Ge Long Hui·2025-11-01 21:00Core Viewpoint - Rongchang Biologics reported significant revenue growth and improved financial performance in Q3 2025, alongside the acceptance of its innovative drug application for IgA nephropathy, indicating strong potential in the biopharmaceutical market [1][2]. Financial Performance - For Q3 2025, the company achieved revenue of 6.22 billion yuan, a year-on-year increase of 33.13% - The net profit attributable to shareholders was -1.01 billion yuan, a reduction in losses by 65.24% year-on-year and a 48.25% decrease in losses compared to the previous quarter - The overall gross margin for the first three quarters was 84.27%, up by 4.51 percentage points year-on-year, while the operating cash flow net amount was 2.17 billion yuan, an increase of 125.99% year-on-year [1]. Product Development and Approvals - The company’s innovative drug, Tai A, for treating IgA nephropathy, has been accepted for priority review by the National Medical Products Administration, marking it as the first domestic original drug in this field [1]. - The company is advancing multiple clinical trials for Tai A in various autoimmune diseases, with results published in top medical journals [2]. - The company’s dual-target fusion protein, RC28-E, has been licensed to a Japanese company, generating upfront payments and potential milestone payments totaling up to 10.45 billion yuan [3]. Future Projections - Revenue projections for 2025 to 2027 are 22.5 billion yuan, 28.7 billion yuan, and 36.3 billion yuan, respectively, with year-on-year growth rates of 31.1%, 27.5%, and 26.6% - The net profit attributable to shareholders is expected to improve from -7.6 billion yuan in 2025 to 0.7 billion yuan in 2027, reflecting a significant turnaround in profitability [3].