expenses rose across the board, reflecting continued investments in marketing, administration, and R&D, while net loss significantly narrowed to $24.5 million and adjusted net profit increased to $178.0 million, maintaining a robust financial position with a current ratio of 2.0 and a debt-to-asset ratio of 18.6% - Sales and distribution expenses, administrative expenses, and R&D expenses increased by 10.2%, 19.7%, and 25.7% year-on-year, respectively, primarily due to team expansion, infrastructure development, and strategic research project investments[52][53][54] - The Group recognized an approximate $13.8 million fair value loss on preferred shares during the reporting period[56] Key Financial Ratios | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 2.0 | 2.7 | | Debt-to-Asset Ratio | 18.6% | 18.1% | | Total Cash and Financial Products | $966.6 million | $737.8 million | Significant Investments Held The Group's most significant investment is its equity stake in associate Legend Biotech, with a book value of approximately $3.6 billion at period-end, representing 65.6% of total Group assets; additionally, the Group holds $566 million in various financial assets, primarily bank-issued wealth management products and money market funds, as part of its cash management strategy - The investment in associate Legend Biotech had a book value of $3.6 billion, with the Group's share of its loss for the reporting period being approximately $193.7 million[68] - The Group holds $541 million in liquid wealth management financial products and $25.16 million in non-current unlisted equity investments to enhance the utilization of its cash reserves[69][70] Risk Management The Group faces key risks including foreign exchange risk, interest rate risk, credit risk, and geopolitical risks; to manage foreign exchange risk, the Group uses derivative instruments for hedging, and to mitigate geopolitical risks, it promotes a global production footprint and supply chain diversification, having also established a Data Security and Geopolitical Resilience Subcommittee to enhance risk oversight - The Group manages currency risk, primarily related to RMB, through foreign exchange forward and option contracts[87] - To address risks from US-China trade tensions, tariffs, and import/export controls, the Group is continuously expanding its global service capabilities and diversifying its supply chain partners[91][92] - The Board has established a Data Security and Geopolitical Resilience Subcommittee to support its review of the company's effectiveness in managing geopolitical risks[93] Future Outlook and Plans The Group plans to continue consolidating its leadership across all business segments; the Life Science business will expand its global production footprint and upgrade its brand, Biologics Development Services (Probio) will enhance its CGT capabilities, especially in the US market, and leverage its antibody discovery platform for out-licensing, Industrial Synthetic Bioproducts (Bestzyme) will optimize production facilities and develop new products, and the Group will maintain its long-term investment in Legend Biotech - Life Science: Plans to expand production capacity in the US, Singapore, and mainland China to support CGT key reagent manufacturing and advance global brand upgrading[83][96] - Biologics Development Services: Enhancing CGT service portfolio (GMP plasmids, AAV, LVV), deepening penetration in the US market, and leveraging its proprietary antibody discovery platforms (e.g., CD3 VHH) for asset out-licensing[84][96] - Industrial Synthetic Bioproducts: Optimizing production facilities in China, expanding synthetic biology laboratories, and enhancing R&D capabilities[84][96] Other Information This section covers additional details regarding the Group's human resources, share-related matters, and corporate governance practices Employees and Remuneration Policy As of June 30, 2025, the Group had 5,769 employees; total employee remuneration expenses (excluding equity incentives) for the reporting period were approximately $143 million, with the company's remuneration policy aiming to attract and retain talent through competitive compensation to support long-term development - As of the period-end, the Group had 5,769 employees, with approximately 9.5% being R&D personnel[99] - Total employee remuneration expenses (excluding equity incentives) for the reporting period were approximately $143 million, representing 45.4% of total revenue (excluding licensing revenue)[99] Dividends and Shares The Board resolved not to declare any interim dividend for the reporting period; regarding share schemes, certain shares were granted under the Restricted Share Award Scheme during the period, but no options were granted under the Share Option Scheme, and neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities during the period - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[26][107] - During the reporting period, the company granted a total of over 7 million restricted shares under the 2019 and 2021 Restricted Share Award Schemes[103] - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[108] Corporate Governance The company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code under the Hong Kong Listing Rules; during the reporting period, the company consistently complied with all applicable code provisions, and an Audit Committee, comprising three independent non-executive directors, has been established and reviewed the interim results for the current period - The company consistently complied with all applicable provisions of the Corporate Governance Code during the reporting period[109] - The company has established an Audit Committee, composed of three members, responsible for reviewing and overseeing the company's financial reporting, risk management, and internal control systems[112] - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[113]