InnoCare Pharma released its unaudited first-quarter 2026 results, highlighting a sharp turnaround in profitability on the back of strong product demand and milestone income.

Revenue and Earnings • Operating revenue rose 38.65% year-on-year (YoY) to RMB 528.63 million, fuelled by a 44.54% YoY increase in drug-sales revenue to RMB 450.50 million. • Net profit attributable to shareholders jumped to RMB 105.82 million, up 488.93% YoY, lifting basic and diluted earnings per share to RMB 0.06 (Q1 2025: RMB 0.01). • Management attributed the earnings surge to sustained volume growth of core BTK inhibitor orelabrutinib, initial contributions from tafasitamab and zurletrectinib, and milestone fees under the licensing deal with Zenas BioPharma.

Profit Quality and Comprehensive Income • Excluding a RMB 9.89 million net gain from non-recurring items, underlying profit reached RMB 95.93 million versus RMB 1.59 million a year earlier. • Mark-to-market losses on equity investments (-RMB 434.84 million) and adverse FX translation (-RMB 73.31 million) dragged other comprehensive income to a negative RMB 508.15 million, resulting in a total comprehensive loss of RMB 402.33 million attributable to shareholders.

Cost Structure and R&D Commitment • Total operating costs increased 14.1% YoY to RMB 438.10 million, well below the 38.7% top-line growth. • Research and development spending expanded 10.38% to RMB 229.16 million, representing 43.35% of revenue (down from 54.45% in Q1 2025), as the company advanced multiple oncology and autoimmune candidates. • Selling expenses edged up 4.2% YoY to RMB 118.80 million, reflecting continued commercial expansion.

Cash Flow and Balance Sheet • Net cash from operating activities fell 92.53% YoY to RMB 4.22 million, squeezed by higher production, R&D outlays, and tax payments. • Investment outflows of RMB 1.88 billion—mainly into financial assets—drove a net cash burn of RMB 381.20 million, trimming cash and bank balances to RMB 6.19 billion. Including short-term investments and other liquid assets, total cash and equivalents stood at approximately RMB 7.92 billion as of 31 March 2026. • Total assets declined 4.07% from year-end 2025 to RMB 10.38 billion, while shareholders’ equity slipped 4.95% to RMB 7.34 billion, reflecting unrealised investment losses. • Short-term borrowings more than doubled to RMB 388.29 million; long-term borrowings were marginally lower at RMB 988.00 million.

Outlook Management reiterated its intention to leverage its sizeable cash reserves to accelerate clinical and commercial execution across its pipeline, positioning the company for sustained growth in oncology and autoimmune therapeutics.