Biotechnology group 3SBio reported a 3.9% year-on-year revenue increase to RMB4.53 billion for the six months ended 30 June 2026, driven by RMB851.58 million of milestone income from its global licensing deal with Pfizer for bispecific antibody 707.
Gross profit edged up 2.1% to RMB3.79 billion, but gross margin slipped to 83.8% from 85.3% on higher production costs and intensifying pricing pressure in China’s volume-based procurement (VBP) environment.
Net profit attributable to shareholders fell 15.6% to RMB1.15 billion as foreign-exchange losses and a 24.9% rise in R&D spending to RMB683.85 million weighed on earnings. Adjusted net profit, which excludes share-based payments, fair-value movements and FX swings, grew 26.5% to RMB1.44 billion, highlighting the underlying contribution from the Pfizer payment.
Operating metrics reflected mixed trends: • EBITDA declined 17.7% to RMB1.51 billion; adjusted EBITDA rose 11.7% to RMB1.80 billion. • Selling and distribution expenses dropped 25.3% to RMB1.21 billion (26.7% of revenue), partially offsetting higher R&D outlays. • Administrative costs eased 5.5% to RMB267.81 million.
Segment performance showed biopharmaceutical sales contracting 19.3% to RMB3.44 billion amid reimbursement and VAT changes, while contract development and manufacturing (CDMO) revenue surged 160.9% to RMB231.38 million.
Cash generation remained solid with operating cash flow of RMB899.39 million. Total cash, time deposits and pledged deposits stood at RMB12.47 billion at period-end. Net current assets were RMB17.23 billion, and the current ratio strengthened to 6.1. Interest-bearing debt fell to RMB1.32 billion, cutting the gearing ratio to 5.7% from 9.8% six months earlier.
No interim dividend was declared. A final dividend of HKD0.25 per share for FY2025 (RMB549.32 million) was approved in June. During the half, the company repurchased 8.52 million shares for HKD135.47 million.
Strategic developments included approval of two home-grown drugs—IL-17 mAb Yisaituo and long-acting erythropoietin NuPIAO—plus U.S. FDA clearance for an overseas bridging trial of TPIAO in chronic liver disease-related thrombocytopenia. The R&D pipeline now spans 25 key candidates across oncology, immunology, nephrology and metabolic diseases.
Looking ahead, management flagged continued investment in late-stage clinical assets, expansion of ex-China trials, and pursuit of further global partnerships while navigating domestic pricing reforms. The auditor transitioned from EY to KPMG following a 15-year tenure.