Hengrui Pharma 2025 Results: Revenue Up 13.0% to RMB 31.63 Billion, Net Profit Up 21.7% to RMB 7.71 Billion

Hengrui Pharma released its audited results for the year ended 31 December 2025.

Financial Highlights • Revenue grew 13.0% year-on-year to RMB 31.63 billion. • Net profit attributable to shareholders rose 21.7% to RMB 7.71 billion. • Basic EPS was RMB 1.19, compared with RMB 1.00 in 2024. • Proposed final dividend: RMB 2.0 per 10 shares. • Gross margin remained stable at 86.2%. • R&D investment reached RMB 8.72 billion; R&D expenses recognised in profit or loss were RMB 6.96 billion, equal to 22.0% of revenue. • Cash and bank balances stood at RMB 40.85 billion.

Operational Indicators • Innovative drug sales amounted to RMB 16.34 billion, up 26.1%, contributing 58.3% of drug sales. • Licensing income totalled RMB 3.39 billion, driven by agreements with MSD, GSK, IDEAYA Biosciences, Merck KGaA and Braveheart Bio. • Generic drug revenue declined slightly amid ongoing national and provincial volume-based procurement. • Overseas revenue rose to RMB 4.77 billion, reflecting progress in globalisation strategy. • EBITDA (non-IFRS) increased 19.3% to RMB 8.88 billion.

R&D and Pipeline Progress • Seven Class 1 innovative drugs and one Class 2 innovative drug were approved in China during 2025, bringing the total to 24 Class 1 and five Class 2 approvals. • Approximately 53 innovative products/indications are expected to obtain approvals between 2026-2028. • 28 self-developed molecules entered clinical stage; 15 NDAs accepted; 28 Phase III studies and 61 Phase II studies initiated. • Breakthrough Therapy Designation or priority review was granted to eight programmes by China’s CDE; one orphan drug designation and one fast-track designation were granted by the U.S. FDA.

Balance Sheet and Cash Flow • Total assets: RMB 69.87 billion; total equity: RMB 61.80 billion. • Operating cash inflow rose to RMB 11.24 billion. • Gearing ratio increased to 11.6% due to higher contract liabilities from upfront licensing fees.

Management Moves • The Board proposes re-election of directors and appointment of Mr Lou Liguang as an independent non-executive director, with current INED Mr Dong Jiahong to retire at the 2026 AGM.

Post-Reporting Updates • Three additional approvals obtained in early 2026 for Retlirafusp alfa, Hetrombopag olamine (new indication) and Trastuzumab rezetecan (new indication), and dissolution of the Supervisory Committee on 31 December 2025.

Outlook Hengrui Pharma will continue to prioritise innovation and global expansion, targeting >30% growth in innovative drug sales in 2026 and maintaining high-level R&D investment to support the anticipated wave of new product launches.